In The Ghetto

Eric B. & Rakin have been legendary since their inception, and their Song “in the Ghetto” is the 100 proof. In this song, Rakim makes some references to real estate. BUT before we get started, I gotta make some shout outs real quick.  

I gotta shout out the dynamic duo Eric B. and Rakim because they’re LEGENDARY. Rakim being one of the illest lyricists of all time and his delivery is hella clean, I gotta shout out  Eric B, for producing the classics that he has 

extra vibey and being ill with the cutlery. And speaking of DJS imma shout out the homie DJ Diligent, long time friend who put me onto this real hip-hop. 

My first exposure was this 74 minute mix tape, that was actually one song on a CD  and it had the illest New Yorkers, DJ premier, Guru, Big L, Jeru the Damaja. The Wu And the list goes on, but New York HEAVILY influenced my taste in music and I fell in love immediately  but enough with the shout outs, 

I love this so much because I feel the same way. I’ve been a few places and want property in a bunch of different places nationally and internationally. And speaking of internationally, I’ve heard people say, you shouldn’t own property that you can’t drive by and check on… and to that I say thats ridiculous, for one thats what property management is for, and 2 the world is getting smaller and smaller and its too easy  to catch a flight and pull up to my property in Miami Beach. The Dominican Republic is only 2 hours past that and I need some property there too….Not to mention that your return on your investment might be better somewhere outside of where you live, why limit your income to a zip or area code?

Yes, it’ll be a lil different because it could be an unfamiliar market, but if it makes sense it makes sense. AND if you’re looking for property…ANYWHERE, especially in the states,  you should hit me up because chances are, I’m tapped in there, and i If I can’t do it myself ill find someone who can for you… 

Now when I hear the ghetto, I  think of a few different things. I think of: fire ass restaurants, convenient stores, check cashing places, I also think of section 8,  areas where more people rent than own, and gentrification, and whole bunch of other things but we’re gonna start in section 8.  

Being that Im a realtor here in Cali, I have & get to keep up with the legislation that impacts real estate. A new law is that landlords can’t refuse section 8 now, a new tenant discrimination law that expands the definition of source of income to include section 8, which would make it illegal to refuse to rent to someone who receives the section 8 subsidy.

If you’re here wondering what section 8 is, its a 

“housing choice voucher program that the federal government uses to assist very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.”

“A housing subsidy is paid to the landlord directly by the PHA on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program.” AAAND  “Under certain circumstances, if authorized by the PHA,(public housing agency) a family may use its voucher to purchase a modest home .” 

SO if you know someone on section 8 that wants to purchase a home, this may be a way to do so, Hit me up and we’ll figure it out! 

Now some might say, “I don’t want a low income family living in my rental.” Well, if your concern is a difficult tenant, then just know that could happen without section 8 tenants, so either way, its super important for you to screen your potential tenants thoroughly 

so you’re aware of the risk they pose. “Well, what if the old lady has 100 cats and it smells up the apartment, who’s gonna pay to fix it?” In short the tenant should , but if the tenant doesn’t have any money its gonna fall on the landlord.

From my understanding, it used to be the government that would take care of the damages in a section 8 situation, but now I believe it solely falls on the landlord, which is not cool. BUT it is cool that the government has this program to help people afford housing AND it’s also cool that a certain % of the rent is guaranteed, which could be a good opportunity for you and potential tenants 

Now the next two things the ghetto reminds me of are tied to each other. According to Zillow, areas that are high in renters is usually one of the markers for gentrification “because low-rent neighborhoods attract more and more residents, and cultural amenities crop up to serve them, real estate firms and investors start to pay attention to them as candidates for gentrification.” And if you’ve forgotten what gentrification is or haven’t seen Episode 5 of “Rap & Real Estate” gentrification is “the process of repairing and rebuilding homes and businesses in a deteriorating area (such as an urban neighborhood) accompanied by an influx of middle-class or affluent people and that often results in the displacement of earlier, usually poorer residents.”

Gentrification is so polarizing because of its history and its implications. And it isn’t just happening in the hoods here, its happening allll over the world , but with gentrification comes new business and real estate opportunities. Thats why I want to arm you with the knowledge to make informed decisions, so you’re not a victim of it. Each one reach one. 

The last line I thought was dope was Rakim said , “rhymes are making real estate for me to own, wherever I bless a microphone.” I think this is super dope because he’s taken his craft and using it to fund his other visions. We see athletes and artists do this all the time, they run with something they’re really good at, then use that platform to do other things, like fund investments or break into other industries. Like Shaq and acting or music, or Mark Wahlberg goin from music to acting  or Ja rule and the news… hah… 

 Being an artist or a celebrity , or even a high paid whatever you do for work, is the ultimate investment cheat code. You get to use those funds and that platform to create other funds. Yes the dollar amount is different, but no matter your job you have the opportunity to do this. You have the opportunity to take your income and turn it into more income, its all about what makes sense for you. 

If you remember we talked about RELPs previously, (Real Estate Limited Partnerships) in which you and some of your friends can pool your money together and buy properties, this is just another avenue that shows you that you don’t have to just depend on your dollars, you can pool the money! 

Thats what the richers do, thats what Im doin! Because it literally makes sense! 

Do what makes sense! 

“No Mistakes Allowed”