How to Buy Real Estate With No Money Using Subject-To | Larry Steinhouse

Larry Steinhouse (00:00)

it’s not just skeptics, it’s people who listen to broke people. Right? you shouldn’t listen to Larry Steinhouse, he’s a multimillionaire. Don’t listen to him, he’s a multimillionaire. You should listen to me. I’m negative fifty thousand dollar net worth. I don’t understand why people listen to broke people. Why? I have a saying and I teach my students this, right? If anybody gives you financial advice, no matter what I don’t care, buy Bitcoin, buy

Blah blah blah blah blah. Buy life insurance. whatever advice they give you. I want you to ask them one question after they give you the advice. And the question is, are you a millionaire? When they say no, you look at them square in the face and go, thank you for telling me exactly what not to do.

Dylan Silver (01:06)

Hey folks, welcome back to the show. Today we’re joined by Larry Steinhouse, Philadelphia-based investor, known as the Stock Options Sultan. He also invests in real estate, single family, and mobile homes. Larry, thanks for joining us here today.

Larry Steinhouse (01:21)

Well, thanks, Dylan. What’s going on, man? not only am I known as the stock option sultan, I’m also known as the crazy real estate investor. How’s that?

Dylan Silver (01:27)

That’s two great nicknames. I don’t think we can be and you got the money code on, right?

Larry Steinhouse (01:31)

But the money cut on just for you, I figured, I just wanted to show you how wealthy I really am.

Dylan Silver (01:35)

Come on now, come on now. we were talking in the green room about your students and how folks are really able to come to you for all things money. if you had to say what types of deals and conversations are coming across your desk these days, what types of conversations are you having these days?

Larry Steinhouse (01:52)

So it’s funny because I teach real estate and I teach the stock market. And the first thing is real estate is the number one best way to build wealth. And also with real estate, you don’t need any money to buy it. Now, there’s a lot of things going on lately. People are like, you can’t buy real estate without any money. I’ve been buying real estate without money, I know, for twenty years. And before that, I was buying real estate with money. And then I learned how to buy real estate without money. You want to know why I learned how to buy real estate without money?

Dylan Silver (02:14)

I think a lot of people would like to have that skill, right?

Larry Steinhouse (02:17)

Because in two thousand eight I lost everything and went bankrupt and had no money.

Dylan Silver (02:20)

That’ll do it.

Larry Steinhouse (02:21)

So after that, I learned how to buy real estate with absolutely no money. I literally was buying properties a year later with absolutely no money, and I mastered, absolutely mastered subject-to. it’s funny, they got these guys out there, some of these guys out there going, he’s the guy. he doesn’t know crap compared to what I know. Now I gotta tell you, the guy’s not terrible, but there’s a lot of ethics to subject-to, and most people don’t know the ethics to subject-to. And most important thing about

subject-to is you must pay that mortgage payment or the seller is gonna get dinged. you could ruin someone’s life by taking over their mortgage payments and not paying And there’s a lot of unethical people out there who actually teach, so wow, who cares? What happens if you don’t pay the mortgage? It doesn’t affect you, it affects the seller. And as soon as those words come out of somebody’s mouth, you should turn around, walk out of the room and boo them. And one of the big gurus out there that talks about subject-to all the time talks about that. And I think that’s disgusting actually.

Dylan Silver (03:07)

when we talk about sub to, right, and loan assumption, there’s a lot that comes into this and setting those expectations is so important. You mentioned the fulfillment piece of this, right? As investors, when we’re underwriting these subject-to deals, what goes into that pro forma and that underwriting process?

Larry Steinhouse (03:26)

All right, to me, there’s many different things here. Most important thing is I want to be able to make money out of the property, right? So sometimes I’m buying properties that are upside down. So maybe the property is worth 300,000 and the guy owes 310,000. And his mortgage payment is maybe 2,500. Let’s just use that number, right? So if I could buy the property for $2,500 a month and rescue this guy, because if he goes to sell it another way, he has a problem where he has to come up with not only the difference of $10,000.

He has to come up with real estate fees and closing costs, and it probably costs him thirty to thirty-five, forty thousand, maybe even to sell this property. I walk in there and I’ll say, I’ll tell you what, it’ll cost you nothing to sell your property. If you want, I’ll even pay the transfer tax on both sides and I’ll buy this property. Now I have a mortgage of three ten on a property worth three hundred. So right away I’m in the red on that side. Now, if my mortgage payment is twenty five hundred and the place doesn’t even rent for anywhere near twenty five hundred, let’s say it rents for eighteen hundred.

Well then I really have a bad deal because now I’m not only upside down in the mortgage, I also upside down seven hundred dollars every month. So it’s a terrible deal. if you can’t make money somewhere, don’t do it. I want to make money monthly. Now there are exceptions. And one of the exceptions is, if there’s not that much of a difference between what you’re paying and what the person’s renting, let’s say $2,500,

I’m paying twenty five hundred a month and maybe the property rent is twenty three hundred, that’s two hundred dollars a month deficit. Now don’t do this unless you can afford the two hundred dollars a month deficit. But think about this, right? If I was to buy a property, I think I used the example of three hundred thousand. If I was to buy a property for three hundred thousand, what would you normally have to put down on a rental property for three hundred thousand? You normally have to put down sixty grand, right? At least. So if I’m gonna take two hundred dollars a month.

And even if the rent never goes up, which is impossible, and even if the property value never goes up, which is impossible, right? we both know both of those things will happen. But assuming the rent value never goes up, then it costs me twenty four hundred dollars a month. I’m sorry, a year to buy that property, right? Right. So I’m still not anywhere near the sixty thousand. it’ll take me years to reach that sixty thousand that I originally would have had it put down, it only cost me twenty four dollars month. On the other side, every month I’m making that payment, I get more and more equity in the property.

So assuming that I took it over the day after I bought the property, I have 30 years on a mortgage. After 30 years, again, remember the scenario, the property value never went up, the rent never went up. It cost me $24 a month, I’m $30, almost $70,000, $80,000 out of my pocket, but I get $300,000 back because because assuming the property never went up, because now the property is free and clear for $300,000. So no matter what, I win. It’s just a matter of time.

the more the time that it would take to make money gets shortened by being able to make a profit or getting closer and closer to the amount you’re gonna paying. So I don’t always say no to subject-to deals that are underwater. I’ll say no to subject-to deals that are really underwater.

Dylan Silver (06:03)

That long-term outlook is so crucial, especially when we hear from a lot of sources that real estate is a way to make a quick buck and then we find out this isn’t true. And that’s maybe where folks can run into trouble with subject-to, of course, because they are responsible for someone else’s debt, right? And if they stop making that payment, that other person will feel the brunt of that.

I want to talk about acquisitions for a moment here. I imagine at this point, deals are coming to you, right? But if someone is a newer investor and they’re looking for sub to opportunities, one of the first things that comes to mind is foreclosure lists, of course, and pre-foreclosure, et cetera. Is that where you would start if you were a newer investor in sub to?

Larry Steinhouse (06:44)

So it’s funny, I have a company called Investor Schooling, and this is what I teach. I teach everything from real estate to stock options to everything. And in our class, we actually have a class on how to prospect the correct way. And I’m gonna give you a little bit of insight of what we do to find subject-to properties. you find a list company, like listsource I think is one of them, look up this criteria. People who bought their homes in the last three years.

That bought it with a FHA loan and got seller assist. So every single one of these properties is underwater, right? Think about it, right? They put down 3% or 3.5% out of their pocket, they got seller assist, and they bought the property for let’s say 100, but they actually owe like 105. Now, all these out of all these people that have this situation, some of them need to move. Maybe they got another job.

Maybe they bought another house. Maybe they got divorced. Maybe something, whatever, something happened and you need to move. So what I do is I mail these people and I say, listen, in my business I come across people all the time who need to move. And I list out, divorce, blah, blah, blah, blah, blah, blah, blah. Right. And then I say, and these people, I find people are underwater in their house. If you are underwater and you need to sell it, I can help you get out of your house.

without it costing you a cent. Give me a call. I’m gonna pitch some subject too. Now this letter works really well. we have these letters available to our students. This letter works really, really well. And if you look up the list properly, it works really, really well.

Dylan Silver (07:59)

Very interesting, right? And I think a lot of people are looking for the proper way to invest and mailers is certainly one of them. And when we talk about writing a good letter and what’s going to trigger engagement, one of the things that I caught from that was you’re using the story of someone else rather than talking directly to them, Instead of making it just about them, it’s here’s how we helped someone else, right? And then they’re able to see, okay.

even though they’re in a stressful situation, no doubt, it takes it momentarily off from that feeling of isolation to I’m not in this alone.

Larry Steinhouse (08:32)

Right, exactly. And that’s part of what we mentioned. we come across people all the time that need this and this. So it works. It’s funny, I’ve had people call me up in tears. They actually say, Please tell me it’s real, please tell me it’s not a scam. I’m like, no, no, it’s real. And take a look at a property, I look at their mortgage statement, and sure enough I go, Look, I’ll tell you what, we’ll do this, it’s done. how much of a problem it is,

how over leveraged they are. If they’re very over leveraged, I’m gonna make them pay the closing costs. if they’re very close to underleverage and they don’t have the money, I may pay the closing costs.

Dylan Silver (08:57)

Now, one of the things I’ve never heard discussed before is, if they’re in this position where it’s negative equity or even if it’s, close, right? But yeah, you’re gonna be holding it for a long time, that person probably won’t be able to buy a home. is that the correct assumption that they won’t be able to buy a home for the foreseeable future?

Larry Steinhouse (09:15)

So this is where you need an expert in subject to understand this. It’s not exactly true. most banks, and nobody knows this, but most banks, what they will say is if you can prove that someone else is paying the mortgage for either six months or a year, depending on the bank. Some banks are six months, some banks are a year. If you can prove that somebody else is paying the mortgage, the loan is completely ignored by underwriting. Did you know that inside

the Fannie Mae book or inside the book for FHA, it actually says if somebody has a house that’s been taken over subject-to, you can ignore the loan with these conditions. Wow. And almost no one knows this. Now, you gotta be careful because if you’re buying a house subject-to and the person wants to go buy a house tomorrow, they probably can’t. But they would need at least six months, most likely a year.

This happens to me. I tell people this, but they don’t listen. it happens to me where, two, three years from now, I get a phone call in a panic. I sold you my house and you’re taking the mortgage papers, and my mortgage broker said, I can’t get a loan because of your ass. And I calm down. I said, Call your mortgage broker, give me a call. the mortgage broker goes, what is wrong with you? Who can’t take over somebody’s house? Blah, blah, blah, blah, blah. Shut up and listen. And I said, This is what I want you to do. I’m going to send you statements that show that I’m paying this person’s mortgage.

I want you to show it to your underwriter, and I want you to let me know if you still have a problem. If not, I’ll talk to the underwriter. And sure enough I get a call three days later. Wow, Larry, you were right. This is great, I never heard of this before. Can you tell me more about this subject-to thing? It’s so funny.

Dylan Silver (11:12)

That’s amazing. I think a lot of people will be interested in that because the downside, of course, for many folks is well, I can’t buy a home at least for the foreseeable future. Well, the reality is if you can show that you’re not paying those payments that someone else is that you can. Which leads me to my next question. Loans coming due, right? And that’s a big fear that people have is

how do you avoid the bank calling the loan due?

Larry Steinhouse (11:37)

People call this the do on sale clause, which it’s not called that, by the way. It’s called the alienation clause. And the funny part is that nobody even understands this. The interesting thing about this is if you buy it in a trust, the odds of it being called is almost zero. And the reason for that is the Guarn Saint Germain Act of nineteen eighty three says that.

If somebody takes a property and puts it into a trust, and most people do this for estate planning purposes, that the bank cannot call the loan due on sale or trigger the alienation clause. Okay, and that’s very important. So now if you’re putting a house on trust, there’s no way anybody is gonna ask you, hey, who’s the beneficiary of the trust? Because according to the law, it says that not the law, but the rule, it says that the beneficiary interest has to stay the same.

No, it doesn’t say how much of beneficiary interest has to stay the same. It could be 1%. some people are a little afraid and they say, listen, I’m going to make you 1% owner of the house you’re selling to me, which you don’t need to do. And the other thing you can do is, when the person calls, if the bank ever calls you and says, Hey, who’s the beneficiary? You have to say, Hey, I’m the trustee, because I would be the trustee on the trust. And I’m not going to tell you because I have orders not to tell you according to my trust. You have to get a quick order in order for me to tell you.

No bank’s gonna go out there and get a quote order if you’re paying the mortgages on time. They’re just not. It’s not worth it for them to follow up on a deal that went subject-to if you’re paying the mortgage. And if you’re not paying the mortgage, they’re calling the original seller anyway. So it doesn’t matter. That’s why you wanna make sure that you absolutely pay these things on time.

Dylan Silver (13:00)

Now will any attorney who’s an expert in trusts be able to do this type of trust?

Larry Steinhouse (13:06)

we actually have sample trusts on our website. So people who come to Investor Schooling,

we have a sample trust. And we call samples ’cause we’re not attorneys, but it’s the exact trust that I use. And it’s a very simple trust. The problem with attorneys is attorneys when they don’t understand something, they go, You can’t do that. Well, there’s let me tell you all the reasons and all the problems you’re gonna have if you do that. they don’t want to look back and say, Okay, this is what can happen. I have an attorney,

probably one of the best real estate attorneys. might even be in the country. they fly him to Vegas, they fly him to Florida, they fly him all over just to handle real estate deals that are gigantic deals. I’m a little peon, he’s a friend of mine. and he does this stuff with me. Now the trust that we have, it’s funny, he read it, he goes, This trust is fine. And he read it and he goes, but I can’t actually say that, I have to tell my students.

This is the trust that I use. This is what it looks like. And you could simply fill in the name and you could simply fill in the information, but you might want to have it reviewed by an attorney, because I have to say that, right? But I already know that the attorney’s gonna love it. It’s not gonna be a problem. So you don’t really need an attorney to write a trust. So if you have an attorney write a trust, it’s anywhere from $2,500 to $5,000. Right. And they can do it for you, but once you learn how the trust works, by the way, trusts are amazing, man. once you understand trust, they are amazing.

attorney can write it or you can write it yourself, it’s very simple to do.

Dylan Silver (14:15)

I want to pivot here. because we’re talking about trust. And in a lot of cases, trust can be a financial instrument, as much or even more so than a real estate instrument. Stock options, right? I’ve had a handful of guests who’ve talked about stock options and few from an expert capacity. What’s interesting about stock options, if I’m not mistaken, is

You don’t need to have, twenty-five thousand dollars in order to do stock options. You need a couple few thousand dollars and maybe even less in some cases, right? And you can still participate in leverage.

Larry Steinhouse (14:46)

There’s a lot of people teaching stock options out there, and almost all of them are teaching you how to lose all your money. You gotta be really, really careful on how you do stock options. Now, we teach a specific strategy, it’s actually a specific covered call strategy. can I share my screen? can I show you something amazing? Yeah, go ahead. So check this out. I’m gonna show you something that you have to turn the sharing on. I’m gonna show you something that we’ve done.

it’s actually a strategy that we use. I actually have a bunch of hedge funds that I run using this strategy. So we share this, we share our profits with the clients. And by the way, I just like to let you know this is not a solicitation to fund. It’s by private replacement memorandum only, and it’s for accredited investors only. And if you’d like more information, you can find out by asking me in a past performance is no guarantee of future performance. With that all said, this is the exact system we use in our funds, and we teach it to our students. So check this out. I want to show you the results of something we did.

And what basically happened, this started off as a conversation with my students in class. And I was saying, hey, listen, if you do this exact strategy the way I tell you, you’re gonna make a lot of money. And of course, like everybody else, the class was skeptical. People who paid me to learn was skeptical. So I said to my class, listen, I’m gonna take $50,000 and I’m gonna put it into an account, a separate account. So I took $50,000, I put it into a separate account. The first month I withdrew $4,675.10. There was still $48,385 in the account.

Then I withdrew 3908. There was still 47102 in the account. I with you 4,500. There was still $50,311 in the account. By the way, it’s the same $50,000. I never added any money to this. I withdrew $5,681. Then $53,000, I withdrew $48,11. I withdrew $4,400. $54,000. I went through $4,900. $50,000. I withdrew $3,800. $53,000. I withdrew $4,400. I had my worst month,

October last year, the worst month, I was down to forty-five thousand. I only withdrew twenty-seven twenty-five. I only made six percent that month. do you feel sorry for me?

Dylan Silver (16:38)

No.

Larry Steinhouse (16:39)

Right? Forty-four thousand thirty nine hundred, seven, forty-seven thousand. Total withdrawn. I put in fifty. I withdrew fifty-one thousand seven hundred and fifty dollars. I still had forty-seven thousand five hundred and sixteen dollars. My average balance was forty-nine eighty-three, and my average draw was forty-three twelve.

For an average percentage of 8.16%. Now I’m just gonna tell you right now, there is nobody out there teaching option strategy that can show results like this consistently. Absolutely consistently. This is what we do, this is what we teach. funny, you asked me before, you said, hey, what are you concentrating on? Nobody wants to learn real estate anymore. They only want learn this now. And the reason they only want to learn this now is because the results are so incredible.

Dylan Silver (17:54)

there’s like you mentioned a lot of for lack of a better term, just bad information out there. But one of the interesting things is that it still feels, and I’m sure you have a different algorithm than I do, right? but it still feels like most people are only somewhat aware of the power of options, right? And that you can bet it in both directions. And it’s because they’re using different

what is it? A call and a put, if I’m not mistaken. Right. And so this terminology isn’t the same thing as, buy and sell, but it in some ways represents something similar.

Larry Steinhouse (18:25)

what you should do, Dylan, is you should actually go to investorschooling.com and sign up for a class on Thursday night. Now you’re close enough that you could actually come here if you want to, but you could also go on Zoom. So you go to investorschooling.com, sign up for a class Thursday night, and just watch us. Because we’re teaching the strategy, we’re teaching other option strategies, we’re teaching real estate, we’re teaching subject-to we’re teaching everything. the fact that said

Hey, I think this calls and puts, you have no idea. Now, you said something interesting. You said very few people know about options. Almost none of those people know how to do the strategy that I teach. And the strategy that I teach, you can’t even find it on YouTube. There is nobody teaching the strategy we teach on YouTube. that’s how small of a percentage of people know how to do what I just showed you.

Dylan Silver (19:04)

Wow.

What does AI throw into this wrench, right? that throw a monkey wrench into this? Can AI, do you think, be trading for people? Can it learn to trade in this way?

Larry Steinhouse (19:14)

So I’m gonna tell you flat out that L I beats A I every time.

Dylan Silver (19:17)

What’s ally?

Larry Steinhouse (19:18)

Larry intelligence.

Dylan Silver (19:19)

I like that.

Larry Steinhouse (19:20)

Every time. it’s funny. we have people who come to me with their AI picks and I’m like, okay, do what you want. And then at the end of the year I show them what I got, and they show me what they got. some of them lose money, actually a lot of money. And they’re like, Well, I don’t understand. I have a saying in the front of my office. It says, If at first you don’t succeed, do what Larry told you to do the first time.

Dylan Silver (19:36)

That’ll do it.

Larry Steinhouse (19:38)

Exactly.

Dylan Silver (19:39)

when people are looking at, their investment vehicle, you mentioned stock options and people looking for, without having to swing a hammer, without having to deal with realtors and lenders and so forth. it’s two different mentalities though, right?

Do you find that the same person that is doing real estate is now switching and looking at stock options? is it maybe a diversification? You might continue to do real estate, but you’ll also do stock options.

Larry Steinhouse (20:04)

So obviously I’m one of those people. I have a bunch of real estate. I have mobile home parks, I have multifamily houses, I have single family houses, and I do stock options, right? Stock options makes me the most money. I make so much money in stock options it’s unbelievably incredible. we had talked about a long, long time ago, I had written, the description of me and it said I made over a million dollars in stock options. I make almost a million dollars a month in stock options now.

That’s how much money I’m that’s how well I’m doing in this business right now. And it’s been a blast. In fact, I’ll show you something else. I’ll just show you another one of my accounts, because that was a test account. So I bought a house and it was three million dollars for the house. And what I did was I wanted to prove to the students that I could buy a three million dollar house with two hundred and seventy-five thousand dollars. So I literally took two hundred and seventy-five thousand dollars, which was because it was actually two point eight million, was what I paid for the house.

So I went there to take the ten percent of what I paid for the house and use that to buy the house. So June twenty five, I put in two hundred and seventy five thousand, I took out twenty one thousand, then twenty eight thousand, twenty one thousand, blah, blah, blah, blah, blah, right? All these numbers. I had a couple of bad months, I only got fifteen and eleven thousand and fourteen thousand, right? My mortgage payment, my minimum mortgage payment is seventeen thousand. Big deal, right? So I didn’t quite make my mortgage payment, big deal. I make so much money, it doesn’t matter. But again, my worst case scenario is five point three nine percent, right?

But look at this. Since June twenty twenty-five to now, I withdrew three hundred and forty five thousand dollars, put that all on my mortgage, and I still have it’s actually a low month. October seems to be a low month, but two hundred and seventy five thousand at the moment is only two hundred and thirty seven thousand, but it’ll go back up. And I withdrew three hundred and forty five thousand in less than a year and a half.

Dylan Silver (21:32)

Wow.

how much time should folks expect to spend learning before they start using real money?

Larry Steinhouse (21:38)

Well, I tell you what, they should start using real money day one, never paper trade. Paper trade will give you bad habits. Really bad habits. you’ll go, big deal, I lost ten thousand dollars paper trade. When it’s real money, you don’t make mistakes. Well, when you make a mistake, you feel it and you learn from it. Where when you paper trade you just don’t. Now the interesting thing is that you wanna talk about how long it takes to do this.

So I just showed you these accounts. So each one of these accounts takes me fifteen minutes a month. That’s it. So I work fifteen minutes every month per account, and I make this money. So what you just saw, the twenty one thousand, twenty eight thousand, twenty one thousand, et cetera. That took me fifteen minutes in a month to do. After that, I’m done. I can’t do anything more. I always complain and say I wish I could work a half an hour.

Dylan Silver (22:16)

This begs the question. This is more of a theoretical here.

Folks can make money stock options, working limited hours, focusing more so on lifestyle. Do you think we’ll see more and more people do this or will there still be an overwhelming group of people who are skeptics? What do you see in the future?

Larry Steinhouse (22:33)

it’s not just skeptics, it’s people who listen to broke people. Right? you shouldn’t listen to Larry Steinhouse, he’s a multimillionaire. Don’t listen to him, he’s a multimillionaire. You should listen to me. I’m negative fifty thousand dollar net worth. I don’t understand why people listen to broke people. Why? I have a saying and I teach my students this, right? If anybody gives you financial advice, no matter what I don’t care, buy Bitcoin, buy

Blah blah blah blah blah. Buy life insurance. whatever advice they give you. I want you to ask them one question after they give you the advice. And the question is, are you a millionaire? When they say no, you look at them square in the face and go, thank you for telling me exactly what not to do.

Dylan Silver (23:06)

Yeah.

In a lot of ways, so many people, and we hear about this all the time, affordability, right? And the affordability crisis and affordable housing, if you have so many people who are stuck incapable of saving

Larry Steinhouse (23:17)

No, no, no, wait, wait, wait, stop. Stop. They are not incapable of saving. They make a conscious or unconscious decision not to save. See, I have this thing about poor people. do I feel sorry for poor people? Absolutely. Do I help poor people all the time? But that’s not the same thing. People who are poor have a poor money mindset. People who are rich have a rich money mindset. Now you could be temporarily broke or temporarily out of money.

And still have a rich mindset and you will eventually be rich again or be rich when you get there, right? But if you have a poor mindset, you will never be rich unless you get that mindset changed. These are some of the things again that we teach in Investor Schooling all the time. We’re teaching mindset training. And people don’t even get it until you get it. it’s amazing how quickly you could become a multi, multi, multi, multi-millionaire if you have the right mindset. Here’s a question, Dylan. Would you like another million dollars?

Dylan Silver (24:06)

Who wouldn’t, right?

Larry Steinhouse (24:07)

Right. So I ask this question to people all the time, Would you like another million dollars? And then I say, Dylan, you wanna know why you don’t have another million dollars?

Dylan Silver (24:13)

Mindset, right?

Larry Steinhouse (24:14)

You wouldn’t know what to do with it.

Now your first thought is, Yes, I would, Larry. How dare you say that? And then I’ll question you, what would you do with it? And you won’t be able to answer the question. I would travel. No, no, no. I would travel is not an answer. first of all, you could travel outside down the street to the park and you’re traveling, right? So I would travel is not the answer. I want to go to this hotel in Hawaii at this time of year that’s a five-star hotel and I want to stay with this person, blah, blah, blah. That

would be something that you might want to spend some money on. But that’s not going to be a million dollars either. That might be fifteen thousand dollars, right? If you pick the most expensive hotel you could find. So now you found a place for fifteen thousand dollars. And by the way, when you find that you’ll find the fifteen thousand dollars if you decide you want to do it. What kind of car do you drive, Dylan?

Dylan Silver (24:55)

Well, I sold a Dodge Challenger before I moved to Santo Domingo. And so currently I do this remotely and take Ubers everywhere.

Larry Steinhouse (25:03)

All right, do you want a car?

Dylan Silver (25:04)

Do I want a car? Honestly, I don’t know if I want a car to be honest with you, but I don’t know.

Larry Steinhouse (25:09)

But you see, that’s why you don’t have one. You don’t have a car because you don’t want one. Right. Then you ask people like, what kind of car do you want? Well, I want a used Hyundai. I’m like, What? That’s why they have a used Hyundai ’cause that’s what they want. Right? I decided a couple of months ago that I wanted a Rolls Royce. When would you like me to pick you up in it?

Dylan Silver (25:23)

You tell me.

Larry Steinhouse (25:24)

if you follow me on Facebook, you see me, I make videos on my Rolls Royce. you wanna know why I make videos on my Rolls Royce?

Dylan Silver (25:29)

It’s great marketing, that’s for sure.

Larry Steinhouse (25:31)

Yeah, it’s great marketing. But what else?

Dylan Silver (25:32)

Tax write off?

Larry Steinhouse (25:33)

Yeah. Sixty five hundred pounds, baby. That costs sixty five hundred pounds. I get to write the entire thing off this year. The entire thing off this year. As long as I keep making videos from it.

Dylan Silver (25:44)

Yeah.

Do you think that this is another theoretical question here? stock options gives people the ability to do this remotely, right?

Larry Steinhouse (25:52)

Absolutely.

Dylan Silver (25:53)

I’m someone who’s traveled not substantially but sufficiently enough to speak another language and to seen different culture. Do you think this opens up

the possibility that more people will start to travel. That’s something that on a personal note I hope to see.

Larry Steinhouse (26:06)

we have a student, we call him Truck Driver Dave. And Truck Driver Dave came to me about two years ago. And I have a radio show. I’m on the radio every weekend. I talk about finances. And he came to us, he was listening to the radio show. He came to me, listen, Larry, I’ve been driving a truck my entire life. He was making it the equivalent of sixty thousand dollars a year his entire life. He goes, and he owned the truck, right? I was like, and he goes, I can’t do this anymore. he’s in his late fifties, sixty, whatever, right? And he’s like, I can’t do this anymore. You gotta help me. He goes, This is what I have left.

I saved up some money. I said, I talk about the cover call system that I just talked about, what can I do to make money? he goes, I just can’t drive anymore. I said, all right, join the school, let’s talk about it, let’s do it, boom, boom, boom, boom, boom. And here’s the interesting part. Last year Dave made $114,000 just selling stock options. This year he’s up over $200,000 from the beginning of the year.

He’s up over $200,000 just selling stock options. He sold his truck, he bought an RV, one of those buses, RV buses, right? He bought one, sold a truck, bought this, and now he travels from state to state, takes out his computer once a month, and he makes anywhere from twenty to thirty thousand dollars a month. True.

And here’s the interesting thing, right? This story I would not be allowed to tell you if he didn’t show me the statements. In other words, we have to keep copies of the statements in file. So anybody out there, bullshit, come see me. I will pull out his statements and I will show you the numbers are real. I’ll show you my numbers are real any time as well.

Dylan Silver (27:25)

Amazing.

Larry Steinhouse (27:26)

And he’s not the only story like that by the way, but he’s one of them. And the only reason I like to use him as a story ’cause his truck driver Dave, perfect, perfect. the guy drove his truck his whole life. Now he’s a stock option expert after two years.

Dylan Silver (27:36)

God bless truck driver Dave. we are actually coming up on time here, Larry. Any new projects or activities you’re working on, or also anything you’d like to mention directly to our audience?

Larry Steinhouse (27:47)

Sure. So we have a charity, it’s called LEV27, L E V twenty seven. And what we do is we actually keep people in our homes. So it’s funny, I’m a landlord and I’m gonna teach you something right now. This is what I say to all my tenants. Rent due is on the first, on the second it’s late, and on the fifth it’s a hundred and fifty dollar late fee. And on the fifteenth, we file for eviction. And I sit there in front of the tenant when I’m interviewing them or when I hand them the key, I say this twice when I interview them and when I hand the key, I say, on the fifteenth we file for eviction. So listen.

If you get into a car accident, you’re in the hospital, your grandmother died, please call me. I’m gonna send you flowers, but I’m still filing for eviction on the 15th. Do we understand each other? And that, by the way, I have had three evictions in 42 years.

Dylan Silver (28:25)

Wow.

Larry Steinhouse (28:26)

Because I started out with that sentence 40 something years ago. that’s a great thing. But if I go back to Left 27, there are people out there who are living paycheck to paycheck and everything was fine.

they never were late on a rent, maybe once, but they’re living paycheck to paycheck, and all of a sudden they lose their job. It’s a sudden thing. And then two weeks, three weeks later, they already have another job lined up, but because they’re not getting paid for a while, they were living paycheck to paycheck. They can’t pay their rent for this month. Now, the landlord is doing exactly what he should do. He files for eviction. Now this person’s like,

If I could only catch up, everything would be great. So we will come in, we will pay their rent, month or two over their rent, plus any legal fees that the landlord is charging. And we will cover them as long as they can prove they can pay their rent going on, and as long as the landlord agrees to not evict. So if you wanted to go to lev27.org, L E V twenty seven.org and make a donation, I would be so thrilled, and so would the people that we’re helping. We help many, many people stay in their homes.

Dylan Silver (29:18)

Larry, thank you so much for your time today. Thank you for joining us.

Larry Steinhouse (29:21)

Yep, and I’m Larry Steinhouse, Investor Schooling. You can reach me. follow me on Facebook. One more thing. You wanna get a copy of my book, Money Hacks?

Yeah. Great book. So if you send a text message to the number 26786, And send the word HACKS. I will send you a digital copy of my book. And I’m gonna tell you right now this book’s got great stuff in it. We didn’t even get into my book right now, but this book’s got great stuff in it, like how to build credit, how to buy houses with no money, all kinds of great stuff. Dylan, you’re awesome.

Dylan Silver (29:45)

Larry, thank you so much and it was great meeting you, man. Thank you.

Larry Steinhouse (29:48)

Take care, man.