Unknown Speaker 0:01
Good afternoon, everyone. Thursday, August 18, another edition, the 18th episode of 30 minutes with Spyglass lending. We've got a very, very special guest with us today. He is one half of the Allman Brothers, but I assure you he is very much his own man. Welcome to the podcast. Welcome to the show. Matthew Altman. Thanks for being here. Hey, Aaron Pfeffer. It's a pleasure and an honor. I've been following your podcast now for a long time. And it's been helping me get through my days. And I really just appreciate the knowledge that you drive on on us. And also, another thing that I find so beautiful about your podcast, is the fact how you are like a piece of art yourself, the way your gray and black hair melts into the picture behind you. It's beautiful. That's why I did it. That's why I got it.
Unknown Speaker 0:47
And I appreciate you sitting. So if you can't tell already, Matt and I know each other, I don't think you could possibly come in anybody like that without some sort of background between each other. So yeah, we've got close to a 20 year history. And we're going to talk about that. I want to get right into that. Do you remember when we first met?
Unknown Speaker 1:03
Unknown Speaker 1:06
I remember we first met 20 years ago, we were both in the entertainment industry. And I think it was probably meat trying to get something from I don't know if Zeid Perry, it was something from a script or something and we hit it off in the entertainment industry. Well, before this I Paradijs. My friend, I was a creative artist agency. I was only there a couple of months.
Unknown Speaker 1:25
And you and you were to AMG, right? So a little history on that. Like I think I was out here maybe three or four months. And we met at a Sony party. We came fast brands and all of a sudden
Unknown Speaker 1:35
we're having lunches, as we call them. Young Turks having power lunches at a place that no longer exists like throwback to New York City style was
Unknown Speaker 1:46
because they didn't mix McCormick and Schmick's. Yes, right.
Unknown Speaker 1:51
Yeah, amazing stuff. And I think like, I mean, we had no money. So we would just show up and order the cheeseburger every time like oh, like four of us sitting cheeseburger,
Unknown Speaker 2:00
oysters and dollar oyster. You need four though that's like a full meal place was amazing. So we started out there. And both of us obviously in the entertainment space. And tell us a little bit about where you went from there. I mean, you were in that for a while before we got in real estate. Right? I was in there for a while I went from the entertainment industry to the real estate slash entertainment industry.
Unknown Speaker 2:21
Originally background was graduated look, went to University of Colorado played football there as a backup kicker the greatest position in the history of sports Seriously, just
Unknown Speaker 2:35
Unknown Speaker 2:38
and ended up interning during the summers, which was always probably the most important thing anyone can do well in college, is enjoy college. Don't worry about anything intern for free. And I interned I think the first summer it was at Entertainment Tonight. The second summer it was at Don Buchwald, who at the time represented Howard Stern. The third one was MTV road rules and real world and then news for so I graduated. And at the most incredible resume making a total of $0 in four years.
Unknown Speaker 3:07
And then when I graduated, when you realize that you made no money, you're able to send that resume out. And everybody offered me a job because I had a lot of great experience. So that was the most important thing I did in all college. And then ended up going to start in the entertainment industry. And originally I started with a guy who basically packaged and put together the show Will and Grace, which was Scotch quartz and Two and a Half Men or two Scotch quartz and vision art management. I did that for about two years great time, ended up moving over to the Gersh agency did that for I want to say four or five years? I'm not sure my memory is not great anymore. I have too much crap going in my head all the time. Well, you when you were at the Gersh agency, were you at you were at that point an agent, right? Yeah, I was I would think I was one of the youngest agents in Hollywood. I was an agent. The day I started when I worked at Arts Management Group, or we got we got to put a pause on for a second because I think a lot of people shouldn't need to understand what that means. I mean, most people would otherwise have to go through a rigorous training program have to go to a minimum. I don't think you ever did, did you I did not I was able to finagle my way in and skip that which was a big deal.
Unknown Speaker 4:15
And so I was able to do that able to move over to the Gersh agency, and then over to ca right then, and then decided, You know what, I like a business where I can create a product. And on Monday or Wednesday it doesn't happen to walk away because they meet somebody or it's sunny out or they have a bad day. So I think that was the the part of the entertainment industry I didn't like I think being talent is wonderful. But being an agent where unless you're locked into contract, it's always free agency and I don't like that aspect of life. It didn't fulfill me. So you're ultimately left I mean you and to think about it because again, putting that in perspective. I mean anyone who is inside Hollywood or knows anything or even wants to be part of this business, creative writers, agents
Unknown Speaker 5:00
See is top three agency and at the time when you were there clearly number one undoubtedly.
Unknown Speaker 5:08
Right. And I think now endeavor William Morris when they combined it sort of ca or William Morris Endeavor at this point there, I assume they're the top two, right? Still still remains so but you know neck and neck. But again, you know working your way up as you had just becoming an agent there never having gone from the training programs tucking away in in these positions and getting hired was incredible and you felt comfortable enough walking away from it.
Unknown Speaker 5:34
I mean, the way it was just so you know how I got the job because that was everyone always asked me how I got the move from a place like Gersh, which was a boutique agency to one of the big five, I had a lot of my clients stolen. And whereas in that business, when you get your clients stolen, you call and you threaten the other person, you call and you have a yell at them. I actually wrote a letter to the five people that stole my five clients saying Congratulations, you just got a star. I admire you, I've looked up to you. I'm supposed to be mad at you. But the truth is, I just want to work as hard as you would be like you someday. And I sent that out to five different agencies and I got five offers that day to work more. See, that's incredible. I mean, a story like that just telling an anecdote like that. It's speaks volumes, honestly, to who you are the person I've known for 20 years. I mean, you're always like this contrarian salesman. And that's, you know, part of your success. And we're gonna get into that, certainly, but obviously, what allowed you to even work at a place like CAA, but you left there, and how long before you got into real estate or what you do essentially after UFC. So what happened was, it was one of these things that you in life, you follow your passion, what you love to do, my true, true passion. And everybody says I'm crazy. But if I could do anything, and I had all the money in the world, I would be a soccer coach and a scuba diving instructor. But considering neither of those pay as well as you think they do,
Unknown Speaker 6:53
for Ted lasso, which I haven't seen, but I here's great.
Unknown Speaker 6:57
I ended up Josh and I, my brother, a partner ended up flipping houses while we were agents, he had the same type of resume I did. And on the weekends, we would we would go to home, we would paint it white, it was the perfect time. By the way, whoever bought a home on Monday, it was worth more on Friday. But we were able to go in I'm very good with my hands artistically. And we could take out appliances, fix, fix different light fixtures, and so on. And I think the first time we did that we bought a house it was 100% financing. So it cost them nothing. Back then you could escrow, we bought an apartment on where the four or five and the 10 B, I think it was called Bentley Avenue. And we ended up
Unknown Speaker 7:37
painting the place, putting in all new fixtures and putting all new appliances in. And as a joke, put it on the market for double, like a month later, right. And we got it. And we were like, what?
Unknown Speaker 7:50
The joke because we speak a lot around the country. That joke originally was I'm sorry, let me understand this. So we just made $300,000. So we didn't even know what taxes were, by the way, not a clue that will creep up later. But we just made $300,000. And we are brilliant at math. So as far as we were concerned, we were millionaires, right? Well, all of a sudden, we're the richest people we know. And what do we do? We bought the townhouse right next door, we did the same thing. And we did their townhouse, right next door did the same thing. And then immediately, people caught on, and they started doing it themselves. So in a very short while, in a matter of like a month, I made the same amount I made as a talent agent at CAA. And my brother and I looked at each other and we're like, Wait a second. This doesn't make sense. And people started asking me for advice with housing because I shared the news with everyone. Oh my god, there's a great side gig. And it started making 10 times the money. I was making NCAA on the weekends, which is a job that's 24/7. So it's the irony of the way the world works. But I remember
Unknown Speaker 8:52
thinking, you know, this is not obviously, where I want to spend my time I enjoyed doing we would go to open houses, because we enjoyed it. It was like a dream. You just get to walk through cool people's houses, like how much fun is that on the weekend, when you got nothing else to do. So we ended up doing that. And that led to us to dip our feet into real estate. Josh ended up running a mortgage company.
Unknown Speaker 9:15
And then I ended up
Unknown Speaker 9:18
continuing real estate until he had that I'm sorry, continuing as a talent agent. We decided to partner up and we decided to become real estate agents and we walked up and down the street on cannon and went into every single place and told them that we had sold 11 houses which we did but they were all our own and we used an agent we forgot that part. And we were ready to rock and roll.
Unknown Speaker 9:38
And again putting in perspective just to talk about what canon is like one of the more famous streets next road day obviously in Beverly in Beverly Hills. But But there was one particular agency on canon where you started right were the to
Unknown Speaker 9:50
talk your way in. We walked into Hilton Island. The reason we went there was because it was Paris Hilton's Father's name Nope. We
Unknown Speaker 10:00
He sat down with good old Rick Hilton. He looked at us and Jeff, two of our mentors in the business helped start us. You know, guys, we don't take new agents. And we're like, yeah, no, no, we're not new whatsoever. We sold 11 houses, they're like, Oh, really, we don't see that. I'm like, yeah, we've just done that. And one thing I've learned in this life and in this business is people don't check my resumes, they don't check your background to the degree that you would think they do. Unless you're a doctor or a lawyer, which they should definitely for sure, yes. But you'd be surprised. I mean, we grew up with the fake it till you make it. And we basically just made up a story to get the opportunity to get in, we were able to convince them. And we in our first six months total, how much do you think we sold our first six months of running? Negative $600,000 he sold $0. In our first six months, we were one month away from quitting and saying real estate was not the right job. We happen to be lucky enough to live in Beverly Hills where every house is so expensive, that we sold one house our first year, we sold one house for $12 million. Now again, because of where we were, it paid us for the whole year. That is the only part of it tell you about the job of real estate that I always find interesting, I'm feel we're very fortunate is that I will do the same amount of work, selling a $50 million house as someone in Kentucky will selling a $80,000 house, the exact same amount of work and the paid a difference is why people live in California. But in a house, that's 80 grand and Kentucky very different marketing, right? I mean, shoot the pictures on their iPhone, where if you're, if you're listing at 2030 $40 million house, a little different expectation, oh, I'm totally comfortable in the seat.
Unknown Speaker 11:48
Again, it's how much you want to put into it. But it doesn't matter. It equates because if 80,000 is luxury there or whatever the number is 400,000 600,000. Luxury is luxury, you're going to be focusing on the same type of buyers in whatever area. No doubt. Alright, so how long are you gonna hold an island after that? I think we were very loyal over there. I think we were there for about seven years or so. And that's when the show started. Right? When when
Unknown Speaker 12:14
a lot of the, you know, when I left that entertainment industry, I will be honest with you, I was pretty depressed for about six months, I felt like I wasted a lot of time, the work and the amount of hours that we put in there, you know, just as well as I do. Is grueling. It's not a it's first of all, it's not a job, it's a lifestyle. You are working 24/7
Unknown Speaker 12:36
you're on call 24/7. That's, that's tough. When you're an underling, or when you're Yeah, that you're not working and just be able to do that. All the time. Is is exhausting.
Unknown Speaker 12:48
What was I saying? She's no, no. You were a little depressed for about six months. Oh, yeah. And so basically, when I left that business, I felt I literally wasted eight or nine years of my life looks like what it was a doing. Am I ever going to use this. And when you're in that business, agents steal clients from other agents, they stab you in the back, they stab you in the face, whatever it is, when you leave that business, all of a sudden everyone says well, you have to completely leave entertainment. So you go to a whole new facet. And then all of a sudden, they're like, wait a second, that guy's great because he knows the crazy people we deal with all day. And that's how it started. And our first client ever who to this day, I will tell you, the most loyal, beautiful, wonderful woman is Kim Kardashian. She was our first client in real estate. I remember selling her first condo, on Croft for about $800,000. She introduced us to her friends who introduced us to their friends. And within five minutes, we were dealing with sort of young Hollywood, I literally will tell you, if you were to ask the one factor that got us in was Kim, and she has been one of the most loyal, wonderful clients to our family from from the day we matter. She deserves every inch of her success. That's tremendous love here. And look, again, to your point about how and I love harping on this, especially with you, you know your ability to have the conversations like you did with retirement, your ability to kind of maneuver in certain social circles and have everybody feel comfortable. And you know, that's part of it. I mean, that's the Hollywood allure. Certainly. I mean, I'm going to tell a quick anecdote. You may or may not remember this story, but I'm going to go back maybe 12 or 14 years ago at this point, right. You're already kind of starting to get some success. You're still at Hilton Highland. You and I are in the car together. We're on Santa Monica Boulevard heading east it is rush hour. It's five o'clock in the afternoon. I'm talking a pile of traffic behind us a good mile, mile and a half. Bumper To Bumper, the traffic ahead of us starts going you look over to your left and realize some guy is sitting in about a $300,000 car. You start honking the horn
Unknown Speaker 14:46
to get his attention you put the park Okay, now again, traffic it's five o'clock rush hour ever the car's got everybody behind us ain't happy that Nobody's going anywhere. You get out of the car, you pull out up
Unknown Speaker 15:00
Isn't this card and you said a man like you in a car like that needs a house to match? When you're ready? You give me a call? This is the moment that no I mean, it's a fearless you know, you're never ending you're you're always on. We did we treat our cars, like they had a virus that was our saying that's how we will get them out of the wallet.
Unknown Speaker 15:21
Sorry, Ashley, gonna say hi to the TV? No, okay, say hi. Because I need you to get a special guest appearance. What's up, man? Good to see you.
Unknown Speaker 15:31
Like that shirt?
Unknown Speaker 15:33
I'm saying. You said you get your business cards like a virus. Yeah, we treat. We tell all the guys and girls that work for us. You know, if you're holding on to a business card, you're not using that correctly. Everybody needs to know what you do. But right. Again, every single thing about our lives, Josh and I has been breaking the rules. The number one rule I would tell you to follow in life is to make your own rules are gonna get caught doing whatever you're doing. Because at the end of the day, you know, I know you went to what was at Harvard or brown,
Unknown Speaker 16:03
where Indiana University plus you went to Harvard of the Midwest, let's go Harvard of the Midwest, but you I know because I've known you a long time. You're a voracious reader. By the way. That's the biggest word I know, voracious. We were street smart guys. And that's what it took. And so the inspiration there for anybody trying is I get resumes every day now from kids at Harvard, and Yale and Penn colleges, that wouldn't look at me ever. If I wasn't playing football, to be honest with you. A backup kicker? Yeah, if I wasn't the backhoe kicker, but
Unknown Speaker 16:38
it enabled us to, we made our own rules, and we made our own success. And that's that's the inspiration there is, do what you love, have fun doing it. Look, I will tell you on the education system, I didn't take it as seriously though, the three classes I wish I knew, I wish there were there was an accounting class to teach you about taxes, there probably was maybe I didn't know that existed. I wish there was a class that told you about
Unknown Speaker 17:04
time management, you know, and then how to most effectively do that. And I think I'd say tight and utter the importance of second language not to be force fed into you, you have to do this. But for every language you learn, you can make twice as much money. Like, what more motivation do you need, if somebody told me that when I was younger, instead of you have to learn Spanish or French, I wasn't thinking I had to do it. If you said if you were in both languages, you're three times the money, I would have been fluent in three languages. And it's take me a long time. I am now fluent in Canadian and Australian, in English, American and English overseas, and the man the man jokes, you are clearly fluent in that too. So appreciate you.
Unknown Speaker 17:49
That's good. And like it works for you. You know, I mean, and this is what what you're talking about obviously makes a lot of sense. I mean, again, the way you think about stuff the way you know you, you're able to compartmentalize what's important, what you're focused on. And it's always about that connection, and always about that sale, I see you operate. I mean, probably the best word I can describe for you as an operator in the best possible way when you meet somebody when you command their attention, and you're ultimately looking for what they need and how you can provide it for them or vice versa. You know, I'm always impressed by that. Let's take you back to Hilton island for a second again, because you said you did seven years there. Jump to where? How many years? And you say like that it just sounds like a president? Yeah, I did seven years. Seven. Yeah, you did. You did a sentence there. They released us. Great. You got back, you're watching your wallet.
Unknown Speaker 18:37
You How many years into the show were you by the way at a million dollar listing after
Unknown Speaker 18:43
my brother is the star of that show. We are business partners best friends. He's obviously a close friend of yours as well. Josh is the star. It's been on now for 14 years. They're taking the 14 season. It's something that I don't mind appearing in. But it's not my show in anyway, this is all Josh's show, he carries that show he has for the past 10 years or so. So it's been a great advantage to our business platform. Because the you know, in the world of marketing as a agent, the most single most important thing you can ever do is get people to know who you are, and let them know that you sell real estate. So we have an infomercial that runs on TV now for 14 years. That's an incredible blessing.
Unknown Speaker 19:26
And a lot of hard work by the way. A lot. I don't know that. You know a lot of people have been on the show and off the show. But to be able to do that effectively. You have to have two partners. You have to have a partner that's on camera and then another one that's off camera, working their butt off. Yeah, no doubt about it.
Unknown Speaker 19:43
What was the what was the brokerage after joven Hyman? That's right now.
Unknown Speaker 19:47
After Hilton Highland, we got an opportunity. We you know, we started off having never sold a single house and we were one of the top performers to help them Island at the title nine and had all the top performers. And so we are sort of all branching out on our own
Unknown Speaker 20:00
own and or to a different place and we got the opportunity to meet at a couple different places, and a company called Douglas Elliman came ly, and they were just about to open up in Los Angeles. We knew them from the East Coast, we grew up in Boston, and we visited New York all the time with our families.
Unknown Speaker 20:16
That's a massive brand out there. And when they came out of here, and they had their mentality, we sat in that with them. And we decided to jump ship and start with them from day one. And like a half office, I don't even know what it was. And we have now been with them for about eight years. And we've just, we've been the top in the company now year after year after year. We'd love the company, we know they've treated us very well. And we love being part of that brand.
Unknown Speaker 20:42
Again, forgive me, the reason I like harp on it and kind of came back to because I think it's so fascinating. As you mentioned, they were a huge brand on the east coast, but really didn't have much of a presence here. But there you go. I mean, it was YouTube, that they turned to to be the face of the company to be such a big part of it. I think that's exciting. And it's incredible. And now obviously, you've been with them for eight years, and also speaks volumes. What else man, I mean, look, besides billions in real estate, and that'll continue on for for quite some time, obviously show or not because of how good you guys are and what you built. And you know, the brand that you focused on, and just how good you are. It's actually, you know, working hard. And I think that's something it's important to harp on for a second you to work insanely hard just in real estate. I mean, right? I mean,
Unknown Speaker 21:22
listen, I think Josh and I are two of the hardest working people I've ever met in my life. You really are.
Unknown Speaker 21:29
I'm gonna retest that. Yeah, I'm always blown away, when we show younger guys or girls homes that are 20 or 30 million in the tech business, because the amount of hours we put in was more than any of them I've ever put it in. And it's always like, there is a factor of luck, obviously. And we always look at it as you make your own luck, you put yourself in your own positions to get lucky. And I can go into that later if you want. But, you know, we are the two hardest working guys. I know it really is. And by the way, it's also a downside. I'm trying now that I have a family to spend more and more time with them. And it's not easy when you have a brother as a partner. If you have somebody else's a partner, and you'd let them down a big deal. As your brother, you feel really guilty and you feel like crap. So it it really continues to motivate us both. We're both from an athletic background. We're both always pushing ourselves to get better, or for the other one to be better. Yeah. And I will say, Aaron, who I've known for 20 years, is one of those people that secretly you like to not like so much because everybody likes him like with us. You like us, you don't like us. It's a 5050 split. Aaron has been the nicest guy in front of that for 20 years. The only thing that bothers me about him is that everybody likes him. And so Oh, my best friend Aaron. And it's a little hurts a little bit after that so many times because you wonder who is real best friends are but he's a very good guy.
Unknown Speaker 22:53
I appreciate the blog, back to you for a second. Besides billions in real estate. What else? I mean, you talked about investing and how you were flipping property. Are you still doing that? Or what else are you investing in? Right now we invest in a large group of different areas, I will tell you, when it comes to investing, the number one rule I can teach you is you invest in what you know, period, not in what anybody else knows. Because then if it doesn't work out, you know exactly who to blame. And I invested in Bitcoin, those imaginary coins I got screwed when I invested in an energy company I got screwed when I literally can list off 20 companies that have failed that I did not invent or that I invested in that were non real estate. With that said you can if you're smart and you know how to properly invest and diversify, obviously you can do well. We're part of many different products right now a lot of
Unknown Speaker 23:46
a lot of real estate products, a lot of technology products. We're in a great drink company called BLK water, which is balanced loving kindness water, we've recently got in with them, we're starting to see them at all stores, from Costco to Walmart to target, an incredible product. I love water, but I hate regular water. So all I do all day long is drink wherever it is flavored waters. And this was this is a flavored water that has 12 different flavors that are incredible. That make you feel like you're drinking a soft drink. And so that's why I ended up loving it.
Unknown Speaker 24:22
We'll see how that one goes. We're invested in again, many other companies. There's an another company that's just launched called Ben my listing, which is the most groundbreaking technology when it comes to selling a home you've ever seen. And we're very excited to be part of that and see where that goes. I'll give you in a nutshell. Everybody can go to Ben my listing.com you can log in free. Check it out, essentially in a nutshell. Right now as a realtor. You spend money on things that you never know if they work. You buy all the silly leads on the Zillow O's or the red fins whatever. None of them come to anything. You buy bus ads, you buy new
Unknown Speaker 25:00
newspaper ads, you buy videos, you buy all these things, and you have no clue where anybody has ever seen you, with Bid my listing, an active seller will go online, say I'm going to sell my house in Beverly Hills, they push a button, it goes to all the agents in Beverly Hills. And it says would you like to bid on the listing of this property, meaning you are offering to a put skin in the game and be whatever you want to pay the seller sees. And you know, 1000 2000 5000 10,000, these permissions are large amounts, if you're willing to pay $10,000, that makes a difference to a seller, they can do work to their house, they can stage to the house, they can pay for college, whatever it is that they need, it's an extra incentive, they then get to the side out of the top people that did you know, five grand seven grand, 10, grand, 20, grand, whatever it is, who they want to choose. And if they like them, they work together and they're able to sell a home that's buying a real lead that's 100% Real because you get the listing and any young agent out there knows how hard it is to get their first listing. On Bid my listing, you can go and invest in yourself by five listings. And guess what, you've sold five homes. You know how much time that's going to take away from from somebody who is just trying to break in the industry? Yours is the greatest program I've ever seen in my listening.com. Yeah, it's incredible. And when you first told me about it, I was kind of my jaw hit the floor as well. And obviously I mean, you you speak specifically to Beverly Hills, because that's our backyard. But this works anywhere. This is national. Actually, by the way, we haven't tried it under the test markets or in Northern California, and it's working insanely well. Right, lower price points. And certainly, you know,
Unknown Speaker 26:34
agents are able to get their face in front of people they want usually, and then sellers love it because they're making money and people you know, you work harder when you have 10 or $20,000 on the line. Yeah, you work a lot harder than just oh, I want to do this or that. So it's just there's just a very, very, very different spin on this industry. You know, that's gonna be extremely disruptive, right? I mean, it could change everything moving. Talk about like, I mean, look, Redfin came in and changed everything the way they do it. But to your point, I mean, there are so many agents, how do I break in? How do I beat out somebody who already has a listing? How do I move quickly from becoming a junior agent to you know, somebody with, you know, a bigger role. And this is a great way to do it. I mean, I sound like I'm plugging it for you. But seriously, it's like, I mean, when you first told me about it, I thought it was really impressive. So, obviously, we'll see where it goes. And I know you're just getting started with it. So really interested in to see what's out there. I mean, there's a ton of articles in Forbes entrepreneur, you can just Google that my listing.com and check it out. What about real estate itself, you still are you still acquiring you still flipping anything, we're
Unknown Speaker 27:33
heavily involved in investing in real estate, I've got five properties. Now, all of them, you know, the other thing is where you invest in, I like to invest where I know, I know you happen to be more gutsy in being able to invest in different parts of the country that you haven't been to, for me, I need to not not to complete success. So
Unknown Speaker 27:54
the reason why are successful is because I know when the steel is there, and I seize those moments because of what I do in work, any type of shirt, you always get a discount of whatever industry you're in. If you're in the sneaker business, you know when a hot or secret come in, and if you were to buy it, you can resell it outside for double the money. But I feel the same way with real estate, obviously, I focused with the end goal that everybody talks about is you invest in units, and that's going to get real rich. For right now I'm finding my success in owning homes that are single family homes that I end up renting out, or ironically I've lived in most of them. I picked up one recently that I don't live in. But the rental rates are so incredible that they're doing multiples of 50 to 100% of my investment right now. So that's what I'm focused on. Again, it's all about knowing the right piece of land, there was a you know, buy a house, the last house I just bought
Unknown Speaker 28:46
was on the market for 10 million bucks for years it became asleep or people stop looking at it. I was able to pick it up for 5.6 million bucks, my rental rate on that product, you know, my mortgage is about 22,000 a month, and my rent on that is about 45,000 a month. Right? So you said 5.6 and about 45. That, I mean, that's close to the 1% rule. I mean, almost unheard of here in Los Angeles. But if you're high enough on the property itself, and like you said, You struggle when you know at a lower price point because of who you know and what you're able to do. Yeah, it's amazing, because most people here in LA are kind of at that 30 to 50% rule. But you're close to the 1% rule on what you spend compared to what you're bringing back in. That's awesome. I got you know, yeah. What's that? It's just because it's like we again, I focus on so I bought by the way, I've been showing clients that house, and then all of a sudden end up buying the house, right? Every house I've showed the house I'm in right now. I bought this because my client wanted me to see it. We were the first ones in the door. It's kind of a funny story. I said to him, Listen, are you aware because he's a good friend of mine. This house is completely mispriced. I mean, the next person you're the first person to ever walk in the door the next person who walks in this door is going to offer full price all cash Yeah.
Unknown Speaker 30:00
And he goes back. He goes, You know, I'm not sure it's a big house. I haven't got rid of my other house. I said, I totally fine. I just need you to give me your permission that if somebody else walks in, you won't be mad. That goes, alright. Yeah, it's okay. I said, Okay, jokingly I said, I'm gonna buy the house and it goes, alright.
Unknown Speaker 30:16
And he left. I walked in and offered full price immediately. It's worth double.
Unknown Speaker 30:21
Right, that was worth double immediately. Yeah, look, I mean, you do this all day, every day. So you would know better than anybody. We're running out of time. But I got one last question for you. Because I think a lot of people want to know, what is going on in the industry, a lot of volatility in the last four to six months, you know, play play prognosticator for a second, what do we see down the road? What do you think is going to happen? Not only in high end real estate, obviously, your neck of the woods, but all the way down? into maybe a little bit lower price point? What are you think's coming up for us all in the next two or three years? Yeah, I mean, again, everybody I like everybody thinks everyone has a crystal ball. But if I were to look into the crystal ball, I would tell you that the high end market that I deal with, the properties that are stupidly priced, are no longer going to be around, they're gonna, they have to get really, you can't carry these properties anymore for that amount of time. The properties in the lower end, you know, that's where I see. And I don't mean lower end because it's all again, relative, but in the properties in the one to 5 million range, that's going to just take a drastic change. Based on rates. That's where rates affect people, nobody buying a $20 million house could care less about rates, they're buying it, they're using their own money with the banks. The fact that rates have doubled means your payment, your monthly payments have doubled. That's a big difference. So someone who was looking to buy a $4 million house a month or three months ago, can now only afford a $3 million house, someone who was buying a 3 million can only afford it. It's versus going up. You're now going down. Now again, you got to remember these rates are the lowest they've been ever still. So at the end of the day, you're still safe, you're still fine, but yes, people are freaking out. Again, in the one to 5 million range, which is where most people are buying in the world, or at least in what I deal with. That's on fire. If you price something correctly, it sells in five minutes. If you overpriced a property, it's gonna take a long time to sell interesting basic world real estate that my mentor always told me it's like, what's it worth? It's worth what someone's going to pay for and how much you know, what do I price it at? you price it at what it's worth.
Unknown Speaker 32:20
Matthew Altman, Douglas Elliman real estate billions in value annually in brothers.com. Matt brothers.com Did my listening.com I can't I can't tell you how much I appreciate you being here today. Thank you, man. Love you. Love the hair.
Unknown Speaker 32:36
I love you too, man. Thanks, man.