#26 – ReiAloha Monthly Updates & News – Update 2020.04

#26 – ReiAloha Monthly Updates & News – Update 2020.04

Aloha! Below is this month’s edition of the Da Real Estate Braddahs:

Zoom!
Interest Rates
Covid19
Stanford Economist wise words

https://youtu.be/0bngj03xMxA

Download PDF here.

For more insights into investing on the mainland and my personal investing check out my monthly update here in the Greensheet.

 

  1. How to Fill Out the New W4 Tax Form in 2020 & Should you extend?
  2. Can I Get a Home Loan if I am Self Employed?
  3. Do Commercial Loans Count Towards the Fannie Mae Loan Limit?
  4. How to Pick the Right Coach for You
  5. Save Money on Taxes – eQRP Changes for 2020 – Extended contribution period
  6. Save Money on Taxes with this Trick
  7. How Much Downpayment Should You do on an Investment Rental Property
  8. SDIRA/401K Retirement Account Killer the QRP
  9. SPECIAL CALL (20.03.23) – Covid19 Investor Action Plan
  10. COVID19 Greensheet

    1. Implications for Commercial Real Estate (March 3, 2020) from CBRECommercial real estate fundamentals entered this crisis in an extremely strong position. Moreover, labor markets are very tight, and companies likely will maintain their employment levels through the crisis. Nevertheless, property markets will reflect the broader economy, which is expected to see a short-term slowdown. Should the spread of the virus prove to be only seasonal, impacts will lessen as the weather warms, allowing for stronger growth in the second half of the year. Capital markets transactions likely will slow for the time being, but capital values should be resilient. Additionally, there may be some impact on leasing, as decisions on new space are deferred until later in the year. With the 10-year Treasury trading at historically low levels—below 1% for the first time—low interest rates will be a positive factor for property markets. Hotels: There has been a reduction in business and leisure travel, both globally and domestically. Using the SARS pandemic of 2003 as an example, the hotel industry could be severely impacted for up to six months. Retail: Near-term impacts will occur due to reductions in travel, particularly for food & beverage establishments, entertainment venues and fashion retailers. Omnichannel retailers could see some near-term upside as consumers avoid stores and shopping malls, but consumer sentiment may weigh on the sector over a longer period. Industrial: Manufacturing and distribution facilities may be impacted by lack of inventory as supply chains are disrupted. Broader economic impacts could further weigh on the industrial sector as reductions in both supply and demand ripple across the economy. Conversely, if the virus prompts more people to shop for goods and food online, this would bolster demand for last-mile distribution space. Office and Multifamily: Impacts on fundamentals in these sectors likely will be secondary and more closely associated with overall economic activity.Construction: Building material supply chains are being affected with significant backlogs at Chinese ports. Imports from other parts of Asia are also being impacted. Multifamily construction likely will feel the most acute effects due the importance of Asian-sourced materials for residential construction.
    2. See covid19 cheatsheet here
    3. The rise of remote real estate investingHousing Wire
    4. Public Housing Is Part of the Housing Crisis – MHN – [I think public housing developments like Trump Village in NY is the only killer to Value Class C and B housing] 
    5. FROM CBRE – Oil
      • Oil prices plummeted by more than 30% on Monday, the largest drop since 1991, putting financial markets on edge
      • The U.S. 10-year Treasury fell to a record low of 0.32%, down by 80 basis points (bps) in one week, and the S&P 500 fell by 7.6%—its largest decline since December 2008
      • Energy markets were roiled over the weekend by the failure of OPEC and Russia to agree on production cuts, which was followed by unilateral price cuts by Saudi Arabia
      • A rare dynamic of increasing supply amid lower demand is responsible for the rapid drop in crude prices.
    6. From CBRE – Interest Rate – March 16, 2020
    7. Interest rates cut to zero: The Federal Reserve cut short-term interest rates by 100 basis points (bps) yesterday to a target range of 0% to 0.25%.
    8. Quantitative easing to keep the cost of credit down: The Fed announced asset purchases of $500 billion in Treasury securities and $200 billion in mortgage-backed securities starting today.
    9. Domestic liquidity support to keep credit flowing: The Fed cut the discount rate that it charges banks for short-term loans during times of strain by 150 bps to 0.25%. Bank reserve requirements were cut to zero.
    10. Fed Slashes Rates Again as Coronavirus Pressure Mounts – CPE
    11. The federal income tax filing deadline is still April 15th, 2020. The federal income tax payment deadline moved to July 15th, 2020 for all tax balances less than $1MM. This means you still need to file or do an extension, by April 15th but you’ll have until July 15th to make your payment if you have a balance due. 

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Transcription:

 

0:06
Stay tuned. We just do local guys with so much to say

0:13
today.

0:21
Okay, Hi everyone. Welcome to the Real Estate brothers Episode 26 April 28 2020 edition. We have a lot of great information for you folks. As always. You guys know too if you if you can’t catch us where else we also have a podcast? Yeah. So we’re on Stitcher, iTunes. But yeah, I know Lane you have a lot of stuff for us to talk about and I am going to try to come at it from a little bit of a warm and fuzzy I know you have a lot of

0:57
hard data, so maybe we did need a little warm and fuzzy, right?

1:02
Yeah, in these times. Exactly. Exactly. Now, so we’re gonna start off with talk a little bit about zoom. I think a lot of people got a, probably a quick crash course in that in the last few weeks talking about some interest rates. I know a lot of people been having questions about why the rates going up versus the Fed rate going down. I have some strategies that I’ve been trying to use to keep myself sane and get ahead. And always. Also, I have a quote to end my portion a Stanford economist has some wise words that I wanted to share with you guys and then we jump into lanes. Half Yeah. So anything you guys know me. I’m a real estate investor, been involved in about eight different states. All different types of investments turnkey wholesale, short sale foreclosure, and I’m also a full time real estate agent. Investor friendly. So let’s jump right into it. We’re going to stay away from some stats today. But I do want to talk about hot off the presses today. About 150. Our Honolulu Mayor came on the news and announced that he wants residents to wear cloth masks in public. These aren’t these aren’t the 95 or the medical masks, he wants us to wear homemade masks, I guess because that will be taking the using the inventory from our health care providers. So to some of you folks, I mean, this could be a could be a side hustle, right? There’s a lot of DIY stuff online now. on how to make these masks and you can a lot of people are making real fancy ones and stylish ones. So if you’re looking for a side, so maybe that’s something to look into.

2:55
It thought I wanted the one the Chinese protests one

3:00
Which one is that with?

3:02
Yeah, cuz so when this all came out, right the Chinese media was trying to censor everything. So there is like guys that walk have this. We will not be shut up or something under their mass.

3:14
Okay, I thought you met the one with the Chinese, the one that was standing in front of the tank. This is back in the What is that?

3:20
Oh, similar similar.

3:24
So yeah, that’s a lot of pop that I added that right in the last minute. But what I wanted to actually jump into first was, again, there’s talking about zoom. Right. So I think that’s been a hot topic for everyone. Everyone’s probably been using it a lot. My son has been using it for his drum lessons for his instructor, my daughter for piano, even hip hop. I know a lot of people including myself, I’m having drinks with my friends on zoom, you know, and it’s kind of fun and it’s being it’s being We’re staying at home and safe. And then of course, I know everyone is has a lot of training as well to masterminds, out of meetings, corporate meetings and things. So a lot of people are using zoom. And with that said,

4:16
Go into the late night, you left corporate america too early, and now everybody’s going to learn that we don’t need all these silly meetings anymore. Right? Right. Right. But thanks to

4:25
Larry of Honolulu as a contributor, he sent me some content today. And he said, you know, why don’t you talk about zoom bombing? I’m like, Oh, yeah, it’s a good idea. So yeah, with with that the surgence of zoom that has come these zoom bombings are these hackers that are jumping into these chat rooms or these conference calls and doing anything from posting pornographic things or, you know, putting anti semitic item whatever is on their agenda. So you No, we have hackers now in this, this area. So I wanted to talk about a few things. Again, thanks to Larry, he sent me some information. But we have a next slide talks about a few things and don’t use your company’s login to do your drinking parties on the week. Oh, that’s so very good disclaimer, but a few tips that I’m that are going out. And I’m sure you know, this is something that’s going to be even more run of the mill in the next few weeks a few days is how to prevent this now that it’s a big thing, but a few small things. First and foremost, is protect your PMI, which is your personal meeting ID. So that’s something unique to you. I mean, it’s like your login or password. I think you can do is require meeting passwords when you’re This is all when you’re scheduling your meetings. Yeah. So yeah, don’t share that PMI and don’t send it out and post it on social media or public areas because that’s what one one area that they’ve been tracking or been the hackers have been able to crack in on. Also. We have other information here so you can use it also in settings. Yeah. So you can control who you can share screen share with right so you can say host only our participants so we can start sharing when someone is sharing. You also can put attendees on hold and that allows you to actually kick them out of the meeting if they’re causing trouble. Waiting Room I think you use a waiting room really, as we did in pop in our I’m not too sure but

6:43
this this when we do these calls, we don’t have the meeting room, some people Oh, yes, talking in the talk.

6:49
Okay, we’re better watch what we say then. Yeah, that’s another option. So these settings if you see if you go into the zoom settings, there’s actually a whole bunch way more than this. And I think everyone is going to become if they’re not now a lot more familiar with you settings, because if I think the I don’t know if they added them on recently or what, but there are a lot of settings for privacy.

7:16
And so I’ve been using this thing for like, two, three years now. And there are a lot of settings and it keeps getting more and more

7:24
overwhelming for the new guy.

7:25
Yeah, and, and I think it’s, it’s more of a risk for the when you’re having, you know, really large meetings, and you’re sending it out, like posting it and giving it to a whole whole lot of people, right, because then it’s out there. And that’s when it’s at risk, because then it’s no longer as private right? So then you don’t need to restrict things. So maybe for smaller meetings, it’s not as essential for these things, but might as well to get get used to them now because I think the you know, these these kind of zoom meetings are going to be become more than norm more than anything else.

8:02
Yeah, a couple of quick tips that I use is like whenever I’m not talking here, like I just press my mute button. And then when you use the Zoom chat, and you’re kind of talking to somebody, make sure you you’re being cognizant if you’re doing all panelists are just one person. Or maybe if you’re if you’re one of those trash talkers, just text, the person just might be safer.

8:26
And that’s good etiquette to write because you don’t want to be. It’s almost like when you’re on the walkie talkie to CBS when you’re stomping on somebody else. So that’s a good point. So, yeah, lane. I know, I think you had this question. I’ve been getting this question, too. And I think we’ve addressed it in the in past meetups and discussions, but you know, everyone’s asking, or some people are asking why have interest rates increased when the Fed rate rate went down, right. So the, the, there are a few reasons. The main reason Well, I have three here. So the first one Is that the Fed rate is not? There, we mentioned that before the federal is not directly related to the 30 year amortized loan. So it’s actually the target rate for overnight loans for his financial institutions to make in between each other. So mortgage loans are priced on the longer term. So that’s why they’re not directly related. Also, one big thing, I think, is that, you know, the rates have been really low since January and February and the financial institutions and lenders are getting bogged down just from that. So with that volume, they can’t handle the capacity of more apps coming in. So what did they do? They just, you know, they raised their rates just it’s like supply and demand, right? So they can’t, they can’t service everyone properly. And then I mean, you also have the appraisal appraisers and everyone else trying to keep up with that, too. So it’s all like this big pipeline. So, on the retail side, they’re also adjusting the rates that way. And then the third reason, which I’m the least familiar with, is that prepayment risks, right? Because for the mortgage backed securities, which are what’s used to fund these mortgage mortgages, they’re a little bit they’re different from the from treasuries because they’re, they have prepayment risk, right? Because, you know, a lot of the time majority of times 30 year mortgages don’t go all the way to maturity, right? People refinance, where people sell and they buy and I think the one of the statistics they see is seven years is the average life of a, of a 30 year loan before it’s either refinanced or closed out because of a sale and a rebuy. So

10:54
that’s another reason why

10:58
these 30 year or the Retail, Fannie Freddie loans aren’t going down, even though the Fed rates had such a drastic cut almost to zero. Yeah.

11:09
Yeah. I mean, basically, most times they’ll follow the Fed rate. But you know what you’re talking about the third week of March or second week of March, the Fed rate went down to almost zero, but the interest rate jumped up. And basically, it was kind of like number two, they’re like you’re saying, like the support, there wasn’t enough. There was too much demand, from customers trying to refinance. Therefore, the rate bumped up

11:32
is that and I was sure if you’re familiar, but you see that on the commercial side, too, or maybe you don’t look for financing as much as the rest guys do. Yeah,

11:42
the residential guys are a lot more like emotional, right? Right. But the commercial guys, everything’s kind of frozen right now. And we’ll kind of get into that. But yeah, the agency financing Fannie Mae Freddie Mac HUD loans, they are required by law to Lend even in these kinds of like really strange times. It’s just a small short period. But if you want to, you know get a loan now you’re looking at like mid four or 5% where previously you know we we locked the rate on March six for a deal at 3.23% 15 year term 30 year amortization, four years interest only just think that you could have timed it better. And a nice thumbs up like a almost a full point from there.

12:31
Because I locked in about a month ago for my four Plex and that was at 4875 I think I was bummed but apparently it gets underwritten with almost like a commercial from the standpoint of I mean, I still get a 30 year I’m work but they tack on all these these premiums because it’s more than a two to two, two unit or, and, you know, it’s investor loan. So, on top of whatever maybe was like three points CIC 2.5 for owner occupant loan at that time the tech on all these premiums. So yeah,

13:05
like, you know, auto non owner occupied at a quarter tough point and then not a single family home or a duplex or quad at another quarter. Yeah, yep.

13:15
And that’s it. And now that we talk about financing, I mean that they are, they’re dynamic, right? So they’re also looking at on the read side anyway, they’re looking at their underwriting Real Estate Investments differently to from the standpoint of, they’re already anticipating, you know, non payment from the tenants. So let’s say you had X amount of dollars coming in for income from the, your rentals, they’re probably going to discount it more from the standpoint of you know, that trying to cover your debt servicing, because they’re expecting a lot more unemployment as we’ve seen today from the stats that came in on the national level, but so underwriting is Changing as we speak to you. So be wary of that, as everyone is looking for for refinancing or for money, cheap money, right? So how to get ahead of this try to get rid of out of the negativity? I mean amongst everything, I think to me, it’s always mindset. We didn’t we always talk about mindset, right. And I think I mentioned in the past to where we came up in the morning and I try to come from a mindset of gratitude, you know, wake up, open my eyes, and I’m happy to be alive. My kids are healthy. You know, family is where we have a house under roof to live on food to eat. You know, considering our current situation, I tried to look at the positives. Yeah, I am. I get to homeschool my kids right now, temporarily. So I’m appreciating that family time and I actually read visited faith a little bit, you know, a lot of things online or online. So one of my, my college friends, my college buddies, he became a pastor at a local church. So he let me know that their, their mass mass ceremonies or their mass is online. So I tuned into that on Sunday just to to get back, you know, retouched back into my feet. I was, I was baptized Catholic, but I’m non practicing now. But anyway, the whole point is, you know, mind, body and spirit, you know. And, of course, you know, the whole pyramid of needs. You want to make sure your personal life is order you and your family be ready for self quarantine if it comes down the line because you never know y’all had one investor, friend who went to South Korea got stuck there because of the timing. finally was able to come back right after you got off the plane, you know, CDC put a mask on him and they escorted him On a daily basis for 14 days, they would randomly pop in on his house and say, No, you can’t leave the house. So he did pop in at any time. And so fortunately he had someone to help do shopping for him. But yeah, be ready for for potentially being self quarantine we’ve seen it we’re seeing it pop up so many places, right? and checking with family members you know, that you don’t live with I think that’s really important families and friends. I have my children call their great grandmother every other every few days. And check up on her, you know, tell a few jokes. See how she’s doing just to keep her in good spirit and she’s 9094 years old, I think now so, you know, they’re alone. You know, a lot of the older older ones are alone and don’t have, you know, family to talk to you at home. So you know, think about all those people, your your friends and your family that maybe in that situation And reach out. I’m trying to stay away from the news. I don’t know about you folks. But um, I listened to, like Fauci I listen to him. I like to listen to him. On a daily basis, I listened to see what the wahoo stats are in terms of if we’re slowing down that curve. But um, so that’s kind of stuff I listen to daily, but I try to keep the social media news from being on you know, 20 471 second.

17:35
Yeah, I mean, I don’t try and see off social media to hear and what I’ve been telling my guys is protect your mind, protect your body. Make sure you get some activity and you see work out. And then, most times, for some strange reason, it seems like the algorithms for Facebook, Instagram, they kind of prioritize things that usually sort of bring you down. I’ve seen a study on that, Oh, interesting. So and then you got the kids there, right? That’s no, that’s every time I talked to one of my colleagues or partners, they always got the kids in the background and Safari life, man. Yeah.

18:14
extra nice present this year.

18:16
I know, right. And you know what we, it makes us appreciate educators too, because I think they’re, you know, educators are, are under, they’re not respect as much as they should. So props to your wife. And, yeah, so, also, you know, find out your financial situation, you got to make sure you’re healthy, right. So, look at your balance sheet. Look at your your cash flows, make sure your reserves are set up. And when you say cash flows, I mean, typically that’s like your job if you’re a W two employee rate. You know, try to see how that’s going. I mean, some peeps, some you can’t help it. You know, a lot of especially in Hawaii, we have a big tourist industry. So I know a lot of people are Are hurtin and things can be helped but I also hear of being people being proactive and applying for

19:08
other jobs that might not be in their wheelhouse but they’re trying.

19:11
I’m hiring man. Oh, okay people need a job work from home all right. Yep the time to get after it. Yeah.

19:20
And then your businesses right and you try to bulletproof your businesses. For for me on the real estate side, I’ve been reaching out to my property managers. I’ve been reaching haven’t started I reached out to a few lenders but I haven’t reached out for my to my lenders to ask for forbearance or or to push back any payments yet, but I’ve been talking to my property managers and to see how collections for this coming April, April 2 today So now is the when the property manager working hard to hopefully collect our our APR. rents are looking at your liabilities your mortgage is you looking at, you know, can you refinance, tap into additional equity. Or maybe you know, if you haven’t done so if you’re at a higher rate, maybe you want to try to go back to get a little bit lower rate, looking at your investment portfolio, whatever it may be, you know, I called my financial advisor to just to talk story with them and, and I probably they probably don’t want me to say this, but I mean, because they’re, you know, everyone’s getting bombarded all the service providers, rather, whether it be a financial advisor, property manager, I don’t know how you’re seeing it in terms of the operators on the syndications. Hopefully, you know, your service provider is being proactive and reaching out to you or to their tenants or whoever it may be to be proactive with this process. One of my property managers, the last month was being proactive for seeing this and reached out to tenants. sending them information on local resources where they could possibly get short term funding where there’d be not for profit churches or, you know, some kind of relief for for rent. So they were sending that out and letting them know, you know, they’re still responsible for rent, but if not, then let them know. And, you know, it’s important to have that communication. So I’m glad now’s the time you’re seeing your service providers that are shining. Yeah. So whether it be your financial visor, property manager, operators, realtors, yeah, if they haven’t reached out, then reach out to them. And I say be locked and loaded and ready, meaning, you know, get your cash reserves set up. And you know, now is is the chance may depends on what’s out here. I know, on the research, you seem to be corrections on the in the stock market and you know, every day goes after the big hit, but two hits, it’s been kind of going up, down up down a little bit. So, the volatility is kind of interesting and if so, I’m The day traders are absolutely loving it. I’m not a day trader it’s kind of exciting 401 K’s so are you w two employees there’s there has been a lot of dynamic changes for 401k plans recently whether it be from that allowing you to make changes in terms of contributions to you know, being able to take loans from it things like that. So looking to to that in terms of you know, if you need more cash flow then maybe you can reduce that. If you don’t need it, maybe you want to increase it because now you can dollar cost average into your mutual you know, into your funds at at discounted prices. I know, Lane you and I we go back and forth about 401 K’s and the high fees and financial advisors and the fees, but for you know w two employees who, who aren’t doing anything else We’re not gonna go into real estate, and the counting on that as part of the retirement then, you know, think about that, you know, 2019 IRA contribution was extended with with the tax extensions. So if you want to open up a IRA for 2019 still can do it until I think what June so

23:21
to summer so you know, all these things. I’ll say the opposite he cares act is allowing you to take 100 grand out of your 401k penalty free and I’ll talk a little bit more about those in later in the presentation. But right, this is the, the sign to get out of, you know, yeah.

23:40
I’m being agnostic in terms of the real estate versus the stock market. So, I mean, we’re, you know, but yeah, that so back to my point of being locked, loaded and ready. If that’s what you want to do, then, like you said, now’s a chance to take from it and use it, to be ready for, you know,

23:59
Warren Buffett’s is the time to be greedy when as everybody’s fearful, yo, yo, in the streets. I’m a I’m an introvert. So I actually don’t mind this time, I don’t have FOMO that I’m missing out on something on the weekend.

24:16
So this is like my random slide where I started, like throwing stuff on. Right and just more just to let everybody know, you know, we’re gonna get through this. So all those families that have stocked up on 10 cases of Costco, I mean, that, to me that mindset of I don’t know, you know, what, I think people are, are have are anxious. Yeah. So we need to, like you said lean, you know, be of sound mind and commit from from a different mindset. tenants, you know, there are going to be tenants that are not going to be able to pay because the last job, I had some tenants that I was just, just last week, we were just trying to Get a lease extension. And so from the week before my property managers asking me about, about them. And so I said, Oh, yeah, I’m not thinking of increasing the rates at all. So just just request extension. So the email came back from the tenants and they said, Oh, you know, considering this current situation with the owner be willing to reduce the rent rates for the for the next lease renewal. So, at first I got kind of, like, taken aback, but then I said, Well, you know, what, have they had the property manager find out, you know, what’s their situation? So she went back in she was asking, so one of them was a nurse, and another one was, I think, police and this is on the mainland. But what after she had inquired, they came back and said all, you know, disregard regard, I request, we will renew and so I think And there’s people who are you know, people aren’t thinking straight you know? Because you know even for you know if you’re trying to get get away with not not just getting away but if you’re not gonna, if you can’t pay rent that’s one thing but if you’re trying to get out from paying rent and that’s another right Same thing with if you’re not if you’re trying to get out from paying your mortgage but you can if you can, I think you should because it’s just gonna you’re gonna have to pay for it later. So same thing as a tenant right? And if you need to yes ask ask for relief. But if if you’re doing okay then I would say just not because that you know, that might just make the relationships poor with your with the other half later on down the line, you know. So, I also wanted to point out there’s no such thing as over communication in my mind, right. Like I said, I’m reaching out to my clients, to my my service providers and talking story with them. Finding out how things are going, you know, multiple states today are asking, oh, how’s it in, in this city, how’s it in this state and then seeing how everyone is handling it in their locality. And again, that’s when you know, the good service providers are shot will shine out. Talk to your loved ones, as I mentioned before, talk to your clients. To me, reaching out and talking to people, for me is more is cathartic. You know, it’s kind of great to see how everyone’s doing, making those connections that we can’t do in person anymore. I know lane you had mentioned you’re more of an introvert. But for me, I like to get out there. So I’m doing it to my kids and my family, but I’m also trying to,

27:45
and that’s the thing, right? It’s not about me, it’s about everybody else. And then I mean, I’m trying to have as much as I can have with my investors because most people are shook up right. Let’s face it, most people lost 30% of their stock market portfolio. Yep, yeah. No, that’s Yeah. So

28:03
So and with my portion with Oh, I want to talk about that the SBA loan I posted on the bottom. Yeah, a lot of my counterparts, friends stuff, we’re reaching out, everyone’s sharing information about the if you go to sba.gov for your business owners, but it’s nothing for business owners, not for profits, homeowners and renters you can apply. There’s two different loans. If you go to sba.gov, it’ll tell you more about it. If not, you can reach out to me We’ll I can talk to you about that offline. But the federal government is part of that $10 billion dollar stimulus package that Trump passed. Yeah. So there’s relief out there. So let’s keep on looking out for you. And I wanted to end off my section with a quote from Stanford economist Paul Romer. And he said, crisis is a terrible thing to waste. So you know, when emergency hits the There’s actually opportunities that pop up, right. So resources become more available. Right? priorities become clear, right? We know what we need to do rigid rules and regulations suddenly become pliable. Right. I thought that only, you know, death and taxes were were the only things that were guaranteed, but the taxes got pushed back, you know, so things change. Leaders pay attention and are accessible, right, we’re seeing our president, we’ve seen our mayor governor on the TV so often being asked questions. So, you know, we’re seeing leaders are pay attention to what their constituent constituents need. And lastly, I want to say to you know, change, even forging change is possible. So, it’s so important to have that right mindset and to be locked, loaded and ready with with our, you know, our liquid cash so that we can invest Yeah. So that’s that’s what I wanted to see.

30:01
Okay, and we have my

30:03
kids, and I’m sure if you guys are looking for some help give Dean a call. And I’m sure he’s willing to chat with you guys because he’s anytime. Yeah,

30:13
I love Like I said, I love talking, talking story and I’m trying to get that proper mindset that we should all be having.

30:22
So we should jump into your section so that I can go on

30:25
mute. Okay.

30:28
All right. So if you guys haven’t checked out my podcasts, it is a simple passive cash flow. We all talk about turnkey investing, whether that’s single family homes or syndications. So you check out the YouTube channel too. And then we have Dean and I have Rei aloha.com, which is our local Meetup group, which we’re not meeting up and up lately, obviously. So I’m going to take everybody through a little recap of what’s happened this past month, just so we can really understand what the heck happened to us. So earlier in the month, probably the end of February. Dow Jones was, you know, having these huge decreases because of the COVID-19. But not a lot of people realize that he was also because of the oil price war between the Saudis and Russia. So the COVID-19 crisis is sort of known as what we call a black swan event. As you know, most swans are white. But once in a while out of a genetic anomaly, you have a black swan. So we basically got hit by two black swans right now, oil, if you just look up the price of crude oil, it’s trading in like the 20s or 30s. It’s just like, it used to be in the 50s. And, you know, it’s just, it’s just not realistic for it to be in the 20s. And right now what’s happening Russia and saw the Saudis are trying to wait just price war against the older or the smaller oil and gas operators. I actually went into one of those deals in December but not too bad. I mean, we still have the equity there and the assets. So, you know, we didn’t use debt on that deal. But the whole idea is to, they’re trying to price everybody out and, you know, have the smaller operators in America hurt.

32:19
And the frackers rate.

32:21
Yeah, well, I like to call it stimulating the well, but yeah, if you want to use the F word, or the shale that Yeah,

32:28
they’re trying to get those guys to go

32:32
broke. Right. Right. So two big things happening. I think most of the news is on the COVID-19 Coronavirus. And I put this in here for those of you guys we’re gonna blaze through this pretty quickly, but if you guys are on the YouTube channel, you guys can read all the articles and check out all the graphs and pictures. But I put this in here this was early in March 3 CBR e released this Sutter summary and you can see that the tone change very quickly from you know, in the beginning of March, there were words used like, oh, the virus proves to be only seasonal impacts will lessen as weather warms stronger growth in the second half of the year. You know, sentiment like that was early and earlier in the month and then obviously, like around mid March 15 things starts to tilt to now the same reports from CBR E. are, you know, more of a doom and gloom? And you know, I don’t think I don’t really see it more doom and gloom I’m, I usually see things pretty factual, but it just shows how media and even these very reputable news sources kind of

33:43
they change your tone so quickly,

33:46
is why I don’t really trust them for the fir