1 00:00:13,840 --> 00:00:16,880 Speaker 1: Hey, everyone, welcome to another episode of the Market Disruptor Show. 2 00:00:16,960 --> 00:00:20,040 Speaker 1: Today I am joined by Jason Hartman. He is a 3 00:00:20,120 --> 00:00:22,880 Speaker 1: real estate investor and has a lot of insight into 4 00:00:23,000 --> 00:00:26,079 Speaker 1: the pandemic and what's going on. Uh interview, I've really 5 00:00:26,120 --> 00:00:28,639 Speaker 1: been excited to have so anyway, Jason, welcome to the show. 6 00:00:29,480 --> 00:00:32,000 Speaker 1: Hey Mark, Thanks, it's great to be here. And I've 7 00:00:32,040 --> 00:00:34,519 Speaker 1: been following your YouTube channel for a while. I just 8 00:00:34,640 --> 00:00:37,599 Speaker 1: love the content and uh, I love talking about real 9 00:00:37,720 --> 00:00:41,120 Speaker 1: estate and making money. As you say, I do like 10 00:00:41,159 --> 00:00:43,559 Speaker 1: to talk about making money and investing money. Um. So, 11 00:00:43,640 --> 00:00:45,720 Speaker 1: I know you have been doing doing real estate for 12 00:00:45,720 --> 00:00:47,760 Speaker 1: a really long time as as a high but you 13 00:00:47,800 --> 00:00:50,000 Speaker 1: do it as a full time job, so you have 14 00:00:50,040 --> 00:00:52,159 Speaker 1: a lot more insight. Why don't you just give us 15 00:00:52,200 --> 00:00:54,640 Speaker 1: a little background on on who you are and kind 16 00:00:54,640 --> 00:00:57,480 Speaker 1: of what you're doing right now. Sure. So I got 17 00:00:57,480 --> 00:00:59,720 Speaker 1: my real estate license when I was nineteen years old 18 00:00:59,800 --> 00:01:02,480 Speaker 1: my first year of college. I wanted to become an 19 00:01:02,520 --> 00:01:06,440 Speaker 1: investor by age of sixteen, and I thought I just 20 00:01:06,520 --> 00:01:09,000 Speaker 1: kind of learned the basics by getting into the brokerage 21 00:01:09,000 --> 00:01:12,160 Speaker 1: side of it, and uh, then I I was very 22 00:01:12,200 --> 00:01:15,480 Speaker 1: successful at real estate with Remax for years and I 23 00:01:15,520 --> 00:01:17,720 Speaker 1: bought my own real estate company, sold it to Cold 24 00:01:17,720 --> 00:01:21,080 Speaker 1: Wall Banker in two thousand five. People people say my 25 00:01:21,120 --> 00:01:24,560 Speaker 1: timing was excellent. That was in Irvine, California, not far 26 00:01:24,600 --> 00:01:28,080 Speaker 1: from you. And then I got into the business of 27 00:01:28,120 --> 00:01:33,319 Speaker 1: basically financial advisory for real estate investors and mark that 28 00:01:33,400 --> 00:01:36,880 Speaker 1: really grew out of my frustration with Wall Street. I thought, 29 00:01:37,160 --> 00:01:42,160 Speaker 1: you know, Wall Street has a great sales force, but 30 00:01:42,360 --> 00:01:46,479 Speaker 1: I personally believe a mediocre product. And I thought, real 31 00:01:46,600 --> 00:01:50,640 Speaker 1: estate has a great product but a very mediocre sales force. 32 00:01:51,080 --> 00:01:54,560 Speaker 1: And I thought, why can't you put together that that 33 00:01:54,680 --> 00:01:59,040 Speaker 1: idea and and make like a financial planning firm for 34 00:01:59,360 --> 00:02:03,840 Speaker 1: real estate investors where people could come into one place 35 00:02:04,400 --> 00:02:08,960 Speaker 1: and they could invest nationwide or even worldwide. And uh, 36 00:02:09,160 --> 00:02:15,440 Speaker 1: being diverse markets, have a portfolio strategy, use financial planning 37 00:02:15,440 --> 00:02:19,359 Speaker 1: techniques to really build and manage a portfolio on an 38 00:02:19,360 --> 00:02:21,840 Speaker 1: ongoing basis. So that's what I've been doing for the 39 00:02:21,880 --> 00:02:29,720 Speaker 1: past sixteen years, is financial advisory for real estate investors. Yeah. Cool, um, 40 00:02:29,880 --> 00:02:32,840 Speaker 1: I bought my first realistic real estate property at eighteen. 41 00:02:33,720 --> 00:02:35,920 Speaker 1: You're ahead of me. Well, I usually want to start 42 00:02:35,919 --> 00:02:40,520 Speaker 1: a sixteen. And that was in when California was recovering 43 00:02:40,520 --> 00:02:42,720 Speaker 1: from that housing crash after nine two, and the banks 44 00:02:42,720 --> 00:02:46,200 Speaker 1: were selling property zero down. Um, and people are like, 45 00:02:46,200 --> 00:02:47,520 Speaker 1: how the heck did you know how to buy a 46 00:02:47,560 --> 00:02:50,280 Speaker 1: property at eighteen? And it's like I didn't really know how, 47 00:02:50,760 --> 00:02:54,120 Speaker 1: but anyway, Cool, that's how we learned stuff. I was 48 00:02:54,200 --> 00:02:56,800 Speaker 1: twenty years old when I bought my first property and 49 00:02:56,840 --> 00:02:59,120 Speaker 1: I bought it from a client of mine. Uh, he 50 00:02:59,520 --> 00:03:02,200 Speaker 1: actually just this property for me. He was an investor 51 00:03:02,240 --> 00:03:07,400 Speaker 1: buying several properties and in Orange County, in Riverside, and uh, 52 00:03:07,880 --> 00:03:10,240 Speaker 1: this one of them. He said he didn't like it. 53 00:03:10,280 --> 00:03:12,320 Speaker 1: He asked me to list it for him and sell it. 54 00:03:12,360 --> 00:03:14,480 Speaker 1: And I said, I said, Jim, I don't want to 55 00:03:14,480 --> 00:03:15,920 Speaker 1: sell it for you. I want to buy it from you. 56 00:03:15,960 --> 00:03:18,920 Speaker 1: And that was my first deal in Riverside. No, it 57 00:03:18,960 --> 00:03:21,639 Speaker 1: was Huntington's be check my first My first deal was 58 00:03:21,639 --> 00:03:25,720 Speaker 1: in Riverside. Um. Cool. So that that's good. So you've 59 00:03:25,760 --> 00:03:28,520 Speaker 1: been you've been doing that advising clients. I like how 60 00:03:28,720 --> 00:03:31,800 Speaker 1: you said something, um that you said you've been helping 61 00:03:31,840 --> 00:03:35,880 Speaker 1: people invest into diverse markets, right, And that's something that 62 00:03:36,000 --> 00:03:38,200 Speaker 1: I talked about on my show all the Time, which 63 00:03:38,280 --> 00:03:43,400 Speaker 1: is about asked that allocation diversification for safety and UM 64 00:03:43,440 --> 00:03:46,120 Speaker 1: we want to um invest in the different sectors of 65 00:03:46,160 --> 00:03:48,440 Speaker 1: the market, but even in that markets. So for example, 66 00:03:48,480 --> 00:03:51,320 Speaker 1: I want to put some into real estate to protect 67 00:03:51,320 --> 00:03:53,360 Speaker 1: against what I have in stocks and gold, et cetera. 68 00:03:53,440 --> 00:03:55,000 Speaker 1: So I have real estate, but even I want to 69 00:03:55,040 --> 00:03:58,160 Speaker 1: diversify in my real estate portfolio. So maybe I want 70 00:03:58,200 --> 00:04:00,720 Speaker 1: single family apartment on the East coast and on the 71 00:04:00,760 --> 00:04:03,440 Speaker 1: West coast. Is that kind of what you're talking about? Absolutely? 72 00:04:03,640 --> 00:04:06,400 Speaker 1: You know, I have some of my core content that 73 00:04:06,440 --> 00:04:09,280 Speaker 1: I created back in two thousand four what was called 74 00:04:09,320 --> 00:04:13,040 Speaker 1: the ten Commandments of Successful Investing, and one of those 75 00:04:13,080 --> 00:04:17,640 Speaker 1: commandments is thou shalt diversify. And the following commandment is 76 00:04:17,640 --> 00:04:23,280 Speaker 1: thou shalt be area agnostic, meaning stop deciding on an 77 00:04:23,400 --> 00:04:26,200 Speaker 1: area or a neighborhood and start looking at the deal 78 00:04:26,600 --> 00:04:29,840 Speaker 1: and the metrics don't get attached to any one area. 79 00:04:30,240 --> 00:04:32,320 Speaker 1: And so, uh, you know, there's an old saying in 80 00:04:32,360 --> 00:04:35,400 Speaker 1: real estate that all real estate is local. All real 81 00:04:35,520 --> 00:04:38,960 Speaker 1: estate is local. And in the US, uh, you know, 82 00:04:39,000 --> 00:04:42,880 Speaker 1: there are about four hundred local markets and they all 83 00:04:42,920 --> 00:04:46,600 Speaker 1: act somewhat differently. And when you listen to these talking 84 00:04:46,640 --> 00:04:49,680 Speaker 1: heads on television or you read them in the national media, 85 00:04:50,080 --> 00:04:53,719 Speaker 1: they try to lump the housing market in quotes into 86 00:04:53,760 --> 00:04:57,200 Speaker 1: this one SoundBite and they say, well, you know, housing 87 00:04:57,279 --> 00:04:59,719 Speaker 1: is doing this or it's doing that. Well, you know, 88 00:04:59,800 --> 00:05:03,000 Speaker 1: mar my question has always been where is the housing market? 89 00:05:03,400 --> 00:05:07,159 Speaker 1: Is it in l A or Miami, or Seattle or 90 00:05:07,520 --> 00:05:12,000 Speaker 1: Memphis or uh, you know, Little Rock or uh Atlanta? 91 00:05:12,360 --> 00:05:14,679 Speaker 1: You know, where is the housing market in a country 92 00:05:14,720 --> 00:05:17,640 Speaker 1: as large and diverse as the US. There's no such 93 00:05:17,720 --> 00:05:21,440 Speaker 1: thing as a national housing market. There are about four 94 00:05:21,560 --> 00:05:27,000 Speaker 1: hundred local markets, so diversification is really key. Yeah. I 95 00:05:27,040 --> 00:05:29,560 Speaker 1: love that. Um, you know, it's something I talked about 96 00:05:29,560 --> 00:05:32,200 Speaker 1: a lot on my show obviously talking about money and 97 00:05:32,200 --> 00:05:35,280 Speaker 1: and uh you know Kenzing economics, Oustrian economics, and the 98 00:05:35,279 --> 00:05:38,600 Speaker 1: thought that you can have a few policy makers dictating 99 00:05:38,640 --> 00:05:42,279 Speaker 1: policy for three million Americans just doesn't work because everybody 100 00:05:42,320 --> 00:05:44,919 Speaker 1: has their own individual ones needs and especially when you 101 00:05:44,920 --> 00:05:47,800 Speaker 1: get into regions, it just moves differently. Um. And and 102 00:05:47,839 --> 00:05:50,920 Speaker 1: the housing market is definitely like that. And what you 103 00:05:51,240 --> 00:05:54,520 Speaker 1: what the subtext of what you were saying is central 104 00:05:54,600 --> 00:05:59,200 Speaker 1: planning is a disaster. Yeah, Karl Marx has proven that 105 00:05:59,320 --> 00:06:03,520 Speaker 1: to all of us. Yeah. Now, um, so you you diversify, 106 00:06:03,680 --> 00:06:06,240 Speaker 1: but you know, in in two thousand eight was which 107 00:06:06,279 --> 00:06:08,719 Speaker 1: was the last really big you know, housing crash that 108 00:06:08,760 --> 00:06:12,960 Speaker 1: we saw. Um, the whole country did drop at once. Yeah. Yeah, 109 00:06:13,000 --> 00:06:16,719 Speaker 1: well two thousand and eight, remember was the worst economy 110 00:06:16,760 --> 00:06:21,000 Speaker 1: we we had seen in seven decades until now. Okay, 111 00:06:21,520 --> 00:06:25,880 Speaker 1: so that was the worst thing since the Great Depression 112 00:06:25,880 --> 00:06:28,600 Speaker 1: in the thirties, right and uh and so that was 113 00:06:28,640 --> 00:06:33,400 Speaker 1: a pretty significant change. But again, like you, you know, 114 00:06:33,600 --> 00:06:37,320 Speaker 1: we like to invest for yield. We invest for cash flow, 115 00:06:37,680 --> 00:06:41,240 Speaker 1: So we're not beholden to the idea of appreciation. If 116 00:06:41,279 --> 00:06:43,800 Speaker 1: it comes great, you know, we can spend it as 117 00:06:43,839 --> 00:06:46,520 Speaker 1: well as the next person. And we love appreciation, but 118 00:06:46,680 --> 00:06:48,760 Speaker 1: we consider that to be the icing on the cake, 119 00:06:49,080 --> 00:06:53,960 Speaker 1: not the cake. The core is cash flow. And interestingly, 120 00:06:54,200 --> 00:06:58,320 Speaker 1: even in very bad times in the Great Recession, the 121 00:06:58,400 --> 00:07:01,960 Speaker 1: global financial crisis, whatever we want to call it, um, 122 00:07:02,080 --> 00:07:05,880 Speaker 1: cash flow held up pretty darn well. Uh. In fact, 123 00:07:06,279 --> 00:07:09,039 Speaker 1: had the government gotten out of the way and stopped 124 00:07:09,120 --> 00:07:13,480 Speaker 1: distorting the market back then, and these distortions in the 125 00:07:13,520 --> 00:07:16,280 Speaker 1: way I'm really referring to here were in the form 126 00:07:16,360 --> 00:07:19,720 Speaker 1: of keeping everybody in their house, you know, that was 127 00:07:19,760 --> 00:07:23,520 Speaker 1: the two thousand and eight campaign mantra. But when you 128 00:07:23,600 --> 00:07:26,880 Speaker 1: do that when you don't allow foreclosures, and you don't 129 00:07:27,240 --> 00:07:29,960 Speaker 1: and you and you make it difficult to evict people, 130 00:07:30,440 --> 00:07:34,440 Speaker 1: you you inhibit the market. And the free market is 131 00:07:34,520 --> 00:07:37,240 Speaker 1: great at at one thing, and that one thing is 132 00:07:37,280 --> 00:07:41,760 Speaker 1: called price discovery. And you've got to have price discovery 133 00:07:42,040 --> 00:07:46,160 Speaker 1: or capitalism just doesn't work. And once the election of 134 00:07:46,200 --> 00:07:50,240 Speaker 1: two thousand and eight was over and that that distortion 135 00:07:50,360 --> 00:07:52,720 Speaker 1: got out of the way, this mantra of keeping everybody 136 00:07:52,720 --> 00:07:55,320 Speaker 1: in their houses, which is bs because some people could 137 00:07:55,360 --> 00:07:57,960 Speaker 1: never afford those houses. And there's you know, a whole 138 00:07:58,080 --> 00:08:00,120 Speaker 1: discussion about that that we don't have time to have. 139 00:08:00,960 --> 00:08:04,040 Speaker 1: But you know, the point was, you've got to do 140 00:08:04,160 --> 00:08:07,720 Speaker 1: these foreclosures and clean the system and allow for price 141 00:08:07,800 --> 00:08:11,560 Speaker 1: discovery and let the market move on. By delaying that, 142 00:08:11,840 --> 00:08:16,520 Speaker 1: you only make it worse in terms of government distortion. Now, 143 00:08:16,640 --> 00:08:19,120 Speaker 1: um for everybody, that's that's that's made it this far 144 00:08:19,200 --> 00:08:21,280 Speaker 1: with us, I have questions that I want to ask you, 145 00:08:21,320 --> 00:08:22,720 Speaker 1: but I want to dig in a little bit more here. 146 00:08:22,720 --> 00:08:25,600 Speaker 1: But I wanna we're gonna talk about, um, what to 147 00:08:25,760 --> 00:08:28,160 Speaker 1: expect in the real estate market now. I want to 148 00:08:28,160 --> 00:08:31,320 Speaker 1: discuss that with you. I want to discuss um what 149 00:08:31,360 --> 00:08:33,240 Speaker 1: we can expect from the real estate market in the 150 00:08:33,240 --> 00:08:35,200 Speaker 1: near future. Is it still gonna be a good investment, 151 00:08:35,240 --> 00:08:38,520 Speaker 1: And if it is, what types of properties where those 152 00:08:38,559 --> 00:08:41,120 Speaker 1: good investments will be, and what people should be thinking 153 00:08:41,160 --> 00:08:43,280 Speaker 1: about or looking or doing. So I want to get 154 00:08:43,320 --> 00:08:45,480 Speaker 1: to all those things, and so anybody who's listening, we're 155 00:08:45,480 --> 00:08:47,560 Speaker 1: gonna talk about that. But I want to dig into 156 00:08:47,559 --> 00:08:51,360 Speaker 1: back hear what you said for a minute. Um. And so, 157 00:08:51,720 --> 00:08:53,480 Speaker 1: first of all, in two thousand and eight, when the 158 00:08:53,520 --> 00:08:57,520 Speaker 1: market crashed, the whole country did come down, But where 159 00:08:57,520 --> 00:09:00,319 Speaker 1: I'm at in southern California, specifically Orange count Anny, we 160 00:09:00,400 --> 00:09:05,680 Speaker 1: saw prices dropped sixty percent in Phoenix, in Florida, we 161 00:09:05,720 --> 00:09:08,520 Speaker 1: saw prices drop fifty six but some parts of the 162 00:09:08,520 --> 00:09:14,880 Speaker 1: country only dropped ten Yeah, and so back to your diversification. Um, Yes, 163 00:09:14,920 --> 00:09:17,000 Speaker 1: the whole country came down at once, but if I 164 00:09:17,000 --> 00:09:19,120 Speaker 1: would have been diversified, I was only in Orange County, 165 00:09:19,160 --> 00:09:20,840 Speaker 1: so I took a massive hit. I got wiped out. 166 00:09:21,080 --> 00:09:23,040 Speaker 1: If I would have had properties in other parts of 167 00:09:23,040 --> 00:09:25,640 Speaker 1: the country that only came down ten percent, my portfolio 168 00:09:25,679 --> 00:09:29,560 Speaker 1: would have survived much better. Right, Yeah, I agree. Um, 169 00:09:29,640 --> 00:09:32,439 Speaker 1: you know it's really uh, we've all heard of of 170 00:09:32,480 --> 00:09:37,199 Speaker 1: the famous piece of literature called the Tale of Two Cities. Right, well, 171 00:09:37,400 --> 00:09:40,640 Speaker 1: this is a tale of three markets. There are three 172 00:09:40,840 --> 00:09:44,720 Speaker 1: types of markets in the entire world. You can categorize 173 00:09:44,720 --> 00:09:49,080 Speaker 1: any market into one of these three linear markets, cyclical markets, 174 00:09:49,320 --> 00:09:54,160 Speaker 1: and hybrid markets. And I grew up in Los Angeles 175 00:09:54,360 --> 00:09:56,600 Speaker 1: and lived most of my adult life where you live 176 00:09:56,640 --> 00:10:00,839 Speaker 1: in Orange County, California. Beautiful place and I love it. 177 00:10:01,160 --> 00:10:04,640 Speaker 1: And uh, my idea of being an investor back then 178 00:10:04,960 --> 00:10:08,840 Speaker 1: was buying you know, Orange County properties which are too 179 00:10:08,920 --> 00:10:13,360 Speaker 1: expensive to make sense as an investment. And one of 180 00:10:13,400 --> 00:10:17,000 Speaker 1: my ten commandments back to that is Commandment number five 181 00:10:17,280 --> 00:10:22,040 Speaker 1: called thou shalt not gamble, okay, and when um, when 182 00:10:22,040 --> 00:10:26,320 Speaker 1: we buy properties in these expensive cyclical markets. And those 183 00:10:26,360 --> 00:10:29,640 Speaker 1: include the entire West coast of the US pretty much okay, 184 00:10:29,679 --> 00:10:33,679 Speaker 1: so all of southern California, all of California basically, uh, 185 00:10:33,760 --> 00:10:36,520 Speaker 1: South Florida where I'm I'm not too far from now, 186 00:10:37,120 --> 00:10:43,120 Speaker 1: Miami Fort Lauderdale area. Uh, the expensive Northeastern markets New York, Boston, Washington, 187 00:10:43,200 --> 00:10:47,360 Speaker 1: d c. Etcetera. These are all cyclical markets, and they're 188 00:10:47,360 --> 00:10:51,840 Speaker 1: all expensive markets. These are nice places to live, for sure, Okay, 189 00:10:51,880 --> 00:10:55,760 Speaker 1: they're great. Uh, but they're not great places to invest 190 00:10:55,880 --> 00:11:00,719 Speaker 1: necessarily because they never make sense from a cash flow perspective. 191 00:11:01,440 --> 00:11:04,720 Speaker 1: And how do we evaluate cash flow, Well, there are 192 00:11:04,760 --> 00:11:07,280 Speaker 1: many ways, and you know you're a sophisticated investor, you 193 00:11:07,320 --> 00:11:09,880 Speaker 1: know how to do that. But there's a quick, easy 194 00:11:10,000 --> 00:11:12,440 Speaker 1: rule of thumb, and that is just looking at the 195 00:11:12,440 --> 00:11:16,400 Speaker 1: rent to value ratio. So we like to get properties 196 00:11:16,800 --> 00:11:20,720 Speaker 1: that rent for close to one per cent of the 197 00:11:20,800 --> 00:11:24,720 Speaker 1: value every month. So a hundred and twenty thousand dollar 198 00:11:24,800 --> 00:11:30,360 Speaker 1: house in Memphis or uh, you know, Little Rock or Indianapolis. 199 00:11:30,400 --> 00:11:32,520 Speaker 1: These are all markets we like, and we invest in 200 00:11:33,240 --> 00:11:35,599 Speaker 1: that will rent for twelve hundred dollars a month or 201 00:11:35,679 --> 00:11:39,800 Speaker 1: close to that is great. Okay, that's a linear market. 202 00:11:39,960 --> 00:11:44,000 Speaker 1: That's the opposite of cyclical. Okay. And uh and and 203 00:11:44,040 --> 00:11:46,800 Speaker 1: so those are good. In southern California, your typical deal 204 00:11:46,840 --> 00:11:49,640 Speaker 1: would be a six hundred thousand dollar house that would 205 00:11:49,679 --> 00:11:52,920 Speaker 1: rent for maybe twenty eight hundred dollars a month, and 206 00:11:53,000 --> 00:11:57,240 Speaker 1: so that's less than point five. And the key to 207 00:11:57,320 --> 00:12:01,480 Speaker 1: real estate is staying power. Staying power. If you can 208 00:12:01,600 --> 00:12:04,400 Speaker 1: stay in the game, you almost always make money in 209 00:12:04,440 --> 00:12:08,000 Speaker 1: real estate. Okay, But the thing that allows you to 210 00:12:08,040 --> 00:12:10,240 Speaker 1: stay in the game is a good rent of value 211 00:12:10,320 --> 00:12:13,040 Speaker 1: ratio or good cash flow. If you don't have that, 212 00:12:13,400 --> 00:12:15,600 Speaker 1: it becomes very hard to stay in the game during 213 00:12:15,640 --> 00:12:18,280 Speaker 1: bad times. Yeah, exactly, And I love I love that 214 00:12:18,280 --> 00:12:20,280 Speaker 1: you say that. That's exactly my philosophy. So we see 215 00:12:20,280 --> 00:12:22,080 Speaker 1: E eye on that. And and that's what got me 216 00:12:22,080 --> 00:12:25,240 Speaker 1: into trouble in two thousand and eight was in southern California. 217 00:12:25,280 --> 00:12:27,360 Speaker 1: You can't rent the properties for them for the mortgages, 218 00:12:27,400 --> 00:12:29,920 Speaker 1: you can't carry him. And so when the markets drop fifty, 219 00:12:29,920 --> 00:12:32,640 Speaker 1: I thought I was good at you know, LTV, but 220 00:12:32,679 --> 00:12:35,920 Speaker 1: then the market dropped six and I couldn't carry the properties. 221 00:12:35,960 --> 00:12:37,320 Speaker 1: You know, I had way too much and it was 222 00:12:37,360 --> 00:12:40,320 Speaker 1: it was too much. Um. But hey, hey listen, you 223 00:12:40,360 --> 00:12:42,160 Speaker 1: were don't feel bad. You were in the same boat 224 00:12:42,200 --> 00:12:46,040 Speaker 1: with tens of millions of people, so you had good Yeah. Yeah, 225 00:12:46,280 --> 00:12:48,520 Speaker 1: Well I was young at that time. And so you 226 00:12:48,559 --> 00:12:50,720 Speaker 1: know what, I'm a student of history. If anyone wants, 227 00:12:50,720 --> 00:12:52,360 Speaker 1: you know, everyone here watching my YouTube channel knows I 228 00:12:52,400 --> 00:12:54,319 Speaker 1: always try to go back to history to understand what's 229 00:12:54,360 --> 00:12:56,920 Speaker 1: going on. And so I looked at well, California real 230 00:12:57,040 --> 00:12:59,280 Speaker 1: estate only dropped really one time from e n ninety 231 00:12:59,320 --> 00:13:02,000 Speaker 1: two and over that time it dropped, but it really 232 00:13:02,000 --> 00:13:04,880 Speaker 1: only dropped. The worst in twelve months was six percent, 233 00:13:05,240 --> 00:13:06,480 Speaker 1: and I was usually in and out of the old 234 00:13:06,559 --> 00:13:08,400 Speaker 1: in about twelve months, So I said, okay, six percent 235 00:13:08,480 --> 00:13:10,280 Speaker 1: was the worst. Let me double that. If you dropped 236 00:13:10,280 --> 00:13:12,680 Speaker 1: twelve percent them, okay, yeah, if it If it did triple, 237 00:13:12,720 --> 00:13:14,839 Speaker 1: if it dropped eighteen percent, would I be okay? Yeah, 238 00:13:14,880 --> 00:13:18,040 Speaker 1: If it dropped eight percent, okay, triple the worst in history. 239 00:13:18,280 --> 00:13:21,240 Speaker 1: But then it is sixty And I was like, oh, um, 240 00:13:21,280 --> 00:13:24,640 Speaker 1: but you talked about investing for cash flow, so I 241 00:13:24,679 --> 00:13:27,160 Speaker 1: think maybe just explain that real quick. A lot of 242 00:13:27,160 --> 00:13:30,000 Speaker 1: people think that investing in real estate is buying low 243 00:13:30,040 --> 00:13:32,480 Speaker 1: and selling high. Well you're saying that's not the right 244 00:13:32,520 --> 00:13:34,719 Speaker 1: way to invest in real estate, not at all, Not 245 00:13:34,760 --> 00:13:39,720 Speaker 1: at all, um. You know, most most investments that people 246 00:13:39,800 --> 00:13:43,920 Speaker 1: talk about commonly are one dimensional, and the strategy is 247 00:13:43,960 --> 00:13:47,079 Speaker 1: just as you said, mark, bylow sell high. Right, that's 248 00:13:47,120 --> 00:13:49,800 Speaker 1: the whole strategy. There's nothing else to it. Right, bylow 249 00:13:49,880 --> 00:13:53,719 Speaker 1: sell high, make money. Now the next dimension would be 250 00:13:54,000 --> 00:13:58,200 Speaker 1: bylow sell high, get income like dividend paying stocks or 251 00:13:58,520 --> 00:14:02,360 Speaker 1: cash flow real estate ilo sell hi get income in between. Right, 252 00:14:02,480 --> 00:14:07,480 Speaker 1: that's better, but income property is a multidimensional asset, so 253 00:14:07,520 --> 00:14:11,359 Speaker 1: it has so many dimensions where you can make money. 254 00:14:11,400 --> 00:14:14,280 Speaker 1: And all of these dimensions allow you to adjust your 255 00:14:14,320 --> 00:14:18,200 Speaker 1: strategy as times change, so you can buy low, sell high. 256 00:14:18,600 --> 00:14:21,480 Speaker 1: You can make income, you can get tax benefits, you 257 00:14:21,520 --> 00:14:24,200 Speaker 1: can get leverage, which allows you to do much more 258 00:14:24,240 --> 00:14:27,680 Speaker 1: than you normally could. Meaning it's the most debt favorite 259 00:14:27,680 --> 00:14:30,480 Speaker 1: asset class in America. Of course, it's the most tax 260 00:14:30,520 --> 00:14:34,080 Speaker 1: favorite asset class in America. And you can you can 261 00:14:34,120 --> 00:14:37,160 Speaker 1: improve the property, you can improve the strategy, the marketing. 262 00:14:37,360 --> 00:14:40,200 Speaker 1: There's so many creative things you can do. And this 263 00:14:40,320 --> 00:14:43,680 Speaker 1: is why income property is the most historically proven asset 264 00:14:43,680 --> 00:14:48,840 Speaker 1: class in the entire world, because it's multidimensional, and that's 265 00:14:49,000 --> 00:14:52,280 Speaker 1: that's very handy. Yeah, And what I constantly pound the 266 00:14:52,280 --> 00:14:54,880 Speaker 1: table on on my channel and to my audience is 267 00:14:54,920 --> 00:14:58,880 Speaker 1: investing for cash flow. So by that crypto, that bitcoin 268 00:14:58,960 --> 00:15:01,200 Speaker 1: that's gonna go up a hunter, you know, a hundred times, 269 00:15:01,280 --> 00:15:04,080 Speaker 1: or buy this gold stock that can go up five x. 270 00:15:04,640 --> 00:15:06,320 Speaker 1: But what do you do with those profits? I like 271 00:15:06,400 --> 00:15:09,080 Speaker 1: to take those profits and always put it back into 272 00:15:09,160 --> 00:15:11,680 Speaker 1: cash flow. I work off of something called the four 273 00:15:11,720 --> 00:15:15,000 Speaker 1: pillar investment strategy, and one of the four pillars is 274 00:15:15,120 --> 00:15:17,360 Speaker 1: cash flow. It needs to be a big piece of 275 00:15:17,400 --> 00:15:20,040 Speaker 1: your portfolio. I think it's a lie that we've been 276 00:15:20,080 --> 00:15:22,840 Speaker 1: fed that says, uh, save your money for forty years 277 00:15:22,840 --> 00:15:25,120 Speaker 1: and live on your savings. Yeah, no way, just like 278 00:15:25,200 --> 00:15:29,800 Speaker 1: you'll get killed. Yeah, taxes and inflation will destroy you. 279 00:15:30,240 --> 00:15:35,560 Speaker 1: Saving money does not work. Uh. You know people that 280 00:15:35,720 --> 00:15:38,920 Speaker 1: still have that mentality or living off a playbook that 281 00:15:39,280 --> 00:15:41,720 Speaker 1: ended in nineteen seventy one when we went off the 282 00:15:41,760 --> 00:15:45,920 Speaker 1: gold standard. Okay, money became an asset that is just 283 00:15:46,080 --> 00:15:49,680 Speaker 1: constantly being debased by inflation. And you know, if it's 284 00:15:49,680 --> 00:15:52,480 Speaker 1: some savings account by taxes also because you pay tax 285 00:15:52,520 --> 00:15:55,440 Speaker 1: on the smidgeon of interest that you get. Uh. So 286 00:15:56,040 --> 00:16:00,520 Speaker 1: saving is a dangerous strategy. You want to invest, not save. 287 00:16:01,120 --> 00:16:03,280 Speaker 1: You do want to, I don't want to say that. 288 00:16:03,440 --> 00:16:06,440 Speaker 1: You know, the concept of saving is bad because the 289 00:16:06,520 --> 00:16:09,720 Speaker 1: road to wealth for an individual or a society is 290 00:16:09,760 --> 00:16:13,360 Speaker 1: always capital formation. You've got to you know, you don't 291 00:16:13,360 --> 00:16:15,240 Speaker 1: want to spend all your money. You do need to 292 00:16:15,360 --> 00:16:19,280 Speaker 1: save it to in order to invest. But your strategy 293 00:16:19,360 --> 00:16:22,760 Speaker 1: is great because you know you can play with maybe 294 00:16:22,760 --> 00:16:26,160 Speaker 1: ten percent of your net worth, play some speculative bets 295 00:16:26,440 --> 00:16:29,000 Speaker 1: that might pay off a hundred times over. It might 296 00:16:29,040 --> 00:16:32,160 Speaker 1: be cryptocurrency, it might be a startup business, uh, you know, 297 00:16:32,200 --> 00:16:35,280 Speaker 1: on a private placement memorandum or something like that. Most 298 00:16:35,320 --> 00:16:37,360 Speaker 1: of them, you'll lose money on those deals. But the 299 00:16:37,360 --> 00:16:40,360 Speaker 1: one that hits could hit really big for sure. You know, 300 00:16:40,440 --> 00:16:43,000 Speaker 1: just ask, just ask you know any of the early 301 00:16:43,040 --> 00:16:46,480 Speaker 1: investors in some of these crazy tech companies, right Uh. 302 00:16:46,520 --> 00:16:49,520 Speaker 1: You know Peter Thiel, I love his work, and you 303 00:16:49,520 --> 00:16:51,560 Speaker 1: know he was one of the early investors in Facebook 304 00:16:51,600 --> 00:16:54,440 Speaker 1: and PayPal, and you know those were like giant home runs. 305 00:16:54,680 --> 00:16:58,640 Speaker 1: But you don't do that with your your core money, right, 306 00:16:58,840 --> 00:17:03,360 Speaker 1: sevent of your net worth should be in core conservative assets. 307 00:17:03,600 --> 00:17:06,240 Speaker 1: And when you make money in those home run assets, 308 00:17:06,600 --> 00:17:09,520 Speaker 1: then take them off the table. Like Kenny Rogers used 309 00:17:09,560 --> 00:17:10,840 Speaker 1: to say, you've got to no one to hold them, 310 00:17:10,840 --> 00:17:13,080 Speaker 1: no one to fold him right, no one to walk away, 311 00:17:13,080 --> 00:17:15,040 Speaker 1: no one to run. Take him off the table. Put 312 00:17:15,080 --> 00:17:19,240 Speaker 1: him in the long term conservative stuff and you'll be good. Yeah. So, um, 313 00:17:19,320 --> 00:17:21,280 Speaker 1: let's let's move on now that you've kind of set 314 00:17:21,320 --> 00:17:24,480 Speaker 1: that stage. We understand investing for growth, investing for cash flow. 315 00:17:24,520 --> 00:17:26,160 Speaker 1: Like I said, I love to invest for cash flow. 316 00:17:26,200 --> 00:17:28,080 Speaker 1: I take my growth and I put it into cash flow. 317 00:17:28,480 --> 00:17:32,040 Speaker 1: But when we invest into cash flow UM, we're invested 318 00:17:32,080 --> 00:17:34,280 Speaker 1: into properties that we're hoping to make money on for 319 00:17:34,320 --> 00:17:39,240 Speaker 1: a long period of time, right, And and I'm worried 320 00:17:39,359 --> 00:17:44,000 Speaker 1: what the long term picture looks like. So, especially today, 321 00:17:44,040 --> 00:17:47,639 Speaker 1: you've already said that UM two was the worst crisis 322 00:17:47,680 --> 00:17:51,720 Speaker 1: we've seen until today, until much bigger crisis. As you've said, 323 00:17:52,640 --> 00:17:54,959 Speaker 1: what does that mean? What are you seeing in the 324 00:17:54,960 --> 00:17:58,040 Speaker 1: real estate market today? And and what is the the 325 00:17:58,080 --> 00:18:01,840 Speaker 1: outlet going to be for that for that cash though? So, 326 00:18:02,160 --> 00:18:06,200 Speaker 1: I think this pandemic and its impact on the economy 327 00:18:06,400 --> 00:18:10,639 Speaker 1: is very serious. I am don't No one can accuse 328 00:18:10,680 --> 00:18:14,160 Speaker 1: me of being an optimist, you know, with with what's 329 00:18:14,200 --> 00:18:18,880 Speaker 1: going on, because this is very serious. You cannot simply 330 00:18:19,240 --> 00:18:24,479 Speaker 1: shut off the global economy and easily wipe out uh 331 00:18:24,840 --> 00:18:28,560 Speaker 1: two quarters of g d P, which come to in 332 00:18:28,840 --> 00:18:32,840 Speaker 1: a global sense somewhere around forty trillion. That's with a 333 00:18:32,960 --> 00:18:37,840 Speaker 1: t forty trillion dollars in g d P UH. And 334 00:18:38,080 --> 00:18:41,040 Speaker 1: I think that this is going to have a long 335 00:18:41,160 --> 00:18:44,879 Speaker 1: lasting knock on effect. Mark. I think the mentality, the 336 00:18:44,920 --> 00:18:50,000 Speaker 1: psychology of people has changed, maybe for an entire generation. 337 00:18:50,600 --> 00:18:53,400 Speaker 1: I think this is big. I think people will have 338 00:18:53,520 --> 00:18:58,119 Speaker 1: an ongoing what I'll call a PTSD, a post traumatic 339 00:18:58,200 --> 00:19:02,520 Speaker 1: stress disorder. Even after this blows over, even after the 340 00:19:02,640 --> 00:19:06,120 Speaker 1: virus fades into oblivion, or there's a vaccine, or there's 341 00:19:06,160 --> 00:19:10,120 Speaker 1: better treatment or all three, Okay, there, they're still going 342 00:19:10,160 --> 00:19:15,200 Speaker 1: to be big changes in our mentality. And the question is, Look, 343 00:19:15,600 --> 00:19:18,480 Speaker 1: I think the economy will come out of this and 344 00:19:18,480 --> 00:19:22,960 Speaker 1: we will have a smaller economy. Okay, the economy will 345 00:19:23,080 --> 00:19:27,720 Speaker 1: not be as big as it was. That means global 346 00:19:27,800 --> 00:19:35,000 Speaker 1: GDP shrinks, unemployment higher. Not good news. Okay, that's all bad. 347 00:19:35,240 --> 00:19:40,600 Speaker 1: There's nothing good in there. Okay, but but yeah, the 348 00:19:40,600 --> 00:19:43,360 Speaker 1: good news is the good news is if we position 349 00:19:43,400 --> 00:19:47,720 Speaker 1: ourselves right for uh. And there's a lot to talk 350 00:19:47,720 --> 00:19:50,280 Speaker 1: about here. Uh. And you and I talked about this 351 00:19:50,560 --> 00:19:53,040 Speaker 1: six week course that I'm working on, and you so 352 00:19:53,119 --> 00:19:55,720 Speaker 1: graciously offered to help me with that. Uh And and 353 00:19:55,760 --> 00:19:58,320 Speaker 1: George Gammon, our mutual friend, is has helped me with 354 00:19:58,359 --> 00:20:00,840 Speaker 1: that a little bit too. Um. There's a lot to 355 00:20:00,880 --> 00:20:03,800 Speaker 1: talk about here, but you know, right now, just a 356 00:20:03,840 --> 00:20:07,320 Speaker 1: couple of things, Okay. So the one trend is the 357 00:20:07,359 --> 00:20:10,760 Speaker 1: sinking economy, bad news. The other trend, as far as 358 00:20:10,800 --> 00:20:15,560 Speaker 1: real estate goes, is the opposing force of this mass 359 00:20:15,600 --> 00:20:20,240 Speaker 1: migration that I am predicting out of high density living 360 00:20:20,359 --> 00:20:26,400 Speaker 1: environments toward low density living environments. And back in two 361 00:20:26,480 --> 00:20:31,320 Speaker 1: thousand twelve, I was predicting what I called the rise 362 00:20:31,440 --> 00:20:37,280 Speaker 1: of suburbia. The rise of suburbia. Now, suburbia is a 363 00:20:37,400 --> 00:20:41,320 Speaker 1: very American concept, started really in the post World War 364 00:20:41,359 --> 00:20:44,880 Speaker 1: two world and made famous by something called Levitt Town 365 00:20:45,280 --> 00:20:49,240 Speaker 1: in Pennsylvania and New Jersey, Okay, where they built tracts 366 00:20:49,320 --> 00:20:52,879 Speaker 1: of homes in an assembly line fashion. And uh it 367 00:20:52,960 --> 00:20:55,280 Speaker 1: was outside of the city. And when you go around 368 00:20:55,320 --> 00:20:58,560 Speaker 1: the world, there's not much suburbia. That's a very uniquely 369 00:20:58,560 --> 00:21:02,440 Speaker 1: American idea, kay, And I think there will be a 370 00:21:02,480 --> 00:21:09,560 Speaker 1: mass migration out of cities, out of how high rise 371 00:21:09,600 --> 00:21:13,560 Speaker 1: living to where people can easily socially distance and they 372 00:21:13,560 --> 00:21:16,760 Speaker 1: can feel safer, because even after this pandemic is over, 373 00:21:17,040 --> 00:21:19,280 Speaker 1: people are going to be concerned about the next one. 374 00:21:19,680 --> 00:21:23,440 Speaker 1: I think for many years people will be looking at 375 00:21:24,320 --> 00:21:27,679 Speaker 1: other people sadly. And I don't think this is good, okay, 376 00:21:27,800 --> 00:21:31,960 Speaker 1: by any means, with some degree of suspicion. Could they 377 00:21:32,000 --> 00:21:34,879 Speaker 1: be carrying a disease I could catch right, you know, 378 00:21:35,119 --> 00:21:39,680 Speaker 1: one of the deepest human pieces of programming is uh, 379 00:21:39,920 --> 00:21:43,760 Speaker 1: you know, self protection, self survival, self preservation, right, we're 380 00:21:43,800 --> 00:21:47,399 Speaker 1: all wired for that, and uh, and and the danger 381 00:21:47,520 --> 00:21:51,760 Speaker 1: zones in high density living environments are elevators and mass 382 00:21:51,800 --> 00:21:55,440 Speaker 1: transit and then of course crowded restaurants, coffee shops, everything else. 383 00:21:56,240 --> 00:22:00,560 Speaker 1: But yeah, so you see this mass migration to um 384 00:22:00,600 --> 00:22:03,320 Speaker 1: suburbia because of that, which which makes sense, right, and 385 00:22:03,560 --> 00:22:05,760 Speaker 1: I and I agree that PTSD is probably going to 386 00:22:05,800 --> 00:22:08,200 Speaker 1: be real the lasting effects. But at the same time, 387 00:22:08,200 --> 00:22:09,840 Speaker 1: we had I think we kind of had a trend 388 00:22:09,920 --> 00:22:13,400 Speaker 1: where we've seen lower birth rates, We've seen people having 389 00:22:13,480 --> 00:22:15,840 Speaker 1: kids later in life, if if, if even at all, 390 00:22:16,400 --> 00:22:18,960 Speaker 1: and that has been driving people to the cities. And 391 00:22:19,000 --> 00:22:21,639 Speaker 1: we might even say, and this might be a deeper conversation, 392 00:22:21,680 --> 00:22:25,879 Speaker 1: but how the government has even been trying to push 393 00:22:25,880 --> 00:22:28,680 Speaker 1: people to the cities. That's the u N Agenda twenty 394 00:22:28,680 --> 00:22:31,680 Speaker 1: one you're probably referring to, right, right, So I know, 395 00:22:32,119 --> 00:22:34,200 Speaker 1: so we know there's a global initiative to get people 396 00:22:34,200 --> 00:22:36,160 Speaker 1: in the cities. We know China has worked really hard 397 00:22:36,160 --> 00:22:37,800 Speaker 1: to get people out of the farms into the cities. 398 00:22:37,920 --> 00:22:39,760 Speaker 1: So there's agenda to move people to the cities. But also, 399 00:22:39,840 --> 00:22:42,920 Speaker 1: like I said, just people getting married later, having kids later, 400 00:22:43,000 --> 00:22:44,399 Speaker 1: not having kids at all, and they want to live 401 00:22:44,440 --> 00:22:46,040 Speaker 1: in the cities. They want to live and walk and 402 00:22:46,080 --> 00:22:48,680 Speaker 1: all that. So there's been that trend and you think, 403 00:22:48,720 --> 00:22:51,680 Speaker 1: but this new trend could override that and now switch 404 00:22:51,760 --> 00:22:56,280 Speaker 1: the other way. Well, look, there there will be people 405 00:22:56,280 --> 00:22:59,280 Speaker 1: are individuals, and so they all will do their own thing. 406 00:22:59,640 --> 00:23:01,440 Speaker 1: But I will tell you is if we just look 407 00:23:01,480 --> 00:23:04,000 Speaker 1: at some numbers. Let me let me share some numbers. Now, 408 00:23:04,600 --> 00:23:09,679 Speaker 1: eight of the three seven million people of the US 409 00:23:10,080 --> 00:23:15,360 Speaker 1: live in urban areas. That is a giant number. And yes, 410 00:23:15,640 --> 00:23:19,200 Speaker 1: there are definite advantages to living in cities. I personally 411 00:23:19,240 --> 00:23:23,719 Speaker 1: like them. I like the I like walkable environments. Okay, 412 00:23:23,840 --> 00:23:28,280 Speaker 1: I'm I'm a fan personally of that. And uh I'm single, okay, 413 00:23:28,320 --> 00:23:31,760 Speaker 1: so I like environments where you can socialize easily and 414 00:23:31,840 --> 00:23:33,639 Speaker 1: you can walk to the coffee shop and all that 415 00:23:33,720 --> 00:23:37,120 Speaker 1: kind of stuff. Right, So this is not my personal 416 00:23:37,240 --> 00:23:40,159 Speaker 1: view on things, Okay. I just think a lot of 417 00:23:40,160 --> 00:23:44,200 Speaker 1: people will have this PTSD and will be concerned about elevators, 418 00:23:44,440 --> 00:23:47,680 Speaker 1: mass transit, crowded places in general. So eighty four percent 419 00:23:47,720 --> 00:23:51,840 Speaker 1: of the country lives in what's considered an urban environment. Okay. Now, 420 00:23:52,160 --> 00:23:56,360 Speaker 1: the average population density of the US is only This 421 00:23:56,440 --> 00:23:59,000 Speaker 1: is a small number, okay, because there is a lot 422 00:23:59,040 --> 00:24:01,720 Speaker 1: of land spread out in the US, even though most 423 00:24:01,720 --> 00:24:04,520 Speaker 1: of us don't live. There is only eighty seven people 424 00:24:04,560 --> 00:24:09,040 Speaker 1: per square mile mark okay. But the average population density 425 00:24:09,119 --> 00:24:14,040 Speaker 1: of metropolitan areas is two eighty three people per square mile. 426 00:24:14,920 --> 00:24:19,800 Speaker 1: Now get this one. The population density of New York City, 427 00:24:20,160 --> 00:24:23,199 Speaker 1: where where the death rate has been the highest and 428 00:24:23,280 --> 00:24:27,640 Speaker 1: the infection rate has been the highest, is twenty seven 429 00:24:27,680 --> 00:24:33,399 Speaker 1: thousand people per square mile. So just look at the difference. Okay. 430 00:24:34,040 --> 00:24:36,920 Speaker 1: And I've got a couple of other numbers, some maybe 431 00:24:36,960 --> 00:24:39,399 Speaker 1: some what we'll call back of the napkin math I 432 00:24:39,440 --> 00:24:41,800 Speaker 1: can share with your listeners as well. But you might 433 00:24:41,800 --> 00:24:45,000 Speaker 1: have a question about that. Well, um, that's a lot 434 00:24:45,040 --> 00:24:48,000 Speaker 1: of data, and it's good data, but I want that synthesized. 435 00:24:48,119 --> 00:24:50,800 Speaker 1: What does that mean? Does that mean that we would 436 00:24:50,840 --> 00:24:53,800 Speaker 1: expect to see the big cities probably hit the hardest 437 00:24:53,840 --> 00:24:56,280 Speaker 1: on real estate and the suburban areas of real estate 438 00:24:56,359 --> 00:25:01,760 Speaker 1: do better. Yeah? Absolutely, okay, So a you more numbers here, right, 439 00:25:01,840 --> 00:25:04,720 Speaker 1: And this comes from a company called YARDI Matrix. You're 440 00:25:04,760 --> 00:25:08,320 Speaker 1: undoubtedly familiar with the Aready. They're the big property management 441 00:25:08,440 --> 00:25:11,479 Speaker 1: software company, so they have a lot of data on 442 00:25:11,760 --> 00:25:15,280 Speaker 1: rental properties. Check this out. Part of this pent up 443 00:25:15,320 --> 00:25:19,920 Speaker 1: demand or shadow demand for suburban housing. Part of this 444 00:25:20,160 --> 00:25:23,840 Speaker 1: eight four percent of these urban dwellers. Right. Um, there 445 00:25:23,880 --> 00:25:29,120 Speaker 1: are over twelve thousand buildings in the US that are 446 00:25:29,160 --> 00:25:33,280 Speaker 1: considered mid rise or high rise. That means five or 447 00:25:33,400 --> 00:25:38,440 Speaker 1: more stories where people really do need to use an elevator. 448 00:25:38,840 --> 00:25:43,680 Speaker 1: Four stories, maybe they'll take the stairs, okay, but five 449 00:25:43,720 --> 00:25:47,440 Speaker 1: stories you're taking an elevator, okay. Uh. And and so 450 00:25:47,520 --> 00:25:52,159 Speaker 1: this represents two point three million units. Two point three 451 00:25:52,240 --> 00:25:56,119 Speaker 1: million units okay, back of a napkin math, This is 452 00:25:56,160 --> 00:25:59,399 Speaker 1: only rentals. This does not include owned properties that are 453 00:25:59,480 --> 00:26:05,040 Speaker 1: condoms okay or co ops doesn't include that, only rentals. 454 00:26:05,240 --> 00:26:08,240 Speaker 1: Two point three million units okay, mid rise and high rise. 455 00:26:08,880 --> 00:26:12,639 Speaker 1: If only fifteen percent of these people decide they have 456 00:26:12,720 --> 00:26:16,680 Speaker 1: the urge to move when the lockdowns lift, that's three 457 00:26:16,760 --> 00:26:22,320 Speaker 1: hundred and forty thousand housing units needed. Okay. And if 458 00:26:22,359 --> 00:26:25,879 Speaker 1: you divide that over fifty m s a s or 459 00:26:25,920 --> 00:26:32,399 Speaker 1: metropolitan statistical areas, that puts demand of another seven thousand 460 00:26:32,480 --> 00:26:38,200 Speaker 1: housing units needed in each of these fifty markets in 461 00:26:38,200 --> 00:26:44,240 Speaker 1: an era where we have a massive housing housing shortage already, 462 00:26:44,320 --> 00:26:48,639 Speaker 1: and this is only rental units, not owned units, not 463 00:26:48,880 --> 00:26:52,720 Speaker 1: condo units, and not does it say what the average 464 00:26:52,760 --> 00:26:57,439 Speaker 1: rent is on those seven thousand UM units that are needed? No, 465 00:26:57,680 --> 00:27:01,080 Speaker 1: I don't have that. I don't have any so um So, 466 00:27:01,119 --> 00:27:04,159 Speaker 1: then what you're saying is that based off this pandemic 467 00:27:04,240 --> 00:27:07,360 Speaker 1: and people being afraid to shake people's hands and see 468 00:27:07,359 --> 00:27:09,399 Speaker 1: people in the elevator, which I think I kind of 469 00:27:09,400 --> 00:27:11,680 Speaker 1: agree with that, do you think that this could cause 470 00:27:11,760 --> 00:27:15,760 Speaker 1: this mass migration um where we have housing shortages? Yes, 471 00:27:15,880 --> 00:27:18,280 Speaker 1: and now that could that could one hurt the areas 472 00:27:18,280 --> 00:27:20,399 Speaker 1: that they're leaving from, which are these metropolitan areas, but 473 00:27:20,480 --> 00:27:25,960 Speaker 1: also drive up demand and then prices in these other areas. Absolutely. 474 00:27:26,040 --> 00:27:30,440 Speaker 1: So the question of the day is this what will 475 00:27:30,480 --> 00:27:33,960 Speaker 1: be stronger? Will it be the downturn in the economy 476 00:27:34,119 --> 00:27:37,160 Speaker 1: or will it be the mass migration that real estate 477 00:27:37,200 --> 00:27:41,520 Speaker 1: investors positioning properly can take advantage of. When people leave 478 00:27:41,800 --> 00:27:46,480 Speaker 1: downtown l A, Downtown San Diego, downtown Seattle, San Francisco, 479 00:27:46,840 --> 00:27:52,200 Speaker 1: New York, Boston, Chicago, Miami, right, and they leave these 480 00:27:52,280 --> 00:27:57,240 Speaker 1: areas for more suburban lifestyles. And another thing that would 481 00:27:57,240 --> 00:28:01,320 Speaker 1: accelerate that. Also due to the pandemic is that I 482 00:28:01,359 --> 00:28:04,080 Speaker 1: was talking to a commercial real estate um. I actually 483 00:28:04,080 --> 00:28:06,480 Speaker 1: had dinner with a with a commercial real estate person 484 00:28:06,600 --> 00:28:10,680 Speaker 1: last night, and we were talking about how the pandemic 485 00:28:10,960 --> 00:28:13,880 Speaker 1: has basically taken all these people who would never work 486 00:28:13,920 --> 00:28:15,560 Speaker 1: from home. Oh no, I can't work from home. I 487 00:28:15,560 --> 00:28:17,920 Speaker 1: have community distractions, or I own a company. I could 488 00:28:18,000 --> 00:28:20,240 Speaker 1: never let my people work from home because I need 489 00:28:20,240 --> 00:28:23,560 Speaker 1: my team, but we were forced to. And now like her, 490 00:28:23,800 --> 00:28:27,080 Speaker 1: she she works for Wells Fargo, and she could never 491 00:28:27,119 --> 00:28:28,840 Speaker 1: work from home. She has a young kid and all this, 492 00:28:29,080 --> 00:28:31,160 Speaker 1: but now she is, and now she's found that she's 493 00:28:31,240 --> 00:28:35,760 Speaker 1: way more productive and probably likes it better. She never 494 00:28:35,840 --> 00:28:38,760 Speaker 1: would have gone for it, but now she's doing better. 495 00:28:38,880 --> 00:28:40,520 Speaker 1: And all these companies, I never would have let my 496 00:28:40,560 --> 00:28:43,320 Speaker 1: staff do it, but now it's working better we have. 497 00:28:43,520 --> 00:28:45,280 Speaker 1: I think we're going to see a mass shift to 498 00:28:45,440 --> 00:28:48,920 Speaker 1: people working from home, which then allows them to live 499 00:28:48,960 --> 00:28:52,000 Speaker 1: anywhere in the country they want. Mark, I'm so glad 500 00:28:52,000 --> 00:28:55,840 Speaker 1: you mentioned that, because yes, many more people than we 501 00:28:55,880 --> 00:28:59,200 Speaker 1: ever realized can do their job remotely. So there's the 502 00:28:59,240 --> 00:29:03,680 Speaker 1: remote workers. And a big part of that is let's 503 00:29:03,720 --> 00:29:08,360 Speaker 1: talk for a moment about roommates. Okay, roommates. This is 504 00:29:08,360 --> 00:29:11,520 Speaker 1: a significant one because most a lot of I don't 505 00:29:11,560 --> 00:29:13,760 Speaker 1: want to say most, but a lot of roommates. Probably 506 00:29:13,800 --> 00:29:18,880 Speaker 1: most are professionals, young professionals maybe, right, And those are 507 00:29:19,040 --> 00:29:22,720 Speaker 1: information workers who can work at home right there, living 508 00:29:22,760 --> 00:29:25,760 Speaker 1: the digital lifestyle, and they can work at home. So 509 00:29:26,080 --> 00:29:29,560 Speaker 1: think about this conversation that has probably happened now millions 510 00:29:29,560 --> 00:29:33,280 Speaker 1: and millions of times since this whole thing started. Okay, 511 00:29:33,440 --> 00:29:37,560 Speaker 1: you've got two young professionals who used to hardly ever 512 00:29:37,560 --> 00:29:39,920 Speaker 1: see each other. They were roommates sharing a two bedroom 513 00:29:39,960 --> 00:29:43,200 Speaker 1: plates and uh, they'd come home to sleep and maybe 514 00:29:43,240 --> 00:29:46,440 Speaker 1: grab a meal and go. You know, they're socializing, they're working, 515 00:29:46,760 --> 00:29:49,400 Speaker 1: they're really into their careers and and and you know, 516 00:29:49,840 --> 00:29:52,760 Speaker 1: uh doing that and they hardly ever see the roommate. Right. 517 00:29:53,120 --> 00:29:56,360 Speaker 1: But now they're both working at home and they're saying, hey, 518 00:29:56,560 --> 00:29:59,120 Speaker 1: you know, you know, buddy, I really need that second 519 00:29:59,160 --> 00:30:03,160 Speaker 1: bedroom from home office. And then their roommate says back 520 00:30:03,160 --> 00:30:04,920 Speaker 1: to them, you know what, I was thinking the same thing. 521 00:30:05,040 --> 00:30:07,560 Speaker 1: I need a second bedroom for my home office. And 522 00:30:07,600 --> 00:30:10,320 Speaker 1: you know what, my employer is about to give me 523 00:30:10,520 --> 00:30:13,880 Speaker 1: a four month allowance to work at home because you know, 524 00:30:14,120 --> 00:30:16,160 Speaker 1: they're defaulting on their office lease and they're going to 525 00:30:16,240 --> 00:30:18,680 Speaker 1: give up the office, right, so they're gonna give everybody 526 00:30:18,880 --> 00:30:21,560 Speaker 1: a little spiff to work at home. And uh and 527 00:30:21,560 --> 00:30:25,720 Speaker 1: and so now you've literally doubled the demand for housing 528 00:30:26,360 --> 00:30:29,920 Speaker 1: in the roommates sector. Okay, Now the question is how 529 00:30:29,920 --> 00:30:33,160 Speaker 1: many roommates are there in America. We'll get this. This 530 00:30:33,240 --> 00:30:36,920 Speaker 1: is not a recent statistic. This is eight years ago, Okay, 531 00:30:37,160 --> 00:30:39,720 Speaker 1: But I'm doing more research and trying to get better info. 532 00:30:39,880 --> 00:30:42,520 Speaker 1: And by the way, we're gonna have a census pretty 533 00:30:42,560 --> 00:30:45,160 Speaker 1: soon here that's going to really give us better data. 534 00:30:45,520 --> 00:30:48,560 Speaker 1: But I would envision that this number has only gone 535 00:30:48,600 --> 00:30:51,840 Speaker 1: up in the last eight years. So as of two 536 00:30:51,840 --> 00:30:58,360 Speaker 1: thousand and twelve, mark of the United States adults were 537 00:30:58,440 --> 00:31:04,000 Speaker 1: cohabitating as roommate in what's considered non romantic relationships. Okay, 538 00:31:04,160 --> 00:31:07,720 Speaker 1: it's a lot. So if those people, if only half 539 00:31:07,720 --> 00:31:13,360 Speaker 1: of them split, that is millions more housing units needed. Okay, 540 00:31:13,520 --> 00:31:17,800 Speaker 1: So this is hugely significant. It's it's the housing demand 541 00:31:17,920 --> 00:31:22,000 Speaker 1: is going to increase quite dramatically in the right places. 542 00:31:22,040 --> 00:31:25,880 Speaker 1: So we've talked about UM the pandemic and how it 543 00:31:25,960 --> 00:31:30,120 Speaker 1: could change society. UM wanting to have separate housing and 544 00:31:30,160 --> 00:31:32,960 Speaker 1: wanting to move other areas geo arbitrage as we call that, 545 00:31:33,040 --> 00:31:34,960 Speaker 1: where I could live somewhere else and take advantage of 546 00:31:34,960 --> 00:31:38,920 Speaker 1: the cost savings UM. But what we haven't really addressed, 547 00:31:38,960 --> 00:31:42,400 Speaker 1: which is even the bigger elephant in the room, is well, 548 00:31:42,440 --> 00:31:44,480 Speaker 1: you did address. You said the economy is gonna shrink 549 00:31:44,480 --> 00:31:47,520 Speaker 1: and it's not going to come back. So the economy 550 00:31:47,600 --> 00:31:49,880 Speaker 1: is gonna shrink. We're talking. You said two quarters of 551 00:31:50,000 --> 00:31:53,440 Speaker 1: lost revenue, which is forty trillion dollars the lost revenue. 552 00:31:53,480 --> 00:31:55,720 Speaker 1: That's revenue that won't come back. I'm a hairdresser and 553 00:31:55,760 --> 00:31:57,880 Speaker 1: I didn't do hair for two months. Well, those people 554 00:31:57,880 --> 00:32:00,960 Speaker 1: aren't gonna come order twice the hair products, right Like, 555 00:32:01,040 --> 00:32:03,240 Speaker 1: I lost that money. It's not going back. So we 556 00:32:03,360 --> 00:32:06,280 Speaker 1: lost two quarters um forty tillion dollars off the global 557 00:32:06,560 --> 00:32:11,680 Speaker 1: gdp UM. The result is a shrinking economy. What does 558 00:32:11,760 --> 00:32:13,960 Speaker 1: that mean for real estate prices? And then and then 559 00:32:13,960 --> 00:32:15,760 Speaker 1: you add the migration on top of it. So are 560 00:32:15,760 --> 00:32:18,640 Speaker 1: we looking at a massive real estate crash only in 561 00:32:18,680 --> 00:32:21,240 Speaker 1: certain areas but some areas will boom? Or what are 562 00:32:21,280 --> 00:32:26,080 Speaker 1: you thinking? Again? It's the tale of three markets because coincidentally, 563 00:32:26,520 --> 00:32:30,120 Speaker 1: as we're talking about the high density living environments, the 564 00:32:30,240 --> 00:32:35,280 Speaker 1: vast majority of the high density living environments are cyclical markets. There, 565 00:32:35,680 --> 00:32:43,200 Speaker 1: Downtown San Diego, downtown l A, San Francisco, Seattle, downtown Portland, Boston, 566 00:32:43,360 --> 00:32:47,200 Speaker 1: New York. Explain what the cylical markets are you saying 567 00:32:47,240 --> 00:32:50,440 Speaker 1: they rise and fall all the time. Yeah, yeah, yeah, yeah, yeah, 568 00:32:50,680 --> 00:32:54,560 Speaker 1: very good question. You know I didn't really explain that enough. Okay, 569 00:32:54,640 --> 00:32:58,040 Speaker 1: So cyclical markets. If you're looking at a graph, you 570 00:32:58,040 --> 00:33:02,280 Speaker 1: would be looking at a roller coaster pad, glorious highs 571 00:33:02,400 --> 00:33:05,960 Speaker 1: ugly lows. That's a cyclical market. And that's where I 572 00:33:06,000 --> 00:33:08,719 Speaker 1: spent most of my life with you in southern California. 573 00:33:09,400 --> 00:33:14,040 Speaker 1: California cyclical market. Okay, Um, all of those places I 574 00:33:14,120 --> 00:33:19,880 Speaker 1: mentioned before, Any expensive market is a cyclical market. Outside 575 00:33:19,880 --> 00:33:21,680 Speaker 1: of the US. I already mentioned the U S ones. 576 00:33:21,720 --> 00:33:26,040 Speaker 1: Outside of the US, they would be places like London, Paris, Dubai, 577 00:33:26,560 --> 00:33:31,600 Speaker 1: uh Hong Kong, Vancouver, Toronto, Yeah, thank you, thank you, 578 00:33:31,720 --> 00:33:36,080 Speaker 1: Yeah yeah, Montreal, you know, all of those expensive, very 579 00:33:36,200 --> 00:33:39,520 Speaker 1: nice places. By the way, Um, you know, those are 580 00:33:39,600 --> 00:33:44,880 Speaker 1: all cyclical markets that have overinflated. They were already declining 581 00:33:45,040 --> 00:33:49,280 Speaker 1: before the pandemic. Okay, they were already suffering and showing 582 00:33:49,360 --> 00:33:54,080 Speaker 1: signs of significant weakness, but now that weakness is going 583 00:33:54,120 --> 00:33:56,960 Speaker 1: to be accelerated and they're going down that roller coaster 584 00:33:57,120 --> 00:34:00,280 Speaker 1: hill and it's it's not going to be pleasant. And 585 00:34:00,480 --> 00:34:03,120 Speaker 1: uh and now not only are they going down that 586 00:34:03,520 --> 00:34:07,440 Speaker 1: roller coaster hill because of because they were just overvalued 587 00:34:07,480 --> 00:34:09,720 Speaker 1: and didn't make any sense and things were too bubbly 588 00:34:09,760 --> 00:34:12,280 Speaker 1: in the bubble popped, But now you've got the mass 589 00:34:12,320 --> 00:34:16,279 Speaker 1: migration out. I just interviewed on my podcast um the 590 00:34:16,440 --> 00:34:19,640 Speaker 1: president and CEO of Douglas Ellman real Estate. Her name's 591 00:34:19,640 --> 00:34:24,240 Speaker 1: Dottie Herman, and uh, that's a giant real estate firm 592 00:34:24,400 --> 00:34:27,759 Speaker 1: in the northeastern US, mostly New York City, And she 593 00:34:27,880 --> 00:34:30,480 Speaker 1: did the interview from her second home in the Hampton's 594 00:34:30,880 --> 00:34:33,759 Speaker 1: where all the wealthy people from the city had escaped to. 595 00:34:34,520 --> 00:34:37,399 Speaker 1: And she was saying a lot of stuff on my show, 596 00:34:37,440 --> 00:34:40,520 Speaker 1: Mark that frankly, was very much against her own self interest, 597 00:34:40,960 --> 00:34:43,520 Speaker 1: that people were going to flood out of New York City. 598 00:34:43,800 --> 00:34:45,319 Speaker 1: I mean, this is not good if you own a 599 00:34:45,320 --> 00:34:47,840 Speaker 1: real estate company with largely based in New York City. 600 00:34:48,200 --> 00:34:52,000 Speaker 1: But she she was being very candid about it. And um, 601 00:34:52,239 --> 00:34:55,239 Speaker 1: it's a big deal. So UM, now I know you 602 00:34:55,480 --> 00:34:59,920 Speaker 1: had Harry Dent on your show, and I have been 603 00:35:00,000 --> 00:35:01,879 Speaker 1: following Harry Dent's work. For anyone who doesn't know who 604 00:35:01,880 --> 00:35:04,480 Speaker 1: Harry Dent is, he is a I think a second 605 00:35:04,560 --> 00:35:09,040 Speaker 1: generation economic economist. And he wrote a book that was 606 00:35:09,120 --> 00:35:10,960 Speaker 1: kind of instrumental for me back I read it in 607 00:35:11,040 --> 00:35:13,440 Speaker 1: two thousand and six, The the Great Bubble Boom Ahead. 608 00:35:13,840 --> 00:35:18,360 Speaker 1: He's written several books, but his whole thesis is using 609 00:35:18,560 --> 00:35:22,759 Speaker 1: demographics to see where the markets are going to go. 610 00:35:23,719 --> 00:35:27,840 Speaker 1: And so his thesis has been that the baby boomer generation, 611 00:35:28,560 --> 00:35:31,680 Speaker 1: they're the largest segment of population. They're retiring and they're 612 00:35:31,680 --> 00:35:35,080 Speaker 1: gonna leave their McMansions to go to sunny places where 613 00:35:35,080 --> 00:35:37,000 Speaker 1: they can play golf in tennis three sixty god days 614 00:35:37,000 --> 00:35:40,400 Speaker 1: a year. Uh. And there's no population. There's not enough 615 00:35:40,440 --> 00:35:43,760 Speaker 1: population to come up and buy those houses. So and 616 00:35:43,760 --> 00:35:48,080 Speaker 1: and he says that demographics are are very um reliable 617 00:35:48,080 --> 00:35:50,440 Speaker 1: because people are very predictable and they're spending habits as 618 00:35:50,480 --> 00:35:53,680 Speaker 1: they go through life. And I think kind of, I 619 00:35:53,680 --> 00:35:56,200 Speaker 1: think we already have that natural phenomenon. And I made 620 00:35:56,200 --> 00:36:00,239 Speaker 1: a video about that recently. Um and uh, then you 621 00:36:00,400 --> 00:36:03,960 Speaker 1: layer on top of this pandemic and it only accelerates that. 622 00:36:04,040 --> 00:36:08,960 Speaker 1: I think, Yeah, you're absolutely right. You know, Um, basically, 623 00:36:09,239 --> 00:36:13,440 Speaker 1: you've got the Baby Boomers, that's about seventy six million Americans. 624 00:36:13,840 --> 00:36:17,480 Speaker 1: You've got the Gen xers, which is my generation, which 625 00:36:17,600 --> 00:36:20,839 Speaker 1: is a small generation of about forty six million Americans. 626 00:36:21,320 --> 00:36:23,920 Speaker 1: And then you've got the Millennials, which is a big generation, 627 00:36:23,960 --> 00:36:26,439 Speaker 1: the biggest one of all, which is eighty million, even 628 00:36:26,440 --> 00:36:29,640 Speaker 1: bigger than the Baby Boomers by a small margin. And 629 00:36:29,760 --> 00:36:33,400 Speaker 1: they do all have very uh, predictable habits. You know. 630 00:36:33,440 --> 00:36:35,600 Speaker 1: I discovered Harry Dent. I read my first Harry Dent 631 00:36:35,640 --> 00:36:41,080 Speaker 1: book in and I thought, you know, as an economic demographer, 632 00:36:41,360 --> 00:36:43,840 Speaker 1: that's a really smart way to look at the economy. 633 00:36:43,880 --> 00:36:46,839 Speaker 1: It was simple enough for me to understand and relate to. 634 00:36:47,200 --> 00:36:50,040 Speaker 1: You know it, at age forty six, people are at 635 00:36:50,040 --> 00:36:52,799 Speaker 1: the peak of their spending, and at age I think 636 00:36:52,880 --> 00:36:55,479 Speaker 1: forty four, they're at the peak of their earning. Right, 637 00:36:55,840 --> 00:36:58,800 Speaker 1: so you know, this is pretty predictable. And I agree 638 00:36:58,800 --> 00:37:02,480 Speaker 1: with you. The McMansion, Uh, there's there's nobody to buy them. 639 00:37:02,760 --> 00:37:06,680 Speaker 1: And even even if like my mom has a McMansion, 640 00:37:06,719 --> 00:37:08,719 Speaker 1: and I always tell her she needs to sell this thing. 641 00:37:08,719 --> 00:37:13,040 Speaker 1: It's score feet it's ridiculous. But it was just her 642 00:37:13,120 --> 00:37:16,280 Speaker 1: dream always to have a McMansion, right, although she didn't 643 00:37:16,320 --> 00:37:21,160 Speaker 1: call it a McMansion, and and and so, um, you 644 00:37:21,200 --> 00:37:24,600 Speaker 1: know I told her, uh, just a little while ago, 645 00:37:24,880 --> 00:37:27,360 Speaker 1: after maybe one of my Harry denn interviews when he 646 00:37:27,400 --> 00:37:30,640 Speaker 1: was on my show, I said, Mom, you know, even 647 00:37:30,680 --> 00:37:33,440 Speaker 1: though Gen X, my generation is not going to come 648 00:37:33,480 --> 00:37:38,280 Speaker 1: along and buy these places from your generation. Um, even 649 00:37:38,320 --> 00:37:41,040 Speaker 1: the millennials, they're just not the type that would ever 650 00:37:41,080 --> 00:37:45,000 Speaker 1: buy a McMansion. You know, they're they're too environmentally conscious 651 00:37:45,239 --> 00:37:48,200 Speaker 1: and they're also too portable. There. You know, life is 652 00:37:48,280 --> 00:37:51,439 Speaker 1: much more portable nowadays. You know, the idea of having 653 00:37:51,440 --> 00:37:53,239 Speaker 1: a big piece of real estate is just not that 654 00:37:53,280 --> 00:37:56,719 Speaker 1: attractive to people. I said the exact same thing. The 655 00:37:57,239 --> 00:38:00,279 Speaker 1: lifestyles changed, the nomadic lifestyle they have and in and 656 00:38:00,320 --> 00:38:03,399 Speaker 1: then they have PTSD from two thousand eight, right, yeah, 657 00:38:03,440 --> 00:38:06,320 Speaker 1: because they saw their parents get burned in the housing market, 658 00:38:06,760 --> 00:38:10,200 Speaker 1: and so so they're they're much more Millennials are much 659 00:38:10,200 --> 00:38:13,440 Speaker 1: more like lean and mean, you know, there there and 660 00:38:13,440 --> 00:38:15,160 Speaker 1: and if you think about it, this is this is 661 00:38:15,200 --> 00:38:17,520 Speaker 1: maybe a smaller thing, Mark, but I think it is 662 00:38:17,560 --> 00:38:20,479 Speaker 1: a thing, you know, like in the old days. Uh, 663 00:38:20,560 --> 00:38:23,680 Speaker 1: you know my stereo system for example, it was huge. 664 00:38:24,040 --> 00:38:27,200 Speaker 1: I had giant speakers, and now I just have a 665 00:38:27,200 --> 00:38:29,640 Speaker 1: whole bunch of Alexa devices around my house. Oh wait, 666 00:38:29,880 --> 00:38:32,920 Speaker 1: I better be careful, it's gonna turn on because Jeff 667 00:38:32,920 --> 00:38:36,680 Speaker 1: Bezos is bugging bugging every room I have. And and 668 00:38:36,719 --> 00:38:39,520 Speaker 1: you know, all our stuff is a lot smaller, our technology, 669 00:38:39,520 --> 00:38:42,840 Speaker 1: our computers. It's just a lot easier to to move, 670 00:38:43,080 --> 00:38:47,520 Speaker 1: you know. Yeah yeah. So um, with that being said, 671 00:38:47,560 --> 00:38:51,480 Speaker 1: then we have the the economy shrinking, um, people going 672 00:38:51,520 --> 00:38:54,719 Speaker 1: without money, without employment, um. And we have this migration 673 00:38:54,719 --> 00:38:59,000 Speaker 1: on top of it. So you're expecting the real estate markets, 674 00:38:59,360 --> 00:39:02,360 Speaker 1: and not national real estate market, but certain pockets of 675 00:39:02,400 --> 00:39:05,400 Speaker 1: the real estate market is start taking some pretty big hits. Definitely. 676 00:39:05,440 --> 00:39:07,520 Speaker 1: And here's the thing people need to be careful of 677 00:39:07,800 --> 00:39:11,120 Speaker 1: when they read the news media or they're watching CNBC 678 00:39:11,320 --> 00:39:13,759 Speaker 1: and some talking head is on their talking about the 679 00:39:13,800 --> 00:39:16,880 Speaker 1: quote unquote housing market. Okay, what people need to be 680 00:39:16,920 --> 00:39:20,799 Speaker 1: careful of is that the index for housing prices that 681 00:39:20,920 --> 00:39:24,560 Speaker 1: is the most widely cited index is totally faulty. It's 682 00:39:24,600 --> 00:39:28,920 Speaker 1: the case Shiller index because that only includes twenty markets 683 00:39:29,480 --> 00:39:34,120 Speaker 1: and fifteen of those twenty markets, guess what their cyclical markets, 684 00:39:34,480 --> 00:39:37,879 Speaker 1: markets that we would never touch, only five of them. 685 00:39:38,080 --> 00:39:40,840 Speaker 1: Only one quarter of the markets in the case Shiller 686 00:39:40,920 --> 00:39:44,239 Speaker 1: index are linear or hybrid all the rest are cyclical. 687 00:39:44,640 --> 00:39:50,760 Speaker 1: So it's totally weighted to view these crashing cyclical markets 688 00:39:50,760 --> 00:39:52,960 Speaker 1: as though the real estate market, the housing market is 689 00:39:53,000 --> 00:39:56,160 Speaker 1: crashing when it's not. Okay, you know, you try to 690 00:39:56,200 --> 00:39:59,360 Speaker 1: buy in any of our markets, and there there's still 691 00:39:59,400 --> 00:40:03,160 Speaker 1: a lot of demand. Uh, there are multiple offers even 692 00:40:03,239 --> 00:40:07,840 Speaker 1: even now sometimes some properties have multiple offers. Uh, for 693 00:40:07,840 --> 00:40:12,400 Speaker 1: for little cheap bread and butter, hundred and twenty houses 694 00:40:13,080 --> 00:40:16,600 Speaker 1: they're moving, Okay, this is this is not a two 695 00:40:16,680 --> 00:40:20,360 Speaker 1: million dollar condo in New York City, Okay, that stuff 696 00:40:20,400 --> 00:40:25,040 Speaker 1: is collapsing. Um, six thousand dollar houses in l A 697 00:40:25,040 --> 00:40:29,359 Speaker 1: are are hurting too, Okay, because remember it's even more 698 00:40:29,400 --> 00:40:32,600 Speaker 1: than the elevator and the mass transit. Okay. You know 699 00:40:32,880 --> 00:40:37,440 Speaker 1: when when you live in a expensive cyclical market, almost 700 00:40:37,480 --> 00:40:40,400 Speaker 1: every place you go is crowded. You go to Starbucks, 701 00:40:40,440 --> 00:40:43,839 Speaker 1: it's crowded. You go to a restaurant, it's crowded. Uh, 702 00:40:43,880 --> 00:40:47,919 Speaker 1: if Jim's ever reopened, they're crowded. Okay, you know, it's 703 00:40:47,960 --> 00:40:51,640 Speaker 1: just those places are densely packed in every way. So 704 00:40:51,719 --> 00:40:54,600 Speaker 1: even if you live in a single family home in 705 00:40:54,800 --> 00:40:59,280 Speaker 1: one of these cities, you're still probably gonna be concerned 706 00:40:59,320 --> 00:41:03,320 Speaker 1: and suspicious and maybe have the urge to move to suburbia. 707 00:41:04,120 --> 00:41:07,920 Speaker 1: The just get off track one second, just to make 708 00:41:07,960 --> 00:41:11,440 Speaker 1: a statement, is that the problem with viruses is that 709 00:41:11,480 --> 00:41:14,239 Speaker 1: they're here and and they'll never go away, and the 710 00:41:14,280 --> 00:41:16,200 Speaker 1: only way to beat them is our immune system has 711 00:41:16,200 --> 00:41:19,080 Speaker 1: to be able to beat them. And the fact that 712 00:41:19,160 --> 00:41:22,080 Speaker 1: what you're saying, and I agree with you, Um, the 713 00:41:22,160 --> 00:41:25,000 Speaker 1: social distancing to never wanting to shake hands anymore and 714 00:41:25,000 --> 00:41:27,400 Speaker 1: every wanted to hug anymore, will only make our immune 715 00:41:27,440 --> 00:41:30,120 Speaker 1: systems even weaker. And you know what, Yeah, you're right, 716 00:41:30,160 --> 00:41:33,080 Speaker 1: because your immune system does get stronger by germs that 717 00:41:33,120 --> 00:41:37,160 Speaker 1: it can tolerate, right, right, And so I believe you're right, 718 00:41:37,239 --> 00:41:39,719 Speaker 1: and these these PTSD actions are going to drive us 719 00:41:39,719 --> 00:41:41,960 Speaker 1: to more isolation. But then it only becomes a self 720 00:41:41,960 --> 00:41:45,840 Speaker 1: fulfilling prophecy because now I get sick easier. Um that 721 00:41:45,840 --> 00:41:48,359 Speaker 1: that that's you're you're absolutely right about that. I mean, 722 00:41:48,480 --> 00:41:51,280 Speaker 1: you know, neither of us are probably medical medically trained, 723 00:41:51,280 --> 00:41:53,840 Speaker 1: but but yes, you're right, but that is a pretty 724 00:41:53,880 --> 00:41:57,160 Speaker 1: long term effect. Okay, it's not that doesn't happen quickly, 725 00:41:57,239 --> 00:41:59,319 Speaker 1: But that doesn't having to do with our conversation. Now, 726 00:41:59,480 --> 00:42:01,680 Speaker 1: for those that are still listening, I am going to 727 00:42:01,840 --> 00:42:04,919 Speaker 1: ask you and have you tell us what you think 728 00:42:04,960 --> 00:42:06,719 Speaker 1: we should be doing. Where should we be looking. But 729 00:42:06,800 --> 00:42:11,560 Speaker 1: before we get into that specifically, I'm curious now. I 730 00:42:11,640 --> 00:42:15,000 Speaker 1: made a statement on my recent video about real estate 731 00:42:15,239 --> 00:42:18,719 Speaker 1: that real estate has been, you know, arguably the best 732 00:42:18,800 --> 00:42:21,880 Speaker 1: investment in the last you know, fifty years. I don't 733 00:42:21,880 --> 00:42:24,640 Speaker 1: think real estate will be the best investment over the 734 00:42:24,680 --> 00:42:29,520 Speaker 1: next years. Would you agree with that statement? Well, it 735 00:42:29,600 --> 00:42:33,680 Speaker 1: depends because real estate can't be lumped into one category. Uh. 736 00:42:33,880 --> 00:42:36,240 Speaker 1: If you if you were looking at real estate based 737 00:42:36,239 --> 00:42:40,320 Speaker 1: on the case Shiller index, where where three fourths of 738 00:42:40,400 --> 00:42:43,400 Speaker 1: it doesn't cash flow and is encyclical markets, yeah, I 739 00:42:43,440 --> 00:42:45,560 Speaker 1: would agree with you. But that's not the kind of 740 00:42:45,560 --> 00:42:49,120 Speaker 1: real estate I would buy. Got it? Got it? Okay? 741 00:42:49,200 --> 00:42:52,920 Speaker 1: So then you buy um linear markets that are cash 742 00:42:52,920 --> 00:43:00,720 Speaker 1: flowing linear linear, cheap cash flow markets with basic necessity housing. Okay. Remember, uh, 743 00:43:00,960 --> 00:43:04,720 Speaker 1: when when you have basic necessity housing, you catch people 744 00:43:05,320 --> 00:43:07,800 Speaker 1: as there may be just moving out of the house 745 00:43:08,200 --> 00:43:12,160 Speaker 1: and starting their life in their career, or they're growing 746 00:43:12,200 --> 00:43:15,680 Speaker 1: their family, right, they they're going to rent that three bedroom, 747 00:43:15,719 --> 00:43:19,440 Speaker 1: two bath house from you that's month. Or you catch 748 00:43:19,480 --> 00:43:22,960 Speaker 1: people falling down the economic ladder that may be used 749 00:43:22,960 --> 00:43:25,080 Speaker 1: to own a house or rent a house that was 750 00:43:25,120 --> 00:43:29,040 Speaker 1: three thousand dollars a month. Okay, Um, you know you're 751 00:43:29,040 --> 00:43:32,000 Speaker 1: gonna be surprised when when this mass migration trend that 752 00:43:32,040 --> 00:43:35,640 Speaker 1: I'm predicting when it starts. It's like the Grapes of 753 00:43:35,719 --> 00:43:40,080 Speaker 1: Wrath of Okay, John Steinbeck's Grapes of Wrath, right, which 754 00:43:40,120 --> 00:43:44,319 Speaker 1: was a migration novel. Um, when when this starts, you 755 00:43:44,360 --> 00:43:47,600 Speaker 1: will be shocked at the kind of people that come 756 00:43:47,640 --> 00:43:54,319 Speaker 1: into these little inexpensive suburban markets. Okay, someone moving from 757 00:43:54,719 --> 00:43:58,719 Speaker 1: New York to Atlanta, or moving from New York to 758 00:43:59,440 --> 00:44:03,600 Speaker 1: Okaw of Florida or Jacksonville, Florida. You know, these are 759 00:44:03,640 --> 00:44:07,279 Speaker 1: markets where we sell properties. Right, They've got they're used 760 00:44:07,320 --> 00:44:12,080 Speaker 1: to paying four thousand dollars a month, and everything they've 761 00:44:12,120 --> 00:44:15,879 Speaker 1: been spending money on mark is super expensive, and now 762 00:44:16,000 --> 00:44:22,120 Speaker 1: they can get a nicer house for twelve hundred dollars dollars. 763 00:44:23,000 --> 00:44:25,640 Speaker 1: Everything looks cheap to them. I made this comment when 764 00:44:25,640 --> 00:44:28,520 Speaker 1: I had George on, George Gammon on, and I'll see 765 00:44:28,560 --> 00:44:30,279 Speaker 1: what you say about this, But I don't know the 766 00:44:30,400 --> 00:44:32,520 Speaker 1: numbers on top of my head. I did a report 767 00:44:32,560 --> 00:44:35,799 Speaker 1: on this, but um, there's already mass migration going from 768 00:44:35,800 --> 00:44:38,960 Speaker 1: California to Texas. You have mass migration going from New 769 00:44:39,000 --> 00:44:42,560 Speaker 1: York to Florida, millions of people. U exact numbers on 770 00:44:42,640 --> 00:44:44,520 Speaker 1: top of my head now, but we already see this 771 00:44:44,560 --> 00:44:48,960 Speaker 1: mass migration California to Texas and New York to Florida. Um. 772 00:44:49,040 --> 00:44:52,000 Speaker 1: And and we we briefly talked about the demographics. Right, 773 00:44:52,040 --> 00:44:54,439 Speaker 1: so we have all these old people retiring, And why 774 00:44:54,440 --> 00:44:56,480 Speaker 1: do I want to shovel snow five months a year 775 00:44:56,480 --> 00:44:59,319 Speaker 1: in Indianapolis or Cincinnatti when I can go live in 776 00:44:59,320 --> 00:45:02,000 Speaker 1: Florida and play golf in tennis every single day and 777 00:45:02,960 --> 00:45:05,920 Speaker 1: I don't have to pay any taxes, no state taxes, right, 778 00:45:06,120 --> 00:45:08,600 Speaker 1: and the cost of living is so much cheaper. It's 779 00:45:08,600 --> 00:45:11,000 Speaker 1: a it's a no brainer, right, it is a no brainer. 780 00:45:11,040 --> 00:45:13,080 Speaker 1: You know the cost of living is so low, no 781 00:45:13,200 --> 00:45:16,880 Speaker 1: state income taxes. Um. You know you you want to 782 00:45:16,960 --> 00:45:20,200 Speaker 1: interview on your show or at least read her book. 783 00:45:20,320 --> 00:45:22,600 Speaker 1: Meredith Whitney She was on my podcast a couple of 784 00:45:22,680 --> 00:45:24,600 Speaker 1: years ago. She wrote a book called The State of 785 00:45:24,640 --> 00:45:29,040 Speaker 1: the States. So this trend that we're talking about is 786 00:45:29,120 --> 00:45:33,200 Speaker 1: not a new trend. Okay, It's been happening for years. 787 00:45:33,600 --> 00:45:36,759 Speaker 1: I mean, the middle class has been flooding out of California, 788 00:45:36,840 --> 00:45:40,000 Speaker 1: New York for a long time. That's not a new thing. 789 00:45:40,400 --> 00:45:45,239 Speaker 1: But it is going to massively accelerate with with what's gone, 790 00:45:45,320 --> 00:45:47,719 Speaker 1: what's been happening with the pandemic. Okay, So then I'm 791 00:45:47,760 --> 00:45:50,080 Speaker 1: gonna try to decipher this and you're gonna tell us 792 00:45:50,120 --> 00:45:52,799 Speaker 1: what we're what we're looking at. So, um, if I 793 00:45:53,040 --> 00:45:56,560 Speaker 1: own real estate now and I'm worried about what's going 794 00:45:56,640 --> 00:46:00,319 Speaker 1: to happen, or I'm a real estate investor, I probably 795 00:46:00,440 --> 00:46:04,080 Speaker 1: want to get out of the cilical um cities, the 796 00:46:04,200 --> 00:46:09,320 Speaker 1: urban environments and move to the more rural suburban type markets. 797 00:46:09,800 --> 00:46:13,839 Speaker 1: Um that could see this influx of people. Yeah, you know, 798 00:46:14,040 --> 00:46:17,200 Speaker 1: the game in real estate is always, you know, or 799 00:46:17,239 --> 00:46:20,359 Speaker 1: in anything is you know, there's a tidal wave, right, 800 00:46:20,840 --> 00:46:23,360 Speaker 1: get ahead of that tidal wave so you can surfeit, 801 00:46:23,880 --> 00:46:27,480 Speaker 1: and that will you'll surfeit two riches and prosperity, right, 802 00:46:27,840 --> 00:46:30,480 Speaker 1: and you don't want to be behind the wave. And 803 00:46:30,680 --> 00:46:33,680 Speaker 1: uh and and you know the wave is this migration trend. 804 00:46:33,960 --> 00:46:37,560 Speaker 1: And it's already been happening before any of this. Now 805 00:46:37,560 --> 00:46:40,120 Speaker 1: where to get a lot bigger? Where George and I, 806 00:46:40,320 --> 00:46:42,640 Speaker 1: uh maybe saw a little bit of a disagreement and 807 00:46:42,760 --> 00:46:45,160 Speaker 1: I wouldn't even say that. But um, I own you 808 00:46:45,200 --> 00:46:49,120 Speaker 1: mentioned earlier Indianapolis. I own apartments in Indianapolis. I like Indy. 809 00:46:49,280 --> 00:46:51,680 Speaker 1: It's been a great it's been a great market. Um. 810 00:46:51,760 --> 00:46:54,160 Speaker 1: They were giving away properties in the downtown area of 811 00:46:54,160 --> 00:46:56,960 Speaker 1: people to revitalize them, right and uh, now they're worth 812 00:46:57,000 --> 00:47:00,399 Speaker 1: a lot of money. I'm afraid to own in these 813 00:47:00,440 --> 00:47:03,480 Speaker 1: areas for the long run because of this migration. Why 814 00:47:03,520 --> 00:47:05,759 Speaker 1: would you live in Indianapolis It's under snow four or 815 00:47:05,760 --> 00:47:08,080 Speaker 1: five months here when I can go live in Florida. Well, 816 00:47:08,360 --> 00:47:10,920 Speaker 1: I mean I agree with you generally that the trend 817 00:47:11,000 --> 00:47:14,960 Speaker 1: is towards the Sunshine States. Okay, so you know that's 818 00:47:15,000 --> 00:47:18,640 Speaker 1: that's true because retiring baby boomers, Uh, you know that 819 00:47:19,000 --> 00:47:22,600 Speaker 1: don't have to stay in Michigan or or even Indianapolis 820 00:47:22,640 --> 00:47:24,719 Speaker 1: or what. But even the millennials that don't have to 821 00:47:24,760 --> 00:47:27,719 Speaker 1: live in Michigan or whatever. Yeah, No, I mean there's 822 00:47:27,760 --> 00:47:30,080 Speaker 1: there's no question that the sun. I could be on 823 00:47:30,120 --> 00:47:32,480 Speaker 1: the beach with spring breakers and in my spring in 824 00:47:32,520 --> 00:47:35,160 Speaker 1: my andlco a thirty year old like, why would I 825 00:47:35,200 --> 00:47:39,279 Speaker 1: live in Indiana? Yeah? No, absolutely, But Indianapolis is a 826 00:47:39,360 --> 00:47:41,840 Speaker 1: nice town. I mean, you know, that's that's a nice place. 827 00:47:41,880 --> 00:47:46,240 Speaker 1: It's got good employment prospects, low cost of living, families 828 00:47:46,280 --> 00:47:48,960 Speaker 1: love it. Um. You know, I've owned several properties in 829 00:47:48,960 --> 00:47:52,560 Speaker 1: Indianapolis and and and they're great. I'm not saying that's 830 00:47:52,880 --> 00:47:54,879 Speaker 1: you know, I'm saying that's part of the trend. It's 831 00:47:54,880 --> 00:47:58,440 Speaker 1: not the whole trend, because that as a real estate investor, 832 00:47:58,520 --> 00:48:00,799 Speaker 1: what I'm concerned about. And and I'm a hunter, present 833 00:48:00,800 --> 00:48:03,319 Speaker 1: on board with your philosophy of buying for investing for 834 00:48:03,360 --> 00:48:05,600 Speaker 1: cash flow, but I want to make sure that that 835 00:48:05,680 --> 00:48:07,160 Speaker 1: cash flow is going to be there for ten or 836 00:48:07,160 --> 00:48:09,879 Speaker 1: twenty years. I wouldn't want to own a long term 837 00:48:09,880 --> 00:48:12,440 Speaker 1: rental in an area that's going to be losing jobs, right. 838 00:48:12,440 --> 00:48:14,240 Speaker 1: I will be an area that's going to be growing, 839 00:48:14,239 --> 00:48:15,640 Speaker 1: so I can make sure that rent is going to 840 00:48:15,680 --> 00:48:19,720 Speaker 1: be there for twenty years, right. But not every cold 841 00:48:19,840 --> 00:48:23,839 Speaker 1: climate is going to you know, have is going to 842 00:48:23,880 --> 00:48:27,000 Speaker 1: lose people Okay, I mean people are still having kids, 843 00:48:27,080 --> 00:48:29,680 Speaker 1: they're still immigration, there's all of this stuff. You know. 844 00:48:29,760 --> 00:48:34,680 Speaker 1: Look at um, the major play is in the southeastern 845 00:48:34,760 --> 00:48:38,480 Speaker 1: United States. Okay, I I I completely agree. I'm just 846 00:48:38,520 --> 00:48:41,920 Speaker 1: saying that Indie is another good market and you know 847 00:48:42,000 --> 00:48:45,960 Speaker 1: they're not not everything is in in the Sunshine States. 848 00:48:46,040 --> 00:48:48,279 Speaker 1: Well I live in southern California, so the sunshine is 849 00:48:48,280 --> 00:48:50,640 Speaker 1: everything to me, so yeah, right right right. But people, 850 00:48:50,800 --> 00:48:53,600 Speaker 1: people that are used to living in those environments, they 851 00:48:53,640 --> 00:48:56,120 Speaker 1: don't think it's cold. That's just normal to them, right, 852 00:48:56,200 --> 00:48:58,120 Speaker 1: you know, you you you get used to it. I 853 00:48:58,160 --> 00:49:01,919 Speaker 1: took my family to New York last year and during 854 00:49:01,960 --> 00:49:04,759 Speaker 1: the winter, and uh, it was so cold, and like, 855 00:49:04,840 --> 00:49:06,879 Speaker 1: don't people know they don't have to live like this? 856 00:49:07,560 --> 00:49:12,879 Speaker 1: I know, Yeah, it's crazy alright. So, um, so then 857 00:49:13,480 --> 00:49:16,200 Speaker 1: be aware of the cilical markets in the urban areas. 858 00:49:16,680 --> 00:49:20,480 Speaker 1: The suburban areas are going to do better, and the 859 00:49:20,520 --> 00:49:23,080 Speaker 1: top end of the market, the McMansions are probably gonna 860 00:49:23,080 --> 00:49:27,120 Speaker 1: be hit the hardest. Um and the starter homes are 861 00:49:27,160 --> 00:49:30,560 Speaker 1: going to be the places that people want to look for, definitely, definitely. 862 00:49:30,600 --> 00:49:35,439 Speaker 1: So so avoid cyclical markets. Get into linear markets. Now, 863 00:49:35,480 --> 00:49:38,239 Speaker 1: we did not discuss so maybe it's just quickly worth 864 00:49:38,239 --> 00:49:43,400 Speaker 1: a mention. Hybrid markets. Remember there are three linear cyclical hybrid. Okay, 865 00:49:43,520 --> 00:49:45,920 Speaker 1: hybrid markets just as the name would imply mean in 866 00:49:45,960 --> 00:49:49,400 Speaker 1: between the two. So an example of a hybrid market 867 00:49:49,400 --> 00:49:53,880 Speaker 1: would be Denver or Austin. Atlanta is kind of becoming 868 00:49:53,960 --> 00:49:56,440 Speaker 1: kind of hybrid, but we we still have properties we 869 00:49:56,480 --> 00:49:59,160 Speaker 1: sell to clients in Atlanta and uh and and it's 870 00:49:59,160 --> 00:50:01,759 Speaker 1: still good but getting sort of hybridish, it's getting a 871 00:50:01,760 --> 00:50:05,120 Speaker 1: little expensive. Um and and so those that's in between. 872 00:50:05,360 --> 00:50:09,000 Speaker 1: So the best bet is linear. Linear is the safe 873 00:50:09,280 --> 00:50:15,719 Speaker 1: conservative bet. Okay. Awesome, Well that's some good stuff. You've 874 00:50:15,760 --> 00:50:18,359 Speaker 1: given us a lot of good information. I think made 875 00:50:18,360 --> 00:50:23,040 Speaker 1: the strong case as demographics plus pandemic equals this this 876 00:50:23,040 --> 00:50:26,440 Speaker 1: this amplified move and uh, I think we have some 877 00:50:26,480 --> 00:50:29,799 Speaker 1: good action as to where we should be going and looking. UM. 878 00:50:29,840 --> 00:50:32,080 Speaker 1: I want to have you back on and we'll talk 879 00:50:32,120 --> 00:50:35,640 Speaker 1: about maybe some training stuff that people can actually take, 880 00:50:35,760 --> 00:50:39,640 Speaker 1: like real uh actionable steps to go and start moving 881 00:50:39,680 --> 00:50:42,439 Speaker 1: towards this. UM. What I'm gonna do is I'm gonna 882 00:50:42,480 --> 00:50:46,239 Speaker 1: put a link in the description and the comments, UM 883 00:50:46,320 --> 00:50:49,040 Speaker 1: that if you want to get early access to this training, 884 00:50:49,080 --> 00:50:50,799 Speaker 1: you can just go ahead and put your information in there, 885 00:50:50,920 --> 00:50:52,520 Speaker 1: and I'll make sure that you're on the invite list 886 00:50:52,520 --> 00:50:55,480 Speaker 1: for that UM and then we'll have Jason back on 887 00:50:55,560 --> 00:50:57,200 Speaker 1: and and and we'll really get into that. I think 888 00:50:57,200 --> 00:51:01,719 Speaker 1: that'd be great. Good stuff we do we leave anything out. 889 00:51:02,160 --> 00:51:04,120 Speaker 1: Oh there's a lot of stuff we left now, but 890 00:51:04,680 --> 00:51:08,960 Speaker 1: you know, time weights for no man, So we got 891 00:51:09,080 --> 00:51:11,200 Speaker 1: to wrap it up. Okay, I gotta jump to my 892 00:51:11,239 --> 00:51:13,440 Speaker 1: next call. But Mark, it's it's been great talking to 893 00:51:13,480 --> 00:51:15,760 Speaker 1: you in your audience, and keep up the good work. 894 00:51:16,040 --> 00:51:20,440 Speaker 1: You know, people really need to be listening to people 895 00:51:20,760 --> 00:51:23,440 Speaker 1: like you that are telling it like it is, that 896 00:51:23,680 --> 00:51:26,680 Speaker 1: aren't wrapped up in the you know, the vast Wall 897 00:51:26,719 --> 00:51:30,279 Speaker 1: Street conspiracy. Uh. I call Wall Street the modern version 898 00:51:30,280 --> 00:51:33,480 Speaker 1: of organized crime. Uh. You know, because the way you're 899 00:51:33,480 --> 00:51:36,960 Speaker 1: gonna make money and secure your future because there's a 900 00:51:37,200 --> 00:51:40,880 Speaker 1: massive pension crisis that's only getting worse with the pandemic, 901 00:51:41,160 --> 00:51:45,200 Speaker 1: of course, is to to take control. And that's what 902 00:51:45,239 --> 00:51:48,120 Speaker 1: you teach, That's what I teach, Get control of your 903 00:51:48,160 --> 00:51:51,920 Speaker 1: investment portfolio. And I just want to wish everybody the best, 904 00:51:52,120 --> 00:51:55,560 Speaker 1: stay well and happy investing to all. Thanks so Les, 905 00:51:55,640 --> 00:51:56,520 Speaker 1: Jason appreciate it.