Housing Market Crash In 2021, Cryptocurrency News, Labor Shortage | Coffee With The Johns S2E14

Housing Market Crash In 2021, Cryptocurrency News, Labor Shortage | Coffee With The Johns S2E14

warning the following show is 
intended for mature audiences   viewer discretion is advised thanks are on mute we are live back with coffee with the john's 
fridays 8 a.m it is april 16th 16th 2021 hope   everybody's been having a great week have a 
lot going on um in the market especially with   cryptocurrencies i mean cryptocurrencies crypto 
has been going nuts this past like week it's been   going nuts these past couple years but more so 
this past week with uh coinbase going public and   nft so i mean there's a lot to cover in that 
market we're also um going to be talking about   the coming housing crash that's uh expected let me 
talk about some things the irs is trying to plan   for so that's always fun and states are trying to 
buy people so i said yeah man i haven't heard the   states got into the people buying business so that 
sounds about right yeah so it's uh the interesting   times that we're in for sure with that being said 
i want to remind you all if you want to join our   tech community where we are if you're local we are 
doing property tours we're doing one today um at   3 p.m it's already booked but you know if anybody 
ducks out you definitely have a chance to jump in   so we do property tours we're sharing insider tips 
and stuff that we don't we're not sharing anywhere   else actually because uh the market being 
where it's at there's some things that   yeah there's some things that we want to make sure 
it doesn't go public so uh you want to join that   text community text coffee with the john switches 
cwtj to 210-794-9898 so cwtj to 210-794-9898   and you will be alerted every time we do any of 
these property tours any tips anything that goes   out and you can also jump on if you are struggling 
or want to share any knowledge or looking for help   in real estate on our private facebook group 
just go on facebook and search for real estate   investing the right way and on there we have 
investors all knowledge level all experiences   sharing and helping and that's all it is there's 
no deal pitching there's no nothing there's just   pure education everybody sharing everything 
great group to be a part of so make sure you go   there answer the questions because if not you 
will not be approved so with that being said   i am your host john barbara with me as always 
is the co-host you shaved your beer no it fell   off this morning ah it's all this humidity is 
disgusting no it works like an air conditioner   it's like a radiator it builds moisture and the 
air flows through it and then it's like the same   way yeah i see it more working like a dirty filthy 
rug that's just like holds smell and odors and   it sounds like you're jealous because you can't 
grow hair i can grow it like a kid mr john barr always get criticism always 
always how's it going man   good week good yeah sir slurps a lot over there 
the with the drizzle kind of hate the drizzle   waking up and getting outside like oh god like 
you said like just commit rain already yeah get   the sun out rain or sun man like it's just 
cloudy and overcast like bro saying seattle   yeah it rained last night a little bit i guess 
uh my dog didn't want to go out this morning well i mean uh you know we are everybody is 
freaking out because we have a cold front coming   in this weekend uh they're saying it might drop 
to 60 degrees so you're just ready to go people   are just freaking out and ercot is over correcting 
by putting out warnings telling people to conserve   energy because of the coming i was like so you 
completely screwed up during the most massive   winter storm texas i've seen in like 100 years 
and now that we're going to get some winds and   a little bit of hell you're like oh let's make 
sure we tell people this time yeah because you   had like 60 degrees like you're not going to 
freeze to death at 60 degrees six you'll die at   six yeah it just it goes into like what we always 
talk about you know it's these people are always   over correcting never do what's right when it 
matters i mean it's always fun a lot going on   a lot going on so what what are do you want to 
jump in first i mean we have like i said we we   can talk about cryptocurrencies nfts or tanking 
well this is real estate real estate real estate   let's talk article when is the housing market 
going to crash is a hot google search here's why   housing market has been uh white hot for the past 
year thanks to the stay at home and work from   anywhere culture of the current virus pandemic 
but there is increasing concern amongst consumers   that the housing has experienced a price bubble 
and that the bubble may be ready to burst google   reported last week the search question when is the 
housing market going to crash has spiked 22 450 in   the last month why is the market so hot search has 
doubled in just a week at the start of this month   42 of homes were selling for more than their list 
price according to real estate brokerage redfin   this is 16 16 percentage points higher than the 
same period for last year 16 higher that's insane   fairweather sees the decline in mortgage purchase 
applications as a sign that some people are   dropping out of the market because there's a lack 
of affordable house homes for sale said daryl   darrell fairweather redfin's chief economist 
as mortgage rates rise which which they are   slowly doing now and buyers hit an affordability 
wall north wallet said he expects to see annual   home prices gains nationally cool to the three 
percent range but all real estate is local   um what's your uh take on that of google are 
people searching when is the market going to   crash when is the market going to crash and 42 
of homes selling over list price well i mean it's what what can cause a crash right so we talked 
about the housing bubbles we talked about what   what is considered a housing bubble right 
so the housing market crash in it's like   based on what inventory is ridiculously 
low we're we're not even at a point where i   remember in 2008 when the market did crash right 
before it crashed i remember a lot of builders   i mean you were they were putting up houses 
everywhere buildings subdivisions like crazy   going in all in on these subdivisions building 
houses like crazy where there was no demand   in new york where i lived there 
wasn't that level of demand   so it's like okay that that is a bubble but 
right now it's like we have more demand than we   have housing available i tell people to go list 
a house and show you how much demand there is   you what people go list a house and see how 
much demand there is oh 100 so i mean when   you look at all that and people say oh there's a 
you know there's a when's the housing gonna crash   no time soon you know can can it stable 
off can it like level off from being as   crazy as it is of course but it's always 
going to be market dependent like if all   the people keep moving to texas florida and 
all the states that are you know encouraging   businesses and encouraging investing and all of 
that that's never going to slow down you know not   anytime soon so it's like all right when is the 
market going to crash why will it yeah like just   because you're getting priced out or because 
it's frustrating for some investors like that   doesn't mean it's going to crash yeah you know so 
when's it going to crash it's not well i mean it   it's it in itself is not going to crash it's like 
real estate's a byproduct of what's going on the   overall economy it's like now could hyperinflation 
inflation rise in interest rates cause real estate   to drastically slow down for sure i was like but 
it's not real estate going to crash it's going   to be a drastic rise in interest rates or can we 
already see higher interest rates just from this   year that i mean is putting a downward pressure on 
prices and you but you still have a huge demand of   people wanting to buy and nobody wanting to sell 
so i mean what's going to cause it to level off   or quote-unquote crashes rising interest rates and 
more people wanting to sell their houses yeah you   need a rise in inventory so or for some reason 
that the economy's not expanding anymore and it   slows down but we just ended a pandemic and a 
recession and they've pumped trillions of dollars   in the market so like i don't see it crashing 
anytime soon i can see rising interest rates going   up and causing real estate problems and prices to 
really level off and put some downward pressure on   it but well i don't see it quote unquote crap so 
i mean some other things that we're going to talk   about is uh biden did come out with well somebody 
i don't know who the hell came out with their uh   first time home buyer incentive that they were 
gonna do the fifteen thousand dollars that we   talked about in the past 25 now is 25 grand but 
there's a lot of stipulations within that uh that   thing i wanted to cover the san antonio business 
journal had a expert panel of real estate experts   talking about the demand and 
all of this so you had uh share she's a chairwoman of the san antonio board 
of realtors you have carrie moses who's the   vp of mortgage at jefferson bank and um and mark 
sprague economist and director of information on   capital independence title so they they went 
on in this uh in this panel talking about   pretty much the current economic economy of real 
estate and what's going on so mikulka says it's   very difficult right now we used to say if a house 
was a certain price point like 200 grand or below   i'm just gonna throw that out there you'd 
be probably being a betting war just this   morning seven homes that they had listed they 
already had four of them uh had heard back from   their agents saying they've got offers contracts 
multiple offers and bidding wars in the same day   then sprock talks about this uh inventory this 
low inventory is temporary if we see appreciation   of seven percent a year for the next four 
years and we see interest rates go up to 3.5   that's a 45 increase in mortgage payments so he's 
talk about you know as mortgage payments increase   45 percent i mean that's gonna automatically price 
a lot of people out of the market so what we'll   see is uh plateauing of values probably within a 
year and a half two years if we look at history   it we it will get stable in probably two years as 
we see values go up as we see mortgage rates go   up and moses says verification of employment 
had have always been done in mortgages for   all the years i've been in business but we would 
do it ten days prior to closing to confirming   they still have their job well when covet first 
hit we had the verification of employment the   day of funding talk about like [ __ ] if the day 
of funding they verified that you no longer have   the job the deal is dead i mean that's that's it's 
crazy right like to think about how people can die   it makes sense you should oh 100 but i'm saying 
like that it's gotten a lot more stringent with   everything that's going on so we are it says 
so we are like scrambling to make sure we   still close on time it is more difficult to 
get a mortgage these days fannie and freddie   all the investors have tightened all of their 
regulations more so than i have ever seen and   then mccolka says it is negotiable the buyer 
doesn't necessarily make up that difference   uh she was referring to what's going to happen 
when somebody says they're going to buy a house   for 200 and it prices for 180.

Right before they 
would be like well if it didn't appraise the   seller's got to make up that difference she says 
right now it's become negotiable and more towards   the buyer now where now if it doesn't appraise 
it's on the buyer to make up that difference   because there's so much bidding where there's so 
many other interests that's either you make up   the difference or we go with another buyer so it's 
become the market so competitive so hot so crazy   that we're seeing all of this going on left and 
right we're seeing it with our own properties   we're seeing what properties that we're we pull a 
comp two weeks ago it's one price we pull a comp   now it's like 10 grand more we we're just saying 
do we wait an extra week or two to post because   i mean it's really we listen two weeks we might 
make an extra 20 grand yeah it's really just   like some of the stuff you're seeing listed in a 
property we're coming to the close of the property   too you're doing today um that it's just like dude 
like three weeks ago it was one price two weeks   ago was another another property just got listed 
yesterday that's like if that goes under contract   at that price i'm gonna price another five grand 
higher just because like we are like they listed   where we were going to list similar square footage 
but completely unupdated and like well at this   point now i'm just going to raise it a little more 
because i could see that it's just crazy how fast   the prices are going up but to your point on like 
the bidding wars and stuff like that and they have   gotten ridiculous from what uh we talked about 
like dallas and austin have been facing this for   quite a while um for several years from what uh i 
remember talking to people two three years ago and   they're talking about what they what's going on in 
dallas and it's like jeez like that's nuts that's   nowhere near what's going on in san antonio and 
now it's like that has wave has hit san antonio   um and i have an article in here uh from housing 
wires that the appraisal gap is complicated   complicating deals across the country the 
house so this lady found the perfect house   the house in the nashville area was listed for 
405 linda who asked that a real name not be used   beat out a dozen other prospective buyers in 
a bidding war but by offering 445 in waiving   all contingencies a 40 grand over list price 
and waiving the appraisal contingency like hey   i don't care what the appraisal comes for i'm 
gonna put the money down to make up the difference   and that's pretty common these days unfortunately 
the appraisal put the house value at 50 grand   below what she had paid for it so it went down to 
3.95 and she had a contract with 445 and waived   her contingencies and at that point you have to 
put earnest money down and if you want to walk   away you got to walk away from whatever earnest 
money you put down to where a lot of people   like in these bidding war situations like it's no 
longer like the one percent rule like if somebody   says like no look i'm willing to put 10 grand 
down 20 grand down showing that i'm serious and   you can't walk away from that so with other with 
others waiting so the house price 50 grand below   with others waiting in line behind her to get 
back in saying hey if this buyer backs out we   want that house the seller wouldn't budge on the 
price linda had a sizable down payment but still   needed to find ways to close the appraisal gap she 
received help from a family member and was also   able to take a loan out against her 401k to make 
up the difference one california-based real estate   agent who originates her own loans told housing 
wire that she believes appraisals are being far   too conservative in this high octane market and 
are also using bad comps the loan originator   added that some people get gifts to cover the 
appraisal gap while others are borrowing from   retirement funds or brokerage accounts they 
didn't want to touch because of the tax hits i've done a few bridge loans by placing 
a lien on their departing residence   even in other states he said but the most 
important thing is educating clients from   day one set the expectations that they will 
need to come out of pocket with substantial   amount because the appraisals are slowly getting 
better but they that they haven't caught up yet   just i just hope all of those who bid 30 to 80 000 
more yes that really happened along a front range   house in colorado can survive never being able 
to refinance to their advantage as interest rates   will likely never enter the range again he said 
remembering that a rise in interest rates from   two and a half to three and a half is not just 
one percent but in reality twenty nine percent   increase two and a half to five percent would 
be an uh would be 50 increase would be awful   on a 400 000 home guess we will have to wait and 
see if values double again in the next 10 years   in northern colorado market area but i can't see 
a person making 45 000 a year making an 800 000   mortgage payment home payment where it's getting 
real to where people are waiving these things   and they don't and the agents prices are slow 
to keep up uh of what houses are appraising   for in this like fast moving market agents 
aren't educating their clients i'm like hey   if you're going to waive this contingency 
there's no telling it's going to price for   405.

Like this person did it praise 10 grand 
lower than that towards like well i had a bunch   of money so now i got to go get find more money 
take a loan against a retirement account to buy   that house it's like you're literally putting 
you're buying at the absolute top of the market   trying to get a house liquidating all of your 
cash and i mean that that that was going to be   my question to this is that are they buying 
at the top of the market you know because   if we go even by what that that guy that that 
economist i just read what he was saying is that   he expects that we're going to see about a 
seven percent appreciation in san antonio   for over the next coming years year over year 
it's gonna be appreciating seven percent so   is it are they buying at the top 
of the market getting into trouble   over stretching themselves to a point where 
now they're over leveraged on all these houses   what happens what happens when interest rates 
rise and prices continue rise buyers get priced   out priced out priced out priced out priced out 
for over years and years and years and years and   you look all your cash into this house and you 
didn't put hardly any money down like yeah you   might have some equity in there but you also now 
have to find a buyer if you're in a pinch yeah but   there's nobody that interest rates are going to 
keep rising well yes that assumption is there but   they have been right they're over a point higher 
than what they're saying and i and i get that you   know they they have been rising and everything but 
it's one thing that we always see too is that and   we've been seeing it ever since covet started and 
even before the government everybody puts a very   heavy weight to real estate and the success of 
real estate how people affording real estate so   if it gets to a point where it keeps pricing 
too many people out i'm sure they're going to   push something where it's like all right let's 
stop raising interest rates on mortgages i think   they'll stop interesting insurance i think 
they'll put restrictions on buyer on people   on slowing down the real estate market i was like 
i don't think i think i think i think they will   raise interest rates to bring prices back down i 
was like i don't think they're going to say we're   not going to stop rising interest that's going 
to make prices going to raise interest rates   but then you got a lower requirements to qualify 
for loans because then if you're raising interest   rates you're making it more expensive to buy 
a house i think they'll eliminate the two-year   uh tax deduction thing to make it less 
incentivized to buy houses like they'll do a lot   of policy things like i don't think they'll stop 
interest rates from rising because that's just the   free market's just going to take off and go even 
higher and they're in the same problem as like i   think they would do a lot of other things that 
would make it a lot less attractive to get into   real estate for the short period of time to over 
five years it will bring the prices down it will   level off the market or make it less incentivized 
for people trying to flip houses that are   buying and turning things over they'll remove 
restrictions because it's already been on chopping   block before of the uh two-year income the equity 
tax deduction aspect of it to whereas like people   are like well i don't want to get into real estate 
because now it's not as incentive not as great   explain that break that down the two-year income 
well do i say if i buy a house for say 150 and in   three years i sell it for or two years two years 
in one day and i sell it for two hundred thousand   dollars that's a nettle just wipe away all the 
fees that's 50 000 in equity that you just gained   well since you were in there for two years in one 
day that 50 thousand dollars comes to you tax-free   so if you sell it in one day short of two 
years you now have to pay uh tax on that 50 000   that goes to your regular inc your 
capital long-term capital gains   on that and now you have to pay tax on that yeah 
so that's why it's incentivized to buy hold for   a period of time and then sell over time and to 
get that money taxes it has to be your homestead   it has to be your homestead yes for sure like 
you have to be actually living in that house   for two of the last five years right is how it 
comes down uh too so you can live in it for two   years and then move out and use a rental property 
for three years minus one day sell the house and   still get the windfall tax free and and again 
like we always say you know the point of this show   is and this is yesterday even one of 
our builders brought it up is like   he said you know sometimes you guys get really 
political and what we're trying to cover is   not political or political opinions it's what 
is happening with the market for you to start   thinking like okay well if that was to happen how 
would i be able to mitigate that how can i protect   myself against that how can i maybe pivot my 
business or pivot the way i buy houses or invest   that is what we're trying to help you understand 
that is what we look at ourselves within our   business we are always looking at all right if 
this goes through what does that mean for us   if this happens how would we adjust for that so 
we have a lot of times that we'll sit down and   strategize on these scenarios we strategize we 
think about well if this was to happen we could   potentially shift to this model or that model or 
do this or do that and then we keep going about   our business but in case that does actually 
happen we've already been planning for it   it doesn't come as a shock so that that's the 
reason why we cover all these things it's not   so much to be talking about politics but to help 
you understand like in case things like this come   about you're more prepared so remember if you are 
getting value just head on over if you're watching   on youtube right now just hit that thumbs up 
and uh it makes jon feel very happy inside   please just hit the like button he loves 
he loves that validation that he's liked   there you go yeah i like people you like john hit 
that thumbs up what's john that's the trick so uh   what we were talking about earlier was the biden's 
first-time homebuyer tax credit legislation so   the latest draft of a down payment assistant bill 
would provide 25 000 to the first time home buyers   but only those who are also first generation home 
buyers and economically disadvantaged so they're   putting more requirements and restrictions to this 
um the the new home buying assistance program it's   not just any first time home buyer is going 
to get it you got to meet these qualifications   plus biden's proposal is not actually a home buyer 
tax credit but it is a money it is money that   would be available at closing the purpose the 
proposed down payment assistant would be means   tested based on income and limited to those who 
have not owned a house for the last three years so   that was actually something new that i learned 
uh i don't know quite recently like a year or   so ago is um to qualify again as a first-time 
homebuyer you just have not to have owned the   home in the last three years now you qualify as 
a first-time homebuyer again i did i didn't know   that i was like i thought first time literally 
met first time but there's actually limits to that   so to qualify neither of the borrowers parents 
may have owned the home now my question is what   about the grandparents right because you have 
especially on the east side and stuff like that   we've seen houses where the grandparents had the 
home they died past it to the parents and the   parents left it to the grand to the kids until 
their grandparents left the house at that point   they left you a house and you got a deed yeah 
you want a house well you didn't buy it but yeah   right your name's on the title yeah 
i'm just trying to think of loopholes   uh that qualification doesn't 
apply if the borrower's parents   lost their home in a foreclosure or short sale or 
if the borrower has ever been in foster care how   in foster care uh borrowers who make imagine that 
it's like oh you're in foster care you had home   okay uh borrowers who make uh no more 
than 120 of the area medium income   where they live or if they live in a high cost 
area 180 will qualify for a baseline of 20 000   those recognized as socially disadvantaged 
because they are in a group that has been subject   to racial or ethnic prejudice could 
receive an additional five thousand dollars   the grant um the grant funding which is not 
a tax credit could be used at closing toward   a down payment on a residential property with one 
to four units including a condominium cooperative   project or manufactured housing 
unit so bless you very targeted um   kind of gran and like they said it's not a tax 
uh incentive or anything like that like it was   initially proposed it's a grant it is money that's 
being given to them it is apparently it does it   doesn't seem like it's going to be taxed at all so 
it's just like you're going to get 20 grand to go   into your first home and 25 grand that's just 
like 25 grand help with closing costs to help   with down payment it's it's like it's available at 
closing right so how do you see that you know what   what do you think of this do you think that it's 
a good idea do you think it makes sense like what   is a hell of a lot better idea than what they're 
originally proposing 15 grand for all first-time   homebuyers like that's [ __ ] in a low inventory 
environment stuff like now if this was 2009   that's a different story but right now it's 
like so low inventory i think it would be   drastically detrimental to and already i mean 
you just take prices even higher at that point   i think it it is a good i it is a good i 
saw a guy's lid pop off today by doing that   uh ice squirrel i just see that coffee that 
lid popping up and just coffee going everywhere   all over this table all these electronics 
flying everywhere and move on yeah but uh   uh that i think it is a good idea it's very 
targeted towards a subset that you can very   very easily prove and i don't know how you can 
get too political behind it that if you are in   that scenario to where you are first generation 
home buyer your parents didn't own a home you're   economically disadvantaged you come from a 
poor community you've come to a point where   your credit has risen to a point you're 
already above your typical person that   comes from that environment by having a 
credit score that at least qualifies you   to buy a house i think that is a good idea 
to give them some sense of responsibility   because they have shown effort to get their 
credit score high enough to be able to get   in that situation because real estate over time 
treaty correctly does help people okay so what   you're you're taking from this too is that you 
also they they're going to need to first qualify   for a loan then you're going to need 200 credits 
or you're not going to so you need to qualify for   a loan first and then if you qualify they'll give 
you this assistance to give you better help but   my question is usually the people that need this 
level of assistance are people that don't qualify   because they need this level of assistance 
so how do you qualify somebody that maybe   you know like how is that going to happen like 
when you get pre-qualified you know do you have   to qualify just based on your credit score and 
not your income i mean like well i mean it's all   encompassing toward the point where like it's not 
just your income like you need to qualify on all   those things you need to qualify income you need 
to follow card credit it's just it's literally   down payment assistance right and like it's not 
like hey low credit score fha already does that   so you'd probably be paying a higher interest rate 
if you got into one of these loans it's just one   of those areas like hey uh i'm struggling to save 
money i have a job i that can afford a loan i say   you're renting you're paying for 1500 a month 
somewhere you've moved up the economic scale you   are you've graduated up to an area where it's like 
i just still have a problem because of high rents   to be able to save up cash yeah where they're at 
where it's like they still have to qualify for a   loan and then it's just that like they just have 
a problem saving up the 25 grand to buy a house   but they have a credit score they have a job that 
gets not we're giving it to homeless people that   have no credit score like this is 25 down payment 
assistance it's not a tax credit yeah it's not   anything it's not an incentive it's a it's a grant 
it's like and so i think it is very good to see   this go towards that to where like if you have 
risen above that level of a situation for your   first generation home buyer you've actually come 
from an area or that environment where you can   get into a house you just don't have a problem 
you have a problem saving the money it's like   i think that's a i think it's a good program so i 
want to hear from you guys uh especially josue i   know you got recently into selling houses in the 
real estate market as well so what do you guys   think of this what do you think of this plan uh 
given this 25 grand or 20 000 if uh if you're not   being affected racially or ethnic 25 grand plus 
another five grand no 20 grand plus another five   says right there in the article 25.

No it says 25 
but when you read the articles you get an initial   20 grand and you can get an additional 25 grand 
oh there's three articles down cheese there you go   so uh yeah i'm interested to hear what you 
guys think about that but moving forward um hmm   i kind of wanted to talk about this a little bit 
just because i i believe that we're seeing this   even within real estate is the inability to hire 
right like just the lack of the amount of people   available to work and i don't even know if it's 
available to work or wanting to work that's the   issue right because of all the incentives 
so we have right now mcdonald's apologizes   for understaffing saying nobody wants to work 
anymore so a tick tock video has gone viral   on social media for showing a mcdonald's wild 
apology for a lack of staff the restaurant located   somewhere in the united states because they 
don't they don't know where i don't know   somewhere in the united states mcdonald's put 
up a sign right when you do the drive through   where you speak into a little box they put up 
a sign that says no one wants to work anymore it said it pretty much said look we are short 
staffed please be patient with the staff who   did show up nobody wants to work anymore it says 
the sign right so the clip has gotten more than   960 comments several which pointed out that the 
shorter the shortage of workers has become a   common problem in every restaurant in the united 
states according to local media many restaurants   are struggling to hire staff now that businesses 
and activities are being reactivated following   pandemic related restrictions the number 
of customers arriving has already returned   to pre-coveted numbers so people are coming 
back but we don't have all the staff we need   to do the job to serve them a tampa florida 
business owner told uh told the news station   and then another owner store 
of a store in memphis tennessee   said that she had to close her business 
until she found people willing to work   uh they were talk they're taking advantage of 
the stimulus money given by the government the   tax credits the checks for prolonged unemployment 
and they prefer to accept those benefits instead   of going back to work the restaurant owner told 
so we and we're seeing this we're seeing this   in construction we're seeing this uh i know uber 
and lyft that's why they they were creating those   incentives uber and lyft are having a huge issue 
because as we're seeing more people traveling more   people you know coming into the um moving around 
doing everything they're requesting rides and   nobody's showing up right there there's like or 
it's taking too long for rides to be available so   we're seeing all this and this is something that 
you and i both spoke about plenty of times um that   this is a real problem when you are because all 
the people that got hurt are pretty much your   entry-level jobs right those are the you know 
your service industries your your gig workers   which are your you know your uber drivers and all 
them and you just gave them the same amount or   more money than they make without even having 
to work and then on the ability ability like   you're an independent contractor you can claim 
unemployment well and then for my understanding   is that you don't biden like changes the rule back 
i guess i i don't i don't quite know this so i'm   maybe you do but i heard that trump had changed 
it where it's like you had to kind of prove   that you were really unemployed in the sense that 
you have to prove that you couldn't get a job and   whatever it is and supposedly biden took that 
away where it's like you don't even have to   prove you just have to claim unemployment 
you know so i don't know if that's true or   not that's what i heard i'm curious to 
see if any of you can verify that but   that's the problem right like you're giving 
people all this money all this stimulus and   everything to a lot of the people that do those 
jobs that is a lot of money you know because a   lot of them they probably don't make that even 
at their jobs so employment has been really hard   and construction hasn't paid out what it used 
to so even employees that work in construction   they don't make a killing either so now they're 
probably making the same amount of money or close   to it by being on unemployment without having to 
go work and break their back in construction or   having to go work at a restaurant or do all this 
that's like what's gonna happen well we all we saw   that kind of knew that was going to happen i mean 
that's right i was glad they lowered the incentive   to 300 from the 600 well 600 then they were 
proposing 400 but then mnuchin came out and said i   can't support that and they dropped to 300 um but 
i mean yeah it's a it's a huge problem uh and i   mean hopefully one that eventually works itself 
out but it also it's like what i was thinking   talk about inflation like age inflation stuff like 
that like how do you incentivize people to leave   unemployment come back to work pay them more and 
with pay you pay them more like at mcdonald's it's   like okay they were making 12 bucks an hour 
now we're going to raise the 13.

an investors journey

14 15. like   where those costs going to go they're going to 
go to the end consumer that that's who it hurts   is it they're going to raise those prices to 
compensate like a restaurant it's like i need   to be in business people are coming in my door the 
only way i can do that is i have to raise my raise   my food costs and hire more people yeah it's the 
only way they can go they can accomplish that so   well i think you have a good point and i was uh 
going to lead into that as well it's just saying   okay so you increase wages right and it will go 
to that but you have a lot of these places that   you let's say okay i increase my wage but then i 
also have to increase the prices there's a lot of   towns that can't afford to increase their prices 
because you go to these little restaurants and and   you know in these small towns and maybe you're 
paying ten dollars a plate and now they gotta   increase it to thirteen fourteen dollars a 
plate and for a family of four they're like   uh you know yeah we used to go out to eat every 
other day or whatever but now let's cut that   back you know what i mean because now it's costing 
more money to go out to eat so these restaurants   are not going to be able to do it they're not 
going to be able to even increase their their   their well i mean they just go to business i 
mean that's the only chapter they have it's so so   and then you have automation right then like 
mcdonald's places like that they can afford   to automate oh yeah they can so they can go now 
you're pushing more automation which is going to   keep pushing more unemployment now again this is 
not complaining or whining about all these things   but it's like the unintended consequences 
of giving people just free money and not ex   not forcing i guess i don't know if forcing is the 
right word but not demanding that they try to at   least go get something equal to be like you only 
had so many weeks of unemployment you could do   or it's like hey you get we'll help 
you out for 20 weeks but after 20 weeks   you still have certain weeks it's 
just it keeps getting extensive   i don't know what it is now if they if they 
did that or they didn't do that or what it   was but i know last year like they waived that 
contingency it's like hey or no they extended it   it was like from 29 weeks to 39 weeks 
i gave another two and a half months   so i don't know what that looks like now um but i 
mean you have the unintended consequences like you   talked about where like i don't like did you think 
these things all through what this would do or i   mean you can go a little bit conspiracy theorists 
behind it of just like they're trying to force   inflation to like there was a banking problem 
before this crisis you saw this in the short-term   interest rates or the overnight markets spiking 
to 10 and stuff like that where the bank had to   step or fed had to step back in to stabilize that 
market and we're like it's not quantitative easing   it's uh we're just help stabilizing this subset 
of the market like well you got problems in the   overnight lending rate like that's not good or 
like they're inflating away this you're gonna   drop something like that explain it a little bit 
so what are you saying about the overnight lending   so it banks a lend to each other like overnight 
like literally it stands for that like overnight   they give like 24 hours like hey i need some 
money i'm gonna pay the small premium to you and   it's usually around like the fed interest rate of 
like one two percent whatever it was they're out   in the corners hustling loans something like that 
basically the overnight interest rate where banks   lend to each other yeah well all of a sudden that 
rate was very stable and it's a lot of commercial   paper that changes hand and stuff like hey i'm 
gonna give you uh this asset or this loan uh for   this commercial paper i just need some cash 
for a bite for everyday funding and stuff   like that yeah well all of a sudden out of 
nowhere that thing spiked to like 10 in a day   and that show like no bank was wanting to lend to 
each other to where that is what happened in uh   um texas when the energy like all of a sudden the 
demand drop or the demand spiked and the supply   dropped well that are the way our texas energy is 
set up it's on supply and demand when demand went   through the roof and supply dropped prices went 
through the roof and that's where you saw some   of these people were paying like 20 000 electric 
bills in a month because of their energy bills   well i mean the overnight linear it works the same 
way to where there was a massive demand and no   supply to people to lend well the fed stepped in 
to be that ultimate lender and pump the money into   the market to help do that but that was happening 
in late 2019 but there was already problems with   not being enough liquidity in the market and 
there's a lot of loans a lot of money went   out but not enough money to supply the everyday 
funding what happens with a perfect pandemic it's   like well we pumped a ton of liquidity into it and 
now how do you get out from a lot of loans is you   inflate the loans away and you pay back a loan 
with cheaper dollars right so you have that   aspect of like they need defense inflation let's 
break that down too because when you talk about   paying a loan back with cheaper dollars it's one 
thing that we talk about that we mentioned before   on the show why mortgages are the investment and 
not the real estate because you're getting let's   say a two hundred thousand dollar mortgage at 
a three percent interest for thirty years and   they keep printing right so you still owe that two 
hundred thousand dollars at three percent but now   that house let's say is worth 250 270 280. 
that house didn't go up in value is there's   more dollars going after that house so yeah 
you're you're 250 now scale yes right so so now   your 250 buys the same house so that means that 
like as everything goes up that's cheaper money   to pay an already two hundred thousand dollar 
loan that you've locked in for 30 years well   that's what the with the conversation we have 
like the difference between good debt and bad   debt right so er like if you get debt against 
an asset like like real estate or stocks or um   if you get some gold whatever it is that you can 
i mean leave that out but if you're leveraging   it's an asset that produces cash flow that 
somebody's going to want and pay more for in   the future yeah as more dollars come into the 
system i mean the fed says they want to target   inflation every single year yeah so over a 10-year 
period you say two year two percent a year that's   20 so the value of your dollar is going down 20 
percent so that's why and if you pump a lot of   debt and look back over the 2008 they had a lot 
of bad debt that people had to buy out and absorb   so where if you enforce inflation you give a 
short labor shortage where they have to pay   higher wages they have to bring a high fire higher 
food cost because i mean all that gets passed down   to the end consumer like they can't take those 
hits for so long like companies still need to make   profits so the economy in the free market is good 
about finding that perfect balance but it seems   like hey uh we're not we need employees to operate 
our business so we're going to bring employees in   pay them two dollars more an hour and we're gonna 
raise our food cost 20 10 percent right and then   that's kind of how it does like nobody really pays 
attention to the gallon with the price of a gallon   of milk because you need the gallon of milk and it 
goes up so small amount exactly you don't realize   like hey okay two dollars a day and then it's 
204 next week then it becomes 210 the month after   that and then 212 and like it just slowly goes up 
overnight and you don't realize unless if you're   actually and this is something that you and i were 
talking about recently about how you need to be   able to track your expenses your money where's 
your money going all of this and most people   we don't and i do say we right because i don't 
you know it's something that just could not be   more dull than tracking my freaking finances and 
expenses and stuff but when you start tracking it   and you start saying okay well i have x amount of 
percentage of my income is allocated to my bills   and then all of a sudden month over 
month you're seeing that's like   huh i had this allocated but now i'm having to put 
in more you understand so it's like but what the   hell i i still have the same stuff what am what's 
going on and then you start reviewing you're like   well i haven't changed anything and all of a 
sudden it's like well your groceries went up   yeah you know overall your grocery 
went up all over all your gas   overall all these things they're well 
gas humming went up drastically but   all these other things they they go up so 
minuscule but compounded over everything you   buy like it's a bump you know and then it becomes 
a place where it's like that's that's amazing   some do something like i'm sure there's something 
used to buy 10 years ago that you stopped buying   when you move somewhere and then just don't buy 
it anymore mac and cheese yeah mac and cheese   a wife won't let me you're grown-ass man i want 
some mac and cheese you go to the grocery store   um but anyways like go back and look 
of like what the costs are now yeah   and compared to what they were five eight ten 
years ago because i mean i look at it it's like   like i like craft beer and stuff like that and 
like a six pack of like beer used to be like   six seven eight bucks now it's like like a pack 
of shiner block it's like 9.50 like what the hell oh [ __ ] oh you didn't plug it in oh that's real 
but you look at like what those costs are and it's   like yeah it's like man i can swear when i move 
to texas like you get a six-pack of shiner box for   like seven maybe eight bucks now it's damn near 
ten dollars for it but that's that's that's what   happens when like you have such a labor shortage 
they have to pace things on and it goes to that   end consumer yeah like we're the ones picking 
the tap and that's your inflation and that's   exactly what it is and that's when we talk about 
you know paying stuff back with cheaper dollars   is it's that it's when the money has been diluted 
so essentially your your dollars now like you you   need more dollars to buy the new stuff but that 
amount of more dollars can pay off your old debt   yeah much cheaper so that's one thing that robert 
kiyosaki always talked about he says savers are   losers and what he means is not losers like you're 
a loser but like you're losing money because   if you save money if you're just 
keeping cash in your house if you're   you know under the mattress or whatever the 
hell you're a loser essentially because you are   keeping cash that's being depreciated and devalued 
drastically year over year yeah so it's getting   devalued it's losing all of its worth so and you 
just keep doing that over and over so it says   you know that's why savers are losers so with that 
being said i wanted to cover this uh other article   that i read it's a quick one it talks about 
practically everything is getting more expensive   in america so you have consumer prices for march 
rose 2.6 compared to the same month last year they   were lifted in particular uh in particular i i got 
to figure out a way to freaking zoom this screen   let me let me zoom in i'll zoom 
in there you go there you go   um we're lifted in particular by surging energy 
prices including the cost of gasoline which jumped   22.5 percent over the last 12 months ending in 
march year over year used vehicle prices are still   up 9.4 percent the question remains is this a 
temporary sugar rush from the reopening of the   economy or the start of price hikes that could 
eat into corporate profits and persuade consumers   to stop spending prices are rising as the economy 
is gathering steam the great reopening fueled by   the continuum vaccine rollout is helping to 
release some of the pent up consumer demand   temporarily higher inflation was to be expected 
and an economy as large as america's can't   just be turned off and on again without 
any such effects some economists have noted   so mcconnell's noted like why isn't that just 
like common knowledge like you can't just turn   economies on and off at will and be like oh there 
shouldn't be problems like a light switch on off   on off no it doesn't work that way so i mean these 
are things that you know we we look at and we   we try to track is just when they shut down the 
economy and then they go ahead and pump all this   money into the economy right and they keep pumping 
in more money the fed is pumping in 120 billion   a month so all this money into the economy 
it's like it's got to go somewhere you know   and we've seen that we've seen asset bubbles 
we're seeing and and i mean it's called   asset prices rising through yeah not necessarily 
a bubble but you're seeing and the topic maybe   we can get into next is like you're seeing 
cryptocurrencies go through the roof right   well they're seeing stocks tommy made a comment 
here is it's more dollars chasing less goods   exactly that's one thing like the crypto it has 
a fixed amount of assets or at least bitcoin does   yeah um so more dollars chasing this a fixed 
input of goods i mean that's why price housing   prices are going up it's like i mean it's not a 
fixed number of housing but there's more dollars   coming into the economy than we can build houses 
uh as fast as we can build them they're just   being absorbed i know i've talked to another um 
home builder friend where he's like they've sold   all their inventory and they're actually laying 
off sales agents because like we won't have more   houses to sell until the end of summer into fall 
because like everything we have has been absorbed   so it's like and now we have these sales agents 
it's like well we don't even know where to go   because we don't even have more land and houses to 
sell so that that's another problem that you can   have with that it's huge it's uh it's all these 
issues are happening um if they don't tighten   let's say regulations restrictions or something 
but the thing is that even that like we're not   seeing a lot of these houses going to fha buyers 
right we're seeing a lot of these houses go to   conventional cash i mean that one house that looks 
like a freak what was a grocery store in la vaca   downtown in san antonio sold for three quarters of 
a million dollars cash in like what 10 days yeah   you know and seriously it's a freaking grocery 
store like beautiful renovation don't get me wrong   it was gorgeous renovation but you know hideous 
freaking exterior that being said it's like cash   three quarters of a million dollars cash in san 
antonio that's not normal people no you know   this is in california yeah i mean here if 
you haven't already you need to check out the   texas market update that john just released last 
week or two weeks ago but you covered like the   median prices here and everything and like that's 
that's a well that's double triple what the   median price is in san antonio yeah and they're 
paying cash we're seeing houses selling you know   one thing that i talked about uh i want to say was 
um oh no no i did this in the in the text group   but one thing i was telling them is like 
you run your comps right and you run your   comps for sold so you're looking at when you're 
evaluating a property you run your comps you're   looking at the solds in the area yeah what are 
they selling for okay they sold for this price   but one thing that we started doing is now we're 
looking at what is also listed and we're using   that as a comp when we go and sell instead of the 
sold because we're looking at okay yeah this sold   one of the properties i looked at recently sold 
for 178 the all the houses that were comparable   but then i looked at what was listed there was 
nothing listed or available within like i want to   say at least a half a mile oh that was comparable 
well the one i would we're getting ready to list   like i looked up last night or like i pulled a 
mile away from this house and i mean radius a mile   went out from this house yeah and there was eight 
houses for sale i put no limitations on anything   and so i mean we're not talking comparables we're 
just talking like only like two three of them   compared but like eight houses in a mile radius of 
this house we're getting ready to list right and   for sale and like several of them are like yeah 
they're not nice looking houses and like well   so where i'm going at like that house the if you 
would have looked at the comp it comes at 178 180.   but when you look at what's available the houses 
were listed for 200 205 and they were under active   option within a week yeah so even though 
those are sold at 178 180 the 205 with such   low inventories and people willing to make up 
the difference from appraisal now i'm looking   at i'm like that's an extra 20 grand at least 
that that house is actually worth now now here's   my issue and our issue of when we're looking at 
stuff like that it's like you can't think about   doing that kind of analysis when you're buying 
the house saying look this house doesn't make   sense at the 180 comps that i'm seeing but if you 
know these houses are selling for are listed for   200 now it makes sense it's like well you don't 
know though like you don't know what by the time   you bought it close on it renovated it and put 
it back on the market is that still gonna hold   true yeah right everything shows like it will of 
course but you don't it now it becomes to a point   where it's like oh you're speculating you know 
within and flipping has always been speculation   but there's been a way to kind of protect yourself 
as much as possible but now it's really gone into   speculating where when you know we always 
hear the saying you make money when you buy   where now it's like well you are buying 
negatively and hoping to make money when you sell   yes those are all indications of a bubble but then 
at the same time when you have such low inventory   in such high demand for properties it's like is it 
you know what i mean so i don't know i mean it's   uh it's a crazy times that word uh it definitely 
is dora it's like how much do you bet and like we   always said never buy on based on appreciation 
but like when your business gets squeezed to   the point where it's like you want to stay in 
business you gotta bet that there's some level   of appreciation being built in yeah um to where 
i've talked to uh somebody that i know used to be   a wholesaler uh here in san antonio and he's 
gone off and he's like i got out of the business   and he's like i heard like ho i've talked to a lot 
of other wholesales uh wholesalers that i know and   everything and like they're seeing the same thing 
where the level of wholesalers like dropped out   and people are like yeah i just wasn't finding 
anything and i had to go get a job and he went   to work for a home builder selling homes um and 
made a killing so he's like i feel like i made a   good move and he did and it's like but save that 
money because uh real estate it's good when it's   good but it sucks when it sucks especially like on 
the new home sale side but john dropping poetry oh   yeah it's good when it's good and it sucks but it 
sucks you can quote him on that but uh he said the   number of wholesalers were dropping out because 
like the market was so competitive he's like oh   and it's funny they always blame oh these shitty 
buyers don't just see the the the opportunities   of the market like or you're just trying to shove 
them and shove crap down the throat but uh it is a   real problem and i mean inventory is an issue but 
like how long is it going to go on for it's like   it's only ever it's i mean it's a betting man's 
game where like dallas has been this way for   years and like dude that's very difficult but 
i know we personally know real estate investors   that are doing well in dallas and have done well 
in dallas in that environment oh there there's   look and this is something that you and i 
spent quite some time yesterday even discussing   there's people that are still killing it in austin 
there are people that are still killing it in new   york city in california there are people that are 
still making money in these areas you understand   so it's like there's always a way to make money 
it's just how creative are you how resourceful   are you and one thing that i see with a lot 
of people is how they make up their mind too   early on on what they feel they want to be doing 
right where it's like if i can't you know i want   to wholesale these types of homes to these types 
of buyers this type of way or i want to flip   these kinds of homes or i want to hold these types 
of rentals right so it's like they make up their   mind like this is it and it's a [ __ ] narrow 
you know straight shot this is all i'm doing   yeah the issue with that is what you and i 
talk about of you're limiting your capacity to   if the market changes and that one strategy 
no longer works you're done you know you find   yourself having to go get a job well having a 
pivot having to do something and if you're not   open-minded enough to pivot to to understand 
how to the market shift and you shift with it   you're out of business well i mean that's one 
thing that uh what i know you know i've had the   conversation i've ever mentioned on the podcast 
about like i used to really worry about like when   i first started this business of like man what 
is the the the transition year between a booming   market to a regression market or um a slowing down 
market like what's going to happen during that   market when nobody's out buying and things like 
that and it was another experienced investor that   really kind of calmed that down and he's like when 
things turn bad or things get worse or there's   some problems in the market it's like a lot of 
the people that don't have the resilience that   have that i'm a one person one trick pony like 
this is what i'm doing i'm gonna focus on this and   this alone and have the ego around it and don't 
learn and listen from other people that those are   the ones that go away he's like the people that 
survive and do well in a down market are the uh   what that um kind of like the art of the deal kind 
of person like the masters of creating a deal and   understanding like there's always buyers in every 
market you just need to be able to understand what   the buyers are buying at that time and know where 
to go to find those buyers it's like if your only   bet is to just get as low as i can market to 
all these out of state people that are buying   cash because they can sell something in california 
for 400 grand and or a million dollars whatever's   going out there and they can buy a house here 
for 150 and they're just throwing money at things   like if that's your only buyer pool you're the 
ones going to be hurting like right now it's   like people are still buying you just need to 
know how to fi structure deals to what they're   actually buying right so where like um i can't 
remember like the cody said it wasn't like the   wizard of the deal it was the mad scientist of the 
deal that's where it was like it's like the people the mad scientists of the deal are the people 
that survive in the down market like that educate   themselves that diversify and understand why they 
might not be doing subject to's like we've done   very few but we know them we know people that know 
how to do them or we can transition to that if we   need to new construction space that's what we're 
getting into right now because we see this lack   of inventory that we're trying to help move into 
so you have to be very versatile in what it is   that you are looking to do and have your eyes and 
ears to the market of like what's on the horizon   uh we have a kid that works with and he's 
like he's like always protect the downside bar   they always like kind of as like a quote nickname 
for me um just because i'm always talking to them   like like what's the downside though like what's 
the downside protect the downside and i learned   that by studying and listening to people like 
warren buffett ray dalio paul duder jones is like   how do i not lose money what do you mean actually 
successful people and not facebook famous ones   what is wrong with you real billionaires 
that grew up from like from the 70s until now   they're supposed to take advice from tick-tock 
famous people okay the ones that are doing the   really funny videos those are the ones we take 
advice livestock and then i sell it a week later   and i made money like that's all you gotta do buy 
a stock that's going up and then sell it when it   goes higher yeah wow yeah and that's that's 
the advice people are getting but it's like   like somebody's like when people bring an 
investment to me how do i lose money and i try to   force every way to say to and that's why you and 
i like we will not buy a deal unless both of us   agreed to buy it we're like i get gung-ho like 
like dude look at this deal look at this i'm   super excited about it and then you come to with a 
fresh set of eyes like what about this what about   that what about this and it's like okay that's 
a risk that's a risk that's a risk and if we can   come out and be like all right but we still have 
a profit a chance to turn a profit on this and not   be stuck with a lemon we can proceed well even 
you know and we do that i had done an episode a   long time ago about tunnel vision and that's what 
i feel a lot of people have and that's something   that you and i make we we learned this early on 
and we make sure to check each other on where   you manage our projects right but then whenever 
there's certain phases going on i'll go and walk   the project and i'll look at it because i'm not 
there every day so by not being there every day i   come in with a different perspective and i catch 
things that you don't see because you're there   every day right and you don't catch something that 
got missed and vice versa on on my side the same   thing like you know right now i'm running leads 
and doing all the stuff that we're doing and then   you come in and you're like you know we should do 
it this way and it's like [ __ ] you're right i   didn't think about it or just like yesterday 
like yeah that sheet of paper and then he's   like well i gotta build this document i was like 
already built that and where and i should be like   oh my god i completely forgot and it was in 
front of me the whole time it's right there   which one like that one right that's right this 
one one thing that i always tell people and i   had a conversation uh this week was with a fellow 
investor from new york actually yeah from brooklyn   and it was a discovery call and he he wants to 
expand he wants to branch out we talked about   like virtual wholesaling we talked about how 
to set up a team virtually um all of this stuff   one of the key takeaways from that whole 
conversation is like i was like you can't   do this on your own you understand like if you 
and this is what i see with a lot of times the   the same that the whole seller that he's working 
with us and everything he you know everybody when   they get into business they want to do this on 
their own why because the all they're looking   at is the money well by myself i get 100 of 
the profit right and i can handle the work   like yes but you go absolutely nowhere by yourself 
when you look at anybody and everybody i mean and   we can go from high examples of like steve jobs 
bill gates warren buffett everybody had somebody   next to them that was always helping them always 
with them looking at everything it wasn't just   one person you know what i mean it wasn't just one 
person running the uh the [ __ ] business running   everything and it's something that investors don't 
understand they come into this they come into it   alone by themselves want to do it all on their 
own and they struggle because you don't have that   other person doing the checks and balances with 
you you don't have that other person poking holes   at all the [ __ ] that you're working on making 
you think a little bit more creatively questioning   the way that you're looking at things and i think 
that's always been the value that you and i have   where a lot of people are always asking us you 
know how the hell do you make a partnership work   because a lot of people have tried and it's 
failed and we do brutal transparency brutal   candor where it's like anybody hears us they think 
we're insulting each other but we're not you know   we're we're saying that obviously me coming 
from new york i don't have much of a a a nice   tone of speaking i speak in all caps in all caps 
and it seems very uh disrespectful at times or   it might seem like you know i'm attacking but you 
know me already we've been to working together for   in business together for five years and working 
together for like six years so you and we spend   more time with each other than we do with our own 
wives and girlfriends and every other girl that i   know um oops oops just kidding i'm just kidding 
valerie's just joking now he's here all the time   i swear no no damn it i'm sleeping outside today 
let's get it rained um well it's also passion   a lot of that in there too but but our morals 
right like one thing that we decided early on   is we will not make a decision based on money 
right it was any decision we've always made   has always been base based on what's the right 
thing to do what's going to help the business   you know and what's going to help us grow 
money was a byproduct of all those things   because if we learn new strategies if we build 
better resources if we build better connection   networks all of that then when the market shifts 
or the market turns when the market does anything   we are always ready to pivot we're not limited to 
anything you know and we left a lot of money on   the table as we grew and we we talked about this 
a lot of times sometimes we kick ourselves because   we're like [ __ ] we left a lot of money on the 
table that we would be so much further ahead   money-wise but we wouldn't be further ahead in 
business because the connections that we've made   i mean i talked to people i did an interview 
and you haven't watched it you it's a must   watch interview with uh austin lindy he used to 
be a hard money lender and we covered everything   about hard money lending and one thing that i 
noticed every time i talk to people is what we   have with our private money lenders almost nobody 
has you understand and i'm talking about almost   nobody even people have been in this business 20 
plus years don't even have access to the level   of private funds and the quality of private 
funds that we have but that's because we spent   how many years building that yeah building that 
credibility building those resources partnering   with people working with people splitting profits 
leaving money on the table showing them that we   are people that are here to stay yeah and that's 
where i feel like a lot of investors coming in the   market are not thinking long term they're not 
thinking how can i show people that i am here   to stay that i am not just here as a just any 
other freaking wholesaler that just what is   a one-time first flipper exactly it's like i'm 
here for the money and the money alone it's like   you gotta love real estate and the business 
and the inner workings and the people and the   interactions that you get to have to make this 
business work because i mean it is very difficult   like especially right now with this amount 
of people that are jumping into this business   and getting into it it makes it very very very 
difficult uh uh very nice comment from star she   says y'all yeah yeah i got it i got it you don't 
even need to attend you read that word uh are   definitely an admirable team and and and i i take 
a lot of pride in that because i take more pride   and this is something that we always joke 
around you come and you'll show me like   a wire transfer right from a deal and like 
hey look how much just hit the bank and done   to me i'm like i don't care what i care more about 
is yeah but look what we learned a look at the new   system that we put in place or look because that 
money is most of the time it's already gone by   the time it hits the damn bank but it's always 
we develop now a process or system or we learn   something that will help us generate that money 
again and again and again right when i first   started it was the same thing i started uh helping 
out an investor out of austin they did they paid   for the marketing i ran down the leads i did so 
many subject tool deals so many i mean it was   like 98 of all the deals we did were subject to 
deals i learned every which way you know how to   negotiate them the contracts the different types 
of situation everything about subject twos and   because of doing that it opened up my mind to how 
to create creative real estate transactions where   when you find and i always tell people this if 
you find a seller that needs to sell there's   a deal to be made because i don't care 
what the numbers are i honestly do not   care there's a need to sell now no needs to 
sell it so now the people like i want to sell   but i want to sell for 200 and 200 i'm like you 
owe 185 i'm sorry i can't sell your house i had   a new roof and an ac i had a seller i spoke to uh 
through our marketing that he he's like yeah also   you give me 5.5 million dollars i was like 5.5 
okay um is this at closing or can we finance this   no response he hung up i was like okay and that 
wasn't one and i wasn't trying to be a smart ass   but you know talking about broken clock is right 
twice a day there's a there's a guru here in texas   and i don't know if he's nationwide but phil 
grove um spews a lot of [ __ ] right because he   hasn't done [ __ ] in real estate and i don't know 
how long but within all the [ __ ] that he spewed   one thing that he talked about he says i don't 
care about the price if the terms are good right   so it's like i'll pay five million dollars for 
that house if we structure that the terms where i   give you 10 a month over the next 150 years i was 
like i'll give you 500 a month right so those are   the things like i know obviously you know it's 
a it's it's a joke but it's not like you got to   think about more creative if somebody wants full 
retail okay but how how are we talking about this   full [ __ ] are you financing some of it can we do 
some form of owner finance some stuff like that is   it located in a neighborhood where it makes uh 
sense to have you know so this next uh wednesday   i believe we're gonna be dropping a new episode 
of what is how is it that we evaluate a property   whether we're gonna do we're going to do it as 
a flip or we're going to keep it as a rental   how do we determine the difference and a lot of 
people say well ah that's easy if the cash flows   you know if it makes sense as a rental then it's a 
rental not always you know there's a lot of other   factors that will be taken place right now we 
have two properties and the one that we're so   three properties that all make sense as a rental 
but we're doing different strategies with those   you understand so it's like not always so stay 
tuned and subscribe um and hit that like button   hit that like button it makes john feel so 
much happier about himself you know he's   projecting he's trying to use it he speaks to 
himself every day in the mirror is like john   you get a thumbs up today you know and we 
have stickers here that i give them every   day for thumbs up just hit that thumbs 
up makes his life i like stars old stars yeah so i saw that big dog another another 
article that i wanted to talk about uh   we've been talking about it and i don't 
want to get into that yet politics   okay so if do you have another one because i have 
one i was going to talk about the start getting   into the bitcoin and everything and finished one 
more thing to finish it real estate um the home   builder confidence rises in april despite record 
low record high lumber prices a big difference   um builder sentiment increased one point april 
to 83 according to the national association of   home builders wells fargo housing market 
index anything above 50 is considered   positive last april the index plummeted to 
30 and then shot back up in over the summer   builders are facing strong demand for potential 
buyers because the existing home market continues   to suffer from record low numbers of listings they 
are however having trouble meeting that demand   as supply delivery challenges and higher costs 
for material are not improving lumber futures   for may delivery hit a new intraday all-time high 
of one thousand two hundred and twelve dollars and   seventy cents per thousand board feet on wednesday 
i don't think it like it crossed over a thousand   usually hovers between like 400 and 600 and now 
we're double that but yeah the developers are   greedy as people like to say yeah the supply chain 
for residential construction is tight particularly   regarding the po the cost and availability of 
lumber appliances and other building material   said nahb chuck chairman chuck falcol a custom 
home builder from tampa florida thought builders   are seeking to keep home prices affordable in a 
market in need of more inventory policy makers   must find a way ways to increase the supply 
of building materials as the economy runs hot   in 2021 home prices in the existing market are 
rising in the fastest pace in more than 15 years   and builders continue to hit to hike prices to 
meet their higher costs low mortgage rates have   been helping with affordability all last year are 
now significantly higher than they were at the   start of this year so i mean it's good to see that 
homebuilder confidence is rising but just because   there's such a demand but it's also being hit by 
this lack of material cost yeah because i've been   hearing people like they're putting clauses in 
their contract now like if you're contracting a   house pre-built that wasn't done they have a 
clause in their contract that they have the right   to raise increased prices once they're through 
framing and stuff like tell you well here's the   price today but it can raise x number of dollars 
over the period of time if lumber prices continue   increase or they can just outright cancel the 
contracts like i can't sell this house for 200   anymore um i'm gonna have to cancel this contract 
the new price is 225.

You don't qualify for 225   i'm sorry for you here's all your money back i 
gotta resell this thing because i gotta turn a   profit and there's buyers that are allowing them 
to do that well and it's also this kind of ties   into what we were talking about before about labor 
shortages is that's another area that's gotten   labor shortages is one thing that uh i was i 
thought i had it in here but i was reading an   article whether said like trees haven't gone away 
you know there isn't a lumber shortage there's   a labor shortage in the mills these mills cannot 
produce enough lumber because there aren't   people showing up to work there are people that 
they can hire so you had all those the supply   chains all those got affected they're in covid now 
that they're opening back up they're trying to get   everything going they're not getting enough people 
working the mills they're not getting enough   people you know cutting their trees prepping 
all the stuff doing all the stuff that's needed   so that labor shortage and this is these are 
the things that we talked about before about   understanding how the trends go right where it's 
this happens and you say oh okay well it happened   over here and we're way over here whatever 
but that's everything creates a domino effect   you know that we're all connected i mean you gotta 
understand how you know how restaurant industry   getting hurt is going to affect real estate it's 
going to affect everybody because restaurants get   hurt then they got to fire their people and then 
those people stop shopping and then those shops   start hurting and then those uh hurting shops are 
firing their people and then it becomes a cycle   and then it brings down the local economy there 
and then that economy brings down the next one   so it's obviously oversimplified but it's how it 
works everything is connected so you look at all   these things and how did it affect real estate 
look how it has affected real estate look how it   has affected so many people that right now i hear 
all the time i can't find deals i can't find deals   and i'm like no you can't make deals that's your 
problem because leads are everywhere it's just   that you don't know how to make that a deal that's 
your actual problem because all you need again   all you need is a motivated seller 
you need somebody that needs to sell   and those people are everywhere there's a lot of 
people that need to sell the problem is that you   don't know how to make that into a deal you know 
and especially wholesalers i heard this one guy   i don't remember where where 
i heard it or read it or where   what the hell was but he gave an example he says 
you're a wholesaler you're in a competitive market   you're going to wholesale a deal right 
you want to make let's say 10 grand on it   but 10 grand it's kind of tight so why not put 
that 10 grand in a lean position on that deal   to the investor and they pay you interest on 
that so you're essentially becoming a lender   of your com of your fee to the buyer and then the 
buyer pays you back when they're done with the   deal or if they're holding it as a buy and hold 
you get revenue every single month from that 10   grand that you lend them you know what i mean 
he's like that's a way to be make whole selfies   passive income and i was like i like it i like 
the creativity of that you know what i mean you   want a big whole sophie make it part of the deal 
where it's like you know you look at it and it's   like [ __ ] man if i gotta i gotta pay you the 10 
g you know 10 15 20 grand whatever it is like well   let's leave that part of the deal you know maybe 
give me two for right now or three or whatever   we'll make the rest of the alone will be second 
position or some [ __ ] at x amount percentage   and whenever you're done you pay me that back 
but the problem is like a lot of wholesalers   they come into this business already hurting for 
money and not just wholesalers investors as well   they come into the business already not hurting a 
little bit of money either it's like an extra two   grand is not their problem no they have like 10 
grand problems well and then also like one of the   things that we've seen and again and again from uh 
the guy that works uh that's been working with us   and and this is i mean not to talk [ __ ] on 
the kid like he's he's a freaking hustler the   kid is working his ass off and he's a good kid 
and it has nothing to do with any of that it's   just he's learning he's learning the process 
he's learning everything but like he keeps   increasing his expenses of marketing of 
everything which makes him need more of a fee   more deals closing more everything happening in 
order to get to make his uh monthly nut right   in order to make that amount that he needs 
every month to sustain his current lifestyle   and his current expenses like he need that keeps 
increasing because he keeps increasing everything   where it's like no no no you gotta stable off a 
little bit you got to build up some reserves you   got to build up all these things and then you 
got to incrementally build your stuff so you're   not always hurting for money so then you can 
dedicate your whole sales let's say or your deals   to forming [ __ ] that makes sense well that's 
what i've always thought it's like i need to   sell this big wholesale fee i'm gonna dump it all 
back into marketing it's like so i can increase   my marketing so i can increase my deal flow and 
make bigger wholesale fees to do more marketing   to do bigger it's like that is a hamster wheel 
yeah that is a rat race that is where it's like i   need big fees to sustain my marketing so i can do 
a lot of marketing to get deals to get bigger fees   to get do more marketing door it's like you're 
just running a wheelhouse there that's like   what is your long-term plan like exactly do you 
have a way that you're planning to scale to move   out of that position to where it's like it all 
falls on you that's the problem it's like i just   need i need i need to do more marketing so i 
can get more deals so i can sell more houses   and then i can hire somebody so i can do more 
marketing it's like yeah but you never get to   that point right like real estate is is a very 
uh you need to have multiple streams of income   within real estate in itself to be able to hire 
to have some background that's not just on like   i just need to get these these fees constantly 
every month i have to sell like three two three   four houses every single month like you have to 
diversify your income and your business model   and being able to understand that it's like you 
can't just be a wholesaler because that is just   a and like unless you go with there's 
there's very very few companies that i know   two of them only that i know of that have made 
a nationwide wholesale business and they don't   have great reputations amongst investors or 
people that have been investing for a while   because like it predicates on screwing people over 
like you are going to have a lot of fallout and   people get financially hurt in that business 
and look at their you know when you when you're   forming a company that you gotta have i don't know 
how many freaking pages they have of disclaimers   it's like you're probably doing something wrong 
right if you gotta cover your ass that much it's   like you you know you're doing something wrong um 
but yeah so i mean those are the issues uh kind of   going on but they're all solvable they all have 
easy solutions yeah you know and if you were   interested you can schedule a discovery session 
with us where we can sit down analyze where you   are analyze what your goals are and put an actual 
plan together um on where you can go next what   next actions to take and everything and uh yeah 
people have been really enjoying it you know   again that tunnel vision that we talked about it's 
having somebody with experience and resources come   in and look at your position from an outside 
perspective and we're doing that right now too   we're we just joined the mastermind of precisely 
you know with other business owners and stuff   because our purpose with that is having somebody 
with an outside perspective look at our business   and say you know poke holes where are we you know 
what are we not seeing because we are in our own   business yeah you know so it's always worth it 
so definitely reach out if you're interested   um you could just go ahead and text 210 794 9898 
just text discovery call and we'll send you more   information about that with that being said uh 
as we start getting towards the back of this   some business episode economics no i want to talk 
crypto i know that's what i'm saying business   like isn't that where all that's at is business 
economics sure well it's in the business economics   well to me it's more in in politics right now 
so the u.s government is losing some 1 trillion   in unpaid taxes every year and needs more and 
consistent uh internal revenue service funding   to go after tax cheats irs 
commissioner charles riddick riddig   said on tuesday um new sources of wealth arising 
since then such as trading in cryptocurrencies   were escaping taxation he said and as was 
rising foreign sourced income and abuse of   business income passed through as personal income 
so that little last line source income and abuse   of business income pass through as personal income 
so they're right there that's to me it's like huh   okay you're talking about like llc's companies you 
know okay i'm got my attention if you add those in   i think it would not be outlandish that the 
actual tax gap could approach and possibly exceed   a trillion dollars on an annual basis riddig 
said um the agency is outgunned by increasingly   sophisticated tax avoidance schemes while years 
of budget cuts have left it with about 17 000   fewer revenue enforcement staff than it had 
a decade ago president biden's fiscal 2020   2 budget request would boost the irs 
budget by about 1.3 billion or 10.4 percent   over the current levels irs budget would include 
an additional 900 million for tax enforcement   in fiscal 2021 which starts on october 1st 
the tax cap represents unreported income   under payment or non-payment of taxes owed an 
exaggeration of claim taxes tax breaks such as   deductions and credits so again deductions 
and credits i mean one of those things that   gets affected a lot by those uh is real estate 
so those are the things i'm kind of you know   looking at when they're talking about all this 
one suggestion that redig has made senators to   capture more unreported income would be 
legislation requiring that transactions   in cryptocurrencies such as bitcoin be reported 
similar to the way that securities transactions   are reported on a 1099.

These reports will 
help the irs uh to tax capital gains in lightly   regulated cryptocurrency investments which now 
have a market cap of around two trillion dollars   so right now all of the cryptocurrencies in the 
world uh cryptocurrency not cryptocurrencies   bitcoin is valued at two trillion dollars 
the irs chief also said the agency would be   ready to open a portal on july 1st for low-income 
americans to sign up to receive monthly payments   of an expanded child tax credit under biden's 
1.9 trillion over 19 relief package so   if i'm not mistaken that's that's the last 
package that he did so because this next   one that he's doing for like 2 trillion or so 
that's the infrastructure plan so this is the   covid relief package that's the one that's already 
been done right okay so just clarifying that point   the credit will provide six months which 
before i thought it was a year of payment of   300 of 3604 children under six so is that 
six months total 3600 or 3600 per month   six months of payments of 3600 payments of 3 600 
for children under 6 000 i think i think it's a   typo because they have a few in this article but 
because i heard it was like over the course of   a year now it's over six months i don't know 
and then three grand for kids from six to 17   puts the revenue agency into a position of benefit 
administration for the first time riddick said the   new monthly payment system which is temporary 
will cost about 391 million dollars and take   300 of 500 people to administer including more 
phone service personnel and fraud investigators   so i mean these numbers like i would like the the 
irs to get audited it's like really that much to   set up a system like this you know 391 million 
dollars i mean i think i can i mean it sounds   like that's a very small number compared to like 
to set up all this to set up the system not to pay   that's to set up and manage the system the that's 
not saying that that's what they're going to use   that's not what's going to be distributed 
will cost about 391 million dollars and 300   cheese so well that's typical government 
for you like they're very inefficient   in spending their money yeah so i mean you look 
at it and they're they're talking about you know   they want to go after capital gains they want 
to go after cryptocurrency now uh they want to   they're talking about the pass-through so llcs 
and stuff like that um we've already heard that   there you know there's plans of or proposes 
proposals of going after 1031 exchange   these are all things again i'm not saying 
these things are happening these are just   what the articles are covering what they're saying 
might happen might not who knows but these are   the things that you need to watch out for right 
these are the things that you need to plan for   especially as a real estate investor capital gains 
you're flipping whole selling all of it is capital   gains you know as soon as you sell properties 
capital gains if they get rid of 1031s that's   an issue right you're selling your real estate 
trying to turn it over into more real estate into   other properties you're not going to get the tax 
benefits anymore you know so i mean if you know   if you make a profit of over a million dollars 
you they're talking about taxing uh 40 of that   so there's a lot of things are coming down the 
line and now they're going after cryptocurrency   one of the things that i saw in my opinion is 
there's more talks about tax and crypto currency   versus you know getting rid of cryptocurrency or 
trying to block it in any way so i mean i think   that might be a podcaster like tom will write i'm 
talking about there's a box you have to check to   see if did you trade any crypto yeah in a year and 
like if you don't check that box and they find you   and they find out that you do it's straight felony 
like it's like it's tax evasion yeah but i mean   like before it's like it wasn't a felony towards 
other things that might be avoiding taxes like hey   not quite a felony or something certain levels but 
it's like just trading crypto and not disclosing   it like did you buy and sell you can buy it you 
don't have to disclose it but trade is did you buy   and sell cryptocurrency over the course of 2020 
between 21 whatever it may be um if you check   that you don't check that they finally do it 
like it's a straight felony they can actually   freeze everything uh in your life and these are 
the things that you know if you're one of these   people that is following the hype of the crypto of 
all these things like tesla or when we covered uh   the gamestop and all of those things you could 
what you have to understand is that it's not   to say don't do it right we're we're not financial 
advisors doctors accountants veterinarians or none   of that [ __ ] do your own due diligence barbarous 
we just oh um we just say we think in common sense   terms or what is common sense to us and we're 
trying to share our our point of view on all   this that when you are getting into all this when 
you're getting into this kind of investing and all   this you got to think of all the repercussions so 
if you're buying a stock that's blowing up you got   to think through like what does this mean when 
i do my taxes you know what i mean what is this   going to mean when you got to be more strategic 
with the investing that you do with the money that   you're making you got to be strategic you got to 
think through all this yeah because if not you're   getting all this money and like a lot of people do 
they cash it in a sudden they find themselves with   a huge windfall let's go on vacation let's buy 
this let's buy that boom boom boom then all of   a sudden you go do your taxes and it's like oh 
here's a 15 000 tax bill yeah like what whoops   whoops so definitely and within real estate same 
thing i see it all the time wholesalers get in   start doing a lot or new flippers get in they 
start doing a lot making some good money and   everything great then tax time comes they're like 
uh i don't have any money to pay that it's like i   gotta go do more deals because now i gotta pay 
taxes exactly so always budgeting the short   short term gain it's like what do people 
do when they first start making more money   they upped the lifestyle drastically instantly 
instantly and it's like it's not like okay hey   let's let's settle into this for six months 
let's get through a tax season here to see   like what are we gonna do like nobody's ever 
crying when your bank account grows up in cash   like everyone wants to up their lifestyle and 
they keep their bank account zero it's like ah   what that was that's what's that uh 
adam sausage that save that money   save it wait for it see what happens the new tax 
time comes around make sure that you're not gonna   get screwed because well and then another thing 
that you can do is i strongly recommend is that   you seek out some advice find a tax strategist 
not just one find a few tax strategists   hopefully that have been recommended by people 
that use them consistently and people that are   making money go sit down with them tell them what 
your plan is tell them what you're doing right now   see what makes sense you know what how is your 
plan supposed to go we did an interview with brian   lang from cfo uh upside upside cfo and he he's a 
tax strategist he does consultations everything so   go check out that interview listen to all the 
stuff that he talks about and get educated get   prepared with all these things because you don't 
want that surprise to come in and wipe you out you   know we were recently reading a book called profit 
first and he talks about the different accounts   that you should have and what i one of the 
accounts that i love that he talked about is that   out of every income that comes in you take a 
portion of that and you put in an account that's   for taxes you understand if you create that from 
the start it doesn't matter what you do afterwards   because you oh you're always going to be protected 
you know you're always putting that but you got to   create the habit right now you know you can't look 
at it that 15 grand hit your account and you have   a pay yourself first kind of thing like modern 
banking makes it extremely easy to do yeah we're   like hey my check comes in and on the third of 
every month 500 gets taken out of this bank and   transferred to this bank i mean i have that set up 
with a ton of my accounts where there's automatic   transfers set up all over the place yeah or it's 
like hey these things are automatic as long as   the income comes in that doesn't stop everything 
is going to be set for savings for vacations for   retirement whatever it may be cash reserves 
i'm just saying hey i'm going to set a side   of 200 every month you can probably very easily do 
within the same bank i suggest doing it outside of   the bank so you don't see it when you log into 
your main bank account yeah but it's like hey   yeah you want to make it into a place that you 
don't see consistently because when you see that   it's very easy to get tempted or just like i'm 
just going to transfer it from my savings account   to my checking account and i'm going to go just 
this time and i'll put it back but no it's it's   those habits that you gotta form so definitely uh 
you know hope that helps a little bit and again   if uh if you've been enjoying this just hit that 
thumbs up you know but see john's smile look at   that look at that to 15 that's the most we've ever 
gotten recently um but uh but then the next thing   is kind of leading more into the cryptocurrency 
and everything that's going on is a dramatic round   of regulation seen coming for cryptocurrencies 
all right so now now there is regulation   so the guardians of the financial sector i love 
that uh so the financial sector are poised to   greatly intensify their efforts to regulate the 
booming cryptocurrency sector that's the view   of the world economic forum blockchain expert 
who said challenges include keeping up with the   borderless nature of bitcoin and other digital 
tokens as well as ensuring that innovation isn't   stifled so we're going to see another round 
of pretty dramatic attempts at regulating the   space said sheila warren head of data blockchain 
and digital assets with the world economic forum   as there's more and more activity in 
these spaces there's more and more demand   signal for regulators to get engaged and involved 
governments are inspecting risks around the   sector more closely as the investor base widens 
bitcoin's most ardent proponents see see it as a   modern-day store value and inflation hedge while 
others fear a speculative bubble is building so   you know i obviously cryptocurrency's been around 
uh for what like bitcoin and all that for like 10   plus years more or less i think it's 2009 when it 
started around there so it's that's a baby that   i mean that is in in terms of investing in terms 
of everything nobody even really heard of bitcoin   until like 2018 but it really just took off and 
the bubble popped its first time or whenever uh   elon musk started tweeting about it but you you 
know so it's still a baby so regulation is just   it's bound to come for it right because it's just 
most people don't know about it and lately one of   the things that we've seen and again this is uh 
my personal opinion on this is i do feel like it's   in some form of a bubble just for the fact 
that a lot of the people that have jumped   into bitcoin into crypto lately have been huge 
speculators because they've gotten this the stemi   checks they've gotten all this extra money and 
they see crypto that's gone from when it hit its   low of what three grand uh five or six seven seven 
years ago five years ago no less than that like   four years ago that was at a low of three grand 
it's shot up to sixty thousand dollars i mean [ __ ] i mean it's up i mean just from 
december it's up like threefold like it   was just like 20 000 it's in september so you 
you they look at that and they're like oh yes   oh yeah look at crypto oh [ __ ] the man you 
know we're we're going off there after this   my thing is like they're not going after the 
fundamentals now i believe in crypto all right   it's taking a while because i wasn't fully 
educated on the subject i didn't fully   understand it um i didn't understand that 
i i grasped the basic concept of blockchain   but i didn't fully understand how it protected 
bitcoin how was it so secure how was it that you   know this thing even makes sense i've been getting 
a lot more educated on crypto on blockchain   on the process of mining on all of this where it's 
like holy crap this is this is a really smart play   like what they did with this 
the person or people that did it   my god like you guys are what it just the the 
complexity creating bitcoin where it is damn near un invulnerable and vulnerable yeah that can't 
be touched yeah i mean decentralized or it's like   it's it can't be touched it can't be controlled 
it can't be shut down it can't be manipulated   i mean it's a software that runs across the 
internet where like you'd have to get every single   person the entire world shut off their computers 
that are doing that one laptop sitting in a closet   like that interview yeah like a laptop in a 
closet sitting there that the network is alive   yeah exactly so it's your you know terminator 
movie all over again right it's cnet no it was   skynet skynet right where it's like you can't 
shut it down as long as one computer is active   it's still going but what i'm talking about is 
the way that it's decentralized it's open source   which means that anybody and everybody can help 
mine help control help manage it it's not one   person in charge of it it's not one government one 
group nothing it's split up across the whole world   so the security that provides is virtually 
impenetrable you understand because you cannot   you would literally like you say oh is it hackable 
well you need to hack as long as 51 isn't owned by   one person which is yeah which is not yeah 
now this is something that i was talking to   our videographer and editor mr dre over there 
and we were talking about this this morning i was   like this is all to say that we know the truth 
right like if we want to get into conspiracy   theories and all that it's like how do we know 
that 51 percent isn't owned by china the cia   or some other group right like we can 
get into conspiracy theory right so takomoto well it's like the 
original guy just found was like   it's like yoshi takamoto or something like that   yeah yeah i don't know but um but you look 
at something like that and you say okay   you look at what it's being done and it's not i 
don't look at bitcoin as a speculation play i look   at bitcoin the same way i look at gold and real 
estate i look at at it as a wealth preservation   you understand i look at bitcoin just bitcoin 
not cryptocurrency there's a big difference right   you have cryptocurrencies which is pretty 
much any type of currency that's crypto um   and then you have bitcoin which is a type of 
cryptocurrency right so bitcoin in and of itself   i look at it as a store of wealth i look at it 
like if i was to go you know and buy more gold   i'm not looking at gold based on the price of 
it i'm not looking at gold saying hey i want to   buy gold you know because it's cheap right now no 
i'm buying gold because in case anything happens   it's something that can't be printed you know 
it's something that cannot be finite amount of   exactly so it's worth more of it the same way 
why real estate has gone up because there's a   finite amount of real estate and a high demand 
for real estate right so but real estate is real   estate like the land we're not making more land 
unless you're in dubai and you get one of those   palm islands that they made but they're not you 
know cool though yeah you're not making more land   so land is a scarce resource as well bitcoin is 
the same thing there's a limited amount of bitcoin   and they're not producing anymore or they're 
producing like a very fractional amount   you know that needs to be mined and 
look into it but it it's so scarce   so and then it's decentralized so it's 
like it really can't be manipulated   you understand like they can't and they're not 
doing it where they're like psych here's another   20 million bitcoins back in the market your value 
just got cut in half yeah they can't do that it's   not designed that way nobody seems to have any 
control over the software because it's again open   source so it's none of that [ __ ] can be done so 
it's like i look at it like that so when people   are looking at it right now as a speculation 
play is it a bubble i feel like it's it is   somewhat of a bubble right now i feel like if we 
see any level of like a decent sized correction   in bitcoin i feel like all the people that got 
in for speculation sake are going to get scared   and jump out just how they did on gamestop and 
everything else they just shut up and then it   freaking tanked again right i see that happening 
but the people that understand what bitcoin is   they're always gonna be there and i'm buying 
bitcoin now and when it crashes i'll buy bitcoin   again and when it goes up i'll buy bitcoin 
again you understand because it doesn't matter   i'm not buying the price i'm buying the stability 
of that i'm buying the diversity yeah so so that's   that's how i look at bitcoin things like uh 
several financial people that i follow uh i   mean uh the kiyosakis to the rick eddlemans and 
stuff like that they're also like it's a diversify   i mean to rodney 826 said crypto has drawbacks the 
guys like peter shift have pointed out but i have   some i have some bitcoin anyways uh to get out of 
fiat current currency yeah and that is something   it's like i have some it's just like it's a 
diversification aspect and they're like hey it   has proven it's been around for 11 years obviously 
people want it because the price is up to 60 000   and where it's like hey it's just a piece dollar 
cost averaged in 10 bucks here 20 bucks there   just buy a little bit every now and then and 
just see what happens don't go and put like   i'm putting like this one guy 96 of his wealth all 
in bitcoin like okay that's a little bit crazy now   um because there is still i don't want to take 
on the us government on like or governments   around the world be like i think bitcoin's 
stronger than the world government powers   yeah that's a that's a really hard bet that i'm 
not willing to put all my money on uh for that   so well and i mean you know and then going back to 
what roddy 826 um is it rottie or is it just rod   i would like to know what your actual name is um 
to his point it's just one thing i would say is   like with people like peter schiff and or pretty 
much any economist right what is their incentive   so peter shift i i've followed him since uh 
what was it 2009 2010 i've been listening to him   as well i was right yeah i predicted this crash so 
i'm talking about him in 2005.

Well you also been   talking about since the 80s too yeah eventually 
it was bound to happen and but this is not to talk   [ __ ] about peter schiff or or any economist it's 
just to understand their incentive so peter schiff   he has uh what is it shift capital uh then he 
has that gold company that he sells gold and   all of that he has a whole credit card that you 
buy the gold and then you can use a credit card   to buy [ __ ] which is so it's pretty much like 
cryptocurrency like it's a way to fractionally   spend the gold that you own you know what i mean 
so you you own let's say you know a couple bricks   of gold and they'll give you a credit card and 
you can use that credit card and though as you   use it it's depleting from your gold reserves you 
know what i mean so you're actually spending gold   so it's interesting but when you look at it like 
what's his incentive well he he's a big gold bug   you know what i mean so i'm not saying he's right 
or wrong but you got to understand the perspective   then you have another economist like max kaiser 
right max keiser the biggest big proponent   of bitcoin okay well he's heavily invested in 
bitcoin that's his bias now where we talk about   like you know and robert kiyosaki always talks 
about two sides of a coin but there's the third   side which is the edge which is where we hope that 
you our guy you guys are seeing that that's where   coffee with the john's that's where we stand 
prime home stands on the edge of the coin we   try to look at both sides and make up our own mind 
we try to analyze both sides what makes sense what   makes sense here what is my worry with bitcoin my 
worry with bitcoin is that it's digital right shut   down the internet shut down the power grid you're 
broke you can't access it exactly you understand i   unplug your computer you're broke so to me that's 
a very big problem because when you talk about   world wars right and we talked about before uh 
jim rickards another person that i like following   and he's a he's still biased towards gold 
but he's a little bit more towards the middle   because he does accept and understand crypto as 
well he gives it its respect but he wrote a book   years ago called cryptocurrency and in it they 
talked about war games that the government does   wrote a book about cryptic no currency war sorry 
there you go he's like cryptocurrency like yeah i   was like no you're talking about currency wars 
uh so he wrote the book called currency wars i   still recommend you read it because it it you'll 
understand why the world is doing what it's doing   right now but in the book he talked about in 
the first chapter it was fascinating um damn it   why you gotta correct me um war games so this is 
something that the government does they create   these war games and they bring in experts from 
all different fields and they pretty much say okay   they play a game they say okay you're going to be 
russia you're going to be china you're going to   be this you're going to be that and how would you 
attack the u.s how would we fight how what would   be the next war so they started to stimulate yeah 
right they simulate a situation which is what we   do when we do investments we simulate worst-case 
scenarios and everything how to prepare against it   and in it he picked russia and he pretty much 
tanked the whole us economy and he showed how   you know within that whole policy it's like it's 
very easy when we are so heavily dependent on the   internet and everything to pretty much tank the 
us economy i mean the us's biggest money maker   is the internet like i mean by far right so you 
want to attack the us shut down the freaking   internet you shut down the us right so and that's 
my only hesitation with crypto is that what does   that mean is that i believe in diversification 
what does that mean is that you have a little bit   in crypto you have a little bit in physical gold 
or silver physical like you have possession of it   you know a little diversification in cash i still 
believe you need cash you know ammo food like   i diversify because to me those aren't investments 
to me those are wealth preservation and protection   against in case it happens right so in case it 
happens i'm i'm kind of protected across the board   and then i then i can speculate with investments 
you know but i have a reserve i have a reserve of   money i have a reserve of food i have a reserve 
of this so then it's like anything was to happen   anything was to happen in the world whatever the 
hell happens i'm protecting one way or another   everything goes to complete dorset i have ammo you 
understand uh like i'm protected i can protect and   take care of my family so that's how this is kind 
of like financial advice if you would take it but   like it's not advice this is just what i'm doing 
what's made sense to me so with that whole ramp   being done what is your take on cryptocurrency 
on bitcoin what is your thoughts on this and go i mean i alluded to it uh previously that 
i think it it is that it's a fascinating new space   to watch and by like just just watching it and 
like put some money into it test it out play   with it move it from exchange to exchange see how 
it works understand what it does from exchange to   exchange so you can buy something in coinbase 
and then you can move that to another platform   because i mean you have a digital wallet that 
is yours so like how do you move bitcoin around   because i can take 20 from a safe and i can 
go put in the bank i could take it from the   bank put in a safe deposit box i know how to 
move money but why do you want to move bitcoin   to understand i mean because to understand 
the space and the versatility because like   why are people buying it because i think it's 
a future currency like you can already see like   people buying houses in bitcoin people receiving 
payments of bitcoin i think one of the nfl players   negotiating his contract we have his contract so 
he's using it as a form of currency because that   is what it is at the very end it's like people 
believe it's worth something and it has a medium   exchange and is divisible and can be sit around 
so it is a currency so it's like you say like buy   and hold it okay yeah buy and hold it but why are 
people why is it worth buying holding it's because   somebody believes it's not saying it's just it's 
worth more today or worth more tomorrow it's like   i can actually go exchanges for real goods and 
values that's what gives it an actual value and   make people want to buy it it's like it could be 
an alternative currency but it is like it could be   because you also also are betting against the 
world governments the powers that they may be   that they are going to fail that they aren't 
going to regulate and try to make it very hard   to use i don't agree i don't i don't think 
you're necessarily because they're you do have   i i believe that there you have all your people 
that are you have your people that are pro bitcoin   because they're like screw the government you 
know all this [ __ ] they're doing or screw biting   screw trump screw this you know and they're going 
to bitcoin and i think those are the wrong reasons   to go to bitcoin right and then i also think 
the wrong reason to go against bitcoin is saying   you know oh bitcoin is stupid it's a fad blah blah 
blah you know the us isn't going anywhere the u.s   is strong it's like i don't look at it you know 
in either one of those directions i look at it   more of again the fundamentals of bitcoin in and 
of itself it's scarce currency medium of exchange   and store value it has both it you can exchange 
it you can exchange it you can use it there's   more and more big companies we talked about 
credit card companies giving you a point back   your your cash back in bitcoin so you're having 
more we're seeing banks embrace bitcoin and start   transacting and investing in bitcoins we're seeing 
some governments embrace and and start transacting   in bitcoin so when you when i start seeing all 
those things and you see the amount of people   that are backing it and creating the blockchain 
behind it i'm seeing more and more ways that   this becomes more protected because it makes 
it that much harder the more people get into   it the harder it becomes to take it down you 
understand more versus any other any other   cryptocurrency becomes speculation because you 
don't have the the the foundation that bitcoin has   you don't have the people behind it building the 
the blockchains that bitcoin has so when you don't   have any of those things for all those other ones 
they can tank at any moment but bitcoin is so deep   and expensive it's like it's very hard to tank it 
you know what i mean so i look at it that way that   you know the way i look at it is how why i say 
that it's more of a store value kind of thing   yeah but that's what i said like 
start interacting with it play with it   like you don't really understand something until 
you're invested in it and have some money at 600   percent it's like put it in there and just 
research platforms and just just spend a   day just researching reading about crypto get on 
some there's i mean type in bitcoin you're gonna   get inundated with uh newsletters and different 
things like that i mean uh i have this i had this   article in here and i can't remember trying 
to find the date of when i put it in here is   march 25th so almost a month ago but uh powell 
calls jerome powell calls cryptocurrencies not   really useful useful store of value so the fed 
chairs he does federal reserve chairman jerome   powell on monday monday that cryptocurrencies 
remain an unstable store of value and the   central bank is no hurry to introduce a competitor 
they're highly volatile and therefore not really   useful to store a value and they're not backed by 
anything how powell said during a virtual panel   discussion on digital banking hosted by bank of 
international sediments it's more of a speculative   asset that's essentially a substitute for gold 
rather than for the dollar like you alluded to   i'll spoke on a day where bitcoin was down on 
coinbase but still trading near 57 000 a piece   for the past several years the fed has worked 
on its own payment system that facilitates the   faster transaction of money with the unveiling 
of the final product likely to happen over the   next two years that's one thing they're saying 
that the way our current money system works   it is slow and bitcoin has the ability to move 
faster in split seconds you can send money around   the world where if i'm trying to wire money to 
indonesia it is very difficult to do or time   consuming and expensive so the federal reserve has 
undertaken other probes in whether a central bank   digital coin would be necessary or or practical 
to move forward on this we would need to buy in   from congress need the buy-in from congress from 
the from the administration from broad elements of   the public and we haven't really begun the job of 
public engagement he said so we can expect us to   move with great care and transparency with regards 
to developing a central bank digital currency   boston fed last year entered into partnership 
with the massachusetts institute of technology   on a multi-year study into developing a central 
bank digital currency so they are aware of it   and they are moving into that space so that 
is one of the downsides is like saying like   it's a store of value as long as it's not 
being banned and regulated by the government   because i mean you saw the government came 
out in 71 and not 71 the year was it they   they banned gold like where you couldn't hold 
the gold anchors in the 30s they needed to   value the money supply and they said euro it 
is illegal to own gold on an individual basis   to where it's like the federal government could 
come out and create something that you cannot   transact in the u.s in bitcoin so you essentially 
create a black market of how bitcoin would be   transferred to where it's saying like grocery 
stores you the platforms coinbase like all those   things like you can't transact bitcoin you can't 
use it for anything it's severely limiting the   ability to move it and use it as a quote-unquote 
currency which is what people are saying   we're like yeah you have a store value but you 
can't unlock it you can't do it you can't go turn   it back into dollars to buy anything with it so 
i don't know how true that is because it it can't   be controlled or anything so it's like how can 
you control it not being converted into dollars   how can you stop you'd have to go you'd have to 
go black market like you'd have to somehow go   overseas somewhere around to turn it back into 
dollars i mean it's just like how they turned   dollars into cocaine it's like it's illegal but 
they can't do it you can't go out and go from a   tax-paying legitimate store and say i want to 
turn my dollars into cocaine federal government   makes the illness no but if you have it let's 
say on a wall on your wallet or something like   that and you just sell it like it doesn't 
you can't sell it on on what platform do you   coinbase any of those platforms the coinbase they 
make it illegal to transact like they essentially   eliminate coinbase or it's like you can't what is 
that a company in general well you can't you can't   convert it to dollars you're gonna have you can 
have bitcoin but you can't turn it into dollars   yeah um i don't know you have your digital wallet 
and you go to a store and they try to turn it   somewhere like they just won't accept they can't 
legally accept it or it's like right now it's like   i can't walk in with i mean name whatever like 
yeah yeah wear sunglasses and use it to buy a   store like i'm not gonna accept that i was like i 
need i don't know i call [ __ ] on that just for   the fact like how do you stop somebody from having 
anything over the internet like well that's just   it's not stopping people from having it it just 
makes it severely inhibiting the ability okay but   let's say coinbase go ahead goes ahead 
and moves to you know outside of the us   they still have their software you still own 
crypto and then you go ahead you sell your crypto   into whatever that currency is and then your 
government just says like you can't bring   dollars from coinbase you can't bring dollars 
from these platforms you can't bring dollars   from here it's like it's the internet and i'm 
not going to bet against like i get where you're   going it's like it's the internet and don't 
get me wrong i am not defending bitcoin at all   like i'm curious like these are honestly like 
because it's me like i'm not gonna bet against   the powers of the government to know to regulate 
and stop people from coming against like how could   they do that it's like coinbase moves overseas and 
this is and this is why i believe like we heard a   podcast recently from this guy that he's like i'm 
96 invested in bitcoin i'm like you're an idiot   like you shouldn't be 96 invested in anything you 
know like diversification dude like you know you   just like you're that's the dumbest thing yeah 
you know to me those things don't make sense but   um very interesting so with that being said i mean 
we did not get to talking about how states are   buying people but i'll just cover really quick 
um pretty much you have right now you have like   west virginia offers twelve thousand dollars to 
remote workers to move there that's what i meant   by they're buying people cities and states are 
have increasingly been offering moving incentives   to entice new residents in recent years and the 
pandemic has promoted more government to get into   the game vermont remote workers grant program 
will award 5 000 in moving expenses you have   other places that are going to give you free land 
if you build a house there uh you have minnesota   baltimore iowa they're given 12 grand 10 grand 20 
grand they're they're giving money some states are   giving you incentives of paying uh north of 10 
000 of your student loans if you move there so   you know all of these states are doing all these 
incentives to get people there because they're   seeing more and more remote workers uh becoming 
a thing where you are no longer needing to live   where the company is based because you can 
work from home right so they're saying well if   you can work from home some of these states are 
beautiful they're just you know they don't have   the businesses they don't have great economies so 
what what i found interesting about all of this   and one side little note again going back 
to the same topic that cash award is taxable   that's key so they're giving you all these 
incentives but that is taxable so make sure to   factor that in um that being said it's those 
are things that i look at as far as what does   that mean or look like with real estate right 
when usually when you do when we do an analysis   over real estate we look at job growth we look at 
economic policies we look at you know incentives   for businesses and all that so if all the sudden 
that shifts you know which obviously right now   it's not in any major way but if it does become a 
thing where it's like you know even san antonio's   gotten expensive where now you know wherever the 
hell this is in like minnesota or iowa or whatever   i can go to these towns that are sort of coming 
a little bit more vibrant and over here it cost   me 250 to buy a house but over there for 250 i buy 
a freaking massive home and i have money left over   and i can still work and still generate my 
70 grand a year working from home it's like   well that's the whole movement where it's like 
california is the tech hub of the united states   right but now it's like well you don't need to 
live in california to work for a tech company   so it's like well i can make that money and like 
we talked about several weeks ago and what or   months ago i'm like hey you get a pay cut if you 
leave yeah but it's like but if you look at the   cost of living you're still making more money 
like yeah you they cut your to pay 10 but the   cost of living is 40 lower here than it is in 
silicon valley right yeah deuces i'll take that   pay cut to go move somewhere where my dollar goes 
way further across i don't have the high taxes and   things that go along with it so so yeah so i mean 
very interesting i i think this is something to   keep an eye on and especially i'm keeping an eye 
on more and more companies that are offering not   just working from home but they're offering you 
the education that you need to be able to work   for them from home so they're training people 
they're getting people ready because they're   realizing that let's say like especially these 
tech companies in california it's like well if   i want to hire somebody from california let's say 
i got to pay them 80 90 100 150 grand i don't know   what the hell you know the median price uh wage 
is over there but i got to pay them x amount or   i can train somebody that has the same 
amount of skills and pay them 60 grand   in iowa right so it's like i mean the work from 
home does create a lot of problems for some for   one state in particular or several states of like 
that that requires like these jobs can be done   remotely they're high tax high expensive cities 
or like god yeah if i can work from somewhere else   like i'm out where like they can move to some of 
these centers and that's why you're seeing these   cash incentives to trying to buy people or 
like yeah we don't have great economies we   have a much slower pace of living and your dollar 
like 70 grand in new york doesn't go very far   70 grand in topeka kansas where i 
grow up it's like you're a millionaire   you go i mean you got you got some money you have 
freedom i'm like and like you can buy like 17 cows i don't know if they ride cows into town it's the 
capital of kansas man uh give you a break but with   that extra money you can now travel too where it's 
like hey i can go live somewhere that i was like   that's one thing i liked about san antonio was 
like it's a very low cost of living or used to be   still comparatively yeah it's like in the airport 
location to where like i like to go i'm a southern   warmer weather climate kind of person how does 
you yeah i can get to those places very easily   so where it's like if i want to travel like it's 
centrally located or somebody's like hey they   got flexibility with where they can work from 
wherever they want to they can take their home   base from a california illinois new york or in 
miami any high cost cities move somewhere cheaper   make the same amount of money save a lot more 
their quality of life drastically goes up where   now they go hey i can go travel i can work from 
home as long as i got a good internet connection   i can i can travel somewhere and stay there but 
if you're living in manhattan it's like i can't   afford to travel like all of my money goes 
to rent and just sustaining my lifestyle here   in california or in manhattan but if i move to 
uh where was it that valuetainment just moved   to like boca raton uh florida outside of miami 
it's like they can go there and it's like it's   a different lifestyle and they can afford 
to travel now so it's gonna create some big   problems and like i don't see this movement going 
away no no no now that this is opened and started   and businesses realize they could capitalize 
on it it's like zoom is now like widely used   amongst everybody though we have to go ahead and 
order webcams for damn computers because it's like   one zoom meeting afternoon it's like god damn 
it all right fine i'll i have to stop using my   phone and let's get a freaking webcam because 
i switched for 20 bucks yeah but it's just it's   it's a way of life and we've not only been able 
to adapt but it's becoming that the way of life   the way of doing business where now we are having 
meetings we were having meetings with investors   from kansas city yesterday um i believe kansas 
city yeah and the other one was in dallas you know   i've been meeting with uh an investor that i'm 
working with out of california you know and we   can have meetings and say yeah nobody really needs 
to go anywhere we don't need to spend that kind of   money of traveling and doing all this bushel it's 
like virtual this is good right now so all right   with that being said people i hope you've enjoyed 
it hit that thumbs up share with your friends and   loved ones you see what we do and what we are all 
about um we're always trying to bring value bring   information share our experiences and our 
knowledge with you make sure you join our   text community at what's that number 210-794-9898 
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go over everything and you get to see exactly   what it is that we're doing ask questions and 
all of the good stuff so with that being said   people i appreciate you all for watching thank 
you for the comments and everything i love the   the engagement on the chat and next week big 
announcement we are doing this thursday not friday   thursday morning at 8 because friday john won't 
be here so we want to make sure to get this out   to you so we'll have it done thursday morning at 
eight so make sure to tune in next week thursday   morning at eight and we can set that reminder 
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