The Residual Real Estate Agent Show

Hosted by Jose Luiz Morales

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285

Latest episode

Jun 2026

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EN-US

About the show

My name is Jose Luiz Morales. I am 33 year old real estate agent & investor from Ventura, CA. I have been in the Real Estate Industry for the past 10 years. CEO of The Morales Group. My team & I have sold 500 properties & over 300 million in sales. Currently have a 10 million dollar real estate portfolio. My parents taught me from an early age to be an entrepreneur & to make smart investments. Entrepreneur from the age of 9. Father of Jose Luiz Jr, I consider myself a Family Man. Real Estate & Business Mentor/Educator. The purpose of this podcast is to educate & inspire young entrepreneurs and business owners by discussing current topics related to Real Estate, Finance & Business.

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60 recent

June 14, 202655 min

How to Develop Multifamily Real Estate From the Ground Up

Most people looking at multifamily development for beginners content think the hard part is construction. It's not. The hard part is the decision you make before you ever touch a shovel.I brought in Daniel Clayman from Evolved Development, a guy who just closed on land at $11,000 per unit when most developers won't touch dirt over $25K, and we broke down exactly what separates a ground up multifamily development that builds real long-term wealth from one that quietly bleeds you out before you ever break ground.Here is what we cover:✅ Build or buy: which one actually pencils out and why renovating an old apartment building can leave you with the worst of both worlds✅ The land acquisition multifamily rule of thumb that most beginners skip, and why overpaying for dirt kills deals that look fine on paper✅ How the land entitlement process works in the real world, what a buy-right project actually means, and how to structure contracts that protect you when rezoning goes sideways✅ The real construction cost per square foot multifamily numbers from a market that is not California, and what triggers commercial building code the moment you go from 2 units to 3✅ How to develop multifamily apartments using a hybrid construction loan that rolls into permanent financing so you are not scrambling to refinance the second your building stabilizes✅ The truth about ground up apartment construction as a wealth play: short-term margins are tight right now, and why that is not the reason to stopDaniel has been doing apartment development and land acquisition in Richmond, Virginia for over a decade. He owns and manages everything in house. His team complained when they had to drive 15 minutes to a property. That is the operation we are learning from.If you have been sitting on the fence about your first development deal, this conversation will either get you off it or save you from the wrong move.

June 7, 202619 min

The 1976 Rule That Kills Manufactured Home Loans

Most people buying a mobile home in California go through the manufactured home park approval process and never saw it coming. They got approved by the lender. They had the down payment. And then the park said no.There are a lot of moving parts to mobile home financing California buyers almost always underestimate. The interest rates are higher than a traditional loan. The terms are shorter. Space rent counts against your debt-to-income ratio. And there are two completely separate approvals you have to pass, one with the lender and one with the park itself. Most buyers only know about one of them.In this episode, I brought back Michael Yates to break down exactly how manufactured home loans in California work, what the real requirements are, and what can quietly kill your deal before you even know it's in trouble.Here is what we cover:✅ Why the manufactured home park approval can reject you even after your lender says yes✅ The June 15, 1976 cutoff date that changes everything about your manufactured home down payment✅ How manufactured home interest rates compare to traditional loans and what to expect✅ What space rent on a mobile home actually is and why it affects your loan qualification✅ How to get as little as 5% down with no PMI on a mobile home on lease land✅ Whether FHA, VA, or conventional loans work for these properties (the answer will surprise you)✅ What documents you need and how manufactured home loan requirements differ from a standard mortgage✅ Why buying in cash does not mean you skip the park approval, this one catches people off guardIf you are seriously looking at a manufactured home as an affordable option to stay in California, keep that in mind before you fall in love with a unit. Know the rules first. This episode gives you all of them.

May 31, 202616 min

Stop Asking for a Lower Price. Do This Instead.

Most buyers push for a lower price because it feels like the smart move. The interest rate buydown vs price reduction math will change how you negotiate forever.That $10,000 you fought to get off the price? It saves you about $40 a month. That same $10,000 used as a seller credit to buy down your rate saves you closer to $250 a month. Nobody is running these numbers at the table, and that is exactly why most buyers leave money on the table every single time.In this episode I sit down with Jason Hall from Hallmark Financial and we break down exactly how to structure a deal so you actually win.✅ Price reduction vs rate buydown, we run the real numbers side by side so you can see the difference clearly✅ Permanent buydown vs price reduction, when one wins over the other and why the answer is not always the same✅ The seller concessions vs lower price question answered with actual monthly payment comparisons, not opinions✅ How to use seller credits to buy down rate and what the limits are, Conventional is capped at 3%, FHA at 6%, VA at 5%, the FHA seller concessions limit alone changes what you can negotiate depending on your loan type✅ The difference between a 2-1 buydown vs permanent buydown and when a temporary buydown actually makes more sense✅ How to negotiate a lower mortgage payment using deal structure instead of just hammering on price✅ Why your time frame is one of the most overlooked factors in mortgage rate buydown decisions, and how to factor it in correctlyThis is the conversation your lender and agent should be having with you before you ever make an offer. Now you have the framework to demand it.

May 10, 202619 min

SB 9 Explained: Build 4 Units on One Property

Most people think SB 9 explained means understanding a law. What it actually means is understanding why you might be sitting on $400K in land value and not even know it.My guest Eric Paul Escobar, CEO of Esco Builders, has actually completed an SB 9 lot split in Downey, California. Not theorized it. Not coached about it. Done it. It cost $50,000 and produced a back lot worth $300K to $400K. We break down exactly how that happened and whether it makes sense for you.Here is what we cover:✅ What SB 9 explained really looks like when someone builds it from the ground up, not just how the law reads✅ The difference between an SB 9 unit vs ADU when it comes to appraisals, ARV, and refinancing, and why this matters more than most investors realize✅ The full SB 9 permitting process step by step, surveyor, architect, planning department, civil engineering, county recording, and permits in the right order✅ Why the lot split process steps California investors need to follow are different in every city and why getting that information in writing is non-negotiable✅ How to subdivide land in California using SB 9 with or without a lot split, and which lot types give you the best shot✅ The honest truth about ADU vs duplex investment value when it comes to comparables and what lenders actually look at✅ Why very few people are doing lot split California real estate deals right now and what that means for the investors who are willing to be patient✅ How Senate Bill 9 California real estate law stacks with ADUs to get you up to 4 units on a single family lotThis is not beginner content. But if you are ready to go deeper than ADUs, this is where the real land value is being created right now.

May 3, 202659 min

They Said $10M Was Unrealistic. He Did $200M.

Most agents building a real estate team from scratch make the same wrong first move before they ever hire a single agent.Cyrus Moseni was told his $10M goal was unrealistic two weeks into getting his license. He put his iced tea down, thanked the man, and told him he'd be at a different brokerage within 90 days. Year one he closed $30M. Year two, $52M. Today the Keystone Team does over $200M a year with under 40 agents and every single one of them closes deals.In this conversation Cyrus breaks down exactly how he did it, with real numbers and zero fluff.✅ Why building a real estate team from scratch starts with a VA hire, not an agent hire✅ The real estate team structure that lets his admin handle every offer, every showing schedule, every piece of paperwork so agents only do what makes money✅ The real estate team splits math that actually works, and why the pie goes negative 10% if you get the order wrong✅ How he uses a real estate lead generation system combining Zillow, Meta ads, and an ISA model to give every agent on his team a live pipeline on day one✅ His real estate prospecting system before paid leads existed: 4 hours cold calling, 2 hours door knocking, 80 calls an hour on expireds and FSBOs✅ Exactly how to hire a broker of record to launch an independent brokerage without holding your own broker's license, and what percentage structure to expect✅ The honest breakdown of real estate team vs independent brokerage from someone who has run both, including when ancillary services are the only reason the numbers work✅ Where to find the best VAs for real estate, including which countries and platforms actually deliver when hiring virtual assistants for a growing teamThis is what it actually looks like to build from zero to $200M with a lean team, a tight system, and no agents sitting on the bench.

April 27, 202652 min

How I'd Buy a Rental at 2% When Rates Are at 7%

You keep running the numbers on rental properties and walking away because nothing cash flows at these rates. This subject to transaction explained is the episode I wish I had when I first heard about this strategy.I sat down with Marcus from Surf 1st Realty, a transaction coordinator who has structured these deals from start to finish, and we broke down every single piece of how subject to real estate actually works, not the surface level stuff, but the full picture both sides of the table need to understand before moving forward.Here is what we cover:✅ What it actually means to buy a property using subject to mortgage investing and why it is not the same as a loan assumption✅ Why sellers facing foreclosure use this strategy to sell fast and walk away with their credit saved and actually helped, not just protected✅ How these deals can close in as few as 10 days with no appraisal and no bank qualification✅ The difference between a land contract vs subject to and when each one makes sense✅ How a performance deed works and what it does to protect the seller if a buyer ever defaults✅ The due on sale clause, what actually triggers it, and why insurance is the number one thing to get right✅ How inheriting a 2% mortgage through creative financing real estate changes the cash flow math entirely when new loans are sitting at 7%✅ What sellers need to know about qualifying for a future mortgage after doing a subject to deal✅ Who the ideal buyer and seller are and what the subject to real estate California market looks like for this strategy right nowIf you are a seller trying to figure out how to avoid foreclosure without destroying your credit for a decade, or an investor who wants to understand subject to vs loan assumption before structuring your first deal, this episode is built for you.Marcus can be reached directly at 916-496-4512 or marcus@creativetcservices.com.

April 19, 202630 min

Sell Your Rental Without a 1031 and Pay Zero Tax

The spendthrift trust explained, and why it might be the most powerful tax strategy real estate investors are sleeping on.I sat down with Don Thornton, a real estate investor who has been using this trust to legally eliminate taxes on rental income and capital gains. Not defer them. Eliminate them. When your properties are held inside a spendthrift trust for real estate, the rent your tenants pay comes into the trust as passive income and it is not a taxable event. When you sell an asset inside the trust, there is no capital gains tax. No 1031 required. No moving to Puerto Rico. The money just comes in clean.Here is what we cover in this episode:✅ What the non-grantor irrevocable trust structure actually is and why every word in the name matters for your taxes✅ How the trust leaseback strategy lets you move up to 97% of your business net taxable income out of reach of the IRS legally✅ Why this trust offers stronger asset protection for real estate than any LLC on the market, a good attorney can crack an LLC, but they are not cracking this✅ How eminent domain protection inside a trust works and why the government literally cannot force you to sell land held as a trust asset✅ The IRS Code 643(b) provision that makes all of this legal, backed by an IRS opinion letter and 33 years of returns with zero audits✅ How to avoid capital gains tax on real estate sales without being chained to another exchange✅ Real examples including how Don moved from paying massive tax bills to using the trust to cover his living expenses, his kids, and his assetsIf you have been writing big checks to the IRS every year and feeling like there has to be a better way, there is. This is it. Drop a comment below with your biggest tax question and make sure you subscribe so you never miss an episode of the Morales Group Show.

April 12, 202612 min

Assume a VA Loan With Only $25K Down

If you've been looking at assumable loans and hitting a wall because you don't have $150K or $200K cash to cover the gap, this episode is for you.I brought in Mike Yates, Senior VP at My Home Lending, to break down a real program that solves the biggest problem buyers run into with assumable loan down payment requirements. Most people find a home with a 2.5% VA or FHA loan and then walk away when they see what they need to bring to the table. What Mike shared is a no-brainer if you're in that situation.Here is what we cover:✅ How a HELOC in second position can bridge the gap on a VA or FHA assumable loan so you bring in as little as $25K instead of $200K✅ How the assumable mortgage second mortgage structure works, what the rates look like, and how the interest-only draw period gives you flexibility✅ Why the blended rate on a combined assumable plus HELOC loan often beats a brand new 30-year mortgage at today's rates✅ What the assumable loan qualification process actually looks like, including debt-to-income requirements and servicer approval✅ How taking over a loan that is already years into its amortization schedule is a massive advantage most buyers completely overlook✅ The role of assumption specialists and why having one in your corner matters now that assumable mortgage programs are coming back in a big wayThis is assumable loan gap financing done right. The gap is not a dead end. There is a real program, a real lender, and real numbers that make this work.If this helped you, hit subscribe and share it with someone who is stuck on that same gap. More episodes like this coming.

April 5, 202628 min

Why Realtors Are Losing in 2026 (and How to Win)

Real estate lead conversion is broken for most agents right now, and the numbers prove it. 71% of Realtors reported zero sales in 2026. That is not a mindset problem. That is a structural problem, and this episode gives you the blueprint to fix it.The market went from 6.7 deals per agent available in 2000 down to 2.71 today. You are not working less. The game changed. And if you are still running the same real estate prospecting system you were using in 2021, you are competing for half the deals with double the agents while Zillow, Opendoor, and Redfin take the rest.Here is exactly what this episode covers:✅ The only 4 ways to grow your real estate income and which one most agents completely ignore✅ Why your real estate lead generation 2026 strategy needs to prioritize the cash conversion cycle above everything else✅ How a cash offer real estate strategy generates motivated seller leads that listing agents cannot touch✅ The framework for real estate lead conversion that turns more of your existing pipeline into closed deals without adding a single new lead source✅ How real estate wholesaling for agents and real estate creative finance open revenue streams most Realtors never access✅ The exact past client system we use so that when someone is ready to sell, we are the first call they make✅ Real numbers. Real deals. A verifiable address on screen.If you are serious about figuring out how to grow real estate business in a market that is actually shrinking, this is the episode. Not theory. Not motivation. A specific blueprint that produced 150 closed transactions last year when the market dropped 20%.Listen it. Take notes. Then go execute.

March 29, 20266 min

4 IRA Rules Every Real Estate Investor Must Know

Investing your retirement account in real estate is something most people have heard of but never actually done — because nobody explained the rules clearly enough to make them feel safe moving forward.There are four basic prohibited transactions you need to know before you put a single dollar of your IRA into a real estate note or any real estate deal. That's it. Four. And once you understand them, you realize this is nowhere near as complicated as your financial advisor made it sound.Here's what we cover in this episode:The four things the IRS says you flat out cannot do with your retirement account — including why you can't personally guarantee a loan, why collectibles are off the table, and what "self-dealing" actually means in plain English.The disqualified individual rule — who you can and cannot lend to. The short answer: up and down your family tree is off limits. Everyone else is fair game. Your friends, your business partners, other real estate investors you know — all fine.Why note investing inside a self-directed IRA is one of the cleanest setups available. Your IRA becomes the bank. Another investor makes monthly payments directly into your account. No tenants, no toilets, no property management.The return comparison that changes how most people think about their 401k. If your retirement account is averaging 6% in mutual funds right now, and you could be earning 8.5%, 10%, even 12% on secured real estate loans — that gap compounds into a very different retirement.The difference between secured and unsecured lending, and why secured always wins when you're protecting your IRA.I am not an attorney or a CPA. This is educational content, not legal or financial advice. Always consult a qualified professional before making investment decisions.If you have questions about anything covered here, drop them in the comments. I read every one.Subscribe for more content on building real wealth through real estate.