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Speaker 1: What's EPs but Angel Laee, I'm ange Layee. Jasmine from

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Speaker 1: the Jasmine brand is here, and my Wealth Wednesday partner,

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Speaker 1: Stacy Tisdale is here.

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Speaker 2: Happy Wealth Wednesday. And we are going way up with

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Speaker 2: a very special lady today.

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Speaker 1: Yes, Darrel Fairweather is here. Chief economist for Red Finn.

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Speaker 3: Hello.

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Speaker 1: Hello. Last time I saw you, we were on the

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Speaker 1: Breakfast Club and it was about a year ago actually,

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Speaker 1: and we were just talking about the housing economy and

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Speaker 1: the crisis. Right are we still having a crisis?

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Speaker 4: I mean, the housing problems are still there. The big

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Speaker 4: problem right now is a lack of inventory and high

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Speaker 4: mortgage rates. So it's definitely not easier, just different problems.

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Speaker 2: It's always been a lack of inventory. But just when

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Speaker 2: you talk to people anywhere, they're talking about well, you know,

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Speaker 2: I have to I can't do this because of the

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Speaker 2: recessions coming. I can't do this because of the recessions coming.

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Speaker 2: While we have you here, she was also a researcher

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Speaker 2: at the Federal Reserve, can you please give us some

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Speaker 2: context black unemployment, lowest level ever unemployment, lowest level ever,

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Speaker 2: inflation numbers getting better. Talk to us about the reality

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Speaker 2: of this economy. Going into a recession, especially with such

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Speaker 2: an open FED chairman.

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Speaker 4: Yes, yes, so, I think the disconnect is that historically,

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Speaker 4: anytime we've had inflation this high, we've had to raise

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Speaker 4: interest rates and send ourselves into a recession to get

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Speaker 4: that inflation under control. But this economy is really unlike

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Speaker 4: any other economy we've seen before, Like people are losing

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Speaker 4: their jobs, that they're finding new jobs, and they're still

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Speaker 4: getting paid and they're still spending money. So even though

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Speaker 4: the FED isn't all this work to raise interest rates,

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Speaker 4: the economy is still plugging along. I'm hopeful that we'll

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Speaker 4: have what they're calling a soft landing, which is where

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Speaker 4: we get inflation under control without a recession. But they're

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Speaker 4: economists who think that that's not possible. That we have

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Speaker 4: to have five percent or more unemployment that's for everybody,

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Speaker 4: not just for black people, in order to stop inflation.

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Speaker 4: But the benefits of having this high inflation tight job

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Speaker 4: market is that the people at the bottom, low income,

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Speaker 4: you know, service workers, low wage workers, are really getting

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Speaker 4: the biggest boost from this. There are going up right

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Speaker 4: now and unemployment's going down for them. So it's not

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Speaker 4: like all bad news. This kind of economy.

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Speaker 1: Can you explain since we're talking about this economy, this

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Speaker 1: whole thing that's been happening with mortgage rates in so,

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Speaker 1: I see all this on social media and I've seen articles,

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Speaker 1: but like I always say, you don't know wherever you're

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Speaker 1: getting your information from. It could be true, it could

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Speaker 1: not be. It could be half the truth. Where they're

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Speaker 1: saying that the better your credit score is, you're going

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Speaker 1: to suffer when it comes to interest rates, and people

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Speaker 1: who have a lower credit score will benefit. So can

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Speaker 1: you tell us about that plan that Joe Biden put

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Speaker 1: forward and what it really is.

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Speaker 4: Okay, so if you have a better credit score, you're

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Speaker 4: going to get a better interest rate. That was true before,

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Speaker 4: that's still true now. What they've changed is just like

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Speaker 4: the gap between the interest rate you would get if

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Speaker 4: you had the best credit score versus an average credit score.

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Speaker 4: Because they're trying to help people out who didn't have

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Speaker 4: the ability to buy a home when interest rates were

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Speaker 4: so low. They're trying to even the playing field a

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Speaker 4: little bit. Some people are mad about that, they think

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Speaker 4: it's unfair, but the fact is that there's all is

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Speaker 4: this kind of uh what they call cross subsidized cross subsidization,

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Speaker 4: which means that like if you were in the bucket

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Speaker 4: of say seven hundred to eight hundred credit score, all

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Speaker 4: those people kind of get the same interest rate. So

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Speaker 4: people with the highest ones are still subsidizing people with

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Speaker 4: the seven hundred credit score. Now they've just kind of

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Speaker 4: made that more broad where Okay, people with six hundred

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Speaker 4: credit scores can get something a little closer to somebody

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Speaker 4: with an eight hundred credits score.

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Speaker 1: That is a way better way to explain it.

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Speaker 3: Yeah, I'm less scared now.

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Speaker 1: That's not because people like, that's not fair. I worked

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Speaker 1: really hard on my credit score and I shouldn't have

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Speaker 1: to suffer from that.

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Speaker 4: Well, I think it's all angry yeaheah, it's the less

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Speaker 4: like how much should we make the gap? Like how

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Speaker 4: big should the gap be.

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Speaker 3: Between the high But I'll off for if you if

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Speaker 3: you don't have the best credit score, because I didn't

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Speaker 3: have a good credit score when I you know, before

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Speaker 3: I worked on it. So I'm really for having not

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Speaker 3: the best score and then having you know, level leveling

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Speaker 3: the playing field so that I can be in a

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Speaker 3: position or those people that have those scores can be

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Speaker 3: in a position where they can buy and it's not

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Speaker 3: as bad as it was before. So I do like that.

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Speaker 1: Yeah, what I love is jazzminb text me every time

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Speaker 1: her credit score.

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Speaker 3: Goes ye every month, it's fun. Well he's been going on,

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Speaker 3: but if it's going down, I'm not going to send

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Speaker 3: it to you.

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Speaker 2: Right, we're talking about credit scores. And since Silicon Valley

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Speaker 2: Bank and all this, you know, worrying about banks, it

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Speaker 2: is going to get Banks are going to tighten their

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Speaker 2: credits start it's going to be harder for people to

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Speaker 2: get credit, get loans. There's an argument that there's too

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Speaker 2: many banks in the United States in the first place,

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Speaker 2: and that there's really not a banking crisis, but it's

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Speaker 2: still going to get harder to get loans. Can you

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Speaker 2: tell us about that.

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Speaker 4: I don't think that's going to be universally true. So

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Speaker 4: most of the time people's mortgages. When you get a

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Speaker 4: mortgage with a bank, it ends up getting sold to

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Speaker 4: like Fanny and Freddy and it ends up with these

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Speaker 4: government sponsored entities. But there are some loans, like jumbo

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Speaker 4: loans that stay on the bank's balance sheet and those

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Speaker 4: might be affected. That's what First National Bank was doing.

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Speaker 4: They would have these jumbo loans, and JP Morgan historically

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Speaker 4: doesn't like them. So if you're going for like a

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Speaker 4: really expensive property, you're getting that really big mortgage, you

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Speaker 4: I find that it's harder to get a loan, or

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Speaker 4: you might get a higher interest rate, but I think

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Speaker 4: most people aren't going to be too effective.

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Speaker 1: Now, what do you think about taking advantage of something

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Speaker 1: like what's happening in Newark? Did you see the article? Now?

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Speaker 1: Mayor Rasparakat in Newark is saying that if you were

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Speaker 1: a resident of Newark for a minimum of five years

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Speaker 1: and you can prove that you can actually buy a

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Speaker 1: home for as little as a dollar some of these

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Speaker 1: homes that are being seized by the government. So how

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Speaker 1: can people take advantage of something like that? And can

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Speaker 1: you talk about the benefits of that?

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Speaker 4: Well, I think that program can help in terms of displacement,

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Speaker 4: like making sure that the community stays involved with this

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Speaker 4: real estate, because especially for these rundowns rundown but less

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Speaker 4: desirable properties, the people who are going to care the

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Speaker 4: most about investing in them and making it something that

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Speaker 4: the community can benefit from are the people who have

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Speaker 4: been in the community long term. So I think it's

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Speaker 4: going to.

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Speaker 1: Help with that.

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Speaker 4: I would caution people a little bit that, you know,

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Speaker 4: buying a property, especially one that meets a lot of renovations,

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Speaker 4: is a big investment. You got to make sure you

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Speaker 4: have the money you're financing, yeah, to do it. It's

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Speaker 4: a really big thing to take on, especially in this

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Speaker 4: market when home values aren't really going up right now.

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Speaker 4: So I think it's good. But on the other hand,

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Speaker 4: I think people should, you know, go on with open eyes.

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Speaker 1: I see that a lot of developers have been having

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Speaker 1: issues as far as buying houses and trying to flip them.

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Speaker 1: I've seen the percentages of how many of those flips

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Speaker 1: are actually people are getting less money than they invested.

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Speaker 1: So for now, is it developers kind of sitting out

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Speaker 1: in this housing market?

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Speaker 4: Well redfinded a report recently that showed that one in

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Speaker 4: seven investors sales have been at a loss, meaning that

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Speaker 4: they're selling for less than what they bought it for.

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Speaker 1: So just can you imagine.

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Speaker 4: Yeah, and that's not even in clowning like real estate

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Speaker 4: fees or property taxes or all the other expenses that

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Speaker 4: go into owning and selling a home. So investors, I think,

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Speaker 4: are getting scared by this market. They're not as eager.

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Speaker 4: That's opening up some opportunity for regular home buyers though,

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Speaker 4: especially like FHA borrowers and VA borrowers. So it can

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Speaker 4: be good that investors are backing off.

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Speaker 2: Yeah, we'll talk about that a little bit, because there's

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Speaker 2: still a lot of people out there who, you know,

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Speaker 2: that's an aspiration to buy a home and to flip

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Speaker 2: a home because they saw so much wealth created like

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Speaker 2: that recently.

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Speaker 1: But it's not always the.

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Speaker 2: Best idea, especially with the cost of getting goods and

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Speaker 2: services and stuff now.

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Speaker 4: Yeah, and flipping a home is getting more expensive. It's

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Speaker 4: more expensive to hire the contractors, it's more expensive to

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Speaker 4: get the materials because of inflation, and then you don't

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Speaker 4: have the benefit of rising home values right now to

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Speaker 4: offset some of those costs. I mean, it's still very doable,

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Speaker 4: and you know, flipping is really short term. But if

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Speaker 4: you're looking to invest in a property and rent it

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Speaker 4: out for the long run, then now it could be

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Speaker 4: a good time to do that.

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Speaker 1: What about renting, right some people would feel like I

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Speaker 1: have to own a home, I have to buy a home,

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Speaker 1: but in certain instances, and I was just reading an

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Speaker 1: article about this, how you should just rent and if

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Speaker 1: you're not in the position to own. Just relax.

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Speaker 4: Yeah, I'm not against renting. I think the thing people

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Speaker 4: need to be aware of is you still need to save.

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Speaker 4: Home ownership is an automatic savings. When you pay your

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Speaker 4: mortgage payment, part of it goes to the equity and

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Speaker 4: that builds up your wealth. If you're renting, just make

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Speaker 4: sure that you're still setting aside of money for like

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Speaker 4: your four oh one K, your kids college savings, or

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Speaker 4: whatever it may be. And if it's not automatic already

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Speaker 4: you said up in automatic system, so you're always putting

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Speaker 4: away money every month and you still have that benefit.

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Speaker 2: Here a behavioral finance nerd, Yes, the original behavioral finance nerd,

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Speaker 2: exactly what Anne just talking about. Though, let's talk about

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Speaker 2: it in our community. So he's looking at his study.

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Speaker 2: Wealthy blacks have a majority of their money in real

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Speaker 2: estate compared to wealthy whites, who would have much much

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Speaker 2: more of a percentage in stocks. Blacks used to be property.

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Speaker 2: We were shut out of the market with things like redlining,

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Speaker 2: the GI bill. So we have this real you have

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Speaker 2: to have a home, and you made it. So talk

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Speaker 2: about our psychology around that a little bit and how

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Speaker 2: it's not always the right decision for everybody.

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Speaker 4: Yeah, I mean it's the American dream to have that

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Speaker 4: house and to have a piece of land that belongs

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Speaker 4: to you. And I think, like you said, especially for

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Speaker 4: black people, we've been shut out of home ownership, and

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Speaker 4: we've seen all the benefits that other people have gained

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Speaker 4: from it that it feels like that is the correct

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Speaker 4: route to building wealth. It's not the only route. So

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Speaker 4: I think people should be aware of all the other things,

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Speaker 4: and there are tax advantages putting money in a four

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Speaker 4: oh one k or other things. So, but homeownership I

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Speaker 4: get it. And it's also something that you can pass

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Speaker 4: down generation after generation. People whose parents and grandparents were

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Speaker 4: homeowners are more likely to be homeowners themselves. So having

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Speaker 4: a home can be something that you have for your

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Speaker 4: children that you can that you can pass down and

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Speaker 4: show them like this is how you go about it.

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Speaker 3: Yeah.

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Speaker 1: Something I had to learn was I was all ready

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Speaker 1: to get this hard money loan and then I was

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Speaker 1: talked out of it by John Hope Bryant, who was

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Speaker 1: in and you know, those loans can be very predatory,

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Speaker 1: and so if you're not in the position where okay,

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Speaker 1: if something goes wrong because you could lose your home

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Speaker 1: right right, if you go about it that way. And

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Speaker 1: so if you have to go that route into your

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Speaker 1: first home that you're buying, then I feel like that's

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Speaker 1: an indication that maybe this is not the move for

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Speaker 1: you at this time, you know.

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Speaker 4: I think that you should make sure that you're still

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Speaker 4: putting away money for your emergency savings. If you lose

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Speaker 4: your job, you're still able to make your mortgage payment. Like,

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Speaker 4: don't push it to the edge where you're putting all

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Speaker 4: of your disposable income into your home, because if something

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Speaker 4: goes wrong, then you might end up in a really

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Speaker 4: bad place.

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Speaker 1: And like I feel, something always goes wrong, and to

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Speaker 1: really anticipate that, I've never had a completely smooth situation.

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Speaker 2: The parameters are supposed to be never spend more than

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Speaker 2: thirty percent of your income on your house. I don't

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Speaker 2: know anybody right who can stick to that rule, especially

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Speaker 2: in New York. Yeah, and also make sure that you're

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Speaker 2: gonna if you're gonna buy something, that you're gonna stay

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Speaker 2: in it or invest in it for at least for

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Speaker 2: at least five years. How important is that and how

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Speaker 2: difficult is that?

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Speaker 4: I think for a lot of people it's unrealistic for

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Speaker 4: the thirty percent limit, especially if you're a renter. I mean,

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Speaker 4: I think people should think about it long term. It's

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Speaker 4: it's okay to spend a little bit more than that

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Speaker 4: if it means that you're living in a place where

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Speaker 4: you have a good job, where you'll earn more in

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Speaker 4: the long run. I think you should think about it

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Speaker 4: more as as a long term decision. But make sure

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Speaker 4: that you have money for the things that are emergencies,

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Speaker 4: like that housing cost. Whether it's a mortgage payment or

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Speaker 4: a rental payment, it's gonna be there every single month,

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Speaker 4: and you need to figure out a way to make

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Speaker 4: that payment no matter what happens.

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Speaker 2: We did a campaign like during the pandemic, so I

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Speaker 2: remember I was away, called real Estate Reset, And what

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Speaker 2: was very exciting is we partnered with an online mortgage

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Speaker 2: broker in how online borrowing takes bias, so much of

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Speaker 2: the bias out and Black women were really kicking butt

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Speaker 2: in terms of leading you know, home ownership and I

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Speaker 2: know you're putting together a lot of your knowledge and

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Speaker 2: being an economists a black woman to kind of tell

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Speaker 2: that story, tell us about.

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Speaker 4: That, well, black women are like far ahead in terms

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Speaker 4: of education and being employed, so it makes sense that

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Speaker 4: they'd be ahead of the game for home ownership too,

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Speaker 4: And I think they also recognize the generational aspect to it.

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Speaker 4: Back to what we were talking about about, like when

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Speaker 4: it's the right time to buy. I get a little

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Speaker 4: bit nervous right now about people, you know, taking down

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Speaker 4: payment loans and getting these high mortgage payments with these

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Speaker 4: high interest rates and maybe them getting being a little

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Speaker 4: bit on the edge.

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Speaker 2: We get stuck.

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Speaker 1: There's yeah, yeah.

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Speaker 4: Exactly, but you know what it's It's also really important

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Speaker 4: for fighting gentrification because if you're in a community and

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Speaker 4: you know it's changing a lot, new people are coming in,

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Speaker 4: the best protection you can have is to be a

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Speaker 4: homeowner because then when home values go up, that's a

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Speaker 4: good thing, not a bad thing.

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Speaker 3: How can you assess whether or not you are ready

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Speaker 3: to buy a home, Like, say you're renting right now

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Speaker 3: and you want to know, like can I really afford this?

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Speaker 3: How do you kind of assess if you can financially

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Speaker 3: do it?

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Speaker 4: I think you should, you know, get out the paper

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Speaker 4: and pen and write down your budget, figure out exactly

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Speaker 4: what you're spending on every category, and also think about

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Speaker 4: how that might change when you become a homeowner. Maybe

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Speaker 4: you're going to be spending more money on your lawn

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Speaker 4: or landscaping or home improvements. Maybe you're living farther away

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Speaker 4: from your job and you need to commute longer. Maybe

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Speaker 4: you're closer to your job and you commute less. Like

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Speaker 4: all those things will change. You need to make sure

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Speaker 4: that your budget is reasonable and that you had a

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Speaker 4: little bit extra left over for that rainy day fund.

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Speaker 1: And I want to talk about chat GPT so that

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Speaker 1: Redfinn has launched this plug in that is going to

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Speaker 1: help people find their next home. Some people are very

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Speaker 1: nervous about artificial intelligence, but you guys have been embracing its,

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Speaker 1: you talking about it. I follow Daryl and you should

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Speaker 1: follow her on Twitter for sure.

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Speaker 3: She will have a great information about your social media

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Speaker 3: and how thorough you are and from breaking things down.

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Speaker 1: And also fun. But you also were using it, I

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Speaker 1: think to fix your coffee machine yeah, oh my goodness,

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Speaker 1: and things like that. So how can people embrace this technology,

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Speaker 1: but then also at the same time, how do we

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Speaker 1: make sure that we're protected as individuals. Here in the

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Speaker 1: United States, people are concerned that this is taken over.

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Speaker 1: How do you live with that and also work alongside it.

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Speaker 4: So the important thing to know is that with automation,

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Speaker 4: it actually creates more jobs than it destroys. But it

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Speaker 4: does destroy some jobs. So some people they you know,

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Speaker 4: if you have a job that's very rote where it's

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Speaker 4: like looking at data or writing email or something that

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Speaker 4: chat GPT could do, I think you should kind of

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Speaker 4: have a plan for what your next move might be.

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Speaker 4: But for a lot of people, it's going to be

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Speaker 4: a tool that makes you more efficient. Like for our

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Speaker 4: real estate agents if they're able to just type in

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Speaker 4: right away where the homes that fit my buyer's criteria,

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Speaker 4: and then they can edit that and kind of get

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Speaker 4: out the stuff that doesn't make any sense because there

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Speaker 4: is some nonsense in chat GPT, But if you have

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Speaker 4: if you have the expertise, you can sift through that

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Speaker 4: and I think it becomes a tool that makes you

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Speaker 4: better able to do your job.

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Speaker 1: Yeah, so how does that work for people? Like let's

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Speaker 1: just say you're going on redfin you want to find

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Speaker 1: a home, So the average consumer can go on there

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Speaker 1: and use chat GPT or is it really for the realtors?

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Speaker 4: So right now it's only through the chat GPT app

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Speaker 4: and you have to go on a wait list to

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Speaker 4: get the plugins. It's very limited audience right now, it's

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Speaker 4: kind of just testing it out. But yeah, if you

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Speaker 4: go through chat GPT, you got on the wait list,

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Speaker 4: you get the redfind plug in, then you can start

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Speaker 4: talking to chat rept which has all of our Redfind

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Speaker 4: listings in there.

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Speaker 1: And the real estate market is changing so much. I

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Speaker 1: also feel like realtors have had to adapt in many

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Speaker 1: different ways, so it's not as traditional as it used

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Speaker 1: to be as far as where they work from or

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Speaker 1: even services that they offer. What are some things that

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Speaker 1: you think need to happen in that, Like I've seen

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Speaker 1: some real estate companies will actually help fund you renovating

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Speaker 1: your home, you know, before you sell it and things

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Speaker 1: like that, and then they can just deduct that from

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Speaker 1: the price once you sell the home. What are some

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Speaker 1: things that these real estate companies need to do to

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Speaker 1: keep up well?

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Speaker 4: Redfin has really been like embracing doing They call it

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Speaker 4: the one stop shop where we'll do everything from your

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Speaker 4: mortgage to your title to renovations. When I sold my

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Speaker 4: home with Redfinn, I was already in Wisconsin. This was

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Speaker 4: during the pandemic and I had to sell my home

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Speaker 4: in Seattle from across the country, and Red find came

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Speaker 4: in and they help with the renovations, They organized all

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Speaker 4: the contractors, they did all that for me. Yeah, so

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Speaker 4: it was it was really convenience. I got a company discount, so.

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Speaker 3: That was my Oh yeah, right, I love a discount.

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Speaker 4: But I think I think more and more agents are

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Speaker 4: having to like walk people through the whole entire process

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Speaker 4: because it is complicated. There are so many things and

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Speaker 4: it's so daunting to even like figure out how to

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Speaker 4: get that hole in your roof fixed, or how to

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Speaker 4: paint your house or how to stage it, and then

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Speaker 4: the loan and the title. So having it all in

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Speaker 4: one place makes a lot more convenient.

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Speaker 2: Can you talk a little bit about regional challenges? Climate change,

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Speaker 2: for example, it's not if I want to buy a

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Speaker 2: house in Florida, if I want to buy some house

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Speaker 2: somewhere else. Is really having an impact on things people

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Speaker 2: need to consider?

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Speaker 4: Yes, yes, And actually we did an experiment at redfin

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Speaker 4: with some economists at USC where when we launched flood

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Speaker 4: information on the website, we had half of the people

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Speaker 4: see it and half the people not, so we could

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Speaker 4: test how seeing flood information impacts buyer's behavior, and the

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Speaker 4: people who saw the flood information went on to bid

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Speaker 4: on homes with less flood risk. So what that goes

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Speaker 4: to show is that if you show people the climate risk,

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Speaker 4: they do respond, they do change their behavior. But big picture,

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Speaker 4: people are actually moving to places at the highest risk.

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Speaker 4: Florida is the top migration destination. Five out of ten

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Speaker 4: cities on our top migration list are in Florida. I

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Speaker 4: was booming during the pandemic and it's still booming, and

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Speaker 4: it seems like it's going to be a problem eventually.

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Speaker 1: Yeah. I guess people also like Florida because it taxes.

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Speaker 1: I'm sure that it's a huge part person. It pops

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Speaker 1: to my mind. Yeah, everybody's like, I'm move to Florida

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Speaker 1: so I didn't have to pay the taxes that I

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Speaker 1: have to pay New York. Is I mean insane when

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Speaker 1: it comes to taxes, it hurts.

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Speaker 4: Yeah, Yeah, taxes are a big draw the weather, and

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Speaker 4: also Baby boomers are a really large generation and they're retiring.

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Speaker 4: So I think long term, I mean and in the

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Speaker 4: next ten years, I think Florida is still going to

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Speaker 4: see a lot of in migration.

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Speaker 1: Now when it comes to offices. I was reading an

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Speaker 1: article recently about office spass and how this is about

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Speaker 1: to be a crisis, right because when it comes to

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Speaker 1: these strip malls and people not working in an office

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Speaker 1: and working from home, people are concerned now about that

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Speaker 1: market commercial real estate. So what's your what is your

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Speaker 1: take on commercial real estate and where that leaves us?

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Speaker 4: If it's a crisis, is a very slow moving crisis

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Speaker 4: because the leases for commercial buildings tend to be like

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Speaker 4: seven years long, so it's not all going to happen

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Speaker 4: at once, and hopefully that gives builder, you know, developers

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Speaker 4: and owners of these buildings sometimes to prepare. We're seeing

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Speaker 4: a bit of return to office, Like redfin is calling

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Speaker 4: people back in New York. It seems like a lot

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Speaker 4: of people are back in the office. I think, you know,

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Speaker 4: I think rents are going to come down for corporate

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Speaker 4: space and the offices are going to end up using

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Speaker 4: more space per person. Like a couple of years ago,

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Speaker 4: there's this big move towards the open layout and cramming

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Speaker 4: as many people as possible into these little tiny desks.

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Speaker 4: So hopefully this will reverse that a bit where now

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Speaker 4: that you know, rents aren't so expensive, these offices are

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Speaker 4: able to use more space and you get a little

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Speaker 4: more breathing room in the office.

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Speaker 1: Yeah, because we've seen some major retailers shutting down too.

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Speaker 3: Sure.

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Speaker 1: Yeah, I just said they're closing all these Burrier can

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Speaker 1: then bed bath and beyond and all this. So I'm like,

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Speaker 1: there's a lot of retail space available. I still see

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Speaker 1: that everywhere I go.

440
00:18:37,080 --> 00:18:39,280
Speaker 4: Well, in terms ofco a lot of it has been

441
00:18:39,600 --> 00:18:42,240
Speaker 4: because of the crime that's been happening, and that ties

442
00:18:42,320 --> 00:18:44,600
Speaker 4: back to housing, because you get crime when you have

443
00:18:45,160 --> 00:18:47,920
Speaker 4: a lack of affordable housing because people start getting desperate.

444
00:18:47,960 --> 00:18:48,960
Speaker 4: So it's all connected.

445
00:18:49,280 --> 00:18:51,879
Speaker 1: Now, you also have a book coming out till next.

446
00:18:51,800 --> 00:18:53,040
Speaker 4: Year, but yeah, we can talk about what.

447
00:18:53,520 --> 00:18:56,840
Speaker 1: Start talking about it now, Okay, because that's very exciting.

448
00:18:56,920 --> 00:18:59,600
Speaker 1: So let's talk about Darrow Fairweather because you're going to

449
00:18:59,640 --> 00:19:01,239
Speaker 1: share some of your story with us, which I think

450
00:19:01,320 --> 00:19:03,520
Speaker 1: is so interesting for people to know. So what made

451
00:19:03,520 --> 00:19:05,560
Speaker 1: you decide this was a time for a book.

452
00:19:06,160 --> 00:19:08,040
Speaker 4: Well, you know, I feel like I've gotten to this

453
00:19:08,080 --> 00:19:10,280
Speaker 4: point in my career where I'm pretty well established, and

454
00:19:10,280 --> 00:19:12,760
Speaker 4: I wanted to write down like how I got here

455
00:19:12,880 --> 00:19:14,639
Speaker 4: before I forget it, before I kind of get out

456
00:19:14,680 --> 00:19:19,800
Speaker 4: of touch at all. And also as an economist, there

457
00:19:19,800 --> 00:19:23,439
Speaker 4: are so few women of color, black women who are economists.

458
00:19:23,440 --> 00:19:26,040
Speaker 4: And I really wanted to break it down economics for

459
00:19:26,480 --> 00:19:28,639
Speaker 4: someone like me ten years ago, Like I wanted to

460
00:19:28,680 --> 00:19:30,320
Speaker 4: put it in terms that would be exciting to me.

461
00:19:30,600 --> 00:19:33,280
Speaker 4: A lot of the times economics textbooks and lectures they

462
00:19:33,320 --> 00:19:36,359
Speaker 4: focus on white men. They tell their stories. But we

463
00:19:36,440 --> 00:19:38,720
Speaker 4: have stories too that apply to economics.

464
00:19:38,920 --> 00:19:40,760
Speaker 1: Yeah, I said that because we got a little bit

465
00:19:40,760 --> 00:19:43,000
Speaker 1: of a tease of it. So Freakonomics was a book

466
00:19:43,040 --> 00:19:44,160
Speaker 1: that kind of changed your view.

467
00:19:44,840 --> 00:19:47,320
Speaker 4: Yeah, a big one, Yeah, Steve Love. It was my

468
00:19:47,359 --> 00:19:49,200
Speaker 4: advisor in grad school. I'm the author.

469
00:19:49,400 --> 00:19:51,680
Speaker 1: Yeah, that is not a game. But so your parents,

470
00:19:51,760 --> 00:19:53,640
Speaker 1: this is not necessarily what they wanted you to do.

471
00:19:53,920 --> 00:19:55,639
Speaker 4: No, No, my dad was warning me not to go

472
00:19:55,640 --> 00:19:58,000
Speaker 4: into economics. I went to MIT for undergrad and he

473
00:19:58,040 --> 00:20:00,159
Speaker 4: thought I was going to be an engineer, and I

474
00:20:00,160 --> 00:20:02,320
Speaker 4: told him I wanted to economics. He was concerned that

475
00:20:02,560 --> 00:20:04,359
Speaker 4: I was going to face prejudice. I was going to

476
00:20:04,400 --> 00:20:07,479
Speaker 4: face bias because economics can be subjective. It's not like

477
00:20:07,560 --> 00:20:09,359
Speaker 4: just math and science, where the right answer is the

478
00:20:09,400 --> 00:20:12,400
Speaker 4: right answer. Economists don't want to admit this, but economics

479
00:20:12,480 --> 00:20:15,680
Speaker 4: is subjective, and because there are so many white men

480
00:20:15,720 --> 00:20:17,800
Speaker 4: who dominate the field, we usually only see it from

481
00:20:17,800 --> 00:20:20,320
Speaker 4: their perspective. So on the one hand, I knew I

482
00:20:20,359 --> 00:20:22,840
Speaker 4: would face like a disadvantage there being not that many

483
00:20:22,920 --> 00:20:25,000
Speaker 4: role models for me. But on the other hand, like

484
00:20:25,560 --> 00:20:27,720
Speaker 4: I need, I felt like an obligation kind of to

485
00:20:28,000 --> 00:20:29,879
Speaker 4: be one of these people that breaks into the field.

486
00:20:30,040 --> 00:20:32,000
Speaker 2: It's a lot to admire work. So I started at

487
00:20:32,040 --> 00:20:34,879
Speaker 2: Wall Street as a cash manager and then was about

488
00:20:34,920 --> 00:20:37,560
Speaker 2: to go into an economics training program. And that's exactly

489
00:20:37,600 --> 00:20:39,159
Speaker 2: when I raised my hand and I said, this is

490
00:20:39,200 --> 00:20:41,280
Speaker 2: not what I want to do. That was a long

491
00:20:41,640 --> 00:20:42,360
Speaker 2: time ago.

492
00:20:42,400 --> 00:20:45,280
Speaker 1: Right, Well, so when we get to read about some

493
00:20:45,320 --> 00:20:47,159
Speaker 1: of the obsticles that you had to face, because I

494
00:20:47,160 --> 00:20:49,600
Speaker 1: have to imagine in many rooms and spaces, you might

495
00:20:49,640 --> 00:20:50,840
Speaker 1: be the only black woman.

496
00:20:51,160 --> 00:20:54,000
Speaker 4: I was the I was the only black woman to

497
00:20:54,040 --> 00:20:56,760
Speaker 4: ever get a PhD from the University of Chicago and economics,

498
00:20:56,760 --> 00:21:01,120
Speaker 4: and I believe that's still true. So docta, Yeah, yeah,

499
00:21:01,119 --> 00:21:03,280
Speaker 4: So I mean there are like subtle ways where it's

500
00:21:03,280 --> 00:21:05,080
Speaker 4: a bit rough, just because like you don't have people

501
00:21:05,160 --> 00:21:06,800
Speaker 4: that look like you that can be friends with you,

502
00:21:07,119 --> 00:21:09,840
Speaker 4: and they're like also subtle things like you know, who

503
00:21:09,920 --> 00:21:12,000
Speaker 4: gets picked for your study group, or the way the

504
00:21:12,000 --> 00:21:14,280
Speaker 4: professors treat you or view your potential.

505
00:21:14,960 --> 00:21:15,520
Speaker 1: Yeah, it was.

506
00:21:15,680 --> 00:21:18,360
Speaker 4: It was something to overcome. But I'm here.

507
00:21:18,920 --> 00:21:21,879
Speaker 1: I feel like I have seen Dara Fairweather. When I

508
00:21:21,920 --> 00:21:23,080
Speaker 1: was young, I'd have been like, I want to be

509
00:21:23,119 --> 00:21:24,440
Speaker 1: an economist, Yeah.

510
00:21:24,240 --> 00:21:25,800
Speaker 3: Because you don't really I feel like we don't really

511
00:21:25,920 --> 00:21:28,119
Speaker 3: hear a lot about these kind of professions and the

512
00:21:28,160 --> 00:21:29,160
Speaker 3: kind of work that you do.

513
00:21:29,520 --> 00:21:31,440
Speaker 4: Yeah, and economists get paid, So I feel like.

514
00:21:33,600 --> 00:21:34,320
Speaker 1: It's true.

515
00:21:34,560 --> 00:21:36,720
Speaker 4: I think that like people don't see it as a

516
00:21:36,760 --> 00:21:38,600
Speaker 4: path for them. There are so many like niche professions

517
00:21:38,600 --> 00:21:40,440
Speaker 4: that people don't hear about. But this is a path

518
00:21:40,480 --> 00:21:41,000
Speaker 4: for people.

519
00:21:41,200 --> 00:21:41,679
Speaker 3: I love it.

520
00:21:41,720 --> 00:21:43,919
Speaker 2: And there's so many interesting things going on in the

521
00:21:43,960 --> 00:21:47,200
Speaker 2: black economy right now, particularly with regard to wealth building,

522
00:21:47,200 --> 00:21:49,760
Speaker 2: and the stories are not being told, yes at all,

523
00:21:49,800 --> 00:21:52,639
Speaker 2: and they're not being in I was asked to be

524
00:21:52,680 --> 00:21:56,159
Speaker 2: in a popular business network and talk about please tell us,

525
00:21:56,240 --> 00:21:57,960
Speaker 2: you know, come on and talk about the world gap

526
00:21:57,960 --> 00:22:00,159
Speaker 2: and how blacks aren't investing and how they're like like

527
00:22:00,240 --> 00:22:02,760
Speaker 2: when was that report you're looking at made and they're

528
00:22:02,800 --> 00:22:04,680
Speaker 2: like twenty nineteen. I'm like, well, let's talk about what's

529
00:22:04,720 --> 00:22:07,720
Speaker 2: happening now. It's a completely different world and it's still

530
00:22:07,760 --> 00:22:11,800
Speaker 2: not talked about or considered even by economists you're listening

531
00:22:11,800 --> 00:22:12,520
Speaker 2: to on the news.

532
00:22:12,720 --> 00:22:15,520
Speaker 4: And also like you can have a fact and figure

533
00:22:15,560 --> 00:22:19,919
Speaker 4: like how the job rates going up for low income people,

534
00:22:20,359 --> 00:22:22,879
Speaker 4: and a certain person will have one explanation for it,

535
00:22:22,920 --> 00:22:25,399
Speaker 4: which is like, oh, you know they needed to like

536
00:22:25,720 --> 00:22:27,880
Speaker 4: low income people, their savings needed to run out before

537
00:22:27,880 --> 00:22:29,840
Speaker 4: they got back to work. Or you could have another perspective,

538
00:22:29,880 --> 00:22:33,040
Speaker 4: which is like, hey, the pandemic was really traumatic for people.

539
00:22:33,560 --> 00:22:35,639
Speaker 4: Black and low income people had the highest rates of COVID.

540
00:22:35,680 --> 00:22:37,400
Speaker 4: Maybe they needed to take a pause before they got

541
00:22:37,400 --> 00:22:40,280
Speaker 4: back to the market. And which story you hear depends

542
00:22:40,320 --> 00:22:42,440
Speaker 4: a lot on like the background that that person has

543
00:22:42,480 --> 00:22:45,520
Speaker 4: and in the media, yes, who they're interacting with the community.

544
00:22:45,520 --> 00:22:47,920
Speaker 4: It's not there's only there's not one true story and

545
00:22:47,920 --> 00:22:50,200
Speaker 4: maybe there's one fact, but there are so many stories

546
00:22:50,240 --> 00:22:51,560
Speaker 4: that could explain that fact.

547
00:22:51,440 --> 00:22:52,320
Speaker 3: That explains the why.

548
00:22:52,440 --> 00:22:53,160
Speaker 4: Yeah exactly.

549
00:22:53,359 --> 00:22:55,159
Speaker 1: Now, as far as you as an investor, what are

550
00:22:55,160 --> 00:22:57,280
Speaker 1: some things that daar aw Fairweather invest in.

551
00:22:57,720 --> 00:23:00,480
Speaker 4: So I have a venture capital fund and I get

552
00:23:00,480 --> 00:23:05,640
Speaker 4: really small detail that yeah, yeah, it's called die tech. Ventures.

553
00:23:05,680 --> 00:23:08,199
Speaker 4: I got involved because I did an angel investment in

554
00:23:08,280 --> 00:23:12,200
Speaker 4: my friend's cannabis company and it just got me into

555
00:23:12,240 --> 00:23:14,760
Speaker 4: venture capital. I ended up linking up with the venture

556
00:23:14,760 --> 00:23:16,640
Speaker 4: capital firm then invested in him, which is die Tech.

557
00:23:16,920 --> 00:23:21,280
Speaker 4: And they're all about finding founders who aren't really being

558
00:23:21,400 --> 00:23:23,800
Speaker 4: served by the venture capital community. So we have this

559
00:23:23,840 --> 00:23:27,160
Speaker 4: one founder for this company called Snowball, which is all

560
00:23:27,200 --> 00:23:31,480
Speaker 4: about providing financial advice for people from certain communities, like

561
00:23:31,480 --> 00:23:34,240
Speaker 4: the Hispanic community. Like so much of what you invest

562
00:23:34,240 --> 00:23:37,399
Speaker 4: in depends on your culture and your psychology, and you

563
00:23:37,480 --> 00:23:40,080
Speaker 4: kind of need somebody who understands your perspective. So this

564
00:23:40,160 --> 00:23:42,520
Speaker 4: company is all about building a platform for that. We

565
00:23:42,640 --> 00:23:46,800
Speaker 4: also have a vodka company called Private Vodka, which provides alcohol,

566
00:23:46,880 --> 00:23:50,919
Speaker 4: but you can actually invest or donate to a LGBT

567
00:23:51,880 --> 00:23:53,480
Speaker 4: charity while you buy the vodka, so that it's like

568
00:23:53,520 --> 00:23:55,399
Speaker 4: a little behavioral economics thing that you can bind a

569
00:23:55,520 --> 00:23:59,119
Speaker 4: sin with something beneficial. And so yeah, all these companies,

570
00:23:59,720 --> 00:24:03,240
Speaker 4: they serve communities and they serve areas that aren't really

571
00:24:03,240 --> 00:24:04,879
Speaker 4: being a dress and that's what those are the kind

572
00:24:04,880 --> 00:24:06,560
Speaker 4: of bestments that I love, Like, if we can do

573
00:24:06,640 --> 00:24:08,840
Speaker 4: something that helps the community and mix money at the

574
00:24:08,880 --> 00:24:10,280
Speaker 4: same time, That's what I'm about.

575
00:24:11,000 --> 00:24:14,040
Speaker 1: I love that, all right, What is it against die

576
00:24:14,119 --> 00:24:14,720
Speaker 1: Tech Ventures?

577
00:24:14,760 --> 00:24:21,800
Speaker 4: Yeah, yes, we know about a platform for black investors.

578
00:24:22,560 --> 00:24:26,560
Speaker 2: Yeah yeah, I'm talking about last.

579
00:24:26,320 --> 00:24:27,960
Speaker 1: Thing for me that I wanted.

580
00:24:28,080 --> 00:24:30,040
Speaker 2: One of the things I want to touch on. Where

581
00:24:30,040 --> 00:24:32,560
Speaker 2: in the United States do you think is a good

582
00:24:32,600 --> 00:24:34,879
Speaker 2: place to be buying real estate regionally?

583
00:24:36,119 --> 00:24:38,320
Speaker 4: You know, it kind of depends on your personal preference.

584
00:24:38,320 --> 00:24:41,560
Speaker 4: If it's just a pure investment play. Angelae's smart like

585
00:24:41,640 --> 00:24:43,720
Speaker 4: Detroit is on the up and up, like it started

586
00:24:43,720 --> 00:24:45,959
Speaker 4: from such an affordable place and it just keeps rising.

587
00:24:46,200 --> 00:24:48,800
Speaker 4: Alpasso is really affordable. They always top our list of

588
00:24:48,800 --> 00:24:50,919
Speaker 4: places that are going up in value. It's the more

589
00:24:51,000 --> 00:24:53,520
Speaker 4: affordable markets that have the most room to grow.

590
00:24:53,480 --> 00:24:55,919
Speaker 1: Right And look with Detroit what I like about it.

591
00:24:55,960 --> 00:24:57,840
Speaker 1: I always feel like it's important to invest in place

592
00:24:57,880 --> 00:25:00,719
Speaker 1: that you're familiar with, So I'm very famili with Detroit.

593
00:25:01,240 --> 00:25:04,040
Speaker 1: I'm not a fan of not going someplace and seeing

594
00:25:04,160 --> 00:25:07,000
Speaker 1: what's happening there, So I really had to go see

595
00:25:07,040 --> 00:25:11,200
Speaker 1: the building. It's in Midtown. It's an amazing area. Jasmine

596
00:25:11,480 --> 00:25:14,760
Speaker 1: has invested also, so I'm excited for that. Part of

597
00:25:14,760 --> 00:25:16,399
Speaker 1: what I want to do just like, what you're doing

598
00:25:16,520 --> 00:25:19,399
Speaker 1: is encourage people to come together. If you can't do

599
00:25:19,440 --> 00:25:21,359
Speaker 1: it on your own, why not put a group together

600
00:25:21,840 --> 00:25:23,919
Speaker 1: to go ahead and invest in real estate and then

601
00:25:24,000 --> 00:25:26,040
Speaker 1: have people on board who really know what they're doing

602
00:25:26,080 --> 00:25:27,879
Speaker 1: and then can help direct you. Because I feel like

603
00:25:27,920 --> 00:25:29,840
Speaker 1: once you get in that space, people really do want

604
00:25:29,880 --> 00:25:32,560
Speaker 1: to help you. You know, people do want to support

605
00:25:32,600 --> 00:25:34,600
Speaker 1: the fact that, like you're doing something, but you just

606
00:25:34,720 --> 00:25:36,520
Speaker 1: I was like, I don't want to ask anybody for

607
00:25:36,560 --> 00:25:38,640
Speaker 1: anything until we close because I didn't want to start

608
00:25:38,680 --> 00:25:41,200
Speaker 1: talking to people about different things. And I think it's

609
00:25:41,200 --> 00:25:43,400
Speaker 1: important for people to also know about grants that are

610
00:25:43,440 --> 00:25:47,560
Speaker 1: available and all types of programming that's available on redfin.

611
00:25:47,800 --> 00:25:49,560
Speaker 1: Do they have information like that, because I think that

612
00:25:49,600 --> 00:25:51,960
Speaker 1: would be invaluable for people to see what's available in

613
00:25:52,000 --> 00:25:54,359
Speaker 1: the city if you're buying or you're investing.

614
00:25:54,640 --> 00:25:57,800
Speaker 4: So we do have information about down payment assistance, so

615
00:25:57,920 --> 00:25:59,560
Speaker 4: if you qualify for that, you can click the link

616
00:25:59,600 --> 00:26:02,199
Speaker 4: and gig connected with organizations that can help you with that.

617
00:26:02,800 --> 00:26:04,720
Speaker 4: And also like, yeah, you can filter by a price,

618
00:26:04,760 --> 00:26:06,800
Speaker 4: you can filter buy a type of building and see

619
00:26:06,800 --> 00:26:10,320
Speaker 4: all the information. Also, things like transit and walkability a

620
00:26:10,320 --> 00:26:12,720
Speaker 4: big expense for people and they're buying a home is

621
00:26:12,720 --> 00:26:16,160
Speaker 4: actually their car. So living somewhere walkable or transit oriented

622
00:26:16,240 --> 00:26:18,040
Speaker 4: and actually save people a lot of money.

623
00:26:17,800 --> 00:26:18,720
Speaker 2: Fortune in New York.

624
00:26:18,800 --> 00:26:19,560
Speaker 4: Yeah, definitely.

625
00:26:19,560 --> 00:26:22,440
Speaker 2: Will you tell people what redfin is because now they're

626
00:26:22,440 --> 00:26:23,760
Speaker 2: going to be hearing all this. I want to do this,

627
00:26:23,800 --> 00:26:24,359
Speaker 2: I want to do this.

628
00:26:24,400 --> 00:26:24,920
Speaker 1: What is it?

629
00:26:25,000 --> 00:26:25,080
Speaker 2: So?

630
00:26:25,160 --> 00:26:28,679
Speaker 4: Redfin is a tech powered real estate brokerage. We have

631
00:26:28,800 --> 00:26:30,600
Speaker 4: our website, we have our app. You can go on

632
00:26:30,640 --> 00:26:32,120
Speaker 4: there and see all the homes that are for sale.

633
00:26:32,160 --> 00:26:34,800
Speaker 4: We have rentals now, we have our mortgage company of title.

634
00:26:34,880 --> 00:26:39,119
Speaker 1: We do everything. Yeah, I get all my cause you know,

635
00:26:39,160 --> 00:26:41,080
Speaker 1: I go on red finn when I look at real estate,

636
00:26:41,160 --> 00:26:43,080
Speaker 1: and even when I'm not buying, I like to see

637
00:26:43,080 --> 00:26:45,480
Speaker 1: what's happening. So what I like is redfind also gives

638
00:26:45,520 --> 00:26:48,760
Speaker 1: you information articles. I like to see what's for sale

639
00:26:48,760 --> 00:26:50,400
Speaker 1: in a neighborhood where I have something, so I can

640
00:26:50,480 --> 00:26:52,919
Speaker 1: understand the value of what it is that I'm doing.

641
00:26:53,280 --> 00:26:55,080
Speaker 1: So right now, I just you know, I'm a little

642
00:26:55,119 --> 00:26:58,080
Speaker 1: cash poor because we just did this last investment, but

643
00:26:58,240 --> 00:27:00,760
Speaker 1: I'm always paying attention to what's happening neighborhoods that I'm

644
00:27:00,760 --> 00:27:02,280
Speaker 1: interested in it, so I get a lot of updates

645
00:27:02,280 --> 00:27:03,520
Speaker 1: from Redfin throughout the day.

646
00:27:03,640 --> 00:27:05,399
Speaker 4: So yeah, and we have all kinds of data to

647
00:27:05,520 --> 00:27:09,840
Speaker 4: everything from school quality, walkability, transit, climate scores, like anything

648
00:27:09,880 --> 00:27:11,760
Speaker 4: you would need to know. Air quality that's a new one,

649
00:27:11,880 --> 00:27:13,520
Speaker 4: so everything you'd want to know. That's one of the

650
00:27:13,560 --> 00:27:15,840
Speaker 4: people don't really think about, Like you're moving somewhere, your

651
00:27:15,920 --> 00:27:17,439
Speaker 4: kids are going to be living there. You want to

652
00:27:17,440 --> 00:27:19,360
Speaker 4: know if it's going to be.

653
00:27:20,080 --> 00:27:21,960
Speaker 3: And I think, like, I'm a new mom, but I

654
00:27:22,000 --> 00:27:23,760
Speaker 3: didn't care about stuff like that until I had a kid.

655
00:27:23,760 --> 00:27:25,160
Speaker 3: I didn't think about.

656
00:27:24,960 --> 00:27:26,680
Speaker 2: Changes the rules or an environment.

657
00:27:27,119 --> 00:27:28,320
Speaker 3: I wouldn't think about anything like that.

658
00:27:28,359 --> 00:27:31,760
Speaker 1: I wouldn't care about my lungs. But right well, listen,

659
00:27:31,800 --> 00:27:34,240
Speaker 1: I love the fact that you're there. That's why I'm like, Okay,

660
00:27:34,320 --> 00:27:37,399
Speaker 1: refin is where I go for everything now, So down Fairweather,

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Speaker 1: thank you so much for joining us. I know we're

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00:27:39,080 --> 00:27:42,400
Speaker 1: going to keep on having you up here on anytime

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00:27:42,440 --> 00:27:44,399
Speaker 1: you're in town. Just make sure you please hit me

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00:27:44,480 --> 00:27:46,680
Speaker 1: up because this is information that I feel like we

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00:27:46,720 --> 00:27:48,920
Speaker 1: always need to make sure that we keep on refreshing

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Speaker 1: because it changes a lot too. Oh.

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Speaker 2: I would love to be back, thank you, So I'll

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00:27:51,920 --> 00:27:54,439
Speaker 2: definitely be back when we want to definitely have you

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Speaker 2: that closer to when your book comes on.

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Speaker 4: I love the we're building hype, like.

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Speaker 2: You're totally book and I have to hype a new

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Speaker 2: member of the Wealth Wednesday's family. Tonight at eight pm

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00:28:06,200 --> 00:28:09,800
Speaker 2: on teamy Facebook page, we have Wealth Wednesday's after Party

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00:28:09,840 --> 00:28:13,640
Speaker 2: with Jay White premiering everybody go to temmy Facebook page

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00:28:13,680 --> 00:28:16,600
Speaker 2: tonight at eight pm and his first guest, the one

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00:28:16,640 --> 00:28:20,560
Speaker 2: and only Twanda Braxton, talks about a new entrepreneurial venture.

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Speaker 1: So okay, yep, we got all the previews out now,

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00:28:23,880 --> 00:28:25,680
Speaker 1: so I get ready for that tonight. Shout out to

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Speaker 1: Jay White, Dara Fairweather, thank you again. Where can people

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Speaker 1: follow you?

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00:28:28,960 --> 00:28:32,800
Speaker 4: You can follow me at Fairweather PhD, on Twitter, Instagram, TikTok,

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00:28:32,840 --> 00:28:34,560
Speaker 4: even LinkedIn wherever I'm everywhere.

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Speaker 1: People went by Dad, it's coming. What time is he

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00:28:36,480 --> 00:28:38,080
Speaker 1: getting here? I'm like, no, She's.

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00:28:38,680 --> 00:28:45,719
Speaker 4: Yeah, right, you can call me Daryl Rose Fairweatherie.

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Speaker 1: It all right, Well let's wait, but angela ye, Wealth Wednesday.

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Speaker 1: Thank you,