Ep.31 Sept 2020 Monthly Market Update

0:08
We just do local guys with so much to say

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August real estate statistics that are reserves in plan a little bit discussion on Do not be a statistic you guys can reach other past monthly updates at Rei low.com slash videos dash articles. And again, this is the September 2020 monthly update. Before we get started, there’s always a little easter egg giveaway for folks, I have an each trade line ecourse that I’d like to give away if people want to send me their lucky number from zero to 99 email at Lane at simple passive cash flow calm before September 15. And I’ll put you in our drawing to When that I don’t know if I’m going to do some kind of fancy random number generator and report it. But the winner gets a free trade IP course, this is a great way that I made $10,000 in 2019, and probably going to make the same thing in 2020 to put authorized users on all the credit cards I have, and sort of rent out my authorized user slots. It’s not really like renting out your credit, the authorized users, your credit score reports onto them, and they get a credit score boost that is all done through a third party broker

1:34
to get How much do you charge for that plane for the course?

1:37
I don’t know. They I don’t really know I put it up there. And I say forget. I think it’s like a few hundred bucks. But you’ll get that back in like the first month or so doing that. Yeah. So I Yeah. Do you want to go ahead, introduce yourself and people want to know what you’ve been up to?

1:52
personally? Yeah. Oh, thank you, Celine. We’re on episode 31. That seemed pretty quick from and how we’ve changed To over these last 31 episodes in this, how we presented and now we’re kind of forced to go to this remote but it’s kind of interesting. We’re kind of headed that way anyway. But yeah, my name is Dina Huerta. I’m a former CPA and I’m active real estate investor and realtor lane both you and I like to give back talking giving value ads to newbie real estate investors like how we used to be way back when so trying to give back to the real estate community how I’m giving what I’m doing these days. What

2:31
are you doing these days other than picking up boxes randomly in the middle of the day? And you know, fun

2:37
Well, I the real estate side the sales side is busy and so that’s keeping me busy as well as my two children they have distance learning so I’m the IT support when they have trouble and also trying to keep them in focus and the sergeant in arms or the VP, if you will,

2:58
any lessons learned Under,

3:01
do have patience, I think I am realizing they see the apple doesn’t fall far from the tree. So the lot of my trades I notice my son hasn’t, you know, sometimes he’s impatient when he’s having trouble with his it stuff. So when he gets short, then that makes me get short. So I have to remind myself to be patient and everyone’s going through tough times. And so this is going to be another topic later on in one of the slides, but it everything even in terms of the rest of the family, my wife and stuff, it’s like we’re all in close quarters now. So we have to have be cognizant of it and be empathetic of that with every aspect because everyone’s so close together. And we’re fortunate we’re in a single family home and we can put a lock ourselves in a separate room and things like that. So we’re fortunate for that. And we also live in a cul de sac. So we bought a small little tennis net and we set up a tennis we have a mini tennis court in the corner sec so he gets to get some repetitions in terms of tennis. So having fun And then oh, well one more thing that I was doing is from the library libraries are still open guys. So I had this book there’s no plan B for your A game by Bo Easton, former NFL safety and he’s also a playwright and thespian, but it’s a motivational book, of course, and it’s about bringing your A game and setting forth a plan to be the best. And it’s not just a short term thing. He talks about having a 20 year plan to be the best at whatever you can do. And just setting that up front and setting up all of these steps how he he lines it up, gives you guidance, I guess and helps us from straight string away from all of the noise out there. So almost done with the book and I like it. I know you have a book club to read. Are you still doing that link?

4:47
Yeah, we’re gonna re read what the Rockefellers do. So I think it’s about using infinite banking or life insurance. Oh, yeah. means to bank your own bank. Yes, that’s me. How about you I would put enough to weak clothes The Rockefeller deal last month. So we’re gonna head up there we can finally talk to the news reporters now, some insight up there in October.

5:09
You’re in the newspaper. So you’re using the newspaper for that one, right?

5:12
Yeah. Yeah. It’s a big, big transaction.

5:15
Congratulations. That’s cool.

5:17
But other than that, then grounded at all. And please like and leave, but makes it tough to come back and 14 day, foreign tonight.

5:25
So all you get is a wave from me through the window, huh?

5:28
Yeah. Yeah.

5:31
But this, this zoom thing, people have the zoom fatigue, right, like, because you actually have to be engaged. If they can see you. Oh, yeah. long meeting. You don’t get as tired. I guess.

5:44
That’s true. If all attention has to be there, even things such as your posture, you can do that. If you’re just on the phone. Yeah. Yeah. just short of actually being there in front of the person. Okay, so starting off Nope. Some people have probably already heard this. And this is not just on Oahu, this is actually across the states where the real estate market is pretty darn stable to say the least. And it’s really it’s kind of counter intuitive to our current situation, especially here in Hawaii with tourism being our biggest part of the economy. And that’s not happening. So, but even on a wahoo, we are seeing, in fact, new record high median prices for single family August, I think this is what they’re going to report in three days at 849,000 as a new median price. And that’s compared to 790,000. August last year. So I think the previous record was 825, I believe and that was in in 2019. I think it was August in November. So yeah, it’s kind of it’s exciting times analysis. If you ever if you ever single family home on all which sell now is a great time to sell it. Who’s not Who knows? It could stay strong, but I mean it and I’ll show in a later slides right now our inventory is really low. So it’s a good time and yeah, the people that are selling really want to sell quickly because who knows what’s going to happen in six months a year even you know, three months for that matter. On the condo side, it’s not as exciting but it’s still stable. We’re at 435,000 for August 2020 compared to 419, five prior year. Again, these statistics may not be exactly what you hear from the on the border routers come the sixth but this these it would be pretty darn close, if not the amounts so condos not doing as well but still stable. Again, we mentioned it in the past a lot of is probably due to the short term rental laws that were changed in the past. So that increased some of the inventory so that’s why it’s a little bit more not as crazy on the condo townhouse site.

7:57
So I look at it is like the single family home stuff. Mostly like your high end, your higher end guys, or your more stable guys and whereas the condos so if you’re entry level folks I got another slide coming up with like rent growth based on like luxury apartments and more likely correct way of saying it is necessity base apartment

8:18
that yeah that there may be some truth to that. So let’s talk about single family again this is next slide shows it in a nutshell and these, this is what months of inventory that we have currently. So as of the end of August, we have 1.9 months supply of interest of inventory for single family homes on all and if you look at this curve, it just goes down right from beginning of 2019 but it’s also at an all time low and of course supply and demand. Right so one of the big reasons is because people aren’t putting their house for sale. So if you go to next idling, we’ll see these are the new listings for single family homes that have been coming up. If you see this sacor it comes at the end of the year, it dips really low and then it goes kind of up in the mountain they call Back down at the end of the year up into. So at the beginning of 2020, you’ll see it start to go up, and then it doesn’t do that mountain thing. So what what happened was, seems like possibly because of COVID people haven’t been listing their homes as they typically have been in prior years. So with that lack of inventory, it’s causing us a big shortage in on the supply side. So that’s what’s making it so exciting for the industry right now, I guess you could say,

9:27
but we don’t know if like the other side of the equation is the demand is demand up or down. Right?

9:33
Well, we’re we’re getting a lot of multiple offer situations because of the fact that there’s not much out there to for the buyers to pick on and the next set I think we talked about a little bit about what the demand is coming from. So the first article people may have seen in Hawaii news now as they go what’s going on, right with unemployment so high and we mentioned while interest rates are really low, that demand is pent up and limited supply. So we talked about it before to or mortgage rates are so darn low. record lows for since the last like 30 years creating all this liquidity for people who can buy and who can buy. A lot of it is the middle term. Not a lot of it. But there’s the military involved too because there was a slowdown I think in the PCs thing that usually happens during the spring and summer. So not a slow bum but but like a delay. So now we’re seeing more VA purchases and more military purchases now. So I think when you talk about demand, I think some of the demand is coming from there.

10:31
And I buy that pent up demand thing. I mean, because people were pretty much frozen for three, four months. Now. They’re on the fence, they got a they’re kind of really itching to buy. So I get that and if that’s the case, you’ll see it drop here in the next couple months. Yes.

10:47
We shall see if we can handle that. Also, Federal Reserve came up with some information this past week, which is kind of interesting. So they kind of said that they’re changing their strategy. So typically Their strategy was they there was a 2% target inflation rate, right. And for the last 12 years, we haven’t been hitting that target. And they’re saying 2% is a healthy growth and efficient rate for the nation. And if it was to get higher than that, then typically you would see the feds step in and try to maintain it by increasing interest rates. So that this past week, Jerome Powell mentioned that, you know, they’re kind of changing the strategy, and they’re trying to get more actually get more inflation. So what he said is that in the next possibly five years, if inflation does go above the target, they don’t plan on increasing the short term rates. So this is kind of interesting to me, you know, Lane, you and I, as real estate investors, we like inflation, right? To me, that’s, that’s a good thing, especially if you’re a leveraged buyer, right? Because as your property that you purchase goes up and if Have related debt, that debt is stays the same. And as the body gets weaker, then the value of that debt gets gets less. So it’s a strong good for us, I guess you could say for

12:14
right? You locked in, you lock in your your payments that like 30 years ago or 30 years, Ben, I think that’s our hurts a lot of people, right, because they’re so adverse to being in debt, but that’s what hurts them getting financially free and using them to their advantage.

12:30
And yet, it’s so real estate is a perfect inflation hedge. The challenge is that the they came up with is this Beige Book. And as you read through this Beige Book, it talks about all the different jurisdictions and it didn’t sound very positive in terms of how all these areas are doing economically that the terms are using or not very give you a warm and fuzzy terms of the future. So that’s why it’s kind of scary and so As consumers as investors need to be careful, right because liquidity is cheap we know it at the same time we want to invest smartly right and plan for the future because who knows what’s going to be coming up down the pipeline although stock market has been, if that’s any indicator, it’s they were all guns are blazing, which is kind of crazy. I still understand that. But that’s for another story. Anyway, if I also did a blog if you guys are interested, check out real estate forty.com backslash inflation and I have a blog talking about this exact same thing. So more things off the news. And now we’re heading back towards more of the corona thing and there’s been a lot of negative press and this is the kind of things that scare me if you folks her this past week that there’s a guy in Dallas that woke up with a head a headache, got into an argument with his wife and sons and he ended up killing them. So I mean, these are the kind of stories that scare me in terms of how are we doing as a society and coping with the disruption endemic and that’s why lean I like when you ask those questions about, you know, what are you guys doing today? And so a lot of the things that I’m trying to do is keeping these things in mind and trying to make sure we’re healthy as a, as a family as a community as a society.

14:14
And every everybody like watches the COVID tracker, and not to say that it’s not important, but the nobody’s keeping track of all the suicides and depressed people at home, right. Yeah.

14:28
So that I mean, that’s, yeah, that lady. Yeah, that COVID tracker. That’s probably the only thing that I watch is what what is the daily count for the day? Did you go get tested by the way I went that we had that free surge testing offered by the feds, I went on Saturday took the family.

14:45
Oh, I don’t see anybody so I don’t need to get over myself.

14:49
I just went, is it a federal they’re pushing it so we’ll try. But anyway, moving on at some more information, and I thought See, this is kind of like the positive thing. Right, where are you hearing that, you know, we might be able to get a vaccine as early as November, maybe even late October, this kind of news excites me. And at the same time, I’m hoping it’s not driven by any political reasons if you know what I mean. So but and these kinds of things, get me excited and make me think okay, then maybe that’s why the stock market is doing so well, you know, and that’s why real estate is doing so although there’s a lag in the real estate side. And we know that but the stock market is what kind of throws me off but here’s more positive news. And then some other stuff I wanted to highlight today. So talked about it earlier, I figured out and with some information about ways to not be a statistic not to be a divorced statistic, I’ve been seeing articles that are saying couples are getting really put to the test and and divorce rates are increasing and because they’re everyone’s at home, and now is a time where the last straw hits or here’s some things that I wanted to point out to you from this article. And the next slide, and we’ll talk about some things to keep in mind. All right, so that’s Stress goes up patience and self control goes down. So try to be tolerant and even the little things are gonna make you crack right your other half is is an easy target to be the one to pick on. So always try to keep that in mind other things prolong time together puts pressure on existing weaknesses and this other thing of fighting a name, invisible enemy, the main thing in my mind is always try to have empathy you know, try to put yourself in that other person’s shoes and and it takes a lot more energy now than ever. So try to keep all these things in mind. And then number one word I think is empathy. You know, try to put yourself in these other people’s shoes and be the better person if you will, or just try to make the best of the situation. So the next slide the last slide is the four tips I believe that we talk about avoid making decisions you might regret avoid saying things he might regret talk about issues or your with your spouse and your other half and dig in. If you have to touch the surface. It’s always a good time to talk to yourself. In fact, just last night, I was talking to My wife is just doing a temperature gauge because of there’s so much change right just this past week my spa wife started working full time from home too so I just tried to check in with her and say how is this working? How can we tweak this because now with both of us being home and the kids and we’re both trying to help out the tendency for the kids a lot of times is to run to mommy for assistance by totally not mommy’s got to work so searching these are bug mommy these Sunday’s are bug daddy’s and so we’re trying that out so communication is key and empathy as the main thing and and then we’ll get through this

17:36
I got a good resource for you if you go to you go to Gottman Institute. The Gotham Gottman no no no calm so like this guy in Seattle. He kind of did like a famous for doing these experiments with couples like Big Brother style we put them in like a Roman they they watched them. Cool. Wait, he has like this marriage minute email that goes out. I think a couple of Time is a week, okay? And they’re like actionable things you can do in less than 60 seconds on the gottman.com and then go to the bottom left, subscribe there. So my name is Lane Kawaoka. I still have my PE in case I ever would like to go back to an engineering job, but a full time investor and have my podcast simple passive cash flow calm. So you are kind of mentioning about like, what’s going on with the stock market in the economy. I had Russell gray on my podcast, he talked about the repo market. If you want to Google this, not a lot of people talk about this, but the repo market, kind of listen to podcasts, but people sort of thing. It’s kind of like a conspiracy where there were some financial issues. So how do you put out a smoking engine? Well, one way is you just put a whole bunch of water in it or in this case, just create a whole bunch of money and stimulus money to a tune of like, I don’t What is it? 47 trillion something like that maybe ridiculous and the thought is, you know COVID-19 not to downplay or anything like that, but it was a great way to infuse a lot of money into the system. Yeah, a lot of it once a section A and and all PPP idle loans but question is do we really need it or was it something else? Nobody knows. dum dum dum dum dum. So I watch I try to not read a lot of news because it doesn’t really improve my life one bit. But I do check it like for a minute a day and I always crack myself up by these like headlines. Oh, the headline is supposed to explain what happened that day in the stock market and the stock market is very irrational. It’s based on emotion. Yet these guys these English majors or journalists are creating some kind of story that boasts to explain what happened that day. So on the bottom are on the top. This was a day where things are really good. So they said yeah COVID vaccine was the reason why. And on the bottom was today’s one stock swallow this September sells said, these media guys, their job is to sell attention. That’s their job. Also to inform us sort of, but I think as investors we need to be aware of what’s going on but also be able to pick apart real headlines from the rest and also read the article just because the stock market goes up and something else happened in the world does not mean that they may be correlated, but it may not be causation, as all I’m saying.

20:38
Or even just the one reason that causes it all

20:42
that clear. Now that good teaching point segue to here is I got five billionaires Warren Buffett, and what their biggest purchase this month was and what their biggest sale so he bought a lot of gold. He sold a lot of JPMorgan Chase. So hello We’ll always be written on this stuff like they call this whale watching. So you watch what the big guys do. And supposedly they’re a lot more sophisticated, sophisticated or insider than the rest of us. And so there’s articles saying, well, I go it goes Warren Buffett is doing and David temper and bought, sold a lot on Amazon and bought a lot of T Mobile. All I’m saying here is just because these guys do it doesn’t mean that you should you should do it drives me crazy when I hear investors where their net worth is 10 to 100 million, sort of sitting on the sidelines and I hear the guy who barely has 100 grand to their neighbor under a million dollars network, also sitting on the sidelines, because they heard that that’s what Warren Buffett is doing. I’m not Warren Buffett. Neither are you either UT doesn’t mean that you should follow it. They’re

21:50
not only that is that you’re getting this information way after the point in time that they did it so they had potentially real time information that the He said it to do this transaction on and by the time you’re getting it as well as everyone else is public, right, so everyone else has time to react on it. So to your point, I mean, it’s like it’s hard to chase the smart money in, especially when we’re talking about the market being very real time now ease.

22:18
Yeah, I mean, artificial intelligence has made it, I think impossible for the little guy to train on, which is, I don’t know, but I’m gonna end it there. I don’t trade stocks. So what do I know? And you know, also, you never know when one of these guys are unloading an asset just to harvest tax losses. Yeah, right. Or vice versa,

22:38
or insider information. Oops, Did I say that right?

22:40
Yeah, well, I mean, that’s the beauty of real estate right you don’t you don’t invest unless you have investor Insider. ation, I don’t do anything. Right. I don’t do anything unless I have an unfair advantage. Right. Good point. So on middle of the August we touch record highs yet again, and I’ll tell you why. The stock market is up deep despite record level unemployment is because the government pumped in four to $7 trillion of magically created money and more importantly they’re they’re kind of backing a lot of corporate bonds from these guys. So it’s like effectively like if you’re a company you can’t lose so that’s why prices have inflated again

23:23
Sithole big too big to fail again.

23:25
Yeah, I mean, it’s I don’t know it’s not real or fake I mean, easy come easy go I don’t mind

23:32
hopefully with all that money, then liquidity pouring into the economy then hopefully that will create one fishing, which is what? We’re looking for it.

23:41
Yeah, yeah. Bring it on. Bring it on and play it up. You know, I want inflation to go as high as it can. Now we’re looking at like interest rates at 2.7%. Now, that’s unreal.

23:53
Yeah. And v VA loans are even lower. That’s it’s unreal, man.

23:57
Yeah, and I talked to some guys that They’re like, Oh, I’m just sitting on the sidelines. I’m like, you’re missing one of the best opportunities here to lock up debt at 2.7%. When the earlier slide, you just told me, Dean, and I’ve heard this other places that interest rates aren’t going to go any lower. Right? This is the time where you buy when there’s uncertainty. If you cash flow, right, yeah, something can be said for not more speculative plays. But this was a big one affecting landlords. So there’s a new order that he cannot evict tenants through the end of the year. A lot of places like California, those type of places had something in place, but this is more of a national order. You guys can read this on the YouTube channel. You guys can read through this or just build it on your own, but it’s supposed to help out the guys under $100,000 annual income or 200, grand married filing jointly. So that’s cool. Yeah, well that should be getting in. I did find one little people that consult your property manager, of course and your lawyer. What I read here is you can still evict if the tenant has destroyed property or assessed as a threat to health or safety of neighbors. We have a lot of evictions, we always have a lot of addictions. I mean, sometimes people got to go. And sometimes you have to use the letter of the ruling in your favor. Not that you’re being unfair, but that’s most tenants are. Perfect citizens need to kind of that’s the way I see. I see it. We got to run for mayor one day Yeah.

25:39
We can invite you on this podcast and see if ya join us.

25:45
But Okay, so here’s what I was talking earlier. Here’s some data from yardie. On where the rents are going. And on the left is your averages. In the middle is year over year rent growth from lifestyle asset class. So that’s your luxury stuff, your high end stuff. I don’t really invest in that stuff. I mainly invest in renter by necessity asset class, these A B and C class and possibly even D class. So you can see where the rents are still tracking for the top there. And the big losers are San Francisco, San Jose, the and you can Denver’s on there. Yeah. But even San Francisco Bay Area is having a little seller market too. Because supply is low. Same thing

26:33
is it’s just surprising to me that you have these the ones on the topic Phoenix in this Atlanta where you’re, you’re in the 4% increases. That’s pretty, you know, for year over year in talking but July in grew COVID This is often cold. Yeah, that’s very eye opening. I guess you could say, let’s let’s go fly to Phoenix and buy some stuff.

26:53
Well, I can’t say that out loud. But you should have jumped into the Atlanta deal. We’re tripling investors and In two years, man, it’s unreal. Look at john. So john Burns has been picked up some of the best markets so I can explain like people are moving away from San Jose and San Francisco here, but they’re running away to Sacramento is for something that’s like a third of the price. Yeah. You can get a much bigger place on set Sacramento and same phenomenon with inland Empire’s considered like San Bernardino, which is an hour or two outside of La same thing there but the other markets are Phoenix Salt Lake Boise. So like you can’t really cash flow same thing as Boise, Boise. I mean, I think great markets but you can’t cash flow there. Austin, Dallas, Houston, Nashville, Atlanta and Tampa. Rondo. The rest. Las Vegas isn’t too hot, man. It’s a tourist. Yeah. Great. Um, Paul, actually, you know, while we’re on that topic, you know, I think Las Vegas is similar to like San Francisco and Hawaii Like, right now. You’re gonna have I bet your cabinet sellers pump right because it’s low supply. But like look at the rents the rents drive demand it’s really real demand to me Look where the rents are going in Las Vegas and now I would take the exit on that Las Vegas stuff. Just saying take a look at it. I’m curious I don’t know what the rents are doing in Las Vegas and then see net late lately. I haven’t either.

28:21
I fortunately fortunately the my tenants are um what do

28:26
you call that? Oh,

28:29
there was it called section eight or first you know, first first responders can they’re necessary employee workers are essential guys essentially essential. Yeah. So fortunately, that’s been working out for me but yeah, to your point I mean, Las Vegas you get all of the the the the tourist industry just like like how we do right in on in Hawaii. So to your points like it something’s gotta give because how can it sustain you know, me

29:00
Yeah, I mean, I think voice is a little different since everybody does this mom and dad were in Las Vegas, they don’t do that. And then he went to Las Vegas to run away from mom and dad. Right. Right. Right.

29:10
And then we have in our second industry, industry, if you will, but it is, you know, terrier, we have a strong military presence. So that might be what’s holding us up especially on

29:23
the state side,

29:24
how multi families defense, nature holds investor interests. So a lot of the industry experts and insiders are saying that the sector’s resiliency is illustrated by prolonged performance and durability since the onset of the virus, this and you know, you compare it with office space or retail sector that are getting killed right now. People need a place to stay. And then just like New York City, just like San Francisco, people are leaving because it was already expensive. With there’s no like fun activities. out there. There’s no sense of being there. And especially with people remote working to these days, there’s no point to being in here.

30:06
Everything that attracted them is now what makes them not pleased to want to be anymore.

30:11
Yeah. State of California State of New York some of the worst financially. Government’s New York ends eviction moratorium, or extends. So here’s the kind of like a story of what I was saying with Sam or places like San Francisco, like Pinterest, big tech company, they walked away from a lease, and they had to pay a $90 million cancellation fee, but they don’t care because they don’t want the office space. They’re telling all their employees to just work at home. cutting

30:40
their losses are to your point,

30:42
Amazon avails. And this is cool. Like big companies, they take over right times of distress where you see all the restaurants went out of business. I’m wondering who has the capital to pull the capital together to co create a restaurant or a gym or whatever, Amazon it’s a well capitalized company. They will probably be handsomely rewarded this so they’re going in and getting office space in Manhattan, Dallas, Detroit, Denver Phoenix. San Diego gear is a little article on Class A vacancies rise and rents fall admits crisis. So class views are more luxury stuff which is to be expected. You know, these are the guys who are kind of living outside their means and need to come back to the bar DNC class, affordable policy. Amelie is a company that I follow these guys. They operate luxury apartment building, you’re in your 20s Dean and you’re making 100 grand a year out of college. And you didn’t you are living the YOLO lifestyle. You live in one of these family buildings. It’s really, really swanky places to live. So I follow these guys because to me, they’re a leading indicator where the industry is going. These are the canaries in the coal mines that I think get hit the hardest or hit the first day. Yes. But they’re their full gears, economic forecast release earlier in the year have been erased and completely withdrawn. And they got asked what’s your outlook for multifamily market over the next two years and their response is roughly flat this year for 2020 with an uptick next year and it next bounce in 2022 as supply like dude lessons, I’m relatively bullish. I know but what do you think man? I mean, I I think this this country’s in a housing crisis and if you are in the right markets, I think you’re gonna see the one of the best bull markets in the next five years. I’m conservatively

32:34
bullish.

32:37
You neutral positive or conservative,

32:39
neutral, positive, neutral to positive I’m doing stuff like restructuring my all my debt to have my dry gunpowder rates and get ready to pull the trigger. Still shorting the market to on the stock side, like getting beaten up there. Although Mark did do a slight hiccup today, right? Anyway, come

32:58
on. I’ll probably be up tomorrow. Or goes back before.

33:02
I think the features are down again, though, so is that’s kind of interesting. Anyway, so HUD,

33:06
they came up with some more krunner virus relief. I think this is going to go to more section eight.

33:13
Yeah. I think the existing voucher holders i think is what it goes to.

33:19
I follow this guy Sam Zell who if you google him he he invests off macro economic trends. So he invested in like mobile home parks a few years back to he’s calling. He’s not a big fan of retail right now. He calls it a falling knife because of the Amazon and online. e commerce here’s a stock you want to trade Dean. ETF for. e commerce global x e commerce ETF no brainer to me, but I still won’t trade it but I think ecommerce is here to stay and pet demmick It doesn’t look what spent doing through a pandemic, right? Yeah,

34:02
I don’t know about you, but I got Amazon boxes popping up on my door pretty darn often these days.

34:07
Yeah, black stone is another thing I follow. These are big, big hedge funds that when there is blood in the streets, they know what to go and hunt. So these guys went in and bought tricon residential, which invest in single family homes. These are the same guys who, you know, back in 2010 to 2014 they’re in Memphis and competing with us and all those turnkey rentals. St. Louis, did you scoop up like a hole you say give me your top 40 properties. I’m waiting for these guys to like go into like office space or retail. Kind of watching for and here’s a graphic on all the bankruptcies and closures of mid range malls so like, I call it mid range like Brooks Brothers for over 21 like not high end stuff like JC Penney I’m pretty sure Macy’s is going to shut down these days pretty soon. Only the high end stuff really survives these days.

35:08
What do you use? Are you use all your gift cards while you have them? Hmm

35:13
I don’t have any gift cards. Sure my wife hides them from we better let her know to use it because they doesn’t she doesn’t use archstone oh god no, you know a price.

35:26
Well, like we had a bunch of Macy’s cards from way back like wedding time that we we didn’t use so like for seeing this kind of things happening. We started just using all the gift cards like for Macy’s and stuff so

35:44
I like to use the like the Nordstrom gift cards for like the bar. That’s great. Good food. I anything there. Yeah. Simon malls. They’re like a mall owner. So they’re going in and buying like props, brothers. So this is the kind of stuff I like. I think it’s really Cool when these guys they go into and buy a distressed asset like that but that’s that’s kind of the end of the board for those of you guys who stay to the end the easter egg is that k one tracker phone for those of you guys and passive syndication deals I have a little form that I use for my CPA where I put all my last passive losses on and and then I check box if it’s a GP LP position and it helps them to keep track of it and it really helps me to make sure that these guys did their job right because I’m able to sum up my passive losses and I’m able to kind of find it on my tax form which I should get back any any week now. Pretty excited I love taxes so if you guys want that you guys could email me land simple passive cash flow before September 5. Yeah, anything else to close out been?

36:49
I just, again, you know, stay safe and sane and have empathy have empathy.

36:55
Why is it Bice All right, everybody. If you guys have any questions, let us know. Let us know know if you guys want to do some in person meetings eventually, these days we will have those once again. But until then I’ll talk to you guys later. Right? Right.

37:12
Free real estate investing group. Check out our e i aloha.com.

37:27
Just two local guys with so much to say so listen to real estate brothers today

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