1 00:00:00,240 --> 00:00:04,720 Speaker 1: From UFOs to psychic powers and government conspiracies. History is 2 00:00:04,800 --> 00:00:09,119 Speaker 1: riddled with unexplained events. You can turn back now or 3 00:00:09,200 --> 00:00:12,079 Speaker 1: learn the stuff they don't want you to know. A 4 00:00:12,240 --> 00:00:25,720 Speaker 1: production of My Heart Radio Hello, welcome back to the show. 5 00:00:25,920 --> 00:00:28,920 Speaker 1: My name is Matt, my name is normal. They called 6 00:00:28,920 --> 00:00:32,000 Speaker 1: me Ben. We are joined as always with our superproducer, 7 00:00:32,159 --> 00:00:36,400 Speaker 1: Paul mission controlled Deconds. Most importantly, you are you, You 8 00:00:36,440 --> 00:00:39,760 Speaker 1: are here, and that makes this the stuff they don't 9 00:00:39,920 --> 00:00:45,080 Speaker 1: want you to know. Super Producer Paul Mission controlled Decads 10 00:00:45,440 --> 00:00:48,120 Speaker 1: don't usually do this, but can you give us kind 11 00:00:48,120 --> 00:00:53,080 Speaker 1: of a kitchy retro commercial vibe real quick? Have you 12 00:00:53,159 --> 00:00:56,720 Speaker 1: ever wanted to live the good life? As we record today, 13 00:00:56,840 --> 00:01:00,160 Speaker 1: millions of people across America are taking aim at of 14 00:01:00,240 --> 00:01:03,960 Speaker 1: the hallmarks of the American dream hoy their first home, 15 00:01:06,280 --> 00:01:10,960 Speaker 1: Keep on American dreaming kids. In different world people are 16 00:01:11,080 --> 00:01:15,400 Speaker 1: trying to buy their whole home at least and in 17 00:01:15,440 --> 00:01:18,399 Speaker 1: some cases their very first home, which is a huge, 18 00:01:19,280 --> 00:01:23,240 Speaker 1: wonderful and profound moment in life for many people. But 19 00:01:23,360 --> 00:01:27,959 Speaker 1: it seems again for many many people uh that this 20 00:01:28,040 --> 00:01:33,119 Speaker 1: goal becomes increasingly difficult and downright unobtainable with each passing year, 21 00:01:33,440 --> 00:01:36,559 Speaker 1: and as we're going to find in today's episode some 22 00:01:36,720 --> 00:01:41,559 Speaker 1: alleged this is not just a consequence of a tough economy, 23 00:01:41,760 --> 00:01:45,680 Speaker 1: it is in fact a conspiracy. And here here are 24 00:01:45,720 --> 00:01:49,600 Speaker 1: the facts. So by the Home for the American Dream, right, 25 00:01:49,960 --> 00:01:52,200 Speaker 1: all of us are actually friends on this show, so 26 00:01:52,280 --> 00:01:55,880 Speaker 1: we hang out, we talk off air. I butt dialed 27 00:01:55,960 --> 00:02:01,760 Speaker 1: Matt or face facetile face time butt dial Matt this 28 00:02:01,840 --> 00:02:06,000 Speaker 1: weekend and felt so bad because I was like, no, Matt, 29 00:02:06,040 --> 00:02:09,160 Speaker 1: you I hate talking on the phone. And I was like, 30 00:02:13,040 --> 00:02:16,000 Speaker 1: from Ben, I would be I'd be concerned. It was 31 00:02:16,040 --> 00:02:19,679 Speaker 1: a it's a dexterous but you got there, Ben. I 32 00:02:19,960 --> 00:02:24,840 Speaker 1: did use the phrase agile butt cheeks on the text. 33 00:02:25,680 --> 00:02:30,840 Speaker 1: Turns out Ben's but has opposable thumbs, the old butt thumbs. 34 00:02:31,280 --> 00:02:34,440 Speaker 1: But this is uh. This is something that we had 35 00:02:34,480 --> 00:02:38,480 Speaker 1: talked about in a previous episode, the fact that many 36 00:02:38,600 --> 00:02:46,320 Speaker 1: people across every demographic except for economic are having a 37 00:02:46,480 --> 00:02:51,560 Speaker 1: difficult time buying buying a home, even if they're buying 38 00:02:51,639 --> 00:02:54,200 Speaker 1: a second or a third home, or it's you know, 39 00:02:54,240 --> 00:02:57,679 Speaker 1: it's not their first rodeo are collective Heart goes out 40 00:02:57,720 --> 00:03:01,960 Speaker 1: to a lot of first time home buyers because it's 41 00:03:02,040 --> 00:03:05,440 Speaker 1: rough in those streets right now. And and there's a 42 00:03:05,520 --> 00:03:10,320 Speaker 1: thing I think would be amusing to all our international listeners. Gang, 43 00:03:10,400 --> 00:03:13,480 Speaker 1: there's this thing called the American Dream. And I was 44 00:03:13,520 --> 00:03:19,160 Speaker 1: getting so upset diving into this research. Uh. We've been 45 00:03:19,200 --> 00:03:22,840 Speaker 1: working on this one for a while because Matt, you 46 00:03:23,040 --> 00:03:28,080 Speaker 1: and you know, recently started getting back in the game. 47 00:03:28,240 --> 00:03:30,839 Speaker 1: Know you bought a house. Matt, You're working on some 48 00:03:30,880 --> 00:03:36,800 Speaker 1: stuff too, and this Uh. I got so incensed about 49 00:03:36,840 --> 00:03:39,120 Speaker 1: this that I was like, we have to find the 50 00:03:39,160 --> 00:03:42,480 Speaker 1: etymology of the American dream. Who told these people all 51 00:03:42,560 --> 00:03:45,840 Speaker 1: this stuff? And we found it? Yeah, I mean, you know, 52 00:03:45,920 --> 00:03:48,720 Speaker 1: you think about it as like owning a home, having 53 00:03:48,760 --> 00:03:52,360 Speaker 1: a wife and two point five kids. I always wondered 54 00:03:52,360 --> 00:03:54,560 Speaker 1: about that point five. I guess that's the dog. But 55 00:03:54,640 --> 00:03:57,160 Speaker 1: most people having in the US World War two economic 56 00:03:57,240 --> 00:04:00,160 Speaker 1: every hundred percent. Yeah, And we know a lot that 57 00:04:00,200 --> 00:04:03,240 Speaker 1: stuff came from like Sears catalogs and just like selling 58 00:04:03,640 --> 00:04:07,280 Speaker 1: this idea of the American dream, um in terms of 59 00:04:07,320 --> 00:04:10,960 Speaker 1: like the images of you know, happiness and prosperity, and 60 00:04:11,000 --> 00:04:13,160 Speaker 1: a lot of that was a backlash to you know, 61 00:04:13,480 --> 00:04:17,080 Speaker 1: the Great Depression and like horrible conditions and you know, 62 00:04:17,240 --> 00:04:19,760 Speaker 1: just epilutely having a scrap for everything. So it was 63 00:04:19,839 --> 00:04:25,080 Speaker 1: kind of this like um ideological, kind of like you know, 64 00:04:25,279 --> 00:04:28,520 Speaker 1: glossy image that is really just that. But most people 65 00:04:28,560 --> 00:04:30,920 Speaker 1: living in the US today do kind of understand this 66 00:04:31,240 --> 00:04:34,400 Speaker 1: concept that I'm describing the American dream. It was in 67 00:04:34,440 --> 00:04:37,960 Speaker 1: fact coined as a phrase by James trust Low Adams, 68 00:04:38,000 --> 00:04:42,080 Speaker 1: who is a historian and writer um of the nineteen 69 00:04:42,160 --> 00:04:45,160 Speaker 1: thirty one book Epic of America, where he referred to 70 00:04:45,200 --> 00:04:47,839 Speaker 1: the American dream as the dream of a land in 71 00:04:47,880 --> 00:04:52,080 Speaker 1: which life should be better and richer and fuller for everyone, 72 00:04:52,400 --> 00:04:56,159 Speaker 1: with opportunity for each according to ability or achievement. I 73 00:04:56,160 --> 00:04:57,560 Speaker 1: just want to point out the key word there, I 74 00:04:57,600 --> 00:05:02,839 Speaker 1: think is should, right, uh, in which life should be better, Yeah, 75 00:05:02,920 --> 00:05:06,400 Speaker 1: and also based on achievement or ability, which are also 76 00:05:06,839 --> 00:05:12,560 Speaker 1: kind of subjective at times. Right. Yeah. But meritocracy, it's 77 00:05:12,640 --> 00:05:17,560 Speaker 1: it's a noble idea. Uh. The US is better than 78 00:05:17,960 --> 00:05:23,760 Speaker 1: many other civilizations at it. But I wouldn't describe the 79 00:05:23,839 --> 00:05:27,280 Speaker 1: current US as a meritocracy and full and it would 80 00:05:27,279 --> 00:05:31,600 Speaker 1: be naive or intentionally deceitful to pretend that it is, 81 00:05:32,120 --> 00:05:34,840 Speaker 1: uh today. I mean, you know, the U S has 82 00:05:34,920 --> 00:05:37,640 Speaker 1: this individualism thing. The US has a lot of very 83 00:05:37,640 --> 00:05:42,640 Speaker 1: self centered people. So most people aren't aware of that etymology. 84 00:05:42,920 --> 00:05:46,520 Speaker 1: Right for all folks, it should be better and richer 85 00:05:46,520 --> 00:05:50,560 Speaker 1: and fuller. Instead, most most people the US take it 86 00:05:50,640 --> 00:05:54,919 Speaker 1: to mean, um, those kind of micro economic goals that 87 00:05:54,960 --> 00:05:59,200 Speaker 1: are personally macro for the individual. What does narcissism have 88 00:05:59,360 --> 00:06:03,360 Speaker 1: to do with me, says the narcissist. Well, uh, for that, 89 00:06:03,360 --> 00:06:08,040 Speaker 1: that's why. The American dream means successfully starting a business, 90 00:06:08,920 --> 00:06:13,200 Speaker 1: embarking upon a career, starting a family, creating a legacy, 91 00:06:13,279 --> 00:06:16,480 Speaker 1: and perhaps most importantly, going back to that World War 92 00:06:17,200 --> 00:06:20,400 Speaker 1: post World War two economic boom stuff, it means owning 93 00:06:20,480 --> 00:06:25,279 Speaker 1: your own home, as they said, and the fantastic adaptation, 94 00:06:25,800 --> 00:06:28,640 Speaker 1: Oh brother, who art thou? You ain't no kind of 95 00:06:28,680 --> 00:06:32,560 Speaker 1: man if you don't own land? And these days, what's 96 00:06:32,600 --> 00:06:36,200 Speaker 1: funny for a lot of folks here? I think. Uh, 97 00:06:36,240 --> 00:06:38,640 Speaker 1: if you are not from the US and you've heard 98 00:06:38,680 --> 00:06:41,080 Speaker 1: about the American Dream, then you might not know how 99 00:06:41,200 --> 00:06:44,640 Speaker 1: most residents of the US treat it today. It's a 100 00:06:44,720 --> 00:06:49,360 Speaker 1: cynical thing. It is brought up as an idea that 101 00:06:49,520 --> 00:06:53,120 Speaker 1: either never was true or in any case, is no 102 00:06:53,160 --> 00:06:56,800 Speaker 1: longer true today, as we record more than four and 103 00:06:57,000 --> 00:07:01,840 Speaker 1: five people in this country define the American dream as 104 00:07:02,160 --> 00:07:06,440 Speaker 1: financial security, that's it for themselves in their family, and 105 00:07:07,240 --> 00:07:12,600 Speaker 1: more than half, so four out of five say it's 106 00:07:12,680 --> 00:07:15,320 Speaker 1: just about the money, and more than half think that 107 00:07:15,480 --> 00:07:21,360 Speaker 1: same dream is unobtainable. Yep. So having enough money when 108 00:07:21,360 --> 00:07:24,720 Speaker 1: we were talking about security, right, that means not living 109 00:07:24,760 --> 00:07:29,360 Speaker 1: paycheck to paycheck. That means um saving money and being 110 00:07:29,400 --> 00:07:32,640 Speaker 1: able to invest that money in your family or yourself 111 00:07:32,960 --> 00:07:37,080 Speaker 1: right and right now, Like it's pretty bad right now, 112 00:07:37,280 --> 00:07:40,560 Speaker 1: but it's we have to look backwards before we look 113 00:07:40,600 --> 00:07:43,080 Speaker 1: at what's happening right now. I think. So if we 114 00:07:43,160 --> 00:07:46,760 Speaker 1: go back to the nineteen sixties. Uh, let's say, let's 115 00:07:46,760 --> 00:07:50,400 Speaker 1: say nineteen sixty itself, the median home value in the 116 00:07:50,480 --> 00:07:54,000 Speaker 1: United States, because it takes money to buy homes, right, Uh, 117 00:07:54,080 --> 00:07:57,120 Speaker 1: the median home value in the US was eleven thousand, 118 00:07:57,480 --> 00:08:04,200 Speaker 1: nine dollars. You heard that, correct, eleven thousand in ninety 119 00:08:05,320 --> 00:08:07,360 Speaker 1: were these like those ones is build at yourself ones 120 00:08:07,440 --> 00:08:13,520 Speaker 1: you get from the serious catalog or no, those were cheaper? Yeah, 121 00:08:14,080 --> 00:08:17,360 Speaker 1: so you said nineteen sixty dollars, that's the equivalent. Still 122 00:08:17,760 --> 00:08:23,520 Speaker 1: it's very low of nine eight thousand dollars in two Uh. Still, 123 00:08:23,600 --> 00:08:27,120 Speaker 1: if you could find uh, like a nice single family 124 00:08:27,360 --> 00:08:30,280 Speaker 1: let's say, three bedroom, two bathroom or maybe even one 125 00:08:30,280 --> 00:08:33,040 Speaker 1: and a half bathroom house for that much money in 126 00:08:33,080 --> 00:08:36,800 Speaker 1: the US right now, you're doing great, especially if you 127 00:08:36,800 --> 00:08:38,880 Speaker 1: know there's a great school there and blah blah blah 128 00:08:38,880 --> 00:08:41,760 Speaker 1: blah blah all the other factors, or it's close enough 129 00:08:41,840 --> 00:08:47,600 Speaker 1: to a city center or whatever. Um. Seriously, but you 130 00:08:47,640 --> 00:08:50,640 Speaker 1: have to imagine that made sense because the cost of 131 00:08:50,720 --> 00:08:54,880 Speaker 1: living in general was lower just across the board anyway 132 00:08:54,880 --> 00:08:58,840 Speaker 1: you wanted to measure it, and people made less money overall, 133 00:08:58,920 --> 00:09:02,640 Speaker 1: at least from a Dan standpoint, right, and also needed 134 00:09:02,960 --> 00:09:07,760 Speaker 1: less money because the great Ponzi scheme of capitalism hadn't 135 00:09:07,880 --> 00:09:12,839 Speaker 1: reached its its current iteration. I think. I think it's 136 00:09:12,840 --> 00:09:15,760 Speaker 1: so fascinating. Okay, so the American dream starts off. Originally 137 00:09:15,800 --> 00:09:18,560 Speaker 1: the guy who makes up the phrase is like, this 138 00:09:18,600 --> 00:09:21,960 Speaker 1: should be a country where everybody can do better if 139 00:09:22,000 --> 00:09:26,040 Speaker 1: they are good, if they try. And then it became 140 00:09:26,120 --> 00:09:29,880 Speaker 1: along the way partially out of necessity, people saying, Okay, 141 00:09:29,920 --> 00:09:32,320 Speaker 1: what that really means is I need to make sure 142 00:09:32,480 --> 00:09:35,800 Speaker 1: my budget straight. And then, uh, for a while you 143 00:09:35,840 --> 00:09:38,800 Speaker 1: were able to get your budget straight. This is what 144 00:09:38,800 --> 00:09:42,800 Speaker 1: what you're breaking down, Matt is the reason why people 145 00:09:42,920 --> 00:09:46,720 Speaker 1: from older generations were able to go straight from high 146 00:09:46,760 --> 00:09:51,240 Speaker 1: school to a lifelong career, and often with more than 147 00:09:51,360 --> 00:09:55,320 Speaker 1: enough opportunity to save some cash to buy those cars, 148 00:09:55,360 --> 00:09:58,720 Speaker 1: to send those kids to college, to take vacations, you 149 00:09:58,720 --> 00:10:02,000 Speaker 1: know what I mean. Let's let's go take two weeks 150 00:10:02,040 --> 00:10:05,600 Speaker 1: off and show the kids the Grand Canyon, that sort 151 00:10:05,640 --> 00:10:09,960 Speaker 1: of stuff. Of course, this opportunity was not equally distributed. 152 00:10:10,559 --> 00:10:14,760 Speaker 1: Multiple groups never have, never, and possibly will never see 153 00:10:14,760 --> 00:10:18,920 Speaker 1: the real benefit of the supposed American dream. But now, 154 00:10:19,679 --> 00:10:22,840 Speaker 1: more than ever, shout out Fox News, it seems that 155 00:10:22,920 --> 00:10:26,040 Speaker 1: more and more people aren't able to make that dream 156 00:10:26,120 --> 00:10:29,160 Speaker 1: a reality. And there and you know, by and large, 157 00:10:29,200 --> 00:10:32,360 Speaker 1: a lot of these people are folks who were raised 158 00:10:32,400 --> 00:10:36,800 Speaker 1: with every reasonable expectation to believe that reality was attainable. 159 00:10:37,080 --> 00:10:40,400 Speaker 1: And if if you look over the decades, like if 160 00:10:40,440 --> 00:10:45,160 Speaker 1: you get into the numbers, median home prices from nineteen 161 00:10:45,240 --> 00:10:50,240 Speaker 1: sixty two now have increased a hundred and twenty like, 162 00:10:50,360 --> 00:10:52,840 Speaker 1: that's that could be great, right if you own a home. 163 00:10:53,200 --> 00:10:56,320 Speaker 1: My goodness, my house is worth a lot more. If 164 00:10:56,360 --> 00:10:58,320 Speaker 1: I have a nineteen sixty home and I bought it 165 00:10:58,320 --> 00:11:01,640 Speaker 1: in nineteen sixty will good for me. I can sell that, sucker. 166 00:11:01,880 --> 00:11:06,280 Speaker 1: But uh, here's the problem. Income has not risen in 167 00:11:06,320 --> 00:11:09,520 Speaker 1: the same way. Median income in the US has only 168 00:11:09,600 --> 00:11:16,880 Speaker 1: risen twenty nine. So there's you know, almost difference there 169 00:11:17,120 --> 00:11:19,400 Speaker 1: in the cost of a home versus how much money 170 00:11:19,400 --> 00:11:21,920 Speaker 1: the average person makes. Yeah, I mean, I think all 171 00:11:22,000 --> 00:11:24,800 Speaker 1: this point the fact that they don't call it the 172 00:11:24,840 --> 00:11:28,800 Speaker 1: American reality. They call it the American dream, and dreams 173 00:11:28,840 --> 00:11:32,320 Speaker 1: don't come true for everybody, especially these days. I mean, 174 00:11:32,400 --> 00:11:37,640 Speaker 1: that's insane. It almost like implies a calculated move to 175 00:11:37,840 --> 00:11:42,319 Speaker 1: a climate where owning a home isn't for everybody. In fact, 176 00:11:42,360 --> 00:11:45,480 Speaker 1: maybe it's only for the elitist of the elite in 177 00:11:45,559 --> 00:11:49,559 Speaker 1: terms of like individuals. And then beyond there, who's it for. 178 00:11:51,080 --> 00:11:54,720 Speaker 1: That's the question. Yeah, well said, I like to call 179 00:11:54,760 --> 00:11:59,440 Speaker 1: it neo feudalism, which is ultimately I wish more media 180 00:11:59,480 --> 00:12:05,680 Speaker 1: outlet would explore that concept and that evolution or regression. 181 00:12:06,040 --> 00:12:09,240 Speaker 1: But so that's that's what happened. And also, you know, 182 00:12:09,320 --> 00:12:12,880 Speaker 1: again we always have to point out nothing occurs in 183 00:12:12,880 --> 00:12:16,160 Speaker 1: a vacuum. There are many many other factors, right, the 184 00:12:16,280 --> 00:12:20,600 Speaker 1: death of manufacturing, the death of trades, These removed a 185 00:12:20,679 --> 00:12:25,719 Speaker 1: lot of those jobs that would have supported this American 186 00:12:25,840 --> 00:12:31,320 Speaker 1: dream the way it's currently phrase and those those opportunities 187 00:12:31,679 --> 00:12:36,520 Speaker 1: disappeared at the same time property became worth more while 188 00:12:36,559 --> 00:12:41,080 Speaker 1: the dollar became worthless in average power. And we want 189 00:12:41,080 --> 00:12:43,680 Speaker 1: to hear your anecdotes, folks as we go through this. 190 00:12:44,120 --> 00:12:48,280 Speaker 1: Don't hesitate to pull up the email shoot a line 191 00:12:48,320 --> 00:12:53,000 Speaker 1: to conspiracy at iHeart radio dot com. Uh, don't hesitate 192 00:12:53,080 --> 00:12:56,040 Speaker 1: to post on social media reach out to us, because 193 00:12:56,080 --> 00:12:58,679 Speaker 1: you're part of this story. And if you don't live 194 00:12:58,720 --> 00:13:01,560 Speaker 1: in the US, it's going to affect you to whether 195 00:13:01,800 --> 00:13:07,080 Speaker 1: now or down the line. Unfortunately, for our US based 196 00:13:07,120 --> 00:13:13,440 Speaker 1: conspiracy realist it is it is a statistical certitude that 197 00:13:13,559 --> 00:13:16,440 Speaker 1: you or someone you know has tried to buy a 198 00:13:16,480 --> 00:13:19,440 Speaker 1: home in the past few years only to find it 199 00:13:19,720 --> 00:13:23,840 Speaker 1: much more of a struggle than it was for previous generations. 200 00:13:24,240 --> 00:13:28,680 Speaker 1: And this is not because people are fundamentally any different 201 00:13:29,040 --> 00:13:32,480 Speaker 1: than people were a few decades ago. People aren't lazy, 202 00:13:32,840 --> 00:13:37,280 Speaker 1: people are not dumb, people are not necessarily bad with money. 203 00:13:37,520 --> 00:13:41,840 Speaker 1: It's just the game is getting harder, the skill levels 204 00:13:41,880 --> 00:13:45,480 Speaker 1: going up, and the opportunity cost is rising as well. 205 00:13:45,840 --> 00:13:49,840 Speaker 1: The odds are stacked against individuals and families buying homes, 206 00:13:50,080 --> 00:13:54,200 Speaker 1: and the statistics show there's something more than avocado toast 207 00:13:54,280 --> 00:13:58,280 Speaker 1: of play, you know what I mean? Like now I 208 00:13:58,280 --> 00:14:01,040 Speaker 1: feel like you're I feel like we're in now. I 209 00:14:01,080 --> 00:14:07,720 Speaker 1: just saw that the avocado toast. It's the great avocado 210 00:14:07,760 --> 00:14:11,360 Speaker 1: toast invasion of many cities. And we're gonna get into that. 211 00:14:11,920 --> 00:14:14,600 Speaker 1: Like what happens when people with lots and lots of 212 00:14:14,600 --> 00:14:18,840 Speaker 1: money move from areas of the planet really to other 213 00:14:18,920 --> 00:14:22,440 Speaker 1: areas that are growing, right, it's a new area of opportunity, 214 00:14:22,440 --> 00:14:25,840 Speaker 1: a new region that's growing. What happens when those really 215 00:14:25,920 --> 00:14:28,440 Speaker 1: rich people come in by the houses that you know, 216 00:14:28,640 --> 00:14:30,840 Speaker 1: could be could be bought by people who don't have them? 217 00:14:30,880 --> 00:14:34,320 Speaker 1: One wow, what happens historically? I mean, let's look at 218 00:14:34,360 --> 00:14:38,040 Speaker 1: like the Great move Westward, you know, I mean, it's 219 00:14:38,080 --> 00:14:40,880 Speaker 1: like there wasn't anybody there. It was just the people 220 00:14:40,920 --> 00:14:42,920 Speaker 1: that were there didn't have the means that the people 221 00:14:42,960 --> 00:14:45,520 Speaker 1: that came there, you know did for the large part, 222 00:14:45,720 --> 00:14:48,160 Speaker 1: who could afford to like you know, put down stakes 223 00:14:48,160 --> 00:14:50,720 Speaker 1: and like build banks and towns and all that stuff. 224 00:14:50,720 --> 00:14:53,960 Speaker 1: And you know people that were there before were you know, 225 00:14:54,120 --> 00:14:56,680 Speaker 1: living off the land. And we're like indigenous people and 226 00:14:56,720 --> 00:15:00,640 Speaker 1: they're essentially trundled off and treated like trash um. And 227 00:15:00,680 --> 00:15:04,280 Speaker 1: then you know there were some reparations, weak reparations made 228 00:15:04,320 --> 00:15:06,040 Speaker 1: over time and all of that. But I mean it's 229 00:15:06,040 --> 00:15:08,280 Speaker 1: a tale as old as is the history of this country, 230 00:15:08,760 --> 00:15:12,880 Speaker 1: of of people with more moving into areas of opportunity 231 00:15:12,960 --> 00:15:15,200 Speaker 1: quote unquote, where the people that are already there have 232 00:15:15,360 --> 00:15:21,000 Speaker 1: less and can't fight city hall, can't fight the conquering force. Yeah, 233 00:15:21,240 --> 00:15:31,920 Speaker 1: take h into Churchill. I mean it's upsetting. Yes, what 234 00:15:32,120 --> 00:15:34,720 Speaker 1: a name? What a name for a guy? Anyway? Yeah, 235 00:15:34,760 --> 00:15:37,960 Speaker 1: but this this is I mean, these are important. These 236 00:15:38,000 --> 00:15:41,800 Speaker 1: are important things. And for anyone who's board one day, 237 00:15:41,920 --> 00:15:45,200 Speaker 1: if you ever catch us hanging out at our local 238 00:15:45,800 --> 00:15:49,400 Speaker 1: favorite chicken wings spot again, best chicken Wings in Atlanta, 239 00:15:50,040 --> 00:15:56,040 Speaker 1: um long, Uh, these can figure into this conversation and 240 00:15:56,080 --> 00:15:59,040 Speaker 1: a bit exactly. You can. That's where I'm going. You can, uh, 241 00:15:59,160 --> 00:16:01,160 Speaker 1: if you ever catch me there, you can ask me 242 00:16:01,280 --> 00:16:05,840 Speaker 1: about how to map out the the growth and the 243 00:16:05,960 --> 00:16:11,280 Speaker 1: change of cities. US cities now are going to I imagine, 244 00:16:11,320 --> 00:16:14,000 Speaker 1: if this trend is real, they are going to follow 245 00:16:14,280 --> 00:16:17,800 Speaker 1: what I see as the Western and Central European model, 246 00:16:18,000 --> 00:16:21,600 Speaker 1: and it's it's a story for another day. But yeah, 247 00:16:21,640 --> 00:16:24,680 Speaker 1: shout out the local. Um, we blew up the spot 248 00:16:25,000 --> 00:16:30,040 Speaker 1: many years ago now. And uh, and what you're alluding to, Matt, 249 00:16:30,320 --> 00:16:32,640 Speaker 1: and what you're alluding to, knowl is the fact that 250 00:16:32,680 --> 00:16:36,160 Speaker 1: the local is not going to be around for too 251 00:16:36,240 --> 00:16:40,080 Speaker 1: too much longer. That whole street got bought up. That's 252 00:16:40,080 --> 00:16:45,000 Speaker 1: true by not a person but a corporation. Uh. You'll 253 00:16:45,000 --> 00:16:47,840 Speaker 1: see what we're talking about in a second. So here's here. 254 00:16:47,840 --> 00:16:50,560 Speaker 1: The statistics were not even to the conspiracies, yet these 255 00:16:50,560 --> 00:16:55,040 Speaker 1: are all facts. Home prices right, accelerated again a hundred 256 00:16:55,080 --> 00:16:59,920 Speaker 1: and twenty one percent from nine sixty too. Like one, 257 00:17:01,000 --> 00:17:04,720 Speaker 1: if you look over just the past year, home prices 258 00:17:04,920 --> 00:17:10,400 Speaker 1: have again accelerated. They went up in one year, mortgage 259 00:17:10,640 --> 00:17:14,879 Speaker 1: a year in a year. And it's bizarre because I 260 00:17:14,880 --> 00:17:17,639 Speaker 1: think we all when the pandemic hid those of us 261 00:17:17,680 --> 00:17:20,119 Speaker 1: who are lucky enough to to continue to work and 262 00:17:20,560 --> 00:17:22,520 Speaker 1: not have to take a pay cut or anything like that, 263 00:17:22,600 --> 00:17:25,520 Speaker 1: like you know us Um, because podcasting, you know, continued 264 00:17:25,520 --> 00:17:27,400 Speaker 1: on strong. I think there was something in the back 265 00:17:27,440 --> 00:17:28,800 Speaker 1: of our minds they were like, well, maybe this is 266 00:17:28,840 --> 00:17:32,840 Speaker 1: an opportunity where because of how not to capitalize on 267 00:17:32,840 --> 00:17:35,200 Speaker 1: anybody's misfortune. But because so many people were out of work, 268 00:17:35,480 --> 00:17:38,000 Speaker 1: then maybe there would be it would be an easier 269 00:17:38,000 --> 00:17:40,159 Speaker 1: time to buy a home. Maybe people were would be 270 00:17:40,200 --> 00:17:43,200 Speaker 1: downsizing or or moving, you know, having to sell or 271 00:17:43,280 --> 00:17:46,399 Speaker 1: who knows, maybe foreclosed or God forbid. But it was 272 00:17:46,440 --> 00:17:50,000 Speaker 1: like the exact opposite effect. Oh yeah, I was literally 273 00:17:50,040 --> 00:17:53,400 Speaker 1: telling you guys that I felt bad. I was going uh. 274 00:17:53,440 --> 00:17:56,000 Speaker 1: We were hanging out one day and I was saying, nol, 275 00:17:56,560 --> 00:17:59,800 Speaker 1: I hate to uh. I don't like to think I'm 276 00:18:00,000 --> 00:18:02,400 Speaker 1: off any off human misery, but this might be the 277 00:18:02,440 --> 00:18:05,560 Speaker 1: time where I buy a house. And I was completely wrong. 278 00:18:06,080 --> 00:18:11,040 Speaker 1: I'm not above it that. Yeah, housing prices skyrocketed and um, 279 00:18:11,440 --> 00:18:14,480 Speaker 1: and I never had to confront that ethical issue about 280 00:18:14,600 --> 00:18:18,400 Speaker 1: human misery. Yeah, no joke. And I still don't fully understand. 281 00:18:18,400 --> 00:18:20,880 Speaker 1: Why is it because of people that were cooped up 282 00:18:20,920 --> 00:18:24,240 Speaker 1: wanting to like upsize. It didn't seem like there was 283 00:18:24,280 --> 00:18:28,280 Speaker 1: any expendable income to be had except for very specific sectors. 284 00:18:29,080 --> 00:18:31,000 Speaker 1: But all of a sudden, there was this sense of like, 285 00:18:31,000 --> 00:18:32,919 Speaker 1: oh God, we're being cooped up. We need to get 286 00:18:32,960 --> 00:18:36,320 Speaker 1: a bigger house or or move or something. I don't understand. 287 00:18:36,560 --> 00:18:39,760 Speaker 1: Still confusing to me, I have a theory, my friend, 288 00:18:39,960 --> 00:18:42,160 Speaker 1: and we'll get to it at the end of today's show. 289 00:18:42,800 --> 00:18:46,760 Speaker 1: I can't prove it just quite yet, but anyhow, Yeah, 290 00:18:46,960 --> 00:18:51,680 Speaker 1: at the same time, housing prices are skyrocketing, as you said, 291 00:18:51,680 --> 00:18:54,960 Speaker 1: mat just over the span of a year. Mortgage rates 292 00:18:55,080 --> 00:18:59,280 Speaker 1: are also rising faster over the past three months, as 293 00:18:59,280 --> 00:19:02,680 Speaker 1: we record then have in decades. And add to that, 294 00:19:02,760 --> 00:19:07,639 Speaker 1: to exacerbate the crisis, there's a record low availability of 295 00:19:07,720 --> 00:19:10,119 Speaker 1: straight up houses for sale. Part of that is that 296 00:19:10,240 --> 00:19:13,720 Speaker 1: constructing houses became more expensive. Part of that is people 297 00:19:13,760 --> 00:19:18,199 Speaker 1: are holding on until the right entity shows up with 298 00:19:18,240 --> 00:19:22,439 Speaker 1: a suitcase of cash and waves the inspection. But right now, 299 00:19:22,800 --> 00:19:26,000 Speaker 1: even if none of those factors were true, imagine buying 300 00:19:26,040 --> 00:19:29,760 Speaker 1: a home like you said, mad three bedroom, two bathroom, 301 00:19:29,840 --> 00:19:33,880 Speaker 1: one and a half bathroom. Imagine buying that for just dollars. 302 00:19:34,720 --> 00:19:38,240 Speaker 1: That's that can happen in some parts of the US, 303 00:19:38,359 --> 00:19:41,679 Speaker 1: But for the majority of the human population in the 304 00:19:41,760 --> 00:19:46,359 Speaker 1: United States, you're living in densely packed urban areas and 305 00:19:46,440 --> 00:19:51,560 Speaker 1: suburbs adjacent to cities. And if you saw that figure now, 306 00:19:52,000 --> 00:19:54,400 Speaker 1: certainly if you saw it in Atlanta, which is sadly 307 00:19:54,440 --> 00:19:57,240 Speaker 1: one of the stars of our show today, you would see. 308 00:19:57,560 --> 00:20:00,119 Speaker 1: You would see that number, you know, you pull up 309 00:20:00,119 --> 00:20:03,760 Speaker 1: on Zillo or Redfin and you examine the photos, and 310 00:20:03,760 --> 00:20:06,879 Speaker 1: you would think, what's wrong with it? As bestis lead 311 00:20:07,119 --> 00:20:10,440 Speaker 1: are their foundation problems. You would know it's not haunted 312 00:20:10,760 --> 00:20:13,399 Speaker 1: because in today's market, that would just raise the price, 313 00:20:13,720 --> 00:20:17,840 Speaker 1: you know what I mean. Like, it's so sad and 314 00:20:17,880 --> 00:20:21,280 Speaker 1: so true. But again, nothing happens in the vacuum housing 315 00:20:21,359 --> 00:20:25,040 Speaker 1: prices or skyrocketing to due to many of these factors 316 00:20:25,240 --> 00:20:28,280 Speaker 1: in in sort of this really Paul eddit me here, 317 00:20:28,359 --> 00:20:32,040 Speaker 1: and this really smoothie that the average person is having 318 00:20:32,080 --> 00:20:37,199 Speaker 1: a tougher and tougher time drinking. And now there's one 319 00:20:37,280 --> 00:20:40,480 Speaker 1: last factor I want to add. As you're hearing this, 320 00:20:40,600 --> 00:20:43,280 Speaker 1: if you're hearing this the week it comes out, you 321 00:20:43,359 --> 00:20:47,480 Speaker 1: are in the midst of the largest generation ever in 322 00:20:47,600 --> 00:20:51,040 Speaker 1: all of American history entering the market trying to buy 323 00:20:51,040 --> 00:20:55,440 Speaker 1: their first home. So there's more demand than at any 324 00:20:55,480 --> 00:20:58,800 Speaker 1: previous time, and there's lower supply than there has been 325 00:20:58,800 --> 00:21:01,840 Speaker 1: for a long time. But here's the kicker. You'll hear 326 00:21:01,880 --> 00:21:04,399 Speaker 1: that a great many of the people who are buying 327 00:21:04,480 --> 00:21:09,560 Speaker 1: up homes today aren't actually people at all. According to 328 00:21:09,600 --> 00:21:12,960 Speaker 1: the critics, that's a huge part of the problem. What 329 00:21:13,040 --> 00:21:15,520 Speaker 1: are we talking about. We'll tell you after a word 330 00:21:15,680 --> 00:21:26,800 Speaker 1: from our sponsors. Here's where it gets crazy. All right, 331 00:21:26,880 --> 00:21:30,480 Speaker 1: what's the gist? Guys? You we all know this, Paul, 332 00:21:30,600 --> 00:21:33,399 Speaker 1: you know this. You've heard this story. What's this story 333 00:21:33,640 --> 00:21:37,800 Speaker 1: people are talking about when critics say folks buying up 334 00:21:37,840 --> 00:21:41,879 Speaker 1: homes actually aren't folks at all. It's the concept that 335 00:21:42,000 --> 00:21:46,359 Speaker 1: it isn't just a set of folks maybe maybe one, 336 00:21:46,760 --> 00:21:50,560 Speaker 1: maybe about four or as we said, four and a half. Um, 337 00:21:50,600 --> 00:21:55,880 Speaker 1: it's companies. It's holding companies, hedge funds, Wall Street investors, 338 00:21:56,440 --> 00:22:01,280 Speaker 1: even pension funds that are supposed lead buying up a 339 00:22:01,280 --> 00:22:04,240 Speaker 1: ton of the the single family houses that are on 340 00:22:04,280 --> 00:22:08,199 Speaker 1: the market and doing other stuff with them, not not 341 00:22:08,280 --> 00:22:10,560 Speaker 1: just buying it up and like flipping it the way 342 00:22:10,600 --> 00:22:13,920 Speaker 1: you would if you were you know, these really popular 343 00:22:14,040 --> 00:22:16,800 Speaker 1: reality TV shows where it's a couple or something and 344 00:22:16,840 --> 00:22:18,680 Speaker 1: they buy a house and they make it look real 345 00:22:18,720 --> 00:22:21,359 Speaker 1: fancy like, and then they sell it back for a 346 00:22:21,400 --> 00:22:23,159 Speaker 1: bunch more money and they make a profit and then 347 00:22:23,160 --> 00:22:26,199 Speaker 1: they just keep doing it. Now, these these places are 348 00:22:26,240 --> 00:22:29,760 Speaker 1: supposedly just buying up houses, maybe even entire neighborhoods, or 349 00:22:29,800 --> 00:22:33,720 Speaker 1: every house that becomes available in a certain area and 350 00:22:33,760 --> 00:22:37,880 Speaker 1: then instead of selling them, turning them into rental properties, 351 00:22:38,280 --> 00:22:42,480 Speaker 1: rental properties that are the the actual price of rent 352 00:22:42,680 --> 00:22:46,960 Speaker 1: is way more expensive than it was before that those 353 00:22:47,000 --> 00:22:49,280 Speaker 1: big companies came through and bottle the houses and be 354 00:22:49,359 --> 00:22:53,920 Speaker 1: interested in seeing a plot over time of rent prices. 355 00:22:53,960 --> 00:22:56,000 Speaker 1: You know, in the in the Atlanta area, I know, 356 00:22:56,440 --> 00:22:59,199 Speaker 1: even since I've been living here, you know that they 357 00:22:59,200 --> 00:23:01,280 Speaker 1: have there's a there's an allowable amounts. It's not like 358 00:23:01,320 --> 00:23:04,080 Speaker 1: we exactly have rent control, which is a concept and 359 00:23:04,160 --> 00:23:06,240 Speaker 1: like play in like New York for example, where you know, 360 00:23:06,280 --> 00:23:07,640 Speaker 1: if you've been living in a place for a certain 361 00:23:07,680 --> 00:23:09,800 Speaker 1: amount of time, they can only raise the rent so 362 00:23:09,880 --> 00:23:12,320 Speaker 1: much or whatever. And there's something along those lens here. 363 00:23:12,680 --> 00:23:14,960 Speaker 1: But I know that every you know, whenever I've I 364 00:23:15,000 --> 00:23:17,720 Speaker 1: rented from a person for a long time, um and 365 00:23:17,800 --> 00:23:21,360 Speaker 1: he was always very very reasonable with what he would 366 00:23:21,440 --> 00:23:24,280 Speaker 1: raise the rent every year. But then I recently rented 367 00:23:24,359 --> 00:23:26,639 Speaker 1: from one of these companies that we're talking about, a 368 00:23:26,640 --> 00:23:30,360 Speaker 1: company called Excalibur Homes, and they raised it the maximum 369 00:23:30,480 --> 00:23:33,160 Speaker 1: they possibly could every you know, every time the renewal 370 00:23:33,200 --> 00:23:35,960 Speaker 1: came up, and it was very clearly that it's a 371 00:23:36,000 --> 00:23:39,560 Speaker 1: home that it was probably what would be considered a 372 00:23:39,560 --> 00:23:43,280 Speaker 1: transitional neighborhood or an area where maybe the land is 373 00:23:43,280 --> 00:23:48,840 Speaker 1: even worth more than the house, and minimal cosmetic stuff 374 00:23:48,880 --> 00:23:51,200 Speaker 1: to flip it to the next tenant, you know, paying 375 00:23:51,280 --> 00:23:53,720 Speaker 1: jobs that would just flake off, you know, over time, 376 00:23:53,760 --> 00:23:56,480 Speaker 1: and you know, very kind of shoddy workmanship. Anytime I 377 00:23:56,520 --> 00:23:58,320 Speaker 1: wanted to get something done, they'd bring in, you know, 378 00:23:58,560 --> 00:24:00,639 Speaker 1: the lowest bidder who would come men and do the 379 00:24:00,720 --> 00:24:03,440 Speaker 1: job with stuff from home depot and only certain things. 380 00:24:03,480 --> 00:24:05,760 Speaker 1: You have to submit everything through a portal on the internet. 381 00:24:06,119 --> 00:24:09,280 Speaker 1: And um, just very clear that they're gonna rent this 382 00:24:09,359 --> 00:24:11,800 Speaker 1: thing until it falls into the ground and then they're 383 00:24:11,800 --> 00:24:14,800 Speaker 1: gonna bulldoze it and sell it to some other developer 384 00:24:14,840 --> 00:24:17,000 Speaker 1: that wants to actually build something on it. Now, that 385 00:24:17,119 --> 00:24:19,399 Speaker 1: is one that is one case, right, that is one 386 00:24:19,440 --> 00:24:22,120 Speaker 1: example of something that has happened. But what we've seen 387 00:24:22,320 --> 00:24:25,119 Speaker 1: is that there's an accusation that this is just the 388 00:24:25,200 --> 00:24:29,080 Speaker 1: new normal, this is the what is happening across the board, 389 00:24:29,200 --> 00:24:32,320 Speaker 1: right And as in addition to just that practice of 390 00:24:32,359 --> 00:24:36,040 Speaker 1: buying up the homes turning into rental properties, the accusation 391 00:24:36,119 --> 00:24:40,639 Speaker 1: is that this process is to blame for an actual family, 392 00:24:40,680 --> 00:24:43,600 Speaker 1: actual humans being unable to find a house on the 393 00:24:43,680 --> 00:24:47,440 Speaker 1: market to purchase. Do mean them to the rent trap? Yeah? 394 00:24:47,800 --> 00:24:49,800 Speaker 1: And you know I don't share too much of my 395 00:24:50,480 --> 00:24:56,720 Speaker 1: private life here on the air. But uh, folks, there's 396 00:24:56,760 --> 00:25:01,080 Speaker 1: a first acknowledge here updates later maybe, But that's the question, 397 00:25:01,160 --> 00:25:03,240 Speaker 1: and you pose it so well that is there any 398 00:25:03,240 --> 00:25:08,920 Speaker 1: truth to these claims? Well, experts, self appointed or otherwise 399 00:25:10,119 --> 00:25:14,760 Speaker 1: don't seem in agreement. This story first caught the general 400 00:25:14,800 --> 00:25:18,600 Speaker 1: public spotlight back in one so last year, as we 401 00:25:18,680 --> 00:25:22,440 Speaker 1: record this, thanks in large part to an article run 402 00:25:22,480 --> 00:25:26,760 Speaker 1: in the Wall Street Journal which announced the story of 403 00:25:26,800 --> 00:25:30,400 Speaker 1: an investment firm that won a bidding war to purchase 404 00:25:30,480 --> 00:25:35,000 Speaker 1: not a house, but an entire neighborhood of single family 405 00:25:35,040 --> 00:25:38,840 Speaker 1: homes in a place called Conroe, Texas. Almost immediately there 406 00:25:38,920 --> 00:25:43,600 Speaker 1: was this huge backlash, and there's no argument that continues today. Um. 407 00:25:43,680 --> 00:25:46,440 Speaker 1: To sum it up, I think we should look at 408 00:25:46,520 --> 00:25:50,000 Speaker 1: a great New York Times article by Sophie Kasakov and 409 00:25:50,800 --> 00:25:56,720 Speaker 1: April and they write it this way. They say, there's 410 00:25:56,760 --> 00:26:00,680 Speaker 1: an quote increasing influence of real estate investors by up houses, 411 00:26:00,880 --> 00:26:03,800 Speaker 1: especially at the lower end of the market, turning them 412 00:26:03,800 --> 00:26:07,320 Speaker 1: into rental properties. Now again, the accusation, as you put it, 413 00:26:07,359 --> 00:26:11,760 Speaker 1: met the conspiracy of conspiracy. There is is the idea 414 00:26:11,880 --> 00:26:15,879 Speaker 1: that because of the nature of homes being purchased, the 415 00:26:16,040 --> 00:26:20,480 Speaker 1: people who would ordinarily purchase these homes, the actual human beings, 416 00:26:21,359 --> 00:26:26,880 Speaker 1: are left with no recourse other than to continue um, 417 00:26:26,920 --> 00:26:32,040 Speaker 1: paying a landlord, corporate or otherwise just helping that person 418 00:26:32,440 --> 00:26:35,960 Speaker 1: pay their own mortgage or property taxes with a little 419 00:26:36,000 --> 00:26:40,000 Speaker 1: bit of a vague on the side. And there does 420 00:26:40,200 --> 00:26:43,400 Speaker 1: that's the thing. There is a definite strategy. To call 421 00:26:43,560 --> 00:26:49,680 Speaker 1: this uncoordinated or non strategic is misleading. And if anybody 422 00:26:49,720 --> 00:26:53,600 Speaker 1: says that they're lying to themselves, were to you. Another 423 00:26:53,760 --> 00:26:56,919 Speaker 1: pull from the New York Times article, which I thoroughly enjoyed, 424 00:26:57,119 --> 00:27:01,439 Speaker 1: is this about the targeting. More than nine percent of 425 00:27:01,480 --> 00:27:06,040 Speaker 1: homes purchased by corporations as of May of one were 426 00:27:06,080 --> 00:27:10,200 Speaker 1: bought for under three thousand dollars, and many of them 427 00:27:10,520 --> 00:27:15,760 Speaker 1: were in predominantly black neighborhoods or predominantly low income neighborhoods. 428 00:27:15,800 --> 00:27:18,520 Speaker 1: But this is like, Okay, so you hear this, and 429 00:27:18,560 --> 00:27:21,760 Speaker 1: this sounds alarmist, right or this sounds very very dangerous. 430 00:27:22,280 --> 00:27:27,840 Speaker 1: Uh we we as readers love a simple story. Give 431 00:27:27,920 --> 00:27:30,800 Speaker 1: me a bad guy, right, give me a face. That's 432 00:27:30,800 --> 00:27:36,080 Speaker 1: why celebrity news gets so much more attention than actual 433 00:27:36,200 --> 00:27:39,159 Speaker 1: issues that matter to the world. Uh. But if you 434 00:27:39,200 --> 00:27:42,560 Speaker 1: look at the numbers, you see something interesting. I didn't 435 00:27:42,560 --> 00:27:45,119 Speaker 1: know this, and I actually thought this number. This number 436 00:27:45,160 --> 00:27:47,720 Speaker 1: still feels a little low to me. But right now 437 00:27:47,800 --> 00:27:51,960 Speaker 1: the United States has around a hundred and forty million 438 00:27:53,480 --> 00:27:57,280 Speaker 1: housing units. And that's a It sounds low until you 439 00:27:57,320 --> 00:28:00,760 Speaker 1: realize that is such an umbrella term. It means everything 440 00:28:00,920 --> 00:28:06,639 Speaker 1: from mansions and opulent palaces to micro apartments, you know, 441 00:28:06,800 --> 00:28:11,439 Speaker 1: whereas like a shoe box with a bed that is 442 00:28:11,440 --> 00:28:14,240 Speaker 1: a Murphy bed and the toilets underneath that and you 443 00:28:14,320 --> 00:28:17,160 Speaker 1: pay five grand because you're in San Francisco or whatever. 444 00:28:17,480 --> 00:28:20,680 Speaker 1: So it includes every place where people live about a 445 00:28:20,760 --> 00:28:25,120 Speaker 1: hundred forty million of those. And The Atlantic has an 446 00:28:25,119 --> 00:28:29,919 Speaker 1: excellent article um that I don't agree with. To be honest, 447 00:28:30,040 --> 00:28:32,320 Speaker 1: I think it's very well written. And I looked into 448 00:28:32,560 --> 00:28:35,840 Speaker 1: the statistics they pool and those check out. I checked 449 00:28:35,840 --> 00:28:38,800 Speaker 1: their sources. Is that the one when Wall Street is 450 00:28:38,840 --> 00:28:42,400 Speaker 1: your landlord. No, no, this is this is the one 451 00:28:42,560 --> 00:28:45,320 Speaker 1: in opposition to that. But we didn't check out both 452 00:28:45,360 --> 00:28:48,080 Speaker 1: of those will reference that one as well, because I 453 00:28:48,080 --> 00:28:51,719 Speaker 1: think that's important too. That's a banger. But the this 454 00:28:51,920 --> 00:28:56,280 Speaker 1: article in the Atlantic says it's kind of in defense 455 00:28:56,560 --> 00:28:59,240 Speaker 1: of black Rock, and you'll see why we're bringing up 456 00:28:59,280 --> 00:29:03,840 Speaker 1: black Rock. Black Rock owned Steak in a company called 457 00:29:04,320 --> 00:29:08,920 Speaker 1: Invitation Homes, and it's very confusing. They're playing the uh, 458 00:29:09,200 --> 00:29:16,960 Speaker 1: the Academy Academy Academic EXE game. So, all, right, of 459 00:29:17,080 --> 00:29:23,960 Speaker 1: those one and forty million household units, about eighty million 460 00:29:24,240 --> 00:29:29,120 Speaker 1: are standalone single family homes, you know, your three bedroom, 461 00:29:29,360 --> 00:29:35,520 Speaker 1: two bathroom place. And of those eighty million, about fifteen 462 00:29:35,560 --> 00:29:39,560 Speaker 1: million are for rent And we're just narrowing the scope 463 00:29:39,640 --> 00:29:42,240 Speaker 1: right resooming in from a wide view. So of those 464 00:29:42,320 --> 00:29:47,800 Speaker 1: fifteen million single family rentals, what we could call banks 465 00:29:47,920 --> 00:29:52,560 Speaker 1: or shadow banks or institutional investors only own about three 466 00:29:52,680 --> 00:29:57,200 Speaker 1: hundred thousand right now as of now, and most of 467 00:29:57,200 --> 00:30:00,520 Speaker 1: the rest of that those fifteen million are early owned 468 00:30:00,520 --> 00:30:04,240 Speaker 1: by what you would call individual landlords. So zoom in 469 00:30:04,280 --> 00:30:07,960 Speaker 1: a little closer. Of those three hundred thousand homes, as 470 00:30:08,000 --> 00:30:15,440 Speaker 1: of June one, Invitation Homes this company owned eight thousand. 471 00:30:15,960 --> 00:30:19,600 Speaker 1: That number is growing today here, and that's a year 472 00:30:19,800 --> 00:30:25,680 Speaker 1: where how the houses grew in worth. Right, So like 473 00:30:25,920 --> 00:30:29,480 Speaker 1: the the activities of these companies with injections, you have 474 00:30:29,560 --> 00:30:33,560 Speaker 1: to imagine those numbers. That three thousand number has likely 475 00:30:33,640 --> 00:30:37,640 Speaker 1: grown quite a bit over that year of record. Oh 476 00:30:37,680 --> 00:30:41,560 Speaker 1: my god, there's more profit in these houses. Let's go right, 477 00:30:42,400 --> 00:30:47,120 Speaker 1: And if you're familiar with these allegations of conspiracy, you've 478 00:30:47,160 --> 00:30:51,280 Speaker 1: probably heard those allegations referring to that company we just mentioned, 479 00:30:51,400 --> 00:30:54,240 Speaker 1: black Rock. What is black Rock? Alright? Black Rock is 480 00:30:54,280 --> 00:30:57,040 Speaker 1: based in New York. It comes about in the eighties. 481 00:30:57,400 --> 00:31:02,240 Speaker 1: It is currently in the world's largest asset manager. They 482 00:31:02,280 --> 00:31:06,080 Speaker 1: are in charge of making money, make more money. So 483 00:31:06,200 --> 00:31:12,920 Speaker 1: right now, as of January, black Rock manages around ten 484 00:31:13,960 --> 00:31:17,800 Speaker 1: trillion dollars worth of assets. This is also part of 485 00:31:17,800 --> 00:31:19,880 Speaker 1: the reason, by the way, it's been called the world's 486 00:31:19,960 --> 00:31:23,960 Speaker 1: largest shadow bank, and not just by you know, not 487 00:31:23,960 --> 00:31:28,280 Speaker 1: not just by folks like you and me and folks 488 00:31:28,360 --> 00:31:32,360 Speaker 1: like people listening today, but by outfits like the Economist, 489 00:31:32,720 --> 00:31:34,920 Speaker 1: which you don't think of really as a as some 490 00:31:35,040 --> 00:31:41,240 Speaker 1: sort of fringe anti capitalistic periodical. Anyway. Uh, there's another 491 00:31:41,280 --> 00:31:44,840 Speaker 1: thing that's really interesting, just to straighten this out for everybody, 492 00:31:45,160 --> 00:31:48,560 Speaker 1: You've probably read a lot of reports that talk about 493 00:31:48,600 --> 00:31:54,000 Speaker 1: black Rock as being the actual invitation homes. Black Rock 494 00:31:54,160 --> 00:31:59,640 Speaker 1: isn't really black Rock invested in invitation homes, but Invitation 495 00:31:59,720 --> 00:32:04,760 Speaker 1: whole has spun out from another company, black Stone, So 496 00:32:04,800 --> 00:32:08,600 Speaker 1: there are two. They're two different companies. One is black 497 00:32:08,720 --> 00:32:16,520 Speaker 1: Rock Stone. Yeah, I'm telling you these are like subsidiarias 498 00:32:16,560 --> 00:32:22,680 Speaker 1: of one another. They're unrelated. That's I mean, black Rock 499 00:32:22,760 --> 00:32:26,040 Speaker 1: has invested in invitation homes, which was spun off from 500 00:32:26,120 --> 00:32:30,160 Speaker 1: black Stone. I hope there's you know, at the top. 501 00:32:30,280 --> 00:32:33,840 Speaker 1: I can't be alone thinking this. I've just always sort 502 00:32:33,840 --> 00:32:38,000 Speaker 1: of fancy the idea that there really is a couple. 503 00:32:38,440 --> 00:32:41,360 Speaker 1: But it's not a secret society. They don't have fun 504 00:32:41,520 --> 00:32:46,479 Speaker 1: rituals or you know, goat themed pentagrams and pentacles and stuff. 505 00:32:46,680 --> 00:32:50,520 Speaker 1: They're just like a group of you know, twelve to 506 00:32:50,600 --> 00:32:54,760 Speaker 1: twenty people who eventually, over time realized that they're all 507 00:32:54,840 --> 00:32:58,880 Speaker 1: on this interlocking Vinn diagram of boards and corporations, and 508 00:32:58,920 --> 00:33:02,560 Speaker 1: then they had a meeting. You know, totally. No, that's 509 00:33:02,600 --> 00:33:05,320 Speaker 1: that's the secret behind all secret societies. I think for 510 00:33:05,360 --> 00:33:07,800 Speaker 1: the most part is it's just they happen organically. Once 511 00:33:07,840 --> 00:33:10,760 Speaker 1: you reach a certain echelon of success in business. And 512 00:33:10,760 --> 00:33:13,040 Speaker 1: then you figure out how to I mean, of course, 513 00:33:13,080 --> 00:33:16,720 Speaker 1: completely above board benefit one another with your activities and 514 00:33:16,760 --> 00:33:20,720 Speaker 1: your choices and your donations and all of that stuff. 515 00:33:21,720 --> 00:33:25,440 Speaker 1: Just Hedge fund primary stakeholders like, yep, that's it. That's me. 516 00:33:25,880 --> 00:33:28,800 Speaker 1: Hey guys, what's going on today at the golf course? 517 00:33:29,440 --> 00:33:35,440 Speaker 1: H fps. So, so if you look at this jokes 518 00:33:35,440 --> 00:33:40,200 Speaker 1: about the balls and uncreative name choices aside, it looks 519 00:33:40,320 --> 00:33:45,320 Speaker 1: like by the numbers these institutions that have been demonized 520 00:33:45,600 --> 00:33:50,360 Speaker 1: clearly in media, they actually are buying up a relatively 521 00:33:50,600 --> 00:33:54,520 Speaker 1: small piece of the pie for now, because while that 522 00:33:54,640 --> 00:33:59,440 Speaker 1: number might seem small in comparison, it's huge in areas 523 00:33:59,640 --> 00:34:03,320 Speaker 1: tar get it by these companies. Again, there is a 524 00:34:03,400 --> 00:34:06,680 Speaker 1: strategy at play here. You can call it a conspiracy, 525 00:34:07,160 --> 00:34:10,000 Speaker 1: you can call it a market plan, you can call 526 00:34:10,040 --> 00:34:14,080 Speaker 1: it just good old fashioned investment, right, but we need 527 00:34:14,120 --> 00:34:17,800 Speaker 1: to understand how it works, and to understand how it works. Really, 528 00:34:19,840 --> 00:34:21,720 Speaker 1: I don't know how far we want to go back 529 00:34:22,080 --> 00:34:27,600 Speaker 1: in today's episode, but for the sake of time, yeah, right, okay, 530 00:34:27,800 --> 00:34:30,799 Speaker 1: so oh seven and then the housing crash, right, and 531 00:34:30,840 --> 00:34:34,640 Speaker 1: then this leads to the foreclosure epidemic you could call 532 00:34:34,680 --> 00:34:40,800 Speaker 1: it in Uncle sam a k. The Feds panic and 533 00:34:41,400 --> 00:34:46,040 Speaker 1: they realized hundreds of thousands of families who otherwise we're 534 00:34:46,040 --> 00:34:49,160 Speaker 1: doing fine before this happened, they are going to lose 535 00:34:49,200 --> 00:34:52,359 Speaker 1: their homes. They went from doing fine and being able 536 00:34:52,360 --> 00:34:54,680 Speaker 1: to pay their bills on time and you know, still 537 00:34:54,760 --> 00:34:59,560 Speaker 1: chase that American dream too, getting physically kicked out of 538 00:35:00,040 --> 00:35:02,480 Speaker 1: their houses, which for many of these families were the 539 00:35:02,520 --> 00:35:06,279 Speaker 1: only equity they had. And so the Feds start saying, look, 540 00:35:06,440 --> 00:35:10,400 Speaker 1: entire neighborhoods are getting boarded up, right, this is bigger 541 00:35:10,719 --> 00:35:14,239 Speaker 1: than one house or one sob story. We might need 542 00:35:14,280 --> 00:35:18,399 Speaker 1: to intervene. The housing market continues to crash, and they say, 543 00:35:18,440 --> 00:35:22,839 Speaker 1: if this continues, prices are going to keep dropping for 544 00:35:22,920 --> 00:35:28,000 Speaker 1: people or institutions that already own property, right, you know, 545 00:35:28,160 --> 00:35:31,520 Speaker 1: homeowners during this time, and they're saying, the value of 546 00:35:31,600 --> 00:35:35,120 Speaker 1: my home is tanking. I'm worried. And the Feds are 547 00:35:35,120 --> 00:35:38,719 Speaker 1: worried because if they don't keep these people happy and 548 00:35:38,800 --> 00:35:42,120 Speaker 1: spending money and investing and keeping the positive feedback loop going, 549 00:35:42,600 --> 00:35:47,319 Speaker 1: then it could endanger the economic recovery. There banking on 550 00:35:47,600 --> 00:35:50,200 Speaker 1: poor choice of words, but there were a lot of 551 00:35:50,200 --> 00:35:52,960 Speaker 1: people who were ready to buy homes. The past few 552 00:35:53,040 --> 00:35:55,839 Speaker 1: years have been hard, you know what I mean. And 553 00:35:55,920 --> 00:35:57,920 Speaker 1: you can even look back now and say, yeah, that 554 00:35:58,000 --> 00:36:00,359 Speaker 1: was that was a rough time. More could is. We're 555 00:36:00,400 --> 00:36:03,319 Speaker 1: also pretty difficult to get so we have to we 556 00:36:03,360 --> 00:36:05,799 Speaker 1: have to dress something because of everything you're seeing here 557 00:36:05,880 --> 00:36:09,080 Speaker 1: been The way you gather wealth meant a lot of 558 00:36:09,080 --> 00:36:10,839 Speaker 1: people know this. You probably know this, but we have 559 00:36:10,920 --> 00:36:14,240 Speaker 1: to state it. The way you generate wealth over time 560 00:36:14,400 --> 00:36:16,640 Speaker 1: by owning a home. Even if you owe a bank 561 00:36:17,120 --> 00:36:19,279 Speaker 1: just a ton of money and you don't you know, 562 00:36:19,360 --> 00:36:21,919 Speaker 1: you own it on paper, but you're paying monthly into 563 00:36:22,000 --> 00:36:24,040 Speaker 1: a mortgage, which is just a loan from a bank. 564 00:36:24,560 --> 00:36:27,560 Speaker 1: The way you generate money is by having a stake 565 00:36:27,560 --> 00:36:30,399 Speaker 1: in that home. More and more money invested into that home. 566 00:36:30,640 --> 00:36:32,600 Speaker 1: That when it's time for you to turn around and 567 00:36:32,640 --> 00:36:35,520 Speaker 1: sell it or borrow more money. Based on how much 568 00:36:36,360 --> 00:36:40,120 Speaker 1: equity you have in that house, you can get more things. 569 00:36:40,239 --> 00:36:44,439 Speaker 1: You can grow yourself. Right and at this point in 570 00:36:44,480 --> 00:36:48,960 Speaker 1: the in the past, when that crash happened, those companies 571 00:36:49,160 --> 00:36:52,319 Speaker 1: were worried about how much their property is worth. But 572 00:36:52,400 --> 00:36:55,040 Speaker 1: each individual family has to worry about how much their 573 00:36:55,080 --> 00:36:57,560 Speaker 1: property is worth because it may mean, well, there's no 574 00:36:57,600 --> 00:36:59,640 Speaker 1: way we can sell this property for a profit. Now 575 00:36:59,719 --> 00:37:02,439 Speaker 1: will have to We'll just have to pay the bank 576 00:37:02,480 --> 00:37:04,839 Speaker 1: of the rest of this mortgage because we're not gonna 577 00:37:04,840 --> 00:37:07,279 Speaker 1: have the money even if we sell the house. I mean, 578 00:37:07,320 --> 00:37:10,799 Speaker 1: it's just a terrible situation. With an individual family, it's 579 00:37:10,840 --> 00:37:12,880 Speaker 1: like you got all your eggs in that one basket. 580 00:37:13,239 --> 00:37:16,600 Speaker 1: With a giant corporation, you're diversified. You know, you've got 581 00:37:16,640 --> 00:37:19,440 Speaker 1: like you. Of course, a giant housing crash across the 582 00:37:19,440 --> 00:37:21,600 Speaker 1: board is not good for them either, but at the 583 00:37:21,680 --> 00:37:24,040 Speaker 1: very least there it's not like they're on the street, 584 00:37:24,440 --> 00:37:27,000 Speaker 1: you know, um and and and to your point about 585 00:37:27,080 --> 00:37:30,719 Speaker 1: generating wealth, uh, by owning houses. That's one way people 586 00:37:30,800 --> 00:37:34,120 Speaker 1: can get into the landlord big game. You know, you 587 00:37:34,200 --> 00:37:37,280 Speaker 1: buy one house, once you have that note that you're carrying, 588 00:37:37,680 --> 00:37:40,680 Speaker 1: it gives you a lot more borrowing power to to 589 00:37:40,760 --> 00:37:44,000 Speaker 1: buy another house. And then you parlay that into some 590 00:37:44,040 --> 00:37:46,560 Speaker 1: sort of rental property and create passive income. And then 591 00:37:46,640 --> 00:37:48,839 Speaker 1: you you flip that one into or not flip it, 592 00:37:49,000 --> 00:37:51,040 Speaker 1: like sell it, but you you know, parlay that into 593 00:37:51,040 --> 00:37:52,799 Speaker 1: a third one. I've got a friend who owns like 594 00:37:52,840 --> 00:37:55,359 Speaker 1: six or seven rental houses here in Atlanta, and he's 595 00:37:55,360 --> 00:37:58,000 Speaker 1: like he's what you'd call a benevolent landlord, like he 596 00:37:58,040 --> 00:38:02,680 Speaker 1: does this to compete to a degree with these companies 597 00:38:02,680 --> 00:38:05,520 Speaker 1: that we're talking about. That that just absolutely gouge rental 598 00:38:05,560 --> 00:38:08,040 Speaker 1: prices and can cause problems across the board for anyone 599 00:38:08,080 --> 00:38:12,120 Speaker 1: that's trying to buy a house. Yeah. Yeah, And you've 600 00:38:12,160 --> 00:38:16,279 Speaker 1: mentioned this person before, and this is you know, they're 601 00:38:16,320 --> 00:38:18,080 Speaker 1: not the only one out there. We're not saying all 602 00:38:18,200 --> 00:38:22,920 Speaker 1: landlords are bad. Most people, of course, the vast majority 603 00:38:22,960 --> 00:38:25,279 Speaker 1: think of themselves as quote unquote the good guys, and 604 00:38:25,280 --> 00:38:28,279 Speaker 1: they're trying to do things that they think are decent. Right, 605 00:38:28,440 --> 00:38:32,080 Speaker 1: Most people are not villains and don't see themselves as such, 606 00:38:32,560 --> 00:38:36,520 Speaker 1: and neither did the federal government in twenty twelve when 607 00:38:36,560 --> 00:38:40,680 Speaker 1: it did intervene and launched a pilot program meant to 608 00:38:40,800 --> 00:38:46,080 Speaker 1: allow private investors a way to easily buy homes that 609 00:38:46,120 --> 00:38:50,040 Speaker 1: have been foreclosed. They buy they were buying them, and 610 00:38:50,080 --> 00:38:52,480 Speaker 1: they could buy them in bulk, by the way, from 611 00:38:53,080 --> 00:38:56,399 Speaker 1: Fannie Maids. They're buying them straight from the government via 612 00:38:56,640 --> 00:39:01,120 Speaker 1: Fannie May And then these new owners here. The idea 613 00:39:01,280 --> 00:39:03,680 Speaker 1: was always that these new owners would rent out these 614 00:39:03,680 --> 00:39:07,640 Speaker 1: homes and they would create more housing in areas that 615 00:39:07,680 --> 00:39:12,719 Speaker 1: had been absolutely trampled by foreclosures. So you can see 616 00:39:12,719 --> 00:39:15,120 Speaker 1: how it feels like an emergency measure, and you can 617 00:39:15,120 --> 00:39:17,640 Speaker 1: see how there's a greater good at play. And I 618 00:39:17,719 --> 00:39:21,720 Speaker 1: love this line. Um, you know, shout out to Meg Burns, 619 00:39:21,719 --> 00:39:25,200 Speaker 1: who was interviewed in this Atlanta another Atlantic article, the 620 00:39:25,239 --> 00:39:29,160 Speaker 1: one you mentioned earlier, Matt by Alana Samuel's. Uh. Meg 621 00:39:29,239 --> 00:39:33,200 Speaker 1: Burns doesn't really try to put any sugarcoating on the 622 00:39:33,239 --> 00:39:37,400 Speaker 1: medicine here. She was former senior Associate director of the 623 00:39:37,440 --> 00:39:40,800 Speaker 1: Office of Housing a regulatory policy, and in an interview 624 00:39:41,040 --> 00:39:44,439 Speaker 1: she just said, we were trying to influence demand. She's 625 00:39:44,440 --> 00:39:46,040 Speaker 1: just being plain about it. We were trying to put 626 00:39:46,040 --> 00:39:50,160 Speaker 1: our thumbs on the scale. We needed to make these 627 00:39:50,200 --> 00:39:53,040 Speaker 1: things more attractive, and we went to investors, and for 628 00:39:53,080 --> 00:39:58,160 Speaker 1: a while the plans seemed successful. Between what just six years, 629 00:39:58,200 --> 00:40:04,000 Speaker 1: two thousand eleven, to some of the world's largest financial entities, 630 00:40:04,360 --> 00:40:07,000 Speaker 1: the hedge funds, the private equity groups, you know what 631 00:40:07,040 --> 00:40:10,960 Speaker 1: I mean, the suits, uh, those cats, fat or otherwise 632 00:40:11,320 --> 00:40:16,080 Speaker 1: spent a combined thirty six billion dollars buy more than 633 00:40:16,200 --> 00:40:21,040 Speaker 1: two hundred thousand homes. And I know, right, it's good 634 00:40:21,080 --> 00:40:24,920 Speaker 1: work if you can get it. Uh. Meanwhile, I know 635 00:40:25,000 --> 00:40:26,840 Speaker 1: I say this too much, but I can't get away 636 00:40:26,840 --> 00:40:30,759 Speaker 1: with a late fee at the library. Seriously, the spirit Child, 637 00:40:30,800 --> 00:40:34,680 Speaker 1: you're gonna sweat me on this. Listen to the show. 638 00:40:34,760 --> 00:40:39,960 Speaker 1: She's a real stickler, Ben. Really, I respect, order must exist. 639 00:40:40,680 --> 00:40:44,120 Speaker 1: I I just have to reiterated the concept of why 640 00:40:44,160 --> 00:40:48,919 Speaker 1: this functions, the concept of why that worked from. Because 641 00:40:49,000 --> 00:40:51,680 Speaker 1: the people who are foreclosed on, the people who you know, 642 00:40:51,920 --> 00:40:54,600 Speaker 1: may need to live to live in that area for 643 00:40:54,680 --> 00:40:57,560 Speaker 1: work or whatever it is. They don't have the money 644 00:40:58,000 --> 00:41:01,799 Speaker 1: to pay that big mortgage and costs of owning a 645 00:41:01,880 --> 00:41:03,799 Speaker 1: home like that. But they may be able to pay 646 00:41:03,840 --> 00:41:06,920 Speaker 1: a little bit less every month if it's just a 647 00:41:07,080 --> 00:41:09,920 Speaker 1: rent that they're paying, right, if they can, if you 648 00:41:09,960 --> 00:41:12,880 Speaker 1: can reduce that cost down just enough by having it 649 00:41:13,520 --> 00:41:16,239 Speaker 1: serve as a rental property rather than you know, the 650 00:41:16,239 --> 00:41:17,799 Speaker 1: amount of money you would need to make a down 651 00:41:17,800 --> 00:41:20,600 Speaker 1: payment on a home or whatever you would take to 652 00:41:21,400 --> 00:41:23,000 Speaker 1: you know, if you let's say you own three homes, 653 00:41:23,239 --> 00:41:25,400 Speaker 1: can't pay money for three of those homes, but you 654 00:41:25,400 --> 00:41:29,560 Speaker 1: could rent one and you'd be okay. You could get by, 655 00:41:29,600 --> 00:41:31,640 Speaker 1: but you wouldn't be able to generate the wealth you 656 00:41:31,640 --> 00:41:35,120 Speaker 1: would need to buy a home right exactly. And this 657 00:41:35,239 --> 00:41:40,640 Speaker 1: is you know, to to paint this out fully. UM, 658 00:41:40,760 --> 00:41:42,959 Speaker 1: we're going to tell you a little bit about what's 659 00:41:43,000 --> 00:41:47,600 Speaker 1: going on in Atlanta. Atlanta, where this podcast is Baseball 660 00:41:47,640 --> 00:41:52,440 Speaker 1: Disclosure is an epicenter of this strategy, in this practice 661 00:41:53,320 --> 00:41:58,879 Speaker 1: here in this fair metropolis. For example, UH investors made 662 00:41:58,960 --> 00:42:03,840 Speaker 1: up nearly sixty percent of home purchases in UH in 663 00:42:03,880 --> 00:42:06,920 Speaker 1: a zip code in South Fulton three zero three four 664 00:42:07,040 --> 00:42:09,279 Speaker 1: nine if you want to look it up. And and 665 00:42:09,360 --> 00:42:13,720 Speaker 1: a little bit before that, they bought Investors overall bought 666 00:42:13,800 --> 00:42:17,840 Speaker 1: nine of the homes and another Atlanta zip code. It's 667 00:42:17,880 --> 00:42:22,800 Speaker 1: a real thing. It's happening. And today if you travel 668 00:42:22,880 --> 00:42:25,279 Speaker 1: down to Atlanta and you want to you want to 669 00:42:25,280 --> 00:42:28,000 Speaker 1: pick up a house, you're going to find that more 670 00:42:28,040 --> 00:42:32,640 Speaker 1: than twenty seven thousand single family homes in metro Atlanta 671 00:42:32,800 --> 00:42:37,560 Speaker 1: alone are owned by just four entities, just four companies, 672 00:42:37,920 --> 00:42:43,560 Speaker 1: Invitation Homes, American Homes four rent number four because they 673 00:42:43,600 --> 00:42:45,799 Speaker 1: take the savings on the ink I imagine and pass 674 00:42:45,840 --> 00:42:49,239 Speaker 1: it down to you. Try Cone Residential and then something 675 00:42:49,320 --> 00:42:52,520 Speaker 1: named front Yard Residential, and Matt you were pointing out 676 00:42:52,600 --> 00:42:56,399 Speaker 1: off air, UH that not all of these things are 677 00:42:56,560 --> 00:42:59,080 Speaker 1: they're they're kind of like doing business as but they 678 00:42:59,120 --> 00:43:02,080 Speaker 1: have their own mass years. Yeah, they all have issues. 679 00:43:02,520 --> 00:43:05,680 Speaker 1: I was reading another article earlier from the New York 680 00:43:05,719 --> 00:43:11,240 Speaker 1: Post um by Larry Gatland posted in so years ago, 681 00:43:11,480 --> 00:43:13,920 Speaker 1: and it was based off of a lot of the 682 00:43:14,080 --> 00:43:17,359 Speaker 1: reporting was based on a book titled Underwater, How Our 683 00:43:17,400 --> 00:43:21,640 Speaker 1: American Dream of Home Ownership Became a Nightmare by Ryan December. 684 00:43:22,200 --> 00:43:25,600 Speaker 1: And Uh, it was pointing out several of these companies, 685 00:43:26,160 --> 00:43:29,640 Speaker 1: specifically American Homes for Rent, which quote was founded by 686 00:43:29,719 --> 00:43:35,399 Speaker 1: billionaire self storage magnate b Wayne Hughes and in when 687 00:43:35,480 --> 00:43:37,680 Speaker 1: that book was written, or at least when this article 688 00:43:37,719 --> 00:43:43,160 Speaker 1: was written, Uh, he owned forty eight thousand houses by 689 00:43:43,200 --> 00:43:47,040 Speaker 1: the end of TWI So, uh, think about that, by 690 00:43:47,080 --> 00:43:50,120 Speaker 1: the end of eight thousand houses. Then when I'm going 691 00:43:50,160 --> 00:43:53,320 Speaker 1: to look for a house to rent in Buford in two, 692 00:43:54,320 --> 00:43:58,360 Speaker 1: every other home that I find is owned by American 693 00:43:58,400 --> 00:44:02,640 Speaker 1: Homes for Rent. But they they don't write out fo R. 694 00:44:02,880 --> 00:44:05,719 Speaker 1: They just put the letter for aren't they Are they 695 00:44:05,760 --> 00:44:10,840 Speaker 1: not passing that savings on? Why else would you decide 696 00:44:10,840 --> 00:44:13,520 Speaker 1: on that title? So, I mean by the state of 697 00:44:13,560 --> 00:44:18,920 Speaker 1: their homes. Uh, they're passing it on In just a 698 00:44:18,960 --> 00:44:22,080 Speaker 1: non need to repair anything in the house. That's right. 699 00:44:22,560 --> 00:44:25,719 Speaker 1: And again it's a smaller example, um, but I would 700 00:44:25,719 --> 00:44:29,360 Speaker 1: be interested to trace the ownership and stakeholders in this company, 701 00:44:29,400 --> 00:44:32,640 Speaker 1: Excalibur Homes if you look them up. They have divisions 702 00:44:32,719 --> 00:44:36,120 Speaker 1: elsewhere in the country for sure. And uh, just about it. 703 00:44:36,200 --> 00:44:37,840 Speaker 1: It's very easy to if you're looking for a rental 704 00:44:37,840 --> 00:44:39,759 Speaker 1: property here in Atlanta, for one of them to be 705 00:44:39,800 --> 00:44:43,960 Speaker 1: owned by Excalibur Homes. Um. And it's to your point, Matt, 706 00:44:44,040 --> 00:44:47,880 Speaker 1: like they're really just kind of letting them deteriorate until 707 00:44:48,600 --> 00:44:50,439 Speaker 1: it's time to do something else with them. And that's 708 00:44:50,440 --> 00:44:53,080 Speaker 1: the case a lot of rental properties, because unlike the 709 00:44:53,080 --> 00:44:56,560 Speaker 1: flipper that you mentioned, it's a much cheaper proposition to 710 00:44:56,640 --> 00:45:00,120 Speaker 1: pay cash for a house, deprive someone who maybe is 711 00:45:00,120 --> 00:45:02,400 Speaker 1: going to put some love and attention and care into it, 712 00:45:02,800 --> 00:45:06,879 Speaker 1: and just collect rent on it indefinitely, Um, until it's 713 00:45:06,920 --> 00:45:09,400 Speaker 1: in such a state that a code of paint and 714 00:45:09,440 --> 00:45:11,279 Speaker 1: a few you know, replaced fixtures isn't going to do 715 00:45:11,320 --> 00:45:13,440 Speaker 1: the trick anymore. And then you have to go to 716 00:45:13,520 --> 00:45:15,880 Speaker 1: kind of phase two, which would either be tearing it 717 00:45:15,920 --> 00:45:18,759 Speaker 1: down and building up a McMansion of some kind, which 718 00:45:18,800 --> 00:45:20,880 Speaker 1: there's tons of those around here as well, in these 719 00:45:20,880 --> 00:45:23,600 Speaker 1: neighborhoods where there's these like you know, shotgun houses on 720 00:45:23,600 --> 00:45:27,279 Speaker 1: one street and then these gaudy mcmansion's on the next. Uh. 721 00:45:27,320 --> 00:45:30,880 Speaker 1: It's all kind of willy nilly here. It's very interesting 722 00:45:31,200 --> 00:45:33,960 Speaker 1: to witness, you know, in real time. Well and it 723 00:45:34,080 --> 00:45:37,480 Speaker 1: it makes a lot of sense, at least to me. 724 00:45:38,200 --> 00:45:40,040 Speaker 1: And I kind of agree with a lot of the 725 00:45:40,120 --> 00:45:43,960 Speaker 1: critics that are out there who blame that the federal 726 00:45:44,000 --> 00:45:47,920 Speaker 1: incentive that you talked about ben after the foreclosure crisis, right, 727 00:45:48,440 --> 00:45:51,960 Speaker 1: this incentive to allow corporations to to just gobble up 728 00:45:52,080 --> 00:45:54,600 Speaker 1: all of this land and all of these homes. But 729 00:45:54,760 --> 00:46:01,680 Speaker 1: another problem is local regulation like state exam or lack thereof. Yeah, 730 00:46:02,000 --> 00:46:06,160 Speaker 1: I mean, I love I love our city um so much. 731 00:46:06,239 --> 00:46:10,040 Speaker 1: I should have warned some of my Atlanta swag today. Instead, 732 00:46:10,080 --> 00:46:12,640 Speaker 1: I'm rocking a stuff to blow your mind shirt. I 733 00:46:12,640 --> 00:46:14,440 Speaker 1: know I've been wearing this a lot, guys. I have 734 00:46:14,680 --> 00:46:18,279 Speaker 1: five of these shirts. I just keep changing them out. 735 00:46:18,960 --> 00:46:21,719 Speaker 1: It's cool. I feel like the multiple man from Marvel Comics. 736 00:46:21,760 --> 00:46:25,520 Speaker 1: But if you remember. But anyway, you guys are absolutely right. 737 00:46:25,960 --> 00:46:29,560 Speaker 1: This is a transformative time, and not necessarily in a 738 00:46:29,640 --> 00:46:33,560 Speaker 1: good way, and man, I have like three fillings a year, 739 00:46:33,560 --> 00:46:35,840 Speaker 1: and I spent one on this, this story, This stuff 740 00:46:35,880 --> 00:46:38,359 Speaker 1: we can't get to yet. But we're not just being 741 00:46:38,440 --> 00:46:41,279 Speaker 1: We're not being self absorbed talking about Atlanta. It is 742 00:46:41,520 --> 00:46:44,239 Speaker 1: not just an example of what's happening and what will 743 00:46:44,360 --> 00:46:47,040 Speaker 1: start to happen in more places. I argue it is 744 00:46:47,120 --> 00:46:50,919 Speaker 1: a harbinger, It is a prototype. Like you said, Matt, 745 00:46:51,120 --> 00:46:55,760 Speaker 1: people are rightly blame tracing it back to that earlier 746 00:46:55,800 --> 00:46:58,840 Speaker 1: federal incentive, which again traces back to the two thousand 747 00:46:58,920 --> 00:47:03,520 Speaker 1: seven two eight crisis and the lack of local regulations 748 00:47:03,680 --> 00:47:07,719 Speaker 1: in many places. This issue became so dangerous, people are 749 00:47:07,760 --> 00:47:11,279 Speaker 1: so worried about what's on the horizon that earlier this year, 750 00:47:12,880 --> 00:47:18,080 Speaker 1: UH Georgia House representatives started a committee to study actual regulations. 751 00:47:18,400 --> 00:47:21,720 Speaker 1: Do you know how weird it is for the State 752 00:47:21,840 --> 00:47:25,400 Speaker 1: of Georgia to say, hey, we might need some regulations. 753 00:47:25,840 --> 00:47:28,520 Speaker 1: This is the same state that said, I don't know 754 00:47:28,560 --> 00:47:30,600 Speaker 1: if you need a license for a gun, you know, 755 00:47:30,840 --> 00:47:36,160 Speaker 1: just like do a vibe check. And even even that, 756 00:47:36,560 --> 00:47:39,840 Speaker 1: even that government, that state government, which is you know, 757 00:47:40,000 --> 00:47:44,920 Speaker 1: historically been opposed to lots of regulations, especially if they 758 00:47:44,960 --> 00:47:48,759 Speaker 1: were seen as impacting businesses. They said, something has to 759 00:47:48,800 --> 00:47:51,960 Speaker 1: be done. So what is this indicative of, Well, it's 760 00:47:52,000 --> 00:47:55,680 Speaker 1: indicative of a problem. And one of the best things 761 00:47:55,719 --> 00:47:58,440 Speaker 1: about this show, in my mind, is that we don't 762 00:47:59,120 --> 00:48:03,160 Speaker 1: we don't spend a lot out of time talking um 763 00:48:03,200 --> 00:48:07,759 Speaker 1: just about our experiences. We only we bring stuff that 764 00:48:07,880 --> 00:48:10,359 Speaker 1: is impactful to you, and we want you to know 765 00:48:10,440 --> 00:48:13,279 Speaker 1: this is sitting home not just for people in our 766 00:48:13,400 --> 00:48:17,760 Speaker 1: fair metropolis, but for people across the country. We're gonna 767 00:48:17,840 --> 00:48:20,720 Speaker 1: pause for a word from our sponsors, and we're gonna 768 00:48:20,760 --> 00:48:26,680 Speaker 1: return and talk more about at least experiences in Atlanta. 769 00:48:27,120 --> 00:48:29,800 Speaker 1: And unfortunately, I guarantee you, for some of us in 770 00:48:29,840 --> 00:48:33,600 Speaker 1: the audience today, you're going to have deja vu because 771 00:48:33,640 --> 00:48:35,600 Speaker 1: something like this has happened to you. As a matter 772 00:48:35,600 --> 00:48:37,720 Speaker 1: of fact, we're going to make this a two parter. Anyway, 773 00:48:37,800 --> 00:48:40,000 Speaker 1: let's pause for the sponsor break. We'll be back, going 774 00:48:40,040 --> 00:48:50,239 Speaker 1: back to Atlanta, and we've returned. Welcome to Atlanta, where 775 00:48:50,239 --> 00:48:53,680 Speaker 1: the investment banks play and the hedge funds raise rent 776 00:48:53,920 --> 00:49:04,800 Speaker 1: every day. Just uh sir, uh ex work, Uh my captives. Oh, 777 00:49:04,840 --> 00:49:08,000 Speaker 1: that's what we'd be saying if I were ex Caliber, 778 00:49:08,160 --> 00:49:13,760 Speaker 1: or if I were homes for rent. Excuse me, American Americans. Yeah, 779 00:49:13,800 --> 00:49:18,080 Speaker 1: my bad. So there's a lot of stuff we can 780 00:49:18,120 --> 00:49:21,360 Speaker 1: pull from this. I mean, you know, NOL, you had 781 00:49:22,080 --> 00:49:25,399 Speaker 1: you would recently purchased the house, and you had an 782 00:49:25,400 --> 00:49:27,879 Speaker 1: experience that you have been talking to us about, both 783 00:49:27,920 --> 00:49:32,240 Speaker 1: off and on air and not. You have dug into 784 00:49:33,200 --> 00:49:38,279 Speaker 1: some of the news about other proxies that these financial 785 00:49:38,400 --> 00:49:42,560 Speaker 1: entities are using, right like, But I can give you 786 00:49:42,680 --> 00:49:47,040 Speaker 1: firsthand experience on specific companies that are that we've already 787 00:49:47,040 --> 00:49:50,799 Speaker 1: mentioned today that in other ones, because I just went 788 00:49:50,800 --> 00:49:52,680 Speaker 1: through the process of looking for a house to rent 789 00:49:52,800 --> 00:49:57,000 Speaker 1: in North Georgia. Let's say the north suburban Atlanta, Georgia. 790 00:49:57,239 --> 00:49:58,920 Speaker 1: It's not is it the suburbs? I guess it's the 791 00:49:58,960 --> 00:50:04,960 Speaker 1: suburbs the bubburbs. Yeah, it's what we affectionately referred to 792 00:50:05,040 --> 00:50:08,399 Speaker 1: as O t P outside the perimeter, which I think 793 00:50:08,400 --> 00:50:12,960 Speaker 1: technically becomes a bedroom community. I thought that meant on 794 00:50:13,080 --> 00:50:20,280 Speaker 1: the pain. Yeah, it means whatever you wanted to make Well, 795 00:50:20,480 --> 00:50:23,040 Speaker 1: I have to follow up with some folks on my Twitter. 796 00:50:23,200 --> 00:50:27,719 Speaker 1: Sorry about that. I thought you were moving on the Okay, no, 797 00:50:28,000 --> 00:50:31,640 Speaker 1: that makes much more sense. That's a much more reasonable acronym. 798 00:50:31,760 --> 00:50:35,759 Speaker 1: But but yeah, you are. We know this has to 799 00:50:35,800 --> 00:50:38,759 Speaker 1: be a two parter because this is hitting home and 800 00:50:38,880 --> 00:50:42,520 Speaker 1: this is not again, can't emphasize this enough. This is 801 00:50:42,560 --> 00:50:47,759 Speaker 1: not just us talking about ourselves. This is something that 802 00:50:47,920 --> 00:50:51,200 Speaker 1: is on the way to you folks, and we can 803 00:50:51,280 --> 00:50:55,040 Speaker 1: prove this case. Uh, A lot of people, like we 804 00:50:55,120 --> 00:50:57,560 Speaker 1: talked about, a lot of people in Atlanta and other 805 00:50:57,640 --> 00:51:01,279 Speaker 1: parts of the country thought, maybe not to profit off 806 00:51:01,360 --> 00:51:04,080 Speaker 1: human misery, maybe this will be the time I can 807 00:51:04,120 --> 00:51:06,560 Speaker 1: finally afford a house. I can get a piece of 808 00:51:06,560 --> 00:51:11,040 Speaker 1: that American dream. But even as the pandemic became normalized, 809 00:51:11,120 --> 00:51:14,000 Speaker 1: even as um more people are going back to work, 810 00:51:14,040 --> 00:51:16,360 Speaker 1: more people are going out and doing stuff and traveling, 811 00:51:17,520 --> 00:51:20,680 Speaker 1: the problem with getting a house if you're not an 812 00:51:20,680 --> 00:51:24,840 Speaker 1: investment company just got worse. Right, And and Matt, you 813 00:51:24,880 --> 00:51:27,839 Speaker 1: said you had a personal experience that you got add 814 00:51:27,880 --> 00:51:29,360 Speaker 1: on this, and I want to I want to do 815 00:51:29,400 --> 00:51:33,640 Speaker 1: an experiment with you as well. Here, Noel, tell your 816 00:51:33,640 --> 00:51:38,200 Speaker 1: stories and let's see how many people have very similar experiences. 817 00:51:38,880 --> 00:51:40,920 Speaker 1: I'm interested. Well, I can tell you a lot of 818 00:51:40,920 --> 00:51:44,200 Speaker 1: people are gonna have similar experiences because I looked up 819 00:51:44,360 --> 00:51:47,080 Speaker 1: all the reviews for these specific companies, and I'll tell 820 00:51:47,080 --> 00:51:50,120 Speaker 1: you which ones. They were invitation homes that you mentioned 821 00:51:50,120 --> 00:51:54,879 Speaker 1: ben American Homes, the number four rent and another one 822 00:51:54,960 --> 00:51:57,800 Speaker 1: Progress Residential. I didn't look up anything. What was it? 823 00:51:57,880 --> 00:52:00,920 Speaker 1: What was it? Yours called no excalop Homes, but the 824 00:52:01,000 --> 00:52:04,279 Speaker 1: reviews for mine were also absolutely abysmal. But at this 825 00:52:04,320 --> 00:52:06,480 Speaker 1: point I already signed the lease and I was like, oh, well, 826 00:52:06,640 --> 00:52:08,200 Speaker 1: I guess this is my life for the next couple 827 00:52:08,239 --> 00:52:10,560 Speaker 1: of years. Well here, here, this is what I want 828 00:52:10,600 --> 00:52:13,680 Speaker 1: to describe to you. I read the reviews. I went 829 00:52:13,760 --> 00:52:19,360 Speaker 1: to Progress Residential thinking, Okay, I have to get a place. 830 00:52:19,920 --> 00:52:21,799 Speaker 1: I have specific things going on in my life where 831 00:52:21,840 --> 00:52:23,600 Speaker 1: I need to buy up. I need to live in 832 00:52:23,640 --> 00:52:27,520 Speaker 1: a specific area where my son is, and I had 833 00:52:27,560 --> 00:52:29,959 Speaker 1: to get a house. So I just looked and looked 834 00:52:29,960 --> 00:52:34,400 Speaker 1: and looked, and I kept not getting approved because somebody 835 00:52:34,440 --> 00:52:37,560 Speaker 1: got there before me, because there's such a shortage of inventory, 836 00:52:37,640 --> 00:52:39,600 Speaker 1: which is one of the main themes of this episode, 837 00:52:39,760 --> 00:52:42,800 Speaker 1: a shortage of homes that are available both for rent 838 00:52:42,920 --> 00:52:45,239 Speaker 1: and for sale, at least as I'm looking through it 839 00:52:45,239 --> 00:52:48,759 Speaker 1: over the course of about half a year. And I 840 00:52:48,800 --> 00:52:52,120 Speaker 1: finally sign up and get an application in with this 841 00:52:52,239 --> 00:52:55,160 Speaker 1: company and it's looking good, and then I read the 842 00:52:55,160 --> 00:52:59,200 Speaker 1: fine print. And I did the same thing with American 843 00:52:59,239 --> 00:53:01,759 Speaker 1: homes for rent. You read the fine print on what 844 00:53:01,840 --> 00:53:05,360 Speaker 1: your lease would actually entail, because it's already crazy expensive 845 00:53:05,680 --> 00:53:08,600 Speaker 1: for you know, to rent a home like it's way 846 00:53:08,600 --> 00:53:12,279 Speaker 1: too expensive. I I can't give you a specific percentage. 847 00:53:12,320 --> 00:53:15,040 Speaker 1: It's just if you were paying a mortgage on these 848 00:53:15,080 --> 00:53:18,000 Speaker 1: homes that I was looking at renting, it would be 849 00:53:18,080 --> 00:53:21,000 Speaker 1: we are talking hundreds and hundreds of dollars less a 850 00:53:21,040 --> 00:53:23,920 Speaker 1: month if you actually had a mortgage on these homes. 851 00:53:25,080 --> 00:53:27,560 Speaker 1: On top of it, you're gonna pay the bills for 852 00:53:27,600 --> 00:53:31,479 Speaker 1: all the utilities. But the company takes all of those 853 00:53:31,520 --> 00:53:34,560 Speaker 1: bills and then just gives you a bulk sum every 854 00:53:34,600 --> 00:53:37,680 Speaker 1: time you pay a monthly rent. And you're not gonna 855 00:53:37,719 --> 00:53:39,399 Speaker 1: it's a black box. You're not gonna get to see 856 00:53:39,400 --> 00:53:42,080 Speaker 1: into it. And I just had to. I had to 857 00:53:42,120 --> 00:53:44,600 Speaker 1: walk away from all of these places, all of these companies, 858 00:53:44,600 --> 00:53:47,000 Speaker 1: because they all do the same thing, and they know 859 00:53:47,080 --> 00:53:49,880 Speaker 1: that you, as the person applying for rent who needs 860 00:53:49,880 --> 00:53:51,160 Speaker 1: to rent one of these homes and live in a 861 00:53:51,200 --> 00:53:54,120 Speaker 1: specific place, you just have to go along with it 862 00:53:54,360 --> 00:53:56,640 Speaker 1: because there's nothing you can do about it. What are 863 00:53:56,680 --> 00:53:59,880 Speaker 1: you gonna do? You know, what I mean saying it 864 00:54:00,280 --> 00:54:05,120 Speaker 1: on the podcast. No, this is all I mean. It's true, dude, 865 00:54:05,680 --> 00:54:09,880 Speaker 1: this is all provable, and it's also a you know again, 866 00:54:09,920 --> 00:54:14,080 Speaker 1: you could say it's part of how how the sausage 867 00:54:14,160 --> 00:54:17,680 Speaker 1: is made. And at this point it's important to note 868 00:54:18,040 --> 00:54:23,160 Speaker 1: these companies are not doing anything illegal. They are yeah, 869 00:54:23,200 --> 00:54:26,400 Speaker 1: they're doing letter of the law. Um, and we're gonna 870 00:54:26,480 --> 00:54:33,440 Speaker 1: see how this conversation changes over time. I'm quite excited also, 871 00:54:33,520 --> 00:54:37,480 Speaker 1: guys for part two of what's become a series Now, 872 00:54:37,520 --> 00:54:40,399 Speaker 1: I think we're all we're all pretty invested in this. 873 00:54:41,560 --> 00:54:45,120 Speaker 1: Choose the worst words today. So we're going to in 874 00:54:45,120 --> 00:54:50,400 Speaker 1: the future episode look at how this targeting works, what 875 00:54:50,560 --> 00:54:55,000 Speaker 1: the targeting is, and we're going to ask not just 876 00:54:55,160 --> 00:55:00,200 Speaker 1: whether this is a problem today, but what it means 877 00:55:00,280 --> 00:55:04,719 Speaker 1: for the future. Because again, the people being affected by 878 00:55:04,760 --> 00:55:08,680 Speaker 1: this right now are not the folks who are maybe 879 00:55:08,760 --> 00:55:12,480 Speaker 1: retiring and buying a retirement home. They're not the folks 880 00:55:12,600 --> 00:55:18,440 Speaker 1: necessarily who are um getting a vacation house off of 881 00:55:18,480 --> 00:55:22,080 Speaker 1: the two rental properties that they already have, not counting 882 00:55:22,360 --> 00:55:26,760 Speaker 1: their actual domicile. We're talking about the people who are 883 00:55:26,840 --> 00:55:30,600 Speaker 1: chasing that so called American dream. The folks who want 884 00:55:30,680 --> 00:55:34,320 Speaker 1: to have their first house right in a good school district, 885 00:55:34,520 --> 00:55:36,759 Speaker 1: right because you know you've been having the conversation with 886 00:55:36,800 --> 00:55:39,840 Speaker 1: your partner. You might have kids, right, or there's a 887 00:55:39,840 --> 00:55:42,839 Speaker 1: great program that would be perfect for your little tyke, 888 00:55:43,160 --> 00:55:46,440 Speaker 1: your kiddo, But how can you compete? I can't afford 889 00:55:46,480 --> 00:55:49,560 Speaker 1: a house in a good school district. I mean it's 890 00:55:49,600 --> 00:55:53,360 Speaker 1: like that's that's a bridge too far, you know. Um, 891 00:55:53,360 --> 00:55:56,759 Speaker 1: it's is nearly impossible to both have a house that 892 00:55:56,880 --> 00:56:00,600 Speaker 1: is affordable, you know, two mere mortals, and also be 893 00:56:00,640 --> 00:56:02,480 Speaker 1: in a good school district. So you kind of then 894 00:56:02,600 --> 00:56:05,719 Speaker 1: end up depending on either charter schools or magnet schools 895 00:56:05,800 --> 00:56:09,280 Speaker 1: or private schools. There's a whole another thing into into itself. 896 00:56:09,520 --> 00:56:13,280 Speaker 1: But there's no guarantee to a good education in this country. Again, 897 00:56:13,480 --> 00:56:17,399 Speaker 1: pursuit of happiness, do your best. Hold my beer says 898 00:56:17,400 --> 00:56:22,040 Speaker 1: America watch this. But but so guys, guys, can I 899 00:56:22,120 --> 00:56:24,560 Speaker 1: leave Can I leave you with something at this Atlanta 900 00:56:24,640 --> 00:56:26,879 Speaker 1: specific It's something I want to see. If you guys 901 00:56:26,920 --> 00:56:31,520 Speaker 1: have heard of before, have you heard of super Tuesday 902 00:56:31,560 --> 00:56:35,600 Speaker 1: in Atlanta with regards to the housing market, Yes, I have, 903 00:56:35,880 --> 00:56:39,000 Speaker 1: and it's screwed up. Yeah, it's a thing. It's a 904 00:56:39,080 --> 00:56:43,400 Speaker 1: thing in Atlanta, and there's there's a group of people 905 00:56:43,440 --> 00:56:46,359 Speaker 1: who meet at a Sheridan Hotel in Atlanta, and it's 906 00:56:46,360 --> 00:56:48,839 Speaker 1: been happening since the thing we you talked about ben 907 00:56:49,280 --> 00:56:52,880 Speaker 1: with the foreclosure crisis, where corporations can buy up homes 908 00:56:53,080 --> 00:56:57,799 Speaker 1: and they just bid on homes and regular people like 909 00:56:57,920 --> 00:57:01,120 Speaker 1: us could go. But ultimately and what it's turned into, 910 00:57:01,400 --> 00:57:03,359 Speaker 1: the hedge funds just go or they send you know, 911 00:57:03,520 --> 00:57:06,520 Speaker 1: a couple of people call them lackeys. Now there's probably 912 00:57:06,520 --> 00:57:08,239 Speaker 1: someone out there who works for hedge fund who buys 913 00:57:08,239 --> 00:57:10,880 Speaker 1: homes is a great person. It's just your job. But 914 00:57:11,400 --> 00:57:14,520 Speaker 1: somebody goes out there and just bids a dollar more 915 00:57:16,200 --> 00:57:19,880 Speaker 1: anybody else every time, call them hedge fundamentalist. There we go, 916 00:57:20,480 --> 00:57:24,120 Speaker 1: uh so like they travel fighting what they see is 917 00:57:24,160 --> 00:57:26,560 Speaker 1: the good fight. Well we'll talk about the advantages there. 918 00:57:26,600 --> 00:57:29,160 Speaker 1: But super Tuesday is the thing and you oh seven 919 00:57:29,280 --> 00:57:32,760 Speaker 1: oh ay. Here, as in many other cities, you could 920 00:57:32,800 --> 00:57:36,280 Speaker 1: go out to literally the courthouse steps and there would 921 00:57:36,280 --> 00:57:40,120 Speaker 1: be people acting off for closed homes and individuals bought 922 00:57:40,160 --> 00:57:42,640 Speaker 1: a lot, and so did banks, and so did other 923 00:57:43,040 --> 00:57:46,800 Speaker 1: financial institutions that don't obey the same regulations banks do 924 00:57:47,280 --> 00:57:49,960 Speaker 1: they just get the advantages of being a bank. And 925 00:57:50,080 --> 00:57:53,440 Speaker 1: those those type of folks, members of those organizations or 926 00:57:53,440 --> 00:57:57,240 Speaker 1: even individuals, would say, and why wouldn't I do that? Right, 927 00:57:57,440 --> 00:58:00,680 Speaker 1: It's it's how the system is designed. It is my 928 00:58:01,360 --> 00:58:05,520 Speaker 1: god given right as a savvy business person who pays 929 00:58:05,560 --> 00:58:08,680 Speaker 1: my taxes and takes care of my stuff to be 930 00:58:08,800 --> 00:58:11,360 Speaker 1: able to do this. And it's not fair of you 931 00:58:11,440 --> 00:58:13,600 Speaker 1: to cast me as some kind of villain as though 932 00:58:13,720 --> 00:58:18,400 Speaker 1: I'm benefiting from the misery of others. That's not fair. 933 00:58:18,600 --> 00:58:21,880 Speaker 1: Whoa paying taxes? What are you pour? Get out? Get 934 00:58:21,880 --> 00:58:25,520 Speaker 1: out of the Sheridan fair? But that's the same thing 935 00:58:25,560 --> 00:58:28,160 Speaker 1: there to ben when someone like a super rich person 936 00:58:28,280 --> 00:58:30,840 Speaker 1: like you know, Donald Trump or Warren Buffet or whatever, 937 00:58:31,160 --> 00:58:33,000 Speaker 1: you know, we know that they don't pay taxes. But 938 00:58:33,040 --> 00:58:35,720 Speaker 1: there it's not illegal. Again, it's the system. The system 939 00:58:35,840 --> 00:58:39,720 Speaker 1: is not designed to benefit regular people. It's deeper than skin. 940 00:58:39,880 --> 00:58:42,280 Speaker 1: It's the system that they're keeping us in. Yes, dead 941 00:58:42,320 --> 00:58:45,360 Speaker 1: Present was right about that part, but but this, I mean, 942 00:58:45,440 --> 00:58:48,640 Speaker 1: there's another thing here. Um. I also want to close 943 00:58:48,720 --> 00:58:50,600 Speaker 1: with this. We have so much more to talk about. 944 00:58:50,680 --> 00:58:52,640 Speaker 1: Hopefully we can make it just a two parter, but 945 00:58:53,000 --> 00:58:57,960 Speaker 1: we'll see. Uh, we we should point out that we're 946 00:58:57,960 --> 00:59:01,760 Speaker 1: gonna talk about structural manages in part two, and this 947 00:59:01,840 --> 00:59:03,920 Speaker 1: is a huge part of what could be called a 948 00:59:03,960 --> 00:59:08,160 Speaker 1: conspiracy or could just be called good business. Uh. One 949 00:59:08,240 --> 00:59:11,320 Speaker 1: thing that I think it's really important to remember is 950 00:59:11,400 --> 00:59:15,600 Speaker 1: that these larger organizations that you, as a first time 951 00:59:16,040 --> 00:59:21,240 Speaker 1: homeowner are going up against, they have a much longer 952 00:59:21,560 --> 00:59:25,760 Speaker 1: horizon of time. Their window of profit or the wind 953 00:59:25,920 --> 00:59:28,439 Speaker 1: by which I mean the interval of time over which 954 00:59:28,480 --> 00:59:31,480 Speaker 1: they need to turn a profit, is much much longer 955 00:59:31,680 --> 00:59:36,000 Speaker 1: than the average persons will ever be. That's why institutions 956 00:59:36,040 --> 00:59:38,840 Speaker 1: like the Crown and the United Kingdom or the Vatican 957 00:59:39,320 --> 00:59:42,240 Speaker 1: in Rome. That's why they can buy so much land. 958 00:59:42,640 --> 00:59:45,720 Speaker 1: They can lose money on it for literally hundreds of 959 00:59:45,840 --> 00:59:52,720 Speaker 1: years if need be, and you unfortunately cannot. You know, Uh, 960 00:59:52,920 --> 00:59:57,240 Speaker 1: this this ability to run that loss, you know that 961 00:59:57,400 --> 00:59:59,960 Speaker 1: is that is a huge factor. And I wish warp 962 01:00:00,000 --> 01:00:02,919 Speaker 1: people talked about it. I think we the spirit moves 963 01:00:03,000 --> 01:00:04,440 Speaker 1: both of you. I just wanted that to be the 964 01:00:04,520 --> 01:00:08,640 Speaker 1: end of the episode, and you unfortunately cannot. Well that's 965 01:00:08,640 --> 01:00:14,200 Speaker 1: been the show. Maybe maybe we wrap even with just 966 01:00:14,240 --> 01:00:16,120 Speaker 1: a glimmer of hope. And I just want to just 967 01:00:16,200 --> 01:00:20,280 Speaker 1: describe my situation very briefly. Um, I was incredibly lucky 968 01:00:20,320 --> 01:00:22,280 Speaker 1: and that I, you know, was able to get a 969 01:00:22,320 --> 01:00:25,520 Speaker 1: realer who is a family friend, who took me to 970 01:00:25,560 --> 01:00:27,320 Speaker 1: look at six places. On the very first day that 971 01:00:27,360 --> 01:00:29,120 Speaker 1: we looked at places, I was literally just gonna dip 972 01:00:29,160 --> 01:00:32,120 Speaker 1: my toe and just see some properties. AS found this 973 01:00:32,160 --> 01:00:35,160 Speaker 1: place that I absolutely loved. Fully knowing the struggle that 974 01:00:35,200 --> 01:00:37,680 Speaker 1: many of our friends and people in our peer group 975 01:00:37,880 --> 01:00:40,640 Speaker 1: have had, you know, looking at six seven different homes, 976 01:00:41,160 --> 01:00:43,800 Speaker 1: bidding on six seven different homes, getting constantly outbid by 977 01:00:43,800 --> 01:00:47,440 Speaker 1: these cash offers from these corporations. I was fully expecting 978 01:00:47,480 --> 01:00:51,080 Speaker 1: that myself. But for whatever reason, maybe even because of 979 01:00:51,120 --> 01:00:55,440 Speaker 1: my own kind of slackness in some way, I looked 980 01:00:55,440 --> 01:00:58,080 Speaker 1: at this place. I caught it literally on the last second, 981 01:00:58,280 --> 01:01:00,520 Speaker 1: and I was kind of able to swoop in scoop 982 01:01:00,960 --> 01:01:04,080 Speaker 1: the deal. And for whatever reason, the other bidders were 983 01:01:04,160 --> 01:01:08,880 Speaker 1: human people, not uh, you know, corporations, and I was 984 01:01:08,920 --> 01:01:10,720 Speaker 1: able to. All I had to do was wave something 985 01:01:10,720 --> 01:01:14,120 Speaker 1: called an appraisal gap. We here today people waving inspections, 986 01:01:14,160 --> 01:01:18,120 Speaker 1: you know, um, paying incredibly exorbitant amounts over asking price. Um, 987 01:01:18,160 --> 01:01:20,120 Speaker 1: all I had to do is wave the appraisal gap, 988 01:01:20,120 --> 01:01:22,080 Speaker 1: which means that you know, if if you have an 989 01:01:22,080 --> 01:01:24,640 Speaker 1: appraisal gap clause, then you have to then whoever the 990 01:01:24,680 --> 01:01:26,840 Speaker 1: seller is, will you won't pay any more than a 991 01:01:26,840 --> 01:01:29,200 Speaker 1: certain amount over what the home is appraised at. So 992 01:01:29,280 --> 01:01:31,360 Speaker 1: that was that was my rolling of the dice and 993 01:01:31,360 --> 01:01:33,520 Speaker 1: it and it was enough, and I got it, and 994 01:01:33,560 --> 01:01:36,520 Speaker 1: I'm very very happy. But I was so lucky. I 995 01:01:36,600 --> 01:01:39,160 Speaker 1: know that, and I know that this is very very 996 01:01:39,200 --> 01:01:42,040 Speaker 1: unusual in this market, so I couldn't be more happy. 997 01:01:42,400 --> 01:01:44,959 Speaker 1: But also it's just so not the way it's going 998 01:01:45,000 --> 01:01:47,840 Speaker 1: for most people, and so it's a success story but 999 01:01:47,920 --> 01:01:51,200 Speaker 1: also an anomaly, right, And you know, I'm happy for 1000 01:01:51,320 --> 01:01:54,480 Speaker 1: you as well. I'm thinking about the millions of people 1001 01:01:54,600 --> 01:01:58,120 Speaker 1: listening to this show right now who need to hear 1002 01:01:58,280 --> 01:02:01,920 Speaker 1: that they are not crazy. You didn't do anything wrong, 1003 01:02:02,360 --> 01:02:04,400 Speaker 1: you know, And this is what like, this show is 1004 01:02:04,440 --> 01:02:08,120 Speaker 1: not about us, it's about you folks listening, and that's 1005 01:02:08,120 --> 01:02:11,440 Speaker 1: why it's important for us to hear your stories. Uh 1006 01:02:11,640 --> 01:02:14,280 Speaker 1: went on Twitter and asked for stories. I I don't 1007 01:02:14,400 --> 01:02:17,000 Speaker 1: check this stuff while we're recording, but can't wait to 1008 01:02:17,040 --> 01:02:21,360 Speaker 1: see what is on your mind? Uh, And what do 1009 01:02:21,440 --> 01:02:23,840 Speaker 1: you think can be done now? When we get to 1010 01:02:23,920 --> 01:02:28,000 Speaker 1: part two again, we are going to be exploring the 1011 01:02:28,080 --> 01:02:32,520 Speaker 1: systemic inequalities, which I think could qualify as conspiracy. We're 1012 01:02:32,560 --> 01:02:36,360 Speaker 1: going to explore another part of this story that's not 1013 01:02:36,480 --> 01:02:40,919 Speaker 1: being widely interrogated, and we're going to talk a little 1014 01:02:40,920 --> 01:02:45,920 Speaker 1: bit about structural integrity, and then we'll end with the future, 1015 01:02:46,560 --> 01:02:49,960 Speaker 1: whatever the future might be. In the meantime, we need 1016 01:02:50,000 --> 01:02:53,840 Speaker 1: your help, So we're we're gonna pause recording today and 1017 01:02:53,880 --> 01:02:58,640 Speaker 1: while we're paused, Uh, we want to hear from you. 1018 01:02:59,120 --> 01:03:01,960 Speaker 1: Uh find us. We'll ask about this on social media 1019 01:03:02,200 --> 01:03:04,280 Speaker 1: on our Facebook page Here's where it gets crazy, will 1020 01:03:04,280 --> 01:03:06,720 Speaker 1: ask about on Twitter and so on. Let us know 1021 01:03:06,880 --> 01:03:10,200 Speaker 1: your experiences. Do you feel that you have encountered the 1022 01:03:10,240 --> 01:03:13,600 Speaker 1: same things or similar things that Matt and Noel have encountered. 1023 01:03:13,840 --> 01:03:15,280 Speaker 1: What are your you know what it is? What are 1024 01:03:15,320 --> 01:03:18,920 Speaker 1: your home by war stories? And have you run into 1025 01:03:19,080 --> 01:03:22,600 Speaker 1: some of these entities that we have described or do 1026 01:03:22,640 --> 01:03:25,520 Speaker 1: you work for those entities? And if so, what is 1027 01:03:25,520 --> 01:03:29,560 Speaker 1: another viewpoint that you feel your fellow conspiracy realists should encounter. 1028 01:03:30,000 --> 01:03:33,080 Speaker 1: UM can't wait to hear from you. If you don't 1029 01:03:33,160 --> 01:03:35,840 Speaker 1: like social media, we've got a phone number as well. Boy, 1030 01:03:35,920 --> 01:03:37,680 Speaker 1: do we ever, it's one A three three S T 1031 01:03:37,840 --> 01:03:39,800 Speaker 1: d W y t K leave a message to the 1032 01:03:39,800 --> 01:03:41,919 Speaker 1: sound of Ben's dulcet tones, and you will have three 1033 01:03:42,000 --> 01:03:46,480 Speaker 1: minutes to leave your missive, your message, your story, your 1034 01:03:46,520 --> 01:03:48,840 Speaker 1: tail or, a question. Do your best keep within that 1035 01:03:48,840 --> 01:03:50,919 Speaker 1: three minutes, and if you need more than that, three 1036 01:03:50,960 --> 01:03:53,520 Speaker 1: minutes will provide you. And you'd like to send us 1037 01:03:53,760 --> 01:03:58,160 Speaker 1: a letter, um a a compendium of of sources and links, 1038 01:03:58,280 --> 01:04:00,640 Speaker 1: or you know, whatever it might be, well, there's a 1039 01:04:00,720 --> 01:04:02,680 Speaker 1: great way to go about that as well, because send 1040 01:04:02,760 --> 01:04:05,720 Speaker 1: us a good old fashioned email. We are conspiracy at 1041 01:04:05,720 --> 01:04:27,200 Speaker 1: iHeart radio dot com. Stuff they don't want you to 1042 01:04:27,240 --> 01:04:30,000 Speaker 1: know is a production of I heart Radio. For more 1043 01:04:30,040 --> 01:04:32,800 Speaker 1: podcasts from my heart Radio, visit the i heart Radio app, 1044 01:04:32,880 --> 01:04:35,760 Speaker 1: Apple Podcasts, or wherever you listen to your favorite shows.