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Join me today for Episode 906 of Bitcoin And . . .

Topics for today:

- Interview with Jawad Dashti
- Real Estate
- Bitcoin
- His now infamous Facebook Post

#Bitcoin #BitcoinAnd

Jawad Dashit's Contact Info:

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Website: https://www.toodashproperties.com/about-us/

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Music by:
Flutey Funk Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0 License
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[00:00:00] David Bennett:

Good morning. This is David Bennett, and this is Bitcoin and, a podcast where I try to find the edge effect between the worlds of Bitcoin, gaming, permaculture,   podcasting, and education to gain a better understanding of all. Edge effect is a concept from ecology describing a greater diversity of life where the edges of 2 systems overlap. While species from either system can be found at the edge, it is important to note there are species in the overlap that exist in neither system, and that is what I seek to uncover. Uncover. So join me in discovering the variety of things being created as Bitcoin rubs up against other systems.   It is 12:41   PM   Pacific Daylight Time. It is the 10th day of June 2024, and this is episode 906   of Bitcoin. And today, we got an interview with Jawad   Doshdi,   real estate guy down there in   Dallas Fort Worth area.  

If you don't know who Jawad is, you're gonna know who he is by the end of the episode. But   preliminarily, let's just say that he made a Facebook post   about the value of your house compared to Bitcoin.   And   it got him a lot of flack.   There's a whole bunch of flack because he essentially showed the chart that we're you know what the chart says, you compare a value of a house and it went from, you know, 36 Bitcoin a few years back and now you could buy the same house for 6 Bitcoin.   And he really pissed off quite a few people. We're gonna get into that, but we're also gonna get into   real estate.  

Is real estate dead? Is it still viable?   What do we think about it?   Is there any   entry point if you want to get into   real estate like buying houses for rent or flipping?   Sort of how that works now that COVID is over and the, you know, essentially the economy's   under essentially under attack.   We're gonna get into all that. It's a good interview. Jawad's a really good guy.   Really enjoyed talking to him, and I'm just gonna drop you in to that interview   right now. Well, welcome to the Bitcoin and podcast. I appreciate you being here, Jawad.   Guest today is Jawad is Dashti?  

Yes, sir. Pronounce it? Okay. Excellent.   And,   we're gonna talk a little bit about how you got into,   come to know Bitcoin. We're I really wanna talk about your,   real estate investment group down there in Dallas Fort Worth,   And then we're gonna get into the meat and potatoes of of why I asked you to be on on the Bitcoin ad podcast. So   would you do me a favor and give the the get the   audience a little bit of background on who you are and kinda how you came to do what you do?  

[00:03:00] Jawad Dashti:

Yeah.   So I'm 40 now.   Born and raised in the Dallas, Texas area.   I got   I started a plumbing company in 2010 after being in plumbing for,   I don't know, maybe about 15 years.   And,   I   had started making my first $1,000,000,   and I didn't know what inflation was. I didn't know anything about economy.   And,   I switched to Chase,   Bank, and they gave me a private client back when it first came out. I met this banker named Mike, and I owe everything to him. But,   to be honest, he was just trying to sell me bank products, you know, sell me, like, Franklin funds and stuff like that. But   he sat down and taught me about inflation and how my money was weathering away in a checking account.  

And at the end of the speech, he was like, so do you wanna buy some of these bonds? And I'm like, no. But I wanna go buy some real estate. He was like, how did you grasp that from this conversation?   Uh-huh. And,   I'm one of those people that doesn't have to think too hard about something. I just go do it. I don't make a lot of excuses. So,   within a month, I went and bought my first house, and that was in 2013,   which luckily for me I don't blame everything on me being smart. I give a lot of credit to faith and god.   But in 2013,   was buying at the bottom of the market. You know, 2008 crash had hit the bottom. It's starting to settle. It hadn't came up yet.  

And,   was really doing good in rental properties.   And,   up until now, I've amassed   8 figures in real estate.   Most of it free and clear. I don't syndicate, so I'm not using anybody's money. It all boils to me. I don't have any partners.   And I started out all doing houses,   moved up to condos once real estate started taking off again in 2014.   Got into apartments,   doing multimillion dollar deals, and now strip centers or warehouses.   And it's definitely where I've made, like, the most mass of my wealth. Mhmm.   Now as far as Bitcoin goes, the first time I ran into it was in 2014.   I was working out a lot, burning fat, and some guy was trying to sell me some peptides from overseas and only took Bitcoin.  

And to be honest, I didn't even remember this until, like, a year ago.   But the guy had me buy it through I have no idea what exchange it was.   And I had to buy the Bitcoin using PayPal.   And I remember,   I only owed them, like, a 100 something dollars.   But I couldn't exchanges were so poor back then, poorly made.   I couldn't figure out the exchange rate, so I just bought them 5 Bitcoin and gave them 3 extra Bitcoin.   Uh-huh. I'd love to have them back today.   Oh, yeah.   So yeah. And I remember it's $250   exactly for 5 Bitcoins. So it was about $50 coin back then.   And I'm not trying to, like, brag that I was so smart that I knew about it back then because I forgot about it. Like, I didn't care.  

But then in 2016,   I don't   specifically know how I heard about it again.   Probably gonna give it to some of my tech friends because they never showed up about new things, just like when Twitter first came out.   But I started looking into it,   but then I was looking at all coins and everything. You know? I didn't really care the difference. And,   started, like, day trading it a little bit,   built up a few coins. And,   then when I really started learning,   the difference between them all, I focused on only Bitcoin and didn't really care about the rest at all.   And   then, you know, whenever we had the dump during COVID,   I dumped a substantial   amount of money, which I won't specifically state how much, but enough to buy several houses in the Bitcoin.  

A lot of my friends were ready to, like, put me in a mental institution over it.   But, you know, now I've done very well with that. And the more I learned about it, the more I start charting things to it because I do believe in a lot of things in Bitcoin that most people do. I do believe that things can be a lot better.   I do believe that's why so many people aren't really trying to fix systems the way they are now, is that it's all being built on a new system.   And as somebody who built systems,   being a c suite executive in multiple companies, I understand that sometimes you have to tear things down and ignore broken things to build the new things.   But I started charting everything against it because I'm still, you know, definitely,   money minded. I mean, that's what pays the bills. It gets things done. And,   I started really looking at everything and   noticing,   really, that Bitcoin was gonna be king and,   dominate over everything.  



[00:08:04] David Bennett:

Well, you had said something back there a cup a few minutes ago that really interested me, and that is that   you knew about the existence of Altcoins,   but you almost immediately dismissed their existence.   It it did I hear that right?  

[00:08:20] Jawad Dashti:

Yeah.   I I did definitely read white papers. Like, I'm not somebody that just, like, oh, Bitcoin's a pyramid scheme, or, oh, this point's trash or all that. Like, I always do my own research. I don't I don't care what other people say.   But I did always breathe and do my own research. I do like what a lot of coins do.   I just don't think that they're gonna do it the way things are. I think they're all gonna end up being on the Bitcoin Blockchain,   and and provide which is already starting to happen. You know, we got solid payments now instead of Monero.   You got, you know, where you can do contracts on Bitcoin now, so you really don't need Solana or Ethereum.  

And like I said, I'm not a tech guy, so if there's stuff where I'm a little bit wrong about, I I would love to be corrected.   I prefer to be corrected. I like to learn.   But I see that a lot of them are slowly getting replaced, and I think what's really gonna help is when some of these bridge over,   off of the and under Bitcoin.   That's, the way I see this almost like a company, like Amazon on the Nasdaq or S and P or things like that.   You could have these companies that could be under Bitcoin.   Just like now, I don't know if you've heard about it, but Hilton has syndicated   a hotel in El Salvador under Bitcoin, and they're tokenizing it. And,   that's how I see what Altcoins   should be and can be,   in the future.  



[00:09:47] David Bennett:

Well, let's take it all the way back, to the head of the to the head of the interview. We're we're talking about real estate. So   you are   the head of   is it, 2 Dash Properties?  

[00:10:01] Jawad Dashti:

Yeah. I'm the founder and CEO of 2 Dash Properties,   2 Dash Home Buyers,   also 2 Dash Group, which is the plumbing company.   And,   I've used that to build up real estate and,   consult people on their real estate stuff as well.  

[00:10:19] David Bennett:

And that's that's real or, sorry, residential and commercial. Right? Correct.   And what what when I called you a couple of days ago   after the, it what we'll we'll talk about the infamous Facebook post, but,   you were saying, because I'm I'm   I'm not in real estate.   Not not to the   not to the depth that you are. I mean,   we've got a couple of properties,   but it's not, you know, it, we're not really plumbing the depths of this thing. And one of the things that, that I've seen   over the, you know, over the past few years   is just watching   home prices   just   escape,   like, escape all gravity. It's just it's out in orbit at this point. And I always believe that a lot of that had to do with,   firms like Blackstone, not as much BlackRock, but Black Stone, buying up single family residences   as a place to park money. And we see this going on in China. We see it going on in Australia. We see it going on all over the   place. But one of the things that I saw happen was the commercial side.  

Just get eviscerated,   but you said something on the phone when we were talking.   That was really interesting that you still see potential in the commercial side.   And I'm kinda wondering, could you expand a little bit on on what you're seeing in the commercial side of the real estate?  

[00:11:51] Jawad Dashti:

Yeah. So,   I luckily,   I mean, I've been doing apartments,   way before COVID, which is considered commercial. But as far as, like, retail stores or warehouses and offices,   I just started getting into that before COVID, which sounds like it was just the other day, but that was 5 years ago now. Yeah.   But,   luckily,   I had just been sitting on a few $1,000,000   and,   kinda looking for my next move. And had most of it in a 10 30 one exchange, which if you don't know what that is, it's a tax move. Don't really have to pay any capital gains taxes when you sell property.   And   COVID happened. And, you know, everything shut down,   and people were struggling, and people were fired selling   all of the commercial real estate.  

I'm not really a predator that really looks to to go make money on people at their demise, but,   you know, the opportunities came up. And I ended up in 2020, the 1st year of the shutdown. So about 21 commercial properties.   Picked up a lot of them, probably 10¢ on the dollar,   which really helped a lot of these people because they're about to go in foreclosure.   And   we worked out some one one scenarios where everybody walked away with what they wanted.   But, you know, once again, everybody called me crazy, called me psycho,   and my bet was not really on whether or not COVID was gonna I was like, look. If COVID kills everybody,   it's true no matter what. Uh-huh.  

Yeah. I I'm making a move that the economy is gonna come back, and everybody's like, there people are never gonna shop in stores again. It's never gonna happen. And I was like, look, I'm dying to get out of the house. You've been telling me you're dying to get out of the house. I think they will.   COVID opens up, commercial does great.   One of the biggest things you gotta do in commercial is you gotta make sure that you're not buying the lease, which means you don't wanna buy the income, you wanna buy the property. The reason why is if you're gonna buy the lease and then move out, you're gonna put somebody in there that wants it also, or are they gonna pay as much money? But if you buy the location,   no matter what happens, you're probably gonna do better off.  

So I'm making sure that I was buying a lot of stuff in downtowns.   There's one city where I literally bought half the downtown strip.   But   in times where cap rate where interest rates went up, yeah, commercial real estate was, like, really getting its butt kicked. You know? Because commercial does not work like residential where it sells by price per square foot.   It goes off cap cap rate, which is solely off income, and interest rates plays a huge part in that. So every time interest rates goes up 1%,   even a quarter of a percent, some of these properties are going down a half $1,000,000, a $1,000,000 of value.  

And that's what's   causing this apocalypse that we're heading towards in October   is a lot of notes. A lot of people's commercial notes in the United States come due this October   from everybody that refi during COVID. And if rates are still this high,   people are gonna be, like, in a lot of trouble,   because they can't refinance. Not that that they shouldn't. It's they can't.  

[00:15:06] David Bennett:

Is that also gonna be true for residential?  

[00:15:10] Jawad Dashti:

Yeah. But not near as much. So, like, most investors have 5 year notes,   because, like, whenever I go buy a property, if I get a loan,   the bank will   give me a 100%. You know, you ever see those TV commercials, don't use your own money.   That's true. It's just hard to come by. It took me years years years to find that. But I have banks that'll fund a 100% of any property that I wanna buy because they know that   they're not getting a 100% of the equity. I'm buying them at 50%.   So if I'm buying at 50%, yeah, I'm a fund the whole thing because I've got a great deal. They'd love to foreclose on me. They hope that something bad happens to me, they get a great deal. But,   doing that, they will still give you a 20, 30 year amortization,   but the note renews every 5 years at best. I know some people that own $1,000,000,000 commercial storage companies, theirs renews every 1 year, and they take 1 year instead of 5 year just to save a quarter of a percent of interest.  

They call me crazy, and I'm like, I would rather have less risk for that quarter percent. I don't need the income like that.  

[00:16:19] David Bennett:

Wow. So what I'd essentially, what I just heard is that some people are doing this to save a quarter percent and going on a year over year   turnaround on their loans, which means that it seems to me like that's like a recipe for losing   never sleeping again.  

[00:16:35] Jawad Dashti:

Oh, correct. And and they're not.   You know, they nobody talks about it publicly. The Facebook groups,   you know, everybody's like, hey. I'm doing good. And somebody will be like, hey. I'm suffering. Like, how's everybody else doing? Everybody's like, oh, I'm doing amazing, better than ever. And then, like, privately at a dinner, they're like, oh, dude. I'm I'm getting slaughtered right now because property taxes are up   probably 200%   per year since COVID started,   which is like murdering cash flow. And these people are barely cash flowing because banks only require 1.25   DSCR,   which means,   you know, if   their   mortgage is, say, $1,000   a month, they're only requiring the gross income of the rent to be, like, 1250.  

So your rent goes at, you know,   level or down,   which I'm starting to see right now, rents are going stagnant out here in Texas.   But you got your property tax going up, and then our insurance is, like, insanely going up. And   so these people are no longer cash flowing.   They no longer have any equity on the commercial side. And   then, you know, they got the refi coming up and you no longer qualify for a refinance because you're not 50% anymore. You pulled all your equity out on your refi.   So now you're upside down. And so,   you know, I know people that work for,   some pretty substantially large terminal crow companies out here in Dallas, and they're saying that they're bringing   7 figures, 8 figures to the table on every one of the refinances.  

And you gotta wonder, like,   how sustainable is that? Like, what's your burn rate?   And so   during COVID, I made a bold move.   Also, after buying all the commercial properties.   And I really got out of a lot of my debt, went cash only on the majority of it. I only have about 5% debt. People are like, that's dumb. We're in hyperinflation.   You know, debt's king right now, and the cash is the worst thing you wanna do. You know, I'm sitting on 7 figures liquidity.   And I'm like,   yeah, but there's also risk. You know, what goes up can't come down. So I wanna have some money aside. They're like, you're just burning away. And I'm like, well, I'll take the risk.   And now all these people that don't have any of that liquidity are dropping pretty quickly. And   the dominoes are starting to fall faster and faster. And like I said, October   is like a commercial Armageddon right now coming up.  

So that's what I'm really watching for.  

[00:19:07] David Bennett:

Okay. Well,   I I wanna come back to there's some questions that I have about   about the real estate business in general, but I don't wanna I I wanna make sure that we get to the meat and potatoes of this thing   before I do that. And that's   your Facebook group is one of the largest   real estate Facebook groups that there is. I mean, there's bigger ones and there's smaller ones, but yours is substantial.  

[00:19:33] Jawad Dashti:

Yeah. It's the largest one in Texas.  

[00:19:35] David Bennett:

46,000   members on this thing.   46.1   or 46.7.   I can't remember what it was. I was looking at it this morning.   And,   and it's just but it's just for Dallas, Fort Worth. Right? Or that general area? People that are Yeah. It's just really for North Texas.  

[00:19:53] Jawad Dashti:

I have another one that's for the whole state, and then I have another one that's just for tenants looking to rent properties that's, like, 50,000 people. Right.   But, yeah, I kinda try to create my own funnels,   for lead generation.  

[00:20:07] David Bennett:

Okay. So   in this Facebook group   that is 46,000 people strong, and these are   I've the great guts and feathers have gotta be, you   know, people that are used to legacy finance,   watching   CNBC, watching NBC.   A lot of them get their news from these these same places. And all of a sudden, a couple of days ago,   you just decide to compare price houses against Bitcoin and not the US dollar.   And the warning that you gave was your house.   The value of your house is crashing   against Bitcoin.   When you said that,   it seems to have generated some,   backlash. Let's just call it that.  



[00:20:53] Jawad Dashti:

Oh, yeah. I'm still receiving that backlash.  

[00:20:55] David Bennett:

Yeah. Oh oh, and you will, because this is probably not gonna be the last Bitcoin or the calls you up for an interview.   What what I wanna get into is there's 2 parts to that that are that are really interesting to me   is   given   that I mean, if you're if you follow Bitcoin, then you'd know the missteps that people make,   like, at dinner or at Christmas. Hey, grandma. Buy Bitcoin. You're gonna you're gonna be great.   And but you've got, like,   46,000,   quote, unquote, normies that you're about to pull the plug on and say that value of your property is crashing against Bitcoin.   When   what brought you to do that? What why did you go, you know what? I'm gonna I'm going to catch   punches to the face, but I'm gonna do it anyway.  

So   why?  

[00:21:47] Jawad Dashti:

I have tried to throw little hints out there every once in a while just to get feels on, like, how accepted it's gonna be.   And, you know, a lot of people in this group are bankers,   which   bankers,   a lot of them used to have were really, really,   poor thoughts on Bitcoin. I remember you know, I have lunch with bankers all the time. Take me to Mavs Games, dinner, all that stuff. I remember back in the day, they knew that I was buying Bitcoin. One of them knew that I was trying to make a   substantial purchase of it, a few years ago. And he was like, our bike's not gonna let you do it. And he was like, if you do find 1, let me know because I got people that do ask quite often.   So, you know, every once in a while, when I feel like everybody's using Bitcoin and into it, and then I get a reality check that it's not.  

But I would say that I would always put my feelers out there just to kinda get a grasp. And I found probably   10 people in that 46,000. They were, like, deep into it. You know, I'm sure a lot of them have some or whatever, but, like, people I have, like, a minor,   one guy that I knew pretty well. I didn't even know that he had his own mining facility at,   natural gas well in Texas, like, had a pretty good setup going.   I got people that brag about it all the time, and then I found out they didn't have any at all. And I was like, why are you always talking about Bitcoin when you don't have any stuff? I always put the fillers out there,   And I've learned that even the people that are into it won't talk about it because,   it's really easy to get slaughtered. Yeah.  

And reputation's   everything. And like I said, it really is because,   you know, I've I have a huge reputation   in all over Texas, not just BFW,   where   I know bankers have been on probably   a 100 different podcast over real estate.   And,   it matters because it brings in the leads of who tries to sell you properties or throw deals your way or wants to give you money,   things like that. And,   people weren't getting it. And so,   I'm known for being brutally honest. I don't really care,   if people agree with me, and I'm always open to   people that want to,   kinda dispute it as long as, you know, there's doesn't turn into trolling and just talking trash. You know? I I'm always open to other opinions.  

But I would say I was like, alright. Well, maybe I can show them.   Because a lot of things that I immediately hear is tulips and pyramid scheme. Yep. So, you know, people in real estate, we use grass all the time. But some people in real estate just buy real estate because they're told to. They don't really understand real estate. They don't understand real estate is a utility and only has a utility value,   just like gold. And the only reason why it's taking off so substantially is because of the debt. The debt is what's making real estate so valuable. Without debt, real estate would be dead, and 2008 proved that.   And, you know, people are saying all the time, well, was   so   much more valuable and it switched over that, real estate would not lose any value at all,   because people still need houses. But in my opinion, people still needed houses in 2008, 2009, 2010,   but banks stopped lending. And guess what? People stopped buying.  

And,   so if   Bitcoin   is a world where there's not gonna be much like DeFi and lending,   then I don't see that. And I hope it doesn't happen. I hope I hope it bankrupts my real estate company   because then people can have affordable housing again. And like I said, I I'm not into the predatory stuff. I I'm just you know, I'm only in the real estate because that's what makes the money and lets me do what I think is the right thing to do and house,   give affordable housing to people and things like that. But I I hope it crumbles,   and be best for everybody.  



[00:25:47] David Bennett:

Well, when when you did release that that graph that showed the the price of housing crashing against Bitcoin, because   it's it's weird the way that I think about it now is that   we we compare Bitcoin against the US dollar have ever since   Bitcoin's come out, few people will say that the inevitable one Bitcoin is worth 1 Bitcoin.   But then we start looking at at other ways to to value what Bitcoin is. And one of the things that I one of the things that that I came up with was   arable   farmland in the, you know, how many acres of arable farmland is in the world   and   use that as a divisor for Bitcoin to come up with how many acres of arable land,   you know, per Bitcoin.  

But once we start comparing it to other things,   we always end up with the situation where,   well, housing is compared against the US dollar and arable farmland is compared against the US dollar. And all of a sudden,   we get this thing called Bitcoin that is also compared to the US dollar, but now we compare it   to housing, and we use it as a barometer for these for these other things. And it seems to it seems to somehow or another short circuit,   this   inevitable thought pattern that, oh, you have a thing. What is its value in the US dollar?   And   when I start thinking that way, I wonder if more if other people are starting to think that way. And it looks to me like we might act that this might be a.  



[00:27:21] Jawad Dashti:

A symptom of the erosion of our trust in the U. S. Dollar. Do you see where I'm getting at there? Yeah. Do you agree with that or am I off base in your opinion? No. And I think it's funny because I've also done the same thing where I've divided the amount of land on Earth by the amount of Bitcoin. I've I've chartered that with a lot of things. And to be   honest, the biggest disservice, and I could be wrong, but the biggest disservice, I think, that any of these exchanges ever did is when they stopped pricing all Altcoins   and Bitcoin and started pricing everything on the dollar. Mhmm. Because I think it really   mistracked and sent a lot of people the wrong direction.  

And,   you know,   I can understand how a lot of people don't understand Bitcoin. And when you say that,   for somebody who doesn't understand it and they hear that, they're like,   think I'm an idiot. But what I mean by that is   you have to understand people are like, well, it's too toxic. It goes up and down too much. The dollar goes up and down every day. You know? If you   compare the dollar to gold, you compare it to the yen or anything else.   You it goes up and down every day too. Everything goes up and down in value against something else all the time.   What matters is trend lines and patterns. And   if you're trending, which I don't go all the way from the beginning, because I kinda don't count really the first epoch of Bitcoin,   just because of how much it scaled,   from the growth at the beginning. But if I compare,   say, 2012,   to now,   or even go back to, like, 2017   and now and look at the trend lines,   if all it's doing is going up. Yeah. It's got its up and downs, but still bouncing off the same model, the same low.  

And, you know, real estate, stocks, anything else does the same thing, so you can always tell if something's oversold.   Right now, I feel like we're real healthy. We've been floating at 70,000 for a long time. And I remember those days people would even pray to be somewhere close to this.   But I think Bitcoin's looking pretty healthy, but technology is getting into it. It is pretty great.   I kinda have my conspiracy theories of, like, some of the incomes   and,   a lot of stuff without having a lot of based incomes and,   a lot of stuff without having a lot of bloat on governments and a lot of reliability on governments so so much, and I can have a smaller government.  

So I I think it can do a lot of great things, especially if AI and robots get involved in it.   But   I would say showing these charts to these people. Like I said, these people are in real estate. They're not so much in the economy   and economics and banks and stuff. Don't understand charts, or just refuse to read them, period.   There's it's inevitable.   The website   that I was   looking it up, and people should check it out, it's called priced in Bitcoin.   The website's priced in Bitcoin 21. You can go price anything against Bitcoin, anything.   And everything,   everything on there is down 90%   Bitcoin in the past 5 years.  

And that's real estate. That's gold, silver,   Amazon.   MicroStrategy was the only thing that wasn't, and that's because of Bitcoin.   So   it's   when Max Kiser is out there squawking,   and I say that with respect, but that's what it sounds like because he spit stuff out without really explaining himself to people. When he's squawking, everything's going to 0   against Bitcoin,   he's not lying.   Now I think the values will come back   once we're on a only Bitcoin world.   And people will be like, well, okay. I'll wait until that happens. I don't know if you can survive the burn rate of that. Can you hold on to something that's losing value for that long? Because I don't know when the flip's gonna happen.   I I don't know   if people are gonna wait till there's a dollar set parity and then people switch. I don't know if it's gonna be when this,   you know, this conspiracy of all the power   is gonna shut off one day because of solar flares. I don't I don't know. But whenever one day, it's inevitable. People are gonna switch to Bitcoin. And when   they do,   can you make it that long? I'd rather sell the assets now, get as much Bitcoin as I can. And then when it switches and things have utility values again and,   you know, rental properties have value again and all that stuff,   buy it back.  



[00:31:54] David Bennett:

Yeah. So when when you did make this Facebook post, was there how much   was there, like, immediate fallout? Did you, like, lose followers immediately at all or   numbers didn't change?  

[00:32:07] Jawad Dashti:

As far as, like, followers on Facebook, no. Well, I bet those getting slaughtered,   and   respect yeah. I gotta,   probably, I don't know if you call it prank phone call or a hate call, but   somebody called me today and they're like, hey. Are you okay? And I was like, yeah. Who is this? And they're like, you don't sound okay. They're like, all that Bitcoin, and they hung up on me. I don't I don't know who it is or why, but, you know, they see me preaching that stuff, and they probably think that I've gone crazy. But that's alright.   Everything I've ever done that made me a lot of money, everybody told me it was the wrong idea.  



[00:32:45] David Bennett:

Yeah. Because I've I've kinda I'm kinda thinking that we're at this at this juncture, this weird interstitial space where things are   turning around and people are not having visceral reactions to somebody saying you should probably consider Bitcoin. And it   would and had known them a while, I wouldn't even mention it. And I still to this day, I'm like kind of uninterested   in having those discussions with normal people unless   I've got a lot of time invested in that particular relationship. Cause I just, I don't have time for this anymore, but I'm starting to hear,   you know, stories on the street   about people who are now when they say things about,   oh, Bitcoin's doing this or   it's priced as such, or you should consider this,   that they're not getting these weird,   your insane reactions that they're getting more like   they the person on the other end of that conversation wants to know more.  

So outside of this Facebook group, it'll just leave that that world.   Are when you're having individual conversations, are you talking more find yourself   ease   more easily able to talk more and more about what's going on with Bitcoin, or are you still kinda Oh, yeah. But  

[00:34:01] Jawad Dashti:

only if it's a 1 on 1 conversation.   If it's in public,   they don't even wanna hear about it. They won't don't wanna talk about it. They can't be wrong.   They only   repeat and in, like, an echo chamber of everything they've ever heard on the news about it. And I'm like, you know the same people that you're quoting own Bitcoin. Right? BlackRock said, well, this guy said, well, that guy I'm like, they all own Bitcoin.   So I was like, doesn't that at least make you question something? I wanna look into it. And, like, even Altcoiners, you know, they've got so much hatred towards Bitcoin. They're like, well, on Bitcoin, you can't do smart contracts. I'm like, well, yeah. You can now. And they're like, no. You can't. I'm like, well, when's the last time you looked at Bitcoin? 6 years ago? But don't you think you should've kept an eye on it? They're like, well, Manero's better because you can't do privacy. I'm like, yeah. You can. It's called silent payments.   They're like, when was that starting?  

It's a few months, but that's why you should pay attention.   Like I said, every   all these outpoints, I think, are just gonna bridge over and   be under Bitcoin, and not as dollars, but more as companies providing services.   Like I said, they'll just be like McDonald's, Starbucks, or anybody else. It'll just be a stock under Bitcoin, basically.   Yeah. A lot of them will perish. But,  

[00:35:20] David Bennett:

well, let's get I wanna kinda go back into into the real estate side of this conversation because there's several questions that that that I have.   And I guess I I guess I wanna start with, like, for the listeners that are out there,   real estate's not debt.   I mean, it's it's just not.  

[00:35:42] Jawad Dashti:

Right? I mean No. It's not. It's not that at all.  

[00:35:44] David Bennett:

It's but are it seems to me like the way that you think about real estate   is   is shifting. And and I know other people that their their views on what real estate is   versus what we thought it was,   that their ideas are changing too. So my question really becomes this.   If it's the case, and I believe it is that real estate is not dead   And somebody   like me, like for us, for instance, I like real estate because I'm in love with houses.   I don't know why.   I love architecture.   I like like it. Give me a good arts and crafts,   bungalow.  

I love those things. You're like the, you know, Cape Cod style houses.   These are things that I'm I'm just in love with the house. And again, don't know why, but this sort of in my DNA.   So I'm always going to be interested in acquiring   the thing that I,   that I really appreciate or that I really love or that I really respect. And that puts me right back into   real estate, because   if I'm loving the house because of the architecture,   the only way to acquire that is   understanding real estate.   So   if somebody   is like me and wants to get into real estate for whatever reason they want to get into it for,   Given that we're post COVID,   is there a way to start?  

Is there is it it's not like it used to be.   So if you had any advice for somebody who was, like, wanted to get into it, is there an entry point?  

[00:37:17] Jawad Dashti:

Yeah. Absolutely. And especially if they drop rates, which they might because, you know, Canada, and I think it was England just dropped the rates. Yeah. ECB.   And like I said, if we don't if we don't drop our our rates, before October, we're gonna have a commercial opulence, which will also hurt a lot of the big players. And I don't I don't think they'll let that happen. But if rights do drop, before October, then real estate will probably take off again. Because like I said, real estate's only built on the debt. That's what what gives it   really mainly its value right now.  

And,   look, we're not we're not in the Bitcoin world yet. It's the infrastructure is being built.   I think a lot of stuff's getting there, but we're not in a Bitcoin world where everybody's doing everything Bitcoin yet, so you still have to live in Fiat.   So, yeah, I I stack my Bitcoin when I can on the Bitcoin side, and I make my money on the Fiat side.   And when when the Fiat side classes, I'm still good on the Bitcoin side,   because, you know, I built my nest for the winter,   so to speak.   But   there's no really better way to beat inflation   than with debt. And when you're using debt, you wanna find the most expensive thing that you can. That's real estate. So,   that's the way to do it, and I'm gonna do that until the bubble pops.  



[00:38:42] David Bennett:

Okay. So if I don't know any bankers,   I'm just like a regular Joe on the street, and I just decide I'll wake up one day and say, wanna get   in.   What do I do? I mean,   it's like,   it used to be a long time ago, or at least I think it was because I wasn't   the way that we bought our house. The company, our family companies bought their houses was cash only.   But it was you it did used to be the case that you could just go you could buy a house. There was some money up front that you would have to do, but you would borrow essentially against the   the value of the house. But that's that's not the way it is anymore, is it?  



[00:39:23] Jawad Dashti:

Some people still do that. They'll go get, like, a conventional loan and put 20% down,   but, eventually, you run out of money.   So what,   you know, a lot of people are doing now is if they're not syndicating it, which is how Trump got all of his money, you know,   he he doesn't own that stuff just like Black Rock Band on their stuff. You know, their investors do, and they get a share,   for putting the deal together and being the GP.   But if if you're just a solo person trying to build your own portfolio,   you just wanna go shop around banks and hard money lenders.   And for the hard money lenders, hey. Who does   a 100% financing,   which they'll do up to a certain percentage of,   there's what's called LTV, which is loan to value,   or LTC, which is loan to cost. If you do loan to cost, you're always gonna have to put money down. If you do loan to value,   they'll lend 80%,   period. If If you buy a 100% deal, you gotta put 20% down. You buy 80% deal, you put 0 down. I went and bought a 40% deal. I walked away from the closing with the house, and they gave me $30,000   because they were gonna give me 70%.  

I bought it at 40, they gave me the other 30%. I got 30 grand for buying a house,   at the closing table. And so if you if you do real estate that way, it's pretty hard to run out of money.  

[00:40:46] David Bennett:

Well, I think what I what I really heard you say there was   the the hard part   was the shopping for hard money lenders.   Because, you know, most people don't they don't they don't know their local bankers.   And and honestly, you know, like, what like, well, let me let me tell you where I'm   let me tell you where I'm at,   and some of the things that because we   we have houses. We've got 2 condos in Santa Fe.   I got a house in Southwest Colorado   that the   condos in Santa Fe, we've got a property manager that's local and he has like, I don't know, a 98%.  

[00:41:25] Jawad Dashti:

Occupancy.  

[00:41:26] David Bennett:

Yeah. Occupancy rate is he's really high in his occupancy rate. We've been really happy with him. So it's, it's not like we're, we're newcomers, but I feel like I'm a newcomer because of the following.   We want to expand that business.   We've got, you know, we own these houses. There, there is no mortgage,   Right?   We own them.   So we've got equity.   And then I go, so I'm talking to my sister and I say, look,   let's go grab another house. But instead of, cat, all cash, we've got we're sitting on all cash. But instead of all cash this time, we've got enough equity.   Let's go grab a loan and go grab,   pick up another property that seemed like the thing to do. So she goes, okay, well, I don't have time. You go hit the bank.  

I go, okay.   So I start calling up the banks and I, you know, call up a few. And I start running into   running into the exact same issue every single time. And that was,   how may I direct your call? And I would go, well, I am looking for a home   loan, except instead of it's not for a personal home loan,   I'm representing a business that owns,   you know, a couple of companies that we have equity,   but this is a supposed it needs to be a commercial loan to buy a house.   And it's like every time right there,   the whole conversation falls apart.  

[00:42:49] Jawad Dashti:

And I realized You're talking to the wrong people.  

[00:42:52] David Bennett:

Well, I was thinking that it was because I was saying the wrong thing that I was either using.  

[00:42:57] Jawad Dashti:

So the term you're looking for is called portfolio loan.   Okay. And which people get confused. They're like, but I don't own a whole portfolio. That's not what that means. It means the banks gotta put the loan in their own portfolio instead of selling it, to Fannie or Freddie.   You know? So,   what you're doing is like, and one of my closest friends works for a very large bank. I'm not gonna say which one. But if you go to Chase, Bank of America, Frost, any of those banks, and you go try to get you an investor loan,   the only offer they're gonna have for you is FHA or conventional.  

And you're not gonna build a real estate portfolio that way. But if you go to credit unions and just small banks in particular it doesn't have to be credit union. You have a small bank in particular,   that has, like, 2, 3 locations. And you're like, hey. Do you guys offer portfolio loans?   And you gotta ask a lot of people.   But, eventually, you're gonna start meeting them, and then you're gonna meet more and more.   But now I mean, now they come to me. I get on lots real estate podcast. These people are chasing me down, begging me to take their money. Money used to be my problem. Now it's contractors.   But,   but if you ask for portfolio loans,   some of them want   10% down no matter what. Some want 0% down.  

As long as it's on an equity basis. Some of them will cover a 100% of repairs,   but they do it in draws.   Everybody's a little bit different. So you have to sit with them, figure out, like, what's your origination fees, what's your amortization schedule,   interest rate, all that good stuff.  

[00:44:34] David Bennett:

So   the real work here well, I mean, it's all work. But   one of one of the things that's never said   in   when   people that are talking about, you know, getting into real estate   is how much work it is to find the lord, the loan origination   people.   And it seems to me like what you're saying is that that that's a substantial part of your day. Not maybe not anymore, but for somebody who's just entering in and trying to find financing is that this isn't something where you just walk in the first set of doors that you see and everything is just gonna work out swimmingly. It's like   several phone calls   over periods of months going and setting up several meetings. It's not it's not something where everybody knows what's going on. So therefore, it's easy. Just pick your 1st bank and you're just going to get it rolling. That's that's not the case. And nobody ever talks about the fact that that part   is real substantial work.  

And they just it's like they just kind of gloss over the, oh, well, where are you going to get your financing? Oh, it's great. Just go to a bank and get 0% down and and borrow against the house. And I'm like,   that sounds easy, but that   what we're just talking about here is, like, well, there's a whole job behind that.   And nobody I don't think And  

[00:45:50] Jawad Dashti:

networking is something that I believe no matter what business you do. And like I said,   multiple $1,000,000 companies.   Networking is a part of all of them.   I'm on my phone 247 because I'm social media networking.   Having dinners with people going to Stars games,   Dallas,   Mavericks, NBA games.   Heck, I put on £30 because sometimes I'd have 3 lunches with 3 different people in the same day.   So,   you   you have to network. You have to know people. But first thing I would do is I'd call call these banks, and I'd be like, hey.   Do y'all   offer portfolio loans,   for investors?  

And they'll probably send you to a VP,   which just so you know, everybody at a bank is a VP just about. Yeah.   But they'll send you to a VP. And   I would not go to lunch with them until they can answer that question. If they can, they're gonna wanna know who you are,   because they don't know you.   They're gonna ask for a personal financial statement.   Sometimes, some of them don't ask for anything. Those are the best lenders. Yeah. Just the kind of crap that started the 2008 crash is Yeah. The ones that don't ask any questions at all. But I've met a lot of them, and the only reason why I like to use them is less paperwork for me.   But I've I've got a balance sheet on my phone. I've got a personal financial statement.  

Someone want let's see, like, your last 2 years,   tax returns,   which is hard for me on that because   I don't get any w twos. And, you know, it's my job as being a business owner to try to make my taxes   as close to 0 as possible. You know? Yeah. So, yeah, if you go to, like like I said, Bank of America, Chase Bank or anything, they're gonna be like, I can't give you a loan. You lost   300,000   last year. And I'm like, yeah. But I really made 4,000,000.   Those are all write offs. But if you go to an investment bank, they understand what write offs are. They do what's called add backs, and they're like,   hey. You know, you grossed 3,000,000,000 and your tax returns say you lost 300,000, but, you know, we can add back all this different stuff that was obviously invested in your properties, which gained your property's value and   all that good stuff, and they understand how how all that works.  

Because people go over to a bank and they believe everything they say, Just like how they go meet an attorney and they believe everything they say. And I'm like,   no. A lot of these guys make, like, 60,000 a year, and you shouldn't be taking financial advice from them. They're just preaching something they've read off a index card they were handed to the day they were hired.   Uh-huh.   So  

[00:48:33] David Bennett:

Well,  

[00:48:34] Jawad Dashti:

did you, have something else to say there? I didn't mean to cut you off. Just gonna say no offense to any bankers listening to this, but they probably know what I mean. I'm I'm not talking about you, but you probably know some of them,   to any bankers listening to this podcast.  

[00:48:47] David Bennett:

Yeah. Well, I mean, you're you're right. I mean, everybody's a VP. You know, if you're if you're a banker, you're probably a vice president. That doesn't really mean anything. And I I   that the whole title thing really bugs me. But   what   a question that I have about that that whole walking into a bank and, let's say, you find somebody and then they ask,   you're you're buying this for, you know, for commercial purposes. You're not buying it for yourself. Right. So that's the context of like, well, that's, that's what I would be doing. I'm not buying this house for, you know, for myself, I'm buying it as a representative   of the family companies,   and the family companies wants to put that house in their portfolio.  

And then you get asked, well, I need your personal statement.   And my question for somebody who who has this experience is,   if I'm not buying it for myself   and I have the balance sheets of the companies who is buying it, then why am I giving my personal financial information over?  

[00:49:44] Jawad Dashti:

Well,   most of the time, they still want your personal guarantee yet.   Unless it's a loan over $1,000,000,   you're still gonna do a personal guarantee.   If it's over a1000000, you can find some banks that will,   let you do it without a personal guarantee, which I always recommend doing if you can.   But yeah. Plus, putting your personal stuff on there if you don't have business partners,   then putting your personal stuff on there just makes you look better anyways, unless you have, like,   a whole lot of personal debt more than income.   And then, you know,   but you could put everything, the value of your jewelry, your wife's wedding ring,   your house, your car. But, you know, if you're quite a lot of debt from it, yeah, maybe it can hurt you.  

It just it just really depends on there. But they're just really trying to see the the health. And most of the time, they don't really care anyways.   Uh-huh. They just wanna make sure it's not going down. Because some banks ask for it again every year. Uh-huh. And ask for it again every 5 years,   when you have to renew your note. And they just wanna make sure it's not going down. So they're just checking your financial health, and basically your financial intelligence.  

[00:50:58] David Bennett:

Now when   when I walk into,   you know, ask for a portfolio loan for investors   at, like, a small bank,   is that   and they and I find 1 and they say, you know what? Yeah. Sure. Let's let's cut this deal. You the the house looks good. Your your the finances on everything that that   we're taught, you know, looking at that all looks good.   Is is that's not a 30 year mortgage though, is it?  

[00:51:25] Jawad Dashti:

Some banks it some banks it is, some it's not.   Every banker's different.   Okay. Some of them have prepayment penalties,   where if you sell it within the 1st 5 years, you're gonna get penalized.   And what they'll do is they'll call it a 54321.   1st year, if you sell it in the 1st year or refinance it, they take 5% of the entire total amount of the sale. 2nd year, 4th. 3rd, 3. 2nd, 2 or 4th year, 2. The 5th year, 1%. And then after that, you can sell it without any penalties.  

[00:51:56] David Bennett:

Okay. So this is sort of like like whatever flavor  

[00:52:00] Jawad Dashti:

of There's so many different options.  

[00:52:03] David Bennett:

Okay. Okay. That that actually makes a lot more that makes a lot more sense as to how all this works, because it's like pulling teeth   trying to get these guys   to   tell I mean, honestly, the amount of time that I was met with blank stares when I was trying to tell people what it was that I wanted to do,   it it was actually really confusing because I'm like, I am I speaking Greek? And   I I go, I don't know what it is that you guys want me to say, but after the initial confusion and I, like, really start digging down into, you know, detailing out,   and they would start to kinda it would start to kinda click and you could see it in their eyes.  

I would ask them, okay. Well, what what language should I be using? And they're like,   no. Now I have to   Yeah. You're just talking to people and don't have it through. Yeah. And and that's, yeah, that's and that's that problem of doing all that legwork upfront in finding   a good high quality lender. Would you   with in your business   over the years that you've been doing it,   do you tend to, like, when you find a good   loan origination place that you stick with them like glue?   Or Yeah. Yeah. You do. So it so that's but that's like you're you're able to develop a whole relationship with these people over years. And then it's like,   blender from Walmart and walking out and never seeing it again. This is   something that you really work on hard to make sure that that relationship stays solid.  

And it's something you work on, like, work on just as much as with your friends or with a spouse or with your family members. Right? Correct.   Okay. That's that  

[00:53:51] Jawad Dashti:

that is   You ever been on the Meetup app?  

[00:53:55] David Bennett:

No.  

[00:53:56] Jawad Dashti:

So there's a app. It's called Meetup. Every time I see it on my phone, I'm like, I'm on a dating site. But then I forget. That's not what that is. It's for, like, fine networking events,   Or you can go in there. You can type real estate. And I'll warn you right now, 90% of real estate meetups are,   I wouldn't say a scam, but   that's a lot of fluff.  

[00:54:19] David Bennett:

Time share? Courses.   Like a like a time share presentation?  

[00:54:23] Jawad Dashti:

If you   you just go up there and they're like, oh, pay me 50,000, and I'll teach you everything about real estate. Well, the people I know that are selling those courses are the worst people in real estate that do the worst   and should not be giving any advice. And that's mostly why they're selling those courses.   But,   I would say if you go to networking events, some of them will have, like, every kind of business you could ever imagine needing in real estate, have them boost out there. They'll They'll be a plumber. They gotta do plumbing on real estate houses. There's   20 hard money lenders,   and you can shop the difference between them all. Some of them,   will fund more money. Some will fund faster.  

They they've all got their different things.   Guarantee you, if you go to, like, 20 of those events,   you're gonna find everything that you need.   But, like I said,   don't trust. You know? In Bitcoin, like they say, don't trust, verify. Right. Same thing.   So Right. And everybody there, if you're like, hey. Have you used these guys? Everybody's gonna be like, yeah. Yeah. Yeah. These ones are the best. But that's just the friends. You know, these people   all like to drink as free alcohol at them.   And they're all friends with each seller, so I   do your own research. But you will meet a lot of people that do specifically those areas,   and,   they can refer you to   all kinds of short term lenders, long term lenders. But if you're doing it right, you find a property you want, you send it to the hard money lender. The hard money lender lets you buy it. You shouldn't pay anything except for maybe 2 points upfront, which on a $100,000 house, it's only gonna be, like, 2 grand.  

If you get built a good relationship with this hard money lender, he'll even roll those points from the back. So you pay nothing   upfront.   You remodel the house, whatever you wanna do,   rent it out, you go to the end banker, do your refinance, they pay the hard money lender, the points and everything. So you paid $0,   and you don't pay any money down to the end guy either. And then after all those steps, you got $0 in the deal. You got cash flowing property   on the next one.   And then after that, it's just economies of scale.  

[00:56:32] David Bennett:

Well,   what keeps coming up in the back of my head listening to you talk about   like, we're talking about you have to walk into banks. You have to make these phone calls. You these relationships are are   gold. So the question now is, what kind of personality   is the best kind of personality   to do the kinds of networking and the kinds of face to face meeting   that we're talking about here?  

[00:56:58] Jawad Dashti:

Man, anybody can show up to one of these.   I'll tell you this.   Don't even waste your time if you're not a person that's gonna do stuff.   I know this guy,   not this guy on Earth.   I've seen him at every meetup. I don't care what city it is. It could be 2 hours away that I go to 1, and he's there. And I'm like, how can you possibly be at every meetup? This guy's read every book about real estate and business and Grant Cardone and Gary Rigby and everything.   He's read it all. He's heard it all. He's been everything. And   in 8 years, he's still done all and he's never done a real estate deal. And I'm like, why? And he's like, oh, you know, it's it's harder than you think. And I'm like, it's not. You just   you just you you haven't pulled the trigger. So, like,   it it doesn't help to do any of the work if you're not gonna go do the work.  

It's kinda like how you can go out. You can buy new clothes and new shoes.   You can wash the laundry in the new shoes. You can put the new shoes and the new clothes on. But if you don't ask to go on a date, what was the point? You know? Right. And so in the end, it comes down to really just action,   which is literally not just real estate, anything in general.   But, you gotta put it to work.  

[00:58:16] David Bennett:

So how scared were you when you did your first real estate deal? Or were you scared at all?  

[00:58:21] Jawad Dashti:

I wasn't scared at all because I was pretty ignorant.   I was ignorant to Ryan, let me explain on that some. I was pretty ignorant   and a little arrogant, but ignorant to the fact that I had been in construction,   you know, owning a plumbing company.   And I was like, these idiot bankers always bragging about their flips and how much money they're making. They don't even know anything about construction.   I learned later on cons knowing construction doesn't matter. I mean, it could help a little bit, but it's about math. You have to know math.   Thank god. I you know, I dropped out of high school.  

I didn't pay attention to school at all, but I always loved math. And thank God I did because   math is so important in it all. And if you know the math on deals and you know the right bankers to explain that math, when I say explain it,   these bankers are lazy. And to be honest, they're not real estate investors. They don't know a good deal if a slap in the face, or they would have real estate not make 60,000 a year. No offense.   So if you know the math and you break the whole deal down, so there's, like, plain English where a 4 4 year old child can understand this amazing deal, you're gonna get that money every single time.  

[00:59:33] David Bennett:

Well,   it seems to me that, like,   and I I don't know.   What I'm thinking personality I'm thinking of, is it required to be an extrovert?   Can introverts   have a hope in hell   because of the amount of time that they got to spend? Like because I like, you know, like my wife, she's an introvert.   She gets she gets kind of exhausted   when she's gotta be out in public and meeting people. And,   I think that that may be, is that something that, that people can overcome if they want to, if they, you know,  

[01:00:08] Jawad Dashti:

just is real estate a way to is real estate, like therapy that could like get you to be from it, go from an introvert to an extrovert. I mean Yeah. And I've seen it happen because I've gone to these meetups, and I'll show up to one I've never been at. And I'm, like, walking around. I'm, like, what's up? But I walk in, I I see people hiding in the corner.   And I, you know, I don't let that happen. That's the people I talk to personally. I'm like, hey. What are you doing? What do you know? What are you looking for? And I try to help them out.   People don't wanna be bothered. That's fine. I don't bother them. But there's a lot of people that just go and they hide in the corner and they learn.  

And you can do that and you can put it to action, but you gotta put it to action.   There but there's definitely people that go and they're very quiet about an.   So a lot of people show up, they're a roll out mouse, and they're usually the people that are the least successful.   They do a lot more talking than listening.  

[01:01:00] David Bennett:

Yeah.   So I wanna switch just slightly. It's still in real estate, but,   I wanted to get your thoughts about this Airbnb   thing that either was or possibly still is   is going on. And what I meant what I mean was that   we were about to pick up a property in in Santa Fe.   And then our realtor,   that we use that in the Santa Fe area calls us and say, she says,   you may want to hang on to the cash right now because I'm starting to see some really worrying trends   in Airbnb   to the point that some people are really losing their minds. And these are the people that have 20,   25,   30 homes, and they've all got them under Airbnb.  

And nobody is all of a sudden,   nobody's really written them out.   And I do you know anything about that? Is is that a was that a thing?  

[01:01:56] Jawad Dashti:

Do you have any information on that? So I will start by saying I've never owned a Airbnb.   But I've got friends that own 100 of them.   I never owned one because I like economies of scale. I don't really see a good way of scaling Airbnb, and I blame Airbnb for that. They've really made it very hard   to scale.   I've always said a long time ago, I don't know why they didn't create a partnership with, like, a large national made   But   the people that I see sales succeed succeed succeeding   have them outside the United States.  

[01:02:38] David Bennett:

Really?  

[01:02:39] Jawad Dashti:

So, like, if you're gonna buy 1 and you put it in the capital of, like, El Salvador,   like, I would see that doing well.   If you're buying 1   and it's   like oceanfront   property in, like, Cosmo, I could see that doing very well.   But as far as people are just buying   to have them, like, in the middle   of a town that a lot of people don't go to. Yeah. It's gonna do well when everybody's burrowing around during COVID and everybody's shuffling,   But it's not always gonna do well.   I don't know if you've been on a website called AirDNA,   but it gives you   it tells you everything you need to know about Airbnb.  

Really? So if you don't know what that is, I would never touch Airbnb.   Oh.   But AirDNA   tells you   it's in a partnership with Airbnb. It'll tell you how long you should expect   that certain address to stay occupied. Like, how many days on the year, how much money on average you think it'll make throughout the year.   And it'll tell you exactly   how how profitable it will or will not be. Obviously, there's gonna be trends that change that, like COVID or things like that.   But like I said earlier about commercial,   So if it's, like,   next to all the bars and restaurants ocean frontage,   I'm sure it'll always do well.  

But just so you know,   and especially in the city of Dallas, because Dallas everywhere in DFW is doing the whole thing.   Are we banning Airbnbs? Are we not? I don't know if that's happening out there yet. Yeah. It's another thing to watch out for, but,   there was us reading this thing through a hotel thing. Had nothing to do with anything else else. But, Hyatt is the largest owner of Airbnb's   and DFW.   So and not through hotels, like buying houses. So,   that's another thing. Could be good. Could be bad. Who knows?   Maybe that's a whole   part of the future if you're gonna owe nothing and be happy.  

Maybe everything's gonna be,   for rent in the future.   I kinda have that theory in the future that everything's gonna be free.   Electric cars,   houses, everything, but you're gonna have to pay rent. And then theft would not exist. So Like a subscription model for everything.   For everything. And,   if you've never played the game Fortnite,   that everybody's playing right now,   it really helped build my stance on that because the game's free. All these other games are, like, $80 to a $100 now. This very successful game's free.   But there's things that you can spend money on that you don't have to, but you can.  

And the amount of money they make is insane. And so I think if that carried on to a lot of other things,   it would be bad in a way that people lose rights to private property, but it'd be great in a way that everybody in the world could have what they want.   And it'd be obtainable. But   Well, I think like I said I kinda think that that would  

[01:05:58] David Bennett:

I have the sneaky suspicion that there's gonna be a choice. It's just gonna be that   the media and the, the,   messaging, the general messaging that people get is going to drive a great guts and feathers of   normie people over to the subscription model on everything that they, they will be happy and they will own nothing and, or they'll, they'll think they're happy until   God only knows what the hell happens. But then there will be like another part of humanity. That's like,   no, I want to own it.   But I think what's going to happen is that that part will be very much smaller   than the general population that will be driven again, through messaging and, oh, if you own your own house, you're destroying the environment.  

Yes.   Whatever. I don't know what kind of arguments they'll come up with, but I can guarantee you   CNBC,   CNN, NBC, ABC, CBS, they'll all push it.   NPR will push it just like cows are bad, or you should eat the bugs and all that.   It's the messaging. It's like this giant marketing   thing. And I get the feeling that you're kind of correct   that in the future and a future that we'll see, there will be a lot of people who will just think that it's terrible idea to own a home. I've met people already   that Yeah. When I was in college that never   wanted to own a home, they were perfectly fine with renting.  

For me as a, like, a person that has owned their own home that they've lived in, and because of a move right now, I'm renting. Every time I cut a rent check, I kind of throw up in my mouth a little bit.   But that's just me, you know? But I I I think that you are correct that there's gonna be enough   people that   that want to rent everything. And and those of us that are left behind that or not left behind, but left on the other side of that aisle that actually want the property.   We want to be able to have the say of what happens on that property.   We'll just be a smaller group, and we'll probably be demonized for owning a house. But Yeah. There was one other thing that I I wanted to get. Oh, I know what it was. Was that when you're building,   if you wanted to start again   doing what you do now   and   given all your experience,   would you rather flip a house or a commercial property,   or would you rather and this is in general, because I know that   it depends is a huge thing. But in general, on average, would you rather rent the thing and use that rent money to   propagate and buy other properties?  

Or would you rather just get it and flip it?  

[01:08:39] Jawad Dashti:

Well, here's the deal. It depends on the environment.   So, like, during 2021   where everybody's buying everything at crazy prices,   flip everything.   Right.   But,   during the normal down times, there's   people are struggling right now because the days on market's way longer, so that cuts their, you know,   their gross profits   down by 70%.   Because instead of 7 days on market, now it's a 100.   But so it's good to have rental properties. I don't like to sit on rentals for too long.   The reason why is I don't buy anything through a realtor off the market.   I look for off market properties.  

I don't know if you're on Facebook, but you could probably find one for your area. If you typed in, like, Santa Fe Real Estate, you could probably find, like   actually, that's Arizona. Right? That's where you're No. That well, I'm living  

[01:09:37] David Bennett:

well, I'm living in Eastern Washington.   But even when I was living in Texas, because that's where I was born and raised and grew up. I don't I don't know the New Mexico market, but I know, like,  

[01:09:48] Jawad Dashti:

a lot of off market people kinda over there close to that in the Arizona area. And I know they've got big groups on Facebook as well.   I'm sure you could find one. And there'll be people selling properties that, you know, 50%   of what they're worth, and they're trash.   So you go in, you fix them up, you either sell them as a flip or,   use them as a rental property.   But I would definitely say, you know, that would be a good way to get you through the hard times. And I don't like to sit on forever,   because one, when you remodel stuff, they're good for how long. You know, how long does a brand new toilet last or whatever? Right. You know? Especially with tenants in it, treating it however they do. So I like to buy properties,   and then I will   rent them out for somewhere between 3 to 5 years.  

And then I'll sell the property and do, like I said, a 1031 exchange. I don't know if you're familiar with that.   But a 10 30 one exchange, you can Google it,   or you can Google it by name and find a lot of podcasts I've been on where I explain that in-depth. But 1031 exchange, you can sell the property and buy another property and pay no capital gains.   So I'll do that, and then I can up leg. So   I used to have 50 properties that were worth   50,000 a piece that I bought them for. Remodel on there were 250,000   a piece. I sell 3 of them all near the same time,   which gets me $750,000.  

Say I got some debt on it, maybe I get, like, 400,000 back. I'll 1031   that to a $1,000,000 commercial property.   And so I went from $50,000   to a $1,000,000.   And I'll just do that several times and then sell the $1,000,000   properties, 1031 those, and the $5,000,000   properties, and so on.   Same thing that, you know, all these syndicators Trump and everybody is doing.  

[01:11:42] David Bennett:

Okay. That makes sense. So I'm sorry. I understand.  

[01:11:48] Jawad Dashti:

You really wanna talk about people being screwed.   Biden's trying to get rid of that 10 30 one exchange. Oh, great. And if he does   if he does, just so you understand,   commercial and multifamily real estate 100%   depend on that. And I'd say probably 90%   of real estate sales on commercial multifamily are 1031 exchanges.   If you get rid of that, people will no longer sell the properties.  

[01:12:14] David Bennett:

And,   Housing prices should actually skyrocket again   because they can't sell it.  

[01:12:21] Jawad Dashti:

It. I have to be honest, I don't know what that and I would take a lot of thinking, but it would, like, definitely stagnate the market.   Selling is really good for multifamily commercial   and bad. It's bad because it helps drive up rents, because the next guy buys it has to drive up the rents,   for it to be making money.   But it's good because people that own properties don't fix them up. Like, almost everybody out there is some kind of slumlord. Uh-huh. But how the money is made is is the slumlord sold the apartments to another guy. The other guy has to do something to raise that rent.   So you can take a 200 unit apartment complex, and if you can only raise the rent $50 a month more on those 200 units, that property is worth, like, 3, $4,000,000   more on a cap rate.  

So they can make 1,000,000 from it, from just raising the rent, say, $50 a unit. You gotta do something to   earn that, Whether it's putting in stainless steel appliances, whether it's putting in hardwood floors. These people aren't doing it   because,   you know, they want you to have a nicer house or because they want you to move there and sell some other place. They're doing that to make money. And a lot of people that hate the government, yeah, they've done a lot of things that I don't agree with.   But they're pretty good at manipulating people to do what they need them to do with taxes   and   with financing and things like that. So,   I don't know exactly what that's gonna do if they get rid of that,   but it would be a problem.  



[01:13:47] David Bennett:

Okay. So   when we were saying when I was talking about rent versus flip, and you're saying, well, it depends on the environment,   It seems like what given what you said that we're kinda starting to slide into an environment where rent is better than the possible flip.   Dev, am I getting that wrong? Or  

[01:14:06] Jawad Dashti:

oh, yeah. I would say right now because running a house, you can always rent a house. Like, always rent a house.   But as far as flipping, there's gonna be environments like California where people are like, California is always gonna be going up. No. California has gone slow down since COVID.   I've looked at, you know, properties that are for sale there that are selling for 2,000,000 less than what they did 10 years ago. Uh-huh.   So   you always have to be paying   to your environment, and you can't be in denial of it.   So,   you know, if I owned a lot of rental properties and and had debt and prices were going down, I would sell those properties because when my refi comes up, I'm gonna I can't refi   Right. You know, if you're negative.  

But,   I definitely think   that Texas is gonna keep being an economic driver because,   not only real estate, but if you believe in Bitcoin, and this is a Bitcoin podcast,   Bitcoin's driven by energy. I think the future is gonna be all these places that produce the energy, which is Paraguay,   which is gonna be Texas, which is gonna be,   the volcanoes in El Salvador, which is gonna be Saudi Arabia.   And,   I   probably gonna get attacked for this too, but I I mean, to be honest, I think that Bitcoin was created by US government as another   way to manipulate people into doing things that need to be done, like the real estate stuff. And I think the manipulation   economic driver for Bitcoin is it's forcing us to generate electricity,   which is needed for AI robots.  

And it rewards people and   pushes us towards building the infrastructure for that.  

[01:15:58] David Bennett:

Now sometimes I I do wonder if there's a   Because we have tested to look at us government or any government for that matter as   some kind of behemoth that all,   you know, works with one voice and one intent. And I know that that's not true. There's gotta be factions inside of government. And some of the factions are probably like, dude, these people are sick and twisted.   So what we gotta do is come up with something that they just there's just no way around it. And I could almost see   a subset of the United States government saying if we were to release something like Bitcoin, that's gonna force a whole that's a forcing function   on a whole lot of other stuff.  

It wouldn't surprise me. I honestly would not be surprised if I found out that there was some kind of faction inside the US government that released that in the wild. But even if it even if it was   released in the wild by a faction or even a a great guts and feathers of US government,   What I wonder about is the fact that because that code   is so well known and it's so open,   and everybody gets to look at it. And, like, if a backdoor was there, that backdoor would have been found. And so I have   I could only conclude that if it was   something that was a government release,   then it just seems to me that the very verbiage of the code itself actually signals   we're we've gone down the wrong path, and we need to save our own bacon.  

And I need to save it for all people.  

[01:17:28] Jawad Dashti:

Yeah. And I don't I don't think there's a backdoor there. I don't think they want one. I think what the FBI was literally invented for and what   the president   that created the FBI wanted, his exact words was a rolodex of every person and everything in the world.   And,   I think blockchain does that. I know the US government   and the FBI and CIA have used blockchain since the nineties.   I know   that they're very familiar with it.   I know that if they wanted to stop it, they could have   stopped it back in 2,009, 2010   before it took off.  

And they knew about it back then. They're pretty   open and obvious about that. And a lot of people are like, oh, okay. If they did, why didn't they just make a CBDC? That's the point. Because they didn't make a CBDC for that reason. They're not going to. They just brought it up to steal more people into Bitcoin. And the reason why they didn't say, hey. We made Bitcoin   is because then everybody would reject it. But if they allowed the people to make it themselves, then they would trust it, and everybody gets what they want out of it. I've got no problem with that,   because I haven't seen them abuse it yet. And when they do, then we'll talk about it. Right. Alright.  



[01:18:45] David Bennett:

Last the last question I wanted to get back to your view on the October,   situation with these notes coming up for, coming to coming due.   There's something about that date, that that October date, especially this year coincides with a major election across the, not only the United States, but in the world. It's like,   apparently, the world is selecting everybody in 2024.   It so happens that October is so close to the November elections   that it seems to me that   the Federal Reserve will wait   all the way until right before, like, the the next meeting right before the October, November election   to drop rates if they do. So I guess the question is,   if they don't   drop rates   or, God forbid, if they raise the rates   around October,   You're talking about a an absolute   shit storm of calamity when it comes to commercial.  

But if they do drop those rates,   what's the implications for the particular presidential election? Do you have a do you have, like, a a Yeah. A feeling about that?  

[01:19:54] Jawad Dashti:

So, you know, I I get asked all the time what I think is gonna happen with all this. One thing that you cannot do is time what they're gonna do with those rates.   They're there's another manipulation tool of the government. I don't think they use it for evil. I think they use it to get things done, the way they see fit.   But   here's the thing. We will have a 2,008   real estate apocalypse   in commercial and multifamily,   not just office,   like, multifamily, everything,   if the rates do not drop by October.   And they kinda need to drop, like, substantially, not just a quarter of a point.   If not, those foreclosure proceedings start happening October   and probably about January, which is when the president would take office,   or somewhere around then,   the apocalypse would start.  

And so, yeah, I can see Trump becoming president and then purposely having everything crushed on him and make him look bad.   But then there's also,   hey. Maybe they lower rates now, and Biden goes into the elections. Like, hey. Look. Rates are low.   Everything's gravy. But then when Trump's president,   we're going into hyperinflation.   Now there's there's   a lot of different ways that could go. I also know that there's, like, $9,000,000,000,000   in   treasuries   that renew,   I guess, by I think it's, like, April. I don't know the exact date. You can go look it up. But   the Fed has to buy those. They're on treasuries, which means printing money.  

And it would be a lot better for the Fed to buy them at a low rate than a high rate. So there's a lot of things out there that's, like,   making you really understand why we need low rates,   but those slow rates also come with a slap in the face by the fact that   we will once again be going into inflation.   I think this is all part of a milkshake theory. I think we're doing this on purpose. I don't think   Biden is   magically   stupid and has Alzheimer's like people think.   I think,   him and Trump and every other president have all worked together.   I think if you don't know what the milkshake theory is, go read it up. But I think we are purposely hyper inflating all currencies, so that way every currency in the world   bust, and they're all forced to use the dollar or Bitcoin, and then in the end, pop the dollar.  

And then in the end, everybody has no choice but use Bitcoin.  

[01:22:28] David Bennett:

Alright. So is there anything that you wanna talk about that I didn't directly ask about?  

[01:22:36] Jawad Dashti:

I mean, just the biggest thing that I'd like to sum up is,   I'm not trying to scare any people away from real estate. I think you still gotta make your money in Fiat for as long as we're in Fiat.   I do think that the deadline to switch over to Bitcoin will probably happen sometime around 2030 because   everything in the world the government says has, like, the 2027,   2030 date on it. Uh-huh. You know, the end of the world and the freezes and the   the environment and the all these different stuff. So,   I'm   sure something will make that switch by then. So I recommend make as much fiat as you can because it's easy.   It's easier than   making Bitcoin.  

Take that fiat,   put a good bit of it in the Bitcoin,   and,   put it aside. Don't lose your keys.   And, if there's any companies out there   that are looking for a c suite executive or somebody in management,   I would love to,  

[01:23:39] David Bennett:

discuss joining them because I'd like to get into a Bitcoin business where I can contribute a lot of my time and skills and help them grow as well. Will there be a good time for, people to figure out how to get a hold of you? What's the best way to to get get in touch with you?  

[01:23:55] Jawad Dashti:

You can find me on Twitter   as the Jawadashti.   I'm on Facebook under Jawadashti.   You can shoot me an email,   [email protected].   There's I'm all over.   And like I said, if y'all have more questions about real estate, I've done   probably a 100 podcasts and where I get in very much depth. It's not me bragging about Awning and McLaren and all that stuff and how cool I am in real estate. It's really explaining and getting down the honest truth.   I'm not pitching anybody,   and I'm not selling anything. I never am.   So there's no,   motives behind anything that I say.  

I'm just telling people,   hoping that somebody gains something,   out of it and can better their lives.  

[01:24:46] David Bennett:

Alright, Jawad. Hey. Thanks for, for being on the show, man. I really appreciate it because there's some that   some good information that I personally actually wanted to know anyway. So,   you know,   I I I really appreciate you, laying out your experience there.   And,   let's see. Was there anything else that I needed to get through? I don't think there was. I do I'd well, I will say this.   If you're looking for one   more place   of social media wise   or and, actually, it's not even social media at this point. It's   something more expansive. But have   have you ever heard of the NOSGR network,   n o s t r?  

Yeah. I'm on NOSGR as well. Okay. Will you do me a favor? Will you can you email me or or in this, if there's a chat there's probably a chat box here somewhere.   Throw me your in pub so that I can release that so people can get a hold of you because it's there's a   a lot so many good people on on on Nostra doing so many interesting things. It wouldn't surprise me if something like   a listing service like MLS could pops up on Nostra.   And it would be better to know somebody in real estate earlier before that happens than later. So   would you mind   throw it us your in pub out there,   and I'll get it up in the show notes   after, we conclude here.  



[01:26:13] Jawad Dashti:

Yeah. I'll I'll email it to you. And, one thing I don't think we went over was explaining the whole Facebook thing where that went on Twitter.   I don't I don't know if we went over that. But for people that don't know,   when I posted it, not only did I get massacred, but,   somebody posted Twitter, which I've been on for, like, 15 years, but I've never made a post on Twitter ever.   Somebody posted it on there and tagged me,   and it went, pretty crazy. And luckily, a lot of Twitter Bitcoiners   joined the group and kinda came to my defense.   And,   nobody was trolling. They were all, well, more better behaved than the real estate people.  

But, yeah, it was   surprising the outreach that it got.   Gained a couple of 1,000 followers out of it. I think I'm Wow. Supposed to be on, like, 10 podcasts now. And,   I got free tickets to the Bitcoin conference in Nashville,   which I'm gonna be at. So if anybody wants to meet up, I'll be there.  

[01:27:13] David Bennett:

Okay. Yeah. Then, I would love to be able to go to some of those conferences, but I just I just don't have the time or the the excess. You know, I'm just not bleeding cash right now that I need to get rid of, so I'm just gonna be staying here. But the guys over in Nashville,   there's some good people out there. There's some really, really fine people out there in Nashville.   And I wish all the best man. I kinda hope to, get a situation going where we can have I can have you on the show again one of these days. If if you're still around and still in Bitcoin at the time, I hope you hope you give it a consideration.  

[01:27:48] Jawad Dashti:

Yeah. I'm not going anywhere. I've whole coined everybody in my family, and,   I'm very   interested and invested into it. So I would  

[01:27:59] David Bennett:

Well, I I think we you know, stay in touch via email and,   start by sending me your input, and we'll we'll end it here. So I'll say goodbye to the audience. Alright. Thank you for having me on. You're welcome.   I'll talk to you later, man, and I'll I'll I'll probably be emailing you pretty soon. Okay?  

[01:28:17] Jawad Dashti:

Okay. Sounds good.  

[01:28:18] David Bennett:

This has been Bitcoin, and and I'm your host, David Bennett. I hope you enjoyed today's episode and hope to see you again real soon.   Have a great day.