Win With Real Estate's Hidden Wealth Creator - Inflation Induced Debt Destruction!

Here's the way it looked. The typical house was about eighteen thousand dollars back then. Okay, if they put twenty percent down, they borrowed about fourteen thousand in nominal dollars- the name of them. They repaid about thirty six thousand in real dollars. After inflation- remember 1.06 percent- they repaid 16 000 and change. But after tax benefits and inflation, they paid 12 655.. Wait a sec. That was less than they borrowed. Isn't that incredible? That is crazy, yeah, especially when you spell it out like that: yeah, we are live here in the facebook group- six figure house flipper, so we're live. Show more

I'm really excited about this one. I have a special guest here. I actually met. I met this person at an event recently and he gave a talk at the event. I was blown away by the talk because, like nobody talks about this sort of stuff. Like he was talking about the economy, inflation, what's happening, what's going to happen and, most important, like, how does it impact investors? So obviously we're here where real estate investors want to flip houses, build passive income, all that good stuff, and we're doing these things and it's very important to like know where we're at and where we're going. Jason is one of the few people who's actually talking about that, so i want to bring him on here, have him share his stories. Show more

He's an economist, he's an investor himself. He's been doing his 18 plus years. He's a great podcast too, one of the few i listen to. I watch the youtube videos sometimes and there's a really good stuff. I really enjoy it. It's over six thousand episodes, i think. He he has- he's you know, he's a legend and we've got a few. Show more

Yeah, he's been in the space a long time, so, without further ado, i want to you know, introduce jason, how are you doing? Hey, good, victor, thanks for having me, and happy to share some of my latest ideas on how to win the game. As we are in an era of financial repression, most people are getting hurt by this. Some people who are in the know and who get it, who understand how to play the game, will absolutely win, and win big. You know that's what it's incumbent on all of us to do: is to just to win the game, to align ourselves with the forces out there, and and just win is and do as well as we can with it. I like, i like the to think of it like when, if you're like paddling down a river, you want to go with the current. You don't want to go against it, so that in mind, like you have to know where the current is going and that's where we need to figure out and like know what's going on with the economy. So i just want to, you know, jump into it here so, like you know what's going on, how do we make the most of it. I know it's a broad question- we'll get into it deeper- but like, yeah, what's what's going on, sure? So in my position, i get to really interview a lot of experts and talk with a lot of clients. Show more

You know we have thousands of investor clients who are buying turnkey properties nationwide through our network. My company is empowered investor and i've been doing this a long time, so i've been through many cycles, you know, one of the things i just think people have to do is, as much as everything that's going on right now, it is wrong. The elite class is oppressing us peasants and they're really taking advantage of people. It's very sad. However, we need to align our interest with the most powerful forces the human race has ever known, and by doing that we can win the game and really following their business plan, and so that's what i'll share a little bit about today and you know we can do there's a lot to this. So you know, people can check out my podcast, youtube channel, whatever, or we can, i can come back and we can go over more stuff and take go further down the rabbit hole. Yeah, no for sure, here you're invited anytime you're inviting any time we have a bit of a presentation here. Yeah, i do so. Show more

You know, the most common thing people are probably talking about today is: is there a bubble? When will it pop? What's going to happen when it pops? What is that going to mean to people? What is it going to mean to their savings, their stocks, their bonds, their real estate? How is it going to affect them? Because things have been run up so high, many people say we are in the everything bubble. You know, years ago i used to share an article- and i've got to find this old article because, you know, 15, 16 years ago i used to talk about this. It was an article with michael milken, the junk bond king, who actually went to prison, right, you might remember him- and jeremy siegel, an economist and investor, and siegel talked about how there was a looming asset shortage and i found this to be really interesting because, as the middle class rises around the world, you know, as of many years ago, the number's much higher now- the globalization of the economy had lifted about 300 million people out of poverty. Show more

Those are mostly people in china and india, but even more now, and i don't have the latest numbers. So people around the world are getting a lot richer. We may not think of them as rich, but in comparison to what they're used to and what their past was like, they feel very rich in, in china, for example. And so, as they are coming up in the ranks, they are now spending money, they're doing a lot of discretionary things, they're investing, they're buying assets, and assets are in short supply. Most people don't think of, like you know, they think of supply and demand for food and water and housing. But what about just assets as a category? Places to put your money? Right, that's a category, right, that's a commodity. Of course there are different kinds of assets, but assets themselves are in short supply, and so prices have run up as more demand and more dollars or yen or rubles or whatever currency, is chasing a limited supply of goods and services or assets. And so when will the bubble pop? That's the big question. I don't know if i have an answer. Show more

You know, i've had many great speakers at some of our live events over the years: ron, paul, harry dent, you know a whole bunch of others- and i have software that helps people analyze real estate deals. Show more

It's called property tracker, and so i'll go through some of that. But one of the things i really think it's important to do is standardize data. So we use this standardized performa when we look at a property, so that every time we look at a property it's the same document. So you don't have to be a detective, you're not as likely to make mistakes or miss something important when you're looking at the numbers. But today i just thought i'd talk about- you know- some more general concepts about the dollar and this bubble concept and what it means to us all. Show more

So if we look at the value of the dollar- and the dollar is a commodity just like anything else- right, and the value of the dollar has been in steep decline historically over the past decades, and that's why many people have decided to invest in things like gold and also this. That's a. What is that bitcoin? Yeah, crypto. You know it's funny. This is a fake bitcoin because it's real. It's a real, it's tangible, but it's not a bitcoin, right? So it's kind of ironic that a fake bitcoin is a real bitcoin, or vice versa. I mean, and these are zimbabwe dollars, okay. Now these have really no value at all. Okay, but if you look at the denominations, one zimbabwe dollar in the past used to actually be valuable, and this is 100 trillion zimbabwe dollars, okay. So it's kind of funny to just understand that when it comes to currencies like the dollar, it's a race to the bottom. You know, all currencies around the world are pretty much going to zero. Okay, i think we can all count on that. And so how do we position ourselves and how do we win this game? How do we short the dollar, if you will? Show more

I mean, look, people talk about shorting stocks. Well, how about shorting the dollar? Because it's almost guaranteed- nothing's guaranteed, of course. It's almost guaranteed- that the government will continue to print more dollars and spend more dollars, and as they print more, the supply increases, and as there's more supply, each unit itself is less and less valuable. That's just the law of the world, right? It can't be any other way. And then it chases assets like housing and of course, the price goes up in nominal dollars, but not necessarily in real value, right? So so that's the thing. There's this: yeah, go ahead. Oh, no, no, i appreciate, i just i didn't mean to cut you off, but no, it's interesting like the, the value of the dollars going down, not necessarily like the value of the house, like the house is a house, but like the value of the dollar is going down, but just more dollars to to make that same amount of value, exactly. And you know, we should really ask ourselves: is the price of the house going up, or is the price of the bitcoin going up, or gold, or you know whatever, or is the value of the dollar going down? That's a real good question, right? So most people think, oh, prices are going up, they're going crazy. But you know, price is just a name. It's like a zimbabwe 100 trillion dollar bill, right, that's meaningless is just add some zeros, right, it doesn't really mean anything. What's valuable is what it can buy, right? So so that's the thing. So how do we do this? How do we play this game? Show more

So many years ago, i trademarked this phrase: inflation-induced debt destruction. I know it's a mouthful, but it's really important, because this is the strategy that can help people win the game: inflation-induced debt destruction. Say it three times fast. So what does that mean exactly? And because i work with a lot of beginners so like. So what's inflation like? What do you mean by all these, all these terms that these throughout us? Great question. So inflation happens when there's a increasing supply of currency units, in our case the dollar, but it could be the euro or the yen or the peso, doesn't matter, just whatever it is. There's an increasing amount of these currency units and they are chasing a limited supply of goods and services and so, naturally, by the law of supply and demand, the most basic law of economics, sellers of the goods and services will raise the price as more and more currency units are trying to buy them, right? So that's why a house, you know, years ago cost fifty thousand dollars and today that same house is three hundred thousand dollars. Right, because more currency units have come into the system, chasing the limited supply of housing, and housing is such a great asset class because its supply, victor, is extremely limited. It's limited by so many things. Number one, of course, there's a limited supply of land. But really, you know, if you think about it, there's a lot of land in the world, right, but there's a limited supply of land where people want to live, where cities will entitle them to build, and all of this kind of stuff and then all of the construction materials. So, if you look around, you know my office here in my house, right? Hey, look behind me, you know that wall. Inside that wall, well, of course, there's drywall on the outside, or gypsthere's brick and two by fours and nails and copper, wire and petroleproducts, and below me is concrete, and then you know flooring materials and in front of me is glass and steel, and so all of these commodities have intrinsic value. Show more

It doesn't matter what currency you price them in. Every human needs these things because they are the ingredients for shelter, right, okay, so that's a beautiful thing, because when a commodity is not attached to any one currency and has intrinsic value and is needed by every human being on earth, you got a really good recipe there for an investment, okay. So, yeah, really good thing. So, inflation-induced debt destruction: well, it's better if i just talk about it. Yeah, maybe, okay, so we've got janet yellen and joe biden and they're spending money like drunken sailors. Very, actually. I remember ronald reagan had this great quote years ago. He said to say that the government spends money like a drunken sailor is an insult to drunken sailors. That's a good one. I haven't heard that one before- because the government spends more, right? Show more

It's crazy. So what do we do? Like? What does the government do, right? It's so in debt and it's made so many promises that it just can't keep. Mathematically there's no way to keep it. So just to understand, like the size of the problem for some reference, so the gdp of the country in, in other words, everything the united states produces, all value produced in the country economically every year, is just over about 20 trillion dollars. We'll just round it off, call it 20 trillion, okay, with a t, that's trillion. And the problem the government has is all of the promises it's made now and into the future, right, and over the next 10 to 15 years. I believe the most reliable estimates of those promises as they stand today. But remember, the government every day keeps making more promises that it can't keep mathematically. But today those promises are about 220 trillion dollars. Okay, so there's a misbalance there. Yeah, total mess, right. So so think about it. If you taxed everybody at 100 and said all 20 trillion needs to be paid to the government every year and the people get nothing right, well, obviously no one would work and the economy would stop working. If that happened, right, but just say you did. And if the government never made another promise after today and you tax everybody at 100 percent just to keep the promises it's already made, it would be 11 years of the entire country's gdp. It's an impossible thing not going to happen. And these are promises like medicare, social security. Can you explain like the promises, disability insurance, government contracts, government employees, every? It's just insane. It's just gotten so far out of control. It's ridiculous. So i've identified six ways the government could potentially get out of the mess. Some will work, some won't. Okay, let's look at them. Show more

Number one: the government could just default and say: look, we're sorry, we made too many promises, we're drunken sailors, we can't keep the promise, so we're going to institute austerity measures and we're just going to break the promises. All the debt we owe to foreign countries, we're just going to say sorry, we can't pay. And then all the promises we've made to our own people, we're just going to say sorry, we can't give you social security or you know whatever right. And so that would be very unlikely, as we saw in greece and spain and all over europe and many other countries around the world. We saw riots in the streets when austerity measures were implemented. So very unlikely, politically intolerable. Raise taxes. Well, that was the one we already talked about. Tax people 100 percent and you still can't solve the problem. Okay, so that's not going to work. Show more

We could sell off assets. The us could have its own garage sale. Right, it's a yard sale. Years ago we talked about selling our ports to dubai. You know, regularly, the bureau of land management- not to be confused with the other blm- okay, lower's about to ask him- sells off land. Okay, sells off land to developers and so forth. So the country does have assets that could sell. Some of the toll roads in our country are actually owned by foreign companies or governments. Okay, but when you pay a toll, sometimes you're paying china. Isn't that weird? Yeah, in our country. Didn't know that, i did not know that. Yeah, it's kind of a strange way to take over a country right there. Okay, so we could use the american military to steal the assets of other countries. Show more

And you know, people might say, well, that's crazy, are you kidding me? Well, are you kidding me? It's, it's the history of the world. This is how the map of the world was created: by one country's military imposing and trying to steal the resources of another country, whether the resources be land, oil, art, gold, whatever, right, this is the history of the world. It's ugly, it's terrible, but it's reality. Okay. Now, on the good side, i've been really negative, okay, very positive side. Show more

Maybe there will be some great technological innovation that'll change everything and make everybody prosperous. Let's hope that happens. Let's hope that happens. And when we talk about inflation versus deflation, we're really talking about a war. We're talking about a war between two things: really bad fiscal and monetary policy- in other words, all the spending we're talking about- and technological innovation, because technology is deflationary, but but bad fiscal and monetary policy is very inflationary, okay. So so who will win this boxing match or this war? I don't know, we'll see, right? I kind of think the bad fiscal and monetary policy will win, and i don't mean win in a good way, but i think they'll create inflation, because that's virtually unlimited. Technology is pretty amazing, but it's not unlimited, okay, it's always limited by prior discoveries and whatever people can think of at the time or manufacture, right. So the most likely thing will be inflation. The government will simply inflate its way out of the problem. Okay, so this is what we should all do. We can just align our interest with the government and the federal reserve and benefit from all this inflation just beautifully. Now most people, in an amateur way, will say: well, you know, you're not telling me anything new here, jason. I already get that real estate's a good hedge against inflation. Uh-there's way more to it than that, okay. So if you're, if someone watching this or hearing this, is thinking that there's more to it, okay, let me tell you there's a lot more to it than that. So let's dive deep into this inflation topic. So, to understand inflation, we need to differentiate between real and nominal. Nominal means the name of something like the zimbabwe 100 trillion dollar bill. Where is it? Here it is, it's called 100 trillion zimbabwe dollars, but what is the value of it? Well, the value of it's almost nothing, but the value of it used to be a lot okay, and it's. Show more

That's the name. The name is nominal, it's just the name of something, not the value, and so we also need to understand that inflation is this hidden tax that just steals our money, it robs us, it destroys our purchasing power and it destroys the value of savings in our savings account, the value of our stocks, bonds and even our equity in real estate, because all of those things are denominated in dollars. Show more

So anything denominated in dollars gets attacked by inflation. Guess what? Debt is also denominated in dollars, which is good, great and that's wonderful, because it gets attacked by inflation too, and that's why debt victor is my favorite four-letter word. Oh, there we go. Yeah, i've always heard, with inflation, there's two losers, and that's savers and lenders. So, yeah, don't be those two things and you'll, you'll do good. Yeah, you got it exactly right, exactly right. In fact, that's one of the things i'm going to say: the most powerful method to redistribute wealth, not taxation, inflation, much more powerful and much more sly, and it does transfer wealth, just like you said, from lenders to borrowers and from old people to young people. Show more

So interesting, they were helpful. Young, yeah, why would that be? Well, mostly old people, at least hopefully, have assets. Guess what they have? They have the stuff above savings, stocks, bonds and equity in real estate. And guess what most young people have? They have debt. So inflation is an inter-generational wealth transfer without an inheritance, without anybody dying. It's just transferring wealth every single minute. Okay, so you know not that young people have the good kind of debt. Most of the time they have student loan debt or credit card debt, and that's all bad, but it's still debt, so it does transfer some wealth, okay. Now one of the things we have to understand that's really unfortunate is that when a government is broke, it becomes predatory on its citizens. Show more

Okay, and this is ugly right, and i used to live in the socialist republic of california most of my life. Thankfully, i i now live in florida and i just noticed over the years how predatory the government was getting. I remember talking to a taxi cab driver- this was before uber- and he was talking to me about how he got a speeding ticket and he, like, missed the notice and suddenly that ticket turned into a 1 000 fine, really, and he's a taxi cab driver, he couldn't afford that. Okay, and so the government just becomes very predatory when it gets broke. Okay, and and that's unfortunate, but it's just a thing we gotta understand and we need to defend ourselves from it. Show more

So how does this really work? Inflation-induced destruction. So let's look at not a theory, not a philosophy, but a reality that already happened to millions and millions of people. So in 1971, richard nixon took us off the final attachment to the gold standard. It was almost exactly 50 years ago, and he basically said that, look, countries around the world can no longer convert their us dollars to gold anymore. Before that they could. They could do a conversion, but they couldn't do it after 1971.. And so when we went off the gold standard, that broke any tether that the government had to limit its spending, and after that the government could just spend whatever it wants to. We all hear these, you know- debates about the debt ceiling and all this stuff. They can just keep going. There's no limit whatsoever. Gold provided a limit before because there was, there was a convertibility. And if you were going to convert the dollars to gold, then guess what? If there's more dollars being pumped into the system, the price of the gold would naturally go up, right, right, because it's supply and demand. More currency units, limited supply of gold. So that's inflation, right? Or inflation in gold prices or devaluation of the dollar. So let's look at one year after nixon took us off the gold standard and look at a home buyer who bought a house in 1972.. Now this happened to millions of people, so it's not a theory at all. Okay, so at the beginning, when they got their mortgage, one dollar was worth exactly one dollar, because no time had passed, no inflation had happened. Yeah, but by 1984 the dollar was only worth 40 cents. Show more

So in 12 short years the dollar lost 60 percent of its value. I, i mean that's crazy, that's a lot, that's shocking. And 12, 12 short years is nothing for to lose that much. And that's not even considered hyperinflation or high inflation. When you look historically around the world- at zimbabwe, argentina, hungary, a zillion other examples- okay, you know russia when the soviet union collapsed- i mean this is nothing in terms of inflation. It could be much more severe in the future. So, dollar 40 cents, okay, by 2001, now people are paying off this 30-year mortgage. Show more

Remember the mortgage was fixed rate. By 2001 the dollar was only worth 24 cents. Now we lost 76 cents on the dollar, right, what happened? Okay, in 1972 this person to get a mortgage borrowed that money at 7.37 percent- that was the mortgage rate for a 30-year fixed-rate loan- and after inflation devalued the debt, after inflation-induced debt destruction, they really only paid a real rate of 1.06 percent. Show more

Oh, interesting, okay, because they're taking out the inflation. Yeah, so they almost live there for free- almost almost, but wait, there's more. As they say, on that 2 am, you get some oregon soon knives with this thing. Okay, so it gets better than that, because interest on your mortgage is tax deductible. Now everybody's tax rate is different. So this is just an estimate, understand that. But it's kind of like a typical scenario. Show more

After inflation and tax deductions they paid negative one point one, six percent. So they did, they did get paid to live there, they not. They didn't just live there for free, they actually got paid to live there. And this was an owner-occupied home. Imagine, victor, if it was a rental property, yeah, where you're not even paying your own debt. The tenant is paying the debt and they're paying you maybe two 300 bucks a month, positive cash flow and the at least nominal value of the property is going up every year. Right, that's what people consider the hedge against inflation. But they don't consider that inflation-induced debt destruction. That's the beautiful part, that's the hidden wealth creator. So here's the way it looked. Show more

The typical house was about eighteen thousand dollars back then. Okay, if they put twenty percent down, they borrowed about fourteen thousand in nominal dollars- the name of them. They repaid about thirty six thousand in real dollars. After inflation, remember, 1.06 percent- they repaid 16 000 and change. But after tax benefits and inflation they paid 12 655.. Wait a sec, that was less than they borrowed. Isn't that incredible? That is crazy, yeah, especially when you spell it out like that. Yeah, yeah, it's, it's totally amazing. Show more

Now i developed an index that you saw a little bit of it at the conference where i spoke. It's called the hartman comparison index and what it does is it compares the price, if you will, of housing to a whole bunch of other commodities. Remember how, at the beginning, we talked about how commodities have intrinsic value. So it's much better to compare the price of anything against many other things. Most people make this huge mistake, victor, of only comparing to one thing: the dollar. Why would we only compare it to one thing? Because that thing keeps changing in value, so it's a measuring stick shrinking or growing, and i don't know what it means. You know it means different things every day. I mean, there are currency traders that make a whole living, or make, you know, millions or billions of dollars trading currencies because the currency's value changes all the time. Okay, that's the forex market, right. So why would we only compare the price of, say real estate to dollars. We would be crazy to do that. That just doesn't make any sense at all. We should compare it to a whole basket of things like gold and bitcoin, and oil and orange, juice and rice, and all of these different commodities that everybody uses, regardless of the currency. If currency didn't exist, everybody would still use oil and oranges and gold. Yeah, exactly all of these things have intrinsic value. So that's what we can talk about next time. Show more

It takes me a little while to go into it. So, yeah, that's an interesting topic for sure. Yeah, so it's compared to what, is it, jason hartman, i'm glad you remembered. Yes, compared to what? Absolutely yeah. So any questions or thoughts or anything really fascinating? Because, because everyone says like, everyone talks about like inflation, but like what does it mean? How does it apply to us? How do we fight against it? Like, okay, it's one thing. Okay, inflation here is here, it's here to stay. You know what do we? What do we do about it? I like the idea. Just invest in reels. They have rental properties, you know. Do flips as well. Just get your foot in the door with real estate and take, take advantage of the currents that are, you know, running and you know, really take advantage of that, absolutely. So what do you do specifically? So i have another strategy i teach called the ultimate investing equation. Okay, and part of that equation is this: you acquire assets that everybody needs- those are houses, right- and you acquire them with mostly someone else's money. That's the money you borrow from the bank, so maybe you're going to borrow 80 of it, put 20 of your own cash into it and you delegate the responsibility of repayment of the mortgage to the tenant. You don't pay yourself, okay, and you tell the tenant to give you a little extra every month- positive cash flow- and you take great tax benefits because income property is the most tax favored asset class in america, and this is just a beautiful, beautiful equation. So don't pay your properties off. If you've paid them off or paid them down, refinance them and pull the equity out. Buy more properties and leverage them with long-term fixed rate, super cheap debt at negative interest rates. So let's talk about negative interest rates before we wrap it up, okay, you know. I mean, are you getting mortgages for your flips or using hard money or just typically hard money? Yeah, typically hard money. And just to just interject also there, i also recommend for folks, like, because a lot of people want to do rentals, passive income, i recommend, like, do a flip, do rental, do flip, do a rental just to help you get into the rental game. Show more

Yeah, because rentals are where it's at, like, there's a lot of, a lot of benefits to that, just like you're saying. And passive income: everyone's all about the passive income, but they miss out on some of these other benefits, like if they're getting paid to own the house. You know it's negative real interest rates, then even better. Yeah, no, you're absolutely right. So that's a good idea. Do the flip to get some capital to buy the long-term thing. Right, most people, you know they'll do the flip and go spend the money because they're instant gratification oriented, right, but what we should do is do the flip and buy a rental and then do another flip and buy another rental and keep it. And you know, sell one, keep one, sell one, keep one. That's a really good, good method, okay, so, yeah, so, negative real interest rates, yeah, so, if someone is borrowing on a long term- and, by the way, i'm a hard money lender- so if you or anyone, any of your students, need funding, i fund, you know, flips all the time, okay, because i don't want to be a long term lender, but i i like being a short-term lender because inflation will kill me. Long-term, right, but for six months i'll loan the money right and do hard money. So anyway, if on that long-term rental they're borrowing at like three percent, i mean it's incredible. Maybe you know, give or take, an investor is going to pay a little more, but let's just call it three. For example, sake, okay, and say their combined state and federal tax bracket is 50 percent. They live in the socialist republics of new york or california or massachusetts or whatever, right, they're going to pay about 50, probably, okay, and for round numbers we'll use 50, right, maybe it's a little less so that three percent interest now becomes, after taxes, 1.5 percent real interest rate. But you know, the official inflation numbers would say inflation's around 4 right now, which is quite high actually, but the real inflation rate, if you ask me, is about 10 to 12. You know, don't believe the cpi because the government has a conflict of interest. Show more

They have a vested interest in understating it. So look at something like the chapwood index, which i like, or shadowstatscom- and i've had the founder on my show. He's really interesting, john williams, and you know, if you think the inflation rate is, let's just call it four percent, to go with the official number. So we paid one and a half. Now, if we subtract four percent from one and a half- because it's the interest rate versus the inflation rate, right now we're at negative two point five percent. Pretty good deal. We're getting paid 0.5 to borrow money, assuming a tenant doesn't pay the debt. Oh, interesting, it's not just owning it, not even renting it out, or you know, we owned it and left it vacant. Now, granted, there'd be some maintenance costs and there's property taxes and insurance. I get it okay, but but you know, that's relatively minor in the big scheme of things. Okay, but if we put a tenant in and tell them to pay the debt for us and give us some, give us a tip every month of 200 bucks- that's kind of the typical deal- right, then it's like an infinite return scenario. It's just totally incredible, right? So negative interest rates. Now, what if the inter, the real inflation rate, is ten percent? We used four percent before, right, i mean, i was closer to being: yeah, yeah, so ten percent, that's a one point five percent minus ten percent, is negative eight point five, mm-hmm, if we pay the debt ourself, yeah, yeah. So if you start thinking in this way, like what you know, if you saw someone advertising a house, or like if you saw a mortgage company, like advertising alone, it's like we'll pay you eight percent to buy this rental, like i mean, how many rentals would be buying, you'd be like, yeah, how many, how many can i handle? Show more

What's the maximhome? Yeah, yeah. And and look, why do you think all of these big institutional investors are just crazy about buying more houses? They're building to rent communities, build tourette deals- right, because they can get this money so cheap on the public markets that it's just an incredible deal for them. Show more

So they're really thinking long term, yeah, so, with that in mind, and then we'll wrap it up. So the final question, like is: is the housing market in a bubble? Do you think it is, or do you just really think it is this inflation that's kicking in? Well, you know it depends. Okay, one of the things we'll talk about next time we meet and we're going to do the comparison index, which really answers the bubble question really well, okay, inflation is sort of a inflation-induced debt destruction. Is is a technique to short the dollar that can protect you from a bummer. Show more

But the bubble question is answered mostly by the hartman comparison index and the compared to what? Question. And also, we have to under we're going to talk about next time how there are three types of markets- linear, cyclical and hybrid markets- and how those are all different. So you can't really classify and say, well, is real estate in a bubble? Because it depends where it is, what price segment it is, what property type it is. You know, you got to peel the layers of that onion a bit. Okay, gotcha okay. But but mostly i will answer the question. In my opinion, mostly no. I don't think we're in a bubble yet. In fact, goldman sucks. I say that intentionally. Goldman sachs has a new report out that says housing will appreciate by 16 next year. You're kidding? Nope, not, was it? What was it last year? Was it seventeen percent or what? What, what? Well, it depends what market and what survey you're going by, and i don't know what goldman sachs predicted last year. I'm not sure, but i know that next year, for 2022, they're predicting 16 appreciation. They're kidding me. I don't think we're in a bubble yet. I i think people think real estate's expensive because they don't compare it to the right things. They just compare it to dollars, right? And if you just see the price tag, it's like: oh, the price tag has gone up, so it must be worth more. Well, fantastic, yeah, i think that's a really good place to to wrap it up, we can leave it on a bit of a cliffhanger, so we definitely have to have you on again just to hear, like the second part of it, you know, maybe even third part of it. But again, appreciate you hopping on, it's been, it's been a pleasure. Show more

All right, happy investing, everybody you. Show more