Jason Hartman starts the show discussing median home prices around the nation in the second quarter of 2020. He encourages us to think long-term, follow linear markets, and seek advice from investment counselors.
In the interview segment, Jason Hartman hosts Julio Gonzalez, founder of Engineered Tax Services, a licensed engineering firm that focuses on tax benefits at federal, state, and local levels. Julio explains tax credits in our current environment and economy. They also discuss affordable housing as hotels are being shifted into housing. Lastly, Julio explains how the government is giving incentives to build 5G infrastructure as a tax credit.
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multimillionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 0:53
Welcome to Episode 1528. Our guest today we’ll be talking about the cares act in the heroes app. But in the news, median home prices grew in 96%. Of all US metros during the second quarter. Now, isn’t that kind of amazing to you? It’s amazing to me. It’s amazing, because all of the doomsayers were saying the end of the world would occur. And this Ladies and gentlemen, is exactly the reason that the market timers never win. Well, I should take that back. They win occasionally. But they don’t win long term ever, ever, ever. They just don’t. Because anybody, oh, you know, anybody sitting in February or March of this year, would have said, Oh my god, the economy is collapsing. The real estate market is collapsing. Oh my gosh. People are doing rent strikes. People are doing forbearance, everything’s gonna collapse. I’m going to keep my powder dry. I’m going to save my cash. I’m going to be ready this time. And I’m going to go in and swoop up all the great deals when all these people are going bankrupt and going into foreclosure. And the exact opposite has happened. Now granted, it’s never over until the fat lady sings. Sorry if that wasn’t politically correct statement, it probably wasn’t. But, uh, Well, anyway, that’s the saying, right? It’s never over until the fat lady sings. And it’s not over. We all get that we are still in this we’re in the third inning. A lot gonna happen still, for sure, no question about it. But look, the intelligent thinking, the intelligent person, Intelligent Investor, the empowered investor is simply going to follow the 23 of the 10 Commission. And they’re going to look at commandment number five, Thou shalt not gamble. And they’re going to evaluate the property using the property tracker software at property tracker Comm. And they’re going to realize that if the property makes sense today that I should buy it and not try and be the bottom theater, and not try and time the market. Now, occasionally the market timers win, but they never win in the big picture. It’s like the other old saying, and this one, while it’s probably politically incorrect to so sorry, I know I’m an equal opportunity offender, okay? You know, the old saying, right, you may have won the battle, or you lost the war. You may have won the battle, but you lost the war. Right? And that’s exactly what happens with the market timers. And guess who else that happens with The home flippers. Yes. People that are focused on instant gratification. The people that are focused on winning the battle, rather than the war. Remember, life is a marathon, not a sprint. Is that another old thing? I think it is. Unless I just made it up. I don’t think I made it up. So we got three old sayings, okay. All politically incorrect. Never over to fat lady sings obviously that offends people. And then we’ve got you may have won the battle, but you lost the war. That’s gonna offend people because oh, it’s more its military. It’s violent. It’s evil. It’s awful. You’re all going to think of George Bush, the evil george bush by, you know, I used to hear his name all the time, eight years into the Obama presidency. Everybody used to talk about how, oh, everything’s screwed up because of george bush. Now they got Trump to blame instead. There you go. And then life is a marathon, not a sprint. Well, that’s offensive to us non runners. You know, I’m not a runner. I’ve never done a marathon. I have done a few Sprint’s, but I just find that to be totally offensive. So is there a safe space for me? I want to save space. Because, you know, I’m so fragile. That just offends me if I’m not a runner, and you’re using a runner analogy, folks, this is the ridiculous world we live in. It’s so ridiculous. It’s becoming so ridiculous. Okay, enough of that. Let’s get to the discussion at hand here. Jason. You’re crazy social commentary. The culture war. Oh, don’t use a war metaphor. You’re gonna offend somebody. Anyway, back to the thing. So the market timers they just totally lost the battle for sure. They lost the battle of the They thought they were going to win. But the reality is, they always seem to lose the war. When the people who don’t agonize over timing the market, they win the war. And they win a lot of battles too. But they don’t win every battle. Because, you know, they might have missed out on some great story about how, you know, someone in some cyclical market bought this property. And it went up by 33% in two years, and then the other person, the tortoise and the hare, is that offensive to probably probably someone’s gonna be offended. Anyway, the tortoise and the hare you know, who wins the race, the race goes to the slow and steady and all that time, you slow and study people that’s most of you the highly intelligent people. I know that’s offensive to people who aren’t highly intelligent. So those people are sitting there with their properties and all these linear markets. You know, the ones they bought at Jason Hartman, calm slash properties. That’s offensive because it’s commercial promotion. You can’t emotionally promote anything. Capitalism is offensive. Folks, sometimes you get just gotta call it out because it’s free, vigorous. It’s a ridiculous world we’re living in. Yeah. So you’re sitting there with your properties in Memphis, Indianapolis and then in Atlanta and Ocala and Jacksonville. And wherever, you know those properties, you bought Little Rock, whatever you bought at Jason Hartman, calm slash properties. And you’re thinking, I’m so jealous of this guy who got his property in Los Angeles, and it went up by 33% in two years. But that was years ago. And then it went down by 20. percent in one year. And then it went down another 10% The following year, and they went into a slump. And that’s the difference between the linear market and the cyclical market. The cyclical market is the sprinter, who gets tired really fast because they’re running too hard. And the linear market is the marathon runner. The one that’s just the slow and steady wins the day, okay, you know, you’re not gonna see any sprinters going 26.2 miles. And you’re certainly not going to see me doing that without a car. Because I believe in automobiles. I’m a believer. Yeah. So 96% of the metros saw a price, a price increase. Wow. That’s just amazing. And that’s in the second quarter when everybody thought the world was ending. Well, wow. There were 15 metro areas. That saw double digit price growth. This is according to NAR, the National Association of Realtors, by the way, I just interviewed this morning someone I’ve been wanting to interview for a long time. That is Leslie Appleton young, the chief economist for the California Association of Realtors. some great insights came out of that interview. It’s coming up, don’t worry, you’ll get to hear it. And we talked for about an hour with slides and visual aids. And now I’ve been I’ve been wanting to have her on for a long time because I’ve been following her work for like 30 years. Yes. 30 years. Okay. Not like these newbies that just started their podcast that don’t know anything. I’ve been around a while there’s some value to experience but most be offensive to inexperienced people. Sorry, okay. We live in a ridiculous upside down world. Anyway, so 15 metro areas, saw double digit price growth. Okay. One of them was Huntsville, Alabama. 13.5%. Well, you want to buy some properties in Huntsville, we got him. Reach out to your investment counselor through Jason hartman.com or by calling one 800 Hartman, and we’ll help you with properties in Huntsville. And we’ll also help you with properties in Memphis those walking in Memphis with my feet 10 feet off Abele. Is that how it goes? That’s such a great song. Who’s that Marc Cohn or something like that? That’s a great song walking in Memphis. Anyway, Memphis went up by 13.4% I’m feeling good because I own several properties in Memphis. Yeah, yeah, maybe good. And I own property in Alabama too. But not in Huntsville. You know, remember, don’t necessarily do what I do. Because some of the stuff I did I did 15 years ago. So it’s not necessarily the same game today. Okay, you know, it changes it changes. That’s why you have an investment counselor Boise Idaho, a market that we used to sell in many years ago, but it got too expensive. 12.6% increase Spokane, Washington. That’s always been a little too expensive for our tastes, but they saw some price growth at 11.8%. in Indianapolis. Yes, um, we’re, I’m strongly invested in Indianapolis as a business person. And I have a little piece of property there with a client of ours 10.8% in Indianapolis, and Phoenix, a hybrid market 10.2%. So remember, it’s not just about the value increase. Why? Well, you know the answer, because it’s also about the multi dimensional aspect, which of course, includes cash flow, income, rent to value ratio, right, you got it, you got it. Of course you got it because you listen to the show. Now, I told you yesterday that I would wrap up this concept I think we’re wrapping it up for just a moment before we get to our guests here the true cost of housing. Right, which really is, you know, some folks don’t get up, they just don’t get up. So, the one more thing I did have to tell you about that is taking remember 2006 6.41% interest 2,021.99% interest, don’t all expect to get 1.99 that’s just the quoted rate. You got to jump through a few hoops to get that and it’s not and these are both owner occupied rates. So I am comparing apples to apples. Okay. 1.99% the payment on a $100,000 mortgage in 2006 $626 and 16 cents per month, the payment on the same $100,000 mortgage today. $369 and 12 cents. But wait, there’s more. What more is there Well, if you paid 627 today, and you adjust those dollars for inflation, and you go back in time to understand the amount of that payment over time, the time value of money and you know the net present value analysis 627 today was equivalent to $493 and 48 cents in 2006. That’s by the official Bureau of Labor Statistics CPI u index. The Shadow stats index says it’s only $179 and 63 cents. We are going to dive more into that on a future episode. Because he even I am although it would really make my case if I said I agreed with shadow stats. I’m not totally sure I do. But the hundred thousand dollar mortgage amount today $100,000 equivalent to seven The 8000 705 and 34 cents. According to BLS CPI you numbers in 2006. So there’s your point of reference. Remember, folks, the thing we all have to understand is that this is all a moving target. But, but but but since you can borrow $170,000 today, for the same cost, I mean within $1 and 30 cents, okay? Let’s just call it the same, certainly close enough. So that hundred and $70,000 mortgage today, the 70% gift from uncle Jerome Powell, is equivalent in $2,006 to $133,799, and seven cents, BLS CPI index so What does that mean? That means we do get a $170,000 mortgage for the same monthly dollar amount in nominal dollars, not real dollars, not constant dollars. See constant dollars are adjusted for inflation, real dollars are adjusted for inflation. These are nominal dollars, meaning in name only. That’s still the name of those dollars $627 and 2006 $627. Today, it’s called the same thing. nominal terms in nominal terms in name only. The name is the same, but the value is different. So it’s fair to say, look, Jason, you’re adjusting the payment based on the interest rate. You talked about adjusting the payment based on inflation by indexing that payment, so that it would be in real dollars versus nominal dollars. But what you didn’t tell us yet If he didn’t tell us the mortgage amount adjusted for inflation, so, there I have now told you $170,000 today was equivalent to $133,799 in 2006. So, when you try to determine the ultimate question, the Jason Hartman kreston compared to what compared to what is the question? So you have to compare this to understand reality, right? We don’t know what is reality until we compare things to different points in time and adjust for inflation. That is also there are so many uses to the compared to what question that’s the ultimate question. And so that’s why I do this. analysis for you. So you have a compared to what? There are many people who believe and now science is finally starting to explore this stuff and I’m no expert. Okay, so I’m not talking about my own experience, but I am curious, very curious, I must admit, who are experiencing or not experiencing while they are experiencing, I guess, but they’re experimenting with psychedelic drugs. Okay. And I know that everybody’s, of course, going to have very mixed feelings about this stuff. I am not one of these people. But I gotta admit, I’m certainly curious. And I’ve never been to Burning Man, or taking LSD or anything like that. Right. So but you know, this is curious stuff. And it begs the question, and now science is finally really exploring this stuff because the stigma is going away. And I think this is a good thing, that the stigma is going away because these are not these countries. have, you know substances? A lot of them are plant materials, okay? They’re, they were considered medicine by previous cultures. Okay, maybe now, we’re the people, you know, our society is nuts and the ancient cultures were, you know, they had it figured out and we don’t have it figured out. Who knows? I don’t know, I’m not making a moral judgment or even a cultural judgment. I’m just saying that, you know, the compared to what question applies to a lot of things. Because, really, from a, you know, quantum physics point of view and an Einstein point of view, you know, there are a lot of people throughout time who have asked, what is real? what is reality? define it. You know, Elan musk says we’re living in a simulation right now. And you can listen, go on YouTube and watch some videos about that. It’s pretty fascinating. And that’s not about psychedelics, like, you know, plant, you know, mushrooms or anything like that. It’s just about You know that we’re living in a simulation a parallel universe of this, that and the other thing? I don’t know, you know, this is these are questions nobody really has the answer to, so far as I know, but they do need to ask the question compared to what? And that’s why we need to analyze the value of our currency. So we have a compared to what There are all kinds of different perceptions of everything of what is real. What is the real value of $1? What is real life? What is reality? What is matter? What is antimatter? What is dark matter? These are just crazy complex questions. So I guess I’ll leave you with that. Boy, we went all over the board. They didn’t wait. Okay. Now, we’ve got our guest today who’s going to talk about something much more pragmatic, but in an alternate universe, they might consider this to be really out there. I don’t think you’ll consider it that way. So, let’s go ahead and dive into that. Let’s get to our guests. If we can help you, of course, reach out Jason Hartman calm or one 800 Hartman and take advantage of these low rates take advantage of properties that makes sense the day you buy them from a commandment number five perspective, Thou shalt not gamble. And here is our guest. It’s my pleasure to welcome Julio Gonzalez to the show. He is the founder of engineered Tax Services. They specialize in helping companies, developers, manufacturers gain tax credit information, they consult on that, and he has a lot of insight information into what the economy’s doing by nature of doing that, I’m sure. And today we want to talk about the stimulus packages, the cares Act, the heroes act. Let’s kind of dive in to see how that might affect a potential for recovery. Julio, welcome. How are you?
Julio Gonzalez 20:57
I’m good. Thanks for having me. I appreciate it. It’s good to have you
Jason Hartman 21:00
give us a little background as to you know, maybe just quickly what you do. And you sort of see things early in the economic cycle. If people are buying equipment for manufacturing facility, if they’re going to be developing properties, you know, they’re consulting with you x asking about tax credits, and what’s available to them. So you’re probably very early in seeing what’s going to happen in the economy. years hence, right.
Julio Gonzalez 21:27
Yeah, there’s no question about it. We do tax credits in there as a manufacturing, real estate structure and infrastructure. So clearly, we are seeing it in progress before the public sees and certainly, you know, we have a good feel for those economies and how it ultimately impacts our national economy. Mm hmm.
Jason Hartman 21:47
Yeah. So given that, what are you seeing? We know that real estate development is booming. I mean, there’s a massive shortage in housing, especially now with COVID. And then the race riots, people are fleeing high density cities, and they want to move to the suburbs, which can’t blame them. I think they’re making a great decision getting out of the cities. So tons of demand. I mean, it’s maybe counterintuitive, you know, three, four months ago, everybody thought the world was coming to an end, but it’s feels like the complete opposite is happening. What do you think,
Julio Gonzalez 22:18
you know? Well, I think there’s been winners and losers in the real estate. I think you’re right. I think people are moving out. And that’s creating a housing shortage, and, you know, obviously, demand, but, you know, we have retailers, you know, the big malls problem, you know, the hotels are suffering, right. So, we have winners and losers. And certainly, you know, we’ll figure out how the losers adapt and the winners are certainly taken advantage of the changing times for sure.
Jason Hartman 22:45
Yeah, definitely. Do you do you get involved when it comes to tax credits, in a reuse of properties, reuse of retail properties, reuse of hotels, I mean, some of those are trying to turn into residential. I’ve been mind that’s doing a deal on a hotel property to turn it into low income housing. You know, those are pretty small homes or condos or apartments, you know, to turn hotel rooms into apartments. But do you get involved in that? Do people consult with you on tax credits there? Or is that not a big thing?
Julio Gonzalez 23:16
Yeah, I mean, that’s what they do. And we’re seeing tremendous amounts of hotels shifting to affordable housing, right, small units, and I think that’s something we’re going to see especially in the big cities, and the regions where, you know, there’s a demand for that and no demand for hotels and the hotels are closing foreclosing, and yeah, so what’s the alternative for that kind of product and it really has been in the affordable housing
Jason Hartman 23:45
some, but I can’t imagine that’s gonna work very well. I mean, I know there will be some of it, but I just don’t think it’s a big, big trend. You know, I can’t see it that way. And plus, you know, most of these hotels have one of the danger zones. That I think people are fleeing from and that’s what I call an elevator. You know that? Yeah, that’s uh, if you’re worried about a virus you do not want to be in an elevator, that’s for sure. And so typically a hotel is a high rise or, you know, at least a couple, three, four storeys, you know, four storeys, I guess would be super common configuration. So, yeah, that’s true. So we’ll see how that goes. What about, you know, retail properties, shopping malls, you know, you’re just shopping centers?
Julio Gonzalez 24:26
Yeah, the retail, you really are trying to go into these shopping centers and create distribution centers from them. And, you know, try to redesign them in a way that, you know, we’ve seen distribution be a real winner in the real estate industry, where the malls have been but the real loser, but maybe that was coming anyway. Right. You know, maybe that was something that just got accelerated through this pandemic.
Jason Hartman 24:50
Yeah. And I think that’s a good point. A lot of stuff has been accelerated. No question about that. I don’t know. So, you know, with a stimulus you know, with a government program. It always, you know, encourages bad behavior, if you will. And when things started reopening, employers were really struggling to get people to come back to work, because they were actually in many cases making more money sitting at home on the couch than working with it with a bonus stimulus. Right. Or, or they were using it to gamble on Robin Hood in the stock market. That’s right. That’s right. And crazy, crazy stuff. Right. So tell us about the last program and then the possibility of the new stimulus.
Julio Gonzalez 25:27
Yeah, I mean, the cares act was really kind of a temporary band aid programs that would hopefully get us through, you know, the summer, thinking that by then we would have addressed the virus in a way that maybe we were finding cures or maybe we were coming up with vaccines or better ways to adjust to it, but that hasn’t, you know, really played out. So, you know, the next step is to have basically the cares to program or the heroes Act, which would, you know, one thing right, we’re doing the $600 extended vacation of the basically the payments going out. And, you know, the Senate doesn’t want to extend that anymore through the heroes act, they feel that 10 million jobs are sitting at home because they’re getting the extra $600 in benefit to do so. And so if you saw their version of the bill came out yesterday, they said we would compromise maybe we would do $100 movie, we would do $200 to people under a certain income level. But we certainly weren’t going to extend the $600 to keep 10 million jobs from staying at home.
Jason Hartman 26:33
Right. But what if people can’t go back to work? What if, you know, their local government or even their state government has said, you got to stay locked down, then what do people do? Yeah, and
Julio Gonzalez 26:44
certainly the house feels that way and wants to get that $600 extended, and the senate feels it should be something lower than that. I mean, here’s the risk. It’s like, okay, we continue to put this money out, we increase our debt, right. And I guess That debt, is that a good investment? If we continue to pay that out, will that ultimately stimulate the economy or produce into a worst economy? And that’s what I think they’re trying to debate right now between the House and Senate,
Jason Hartman 27:11
you know, so with all this debt and this money creation, I mean, it’s absolutely crazy. It’s like, you know, the government just acts like, we can just create funny money out of thin air forever. And, you know, there’s no consequences. Are there consequences? You just alluded to that so?
Julio Gonzalez 27:27
Well, I mean, the consequences, I think, are could be traumatic. I mean, it could be massive inflation, you know, that we follow up with this, and how are we going to pay it? And, you know, we’re paying all this money to interest in depth, you know, how do we pay for other things, infrastructure and other things? I mean, there’s only so much money that comes into the tax system, right to the IRS and Treasury that we pay, right. And if a lot of that money is going strictly to debt, and how do we grow the economy? How do we have other programs would be challenging.
Jason Hartman 28:01
But, you know, the magic question is can we defy gravity and just create new fake money forever and, you know, build roads and give people bailouts and stimulus and, you know, bailout American Airlines, or whatever else we want? I mean, I don’t know. It’s people are asking where’s all the inflation from, you know, the Great Recession stimulus from now, but I think they’re asking the wrong question. How would it have been differently if they didn’t do that? There certainly is some inflation and in you know, tuition, which that’s a whole nother argument. That’s a complete ripoff, obviously, yeah, health care. You know, food prices are going through the roof. They’re at a five decade high right now. And I’m noticing that you know, every time I go to the grocery store, you probably I mean, we live near each other. So you might shop at that same Trader Joe’s I shop at on PGA Boulevard sometimes,
Julio Gonzalez 28:52
you know, and I was there, and you know, it used to be $80 for groceries and now it’s 121 30 You know, it seems like I’m getting kind of the same amount of groceries. So it’s prices are going up. Okay. Well, that’s that’s really what impacts, you know, the consumers, right? I mean, the groceries and those kind of costs housing. Right. And so those are big challenges, right that we have to ultimately you saw the Tea Party, right, the meadows and the other senators, you know, they’re afraid to put any out any more debt. You know, they really are truly scared of the consequences of that and trying to come up with a plan that maybe doesn’t increase the deaths but encourages, you know, other behavior through credits. Yeah.
Jason Hartman 29:42
Interesting. So, you know, some of that for us. I mean, where do you think we’re going? Well, you know, do you have any predictions on what’s what’s coming next?
Julio Gonzalez 29:49
Well, I think, you know, clearly we’ve seen some good signs that some of these vaccines are in trial, phase three, phase four. They’re having some good success with the hair. That they want to put out $1 trillion and 25% of that 200 and $30 billion is for the vaccine and finding cure. So that’s a big part of it. The other part, bailing out the industries that have been heard the most, some stimulus money going back to the individuals, I think they’re trying to quantify the amounts, find the recovery, right, because once the virus goes away, you know, I think we would see the economy come back if we don’t go too far into a great depression, right? If we kind of continue to stabilize and open up and get to a point where the vaccines kind of kick in and then we can see better days.
Jason Hartman 30:39
And, well, vaccines take a long time and nobody knows if the vaccine will be safe. Certainly anti vaxxers were out before but I think this one, there’s even even more concern, and also vaccinating 7 billion people. I mean, yeah, that doesn’t happen in a month. Okay. That doesn’t Right, it probably takes, I don’t know, how long does it take to do that to manufacture all those vaccines and administer them? That’s good. It’s gonna take years. I mean, it was a year, right? I nobody know. Right? It’s never been done. Right. Right. Yeah. Wow, something. Anything else you’re seeing that you want to share or, you know, maybe share some insights into, because we’ve a lot of real estate investor listeners, you know, some of the things that developers do in terms of tax credits they get and things like that. I just think that’s a pretty fascinating kind of behind the scenes world, that the typical real estate investor, obviously the typical real estate consumer, they don’t see it. They don’t think much about it. What levels of government are you dealing with? Is it just local or?
Julio Gonzalez 31:42
No, it’s federal and state and local as well. So like there’s 20 tax credits associated with investing in real estate at the federal level. Making and building energy efficient, generates tax credits, making a building renovated from a place of an old and worn out real estate project credits associated with bringing a building back to life, a building for making the facade easements better the air rights above the building can be sold and the buildings with the components within a building can be accelerated based on the premium product that’s placed into billing. So there How
Jason Hartman 32:24
do the air rights created tax credit?
Julio Gonzalez 32:27
Well, basically the air rights can be sold so and you can sell them as credits. You can sell them as cash. You see sometimes people don’t need the credits so they cash them out. And and it’s a great market right so you have air rights above you your zone to go up to eight storeys, but you’re at four storeys and someone wants to go to add stores but they don’t have any air rights. Insert.
Jason Hartman 32:52
Okay, got it. Got it so you can sell them to that building. That’s right. They can build higher Yeah, that’s right. Okay. So you said there were 20 Though
Julio Gonzalez 33:00
Yeah, there’s so many. I mean, there’s ways to accelerate depreciation within a building through a cost segregation setting here. I’ve done those. Yeah. Oh, yeah, yeah, we do about 400 a month. So you appreciate those, right. If you make the building energy efficient. One of the credits we’re seeing a lot of now is putting the 5g rooftop antennas up on the buildings. You know, the is this as the government incentivizing
Jason Hartman 33:23
Julio Gonzalez 33:26
for 100%. Right, because their goal is to have the new internet, the new web out there in the next few years and the five carriers really the 18 T’s the Verizon’s of the world, are in a desperate race. To get up there. You saw they had two big lawsuits because they said there were 5g everywhere. They were 5g probably nowhere. And so but their FCC licenses require them to be on every rooftop basically. And so that’s a mad dash the prop. The problem is they don’t know the property owners, right. And so they’ve been living in the world of big antennas on land, but now Getting on rooftops. And that’s been the big dilemma for them. So, yeah, there’s certain tax credits associated with that type of infrastructure because the government knows that, you know, the automation. And the things that we want to do as a country aren’t available without that 5g web throughout the country.
Jason Hartman 34:17
Yeah, yeah. Well, that’s interesting. What about the opportunity zone? Are you are you consulting on opportunity’s own stuff at all? tremendous?
Julio Gonzalez 34:25
Yeah, we do a lot of that. Obviously, through that pandemic. We’ve had a little slow down, but obviously the here the cares act, extended the opportunity zone. And again, what a wonderful tax program to go into areas that need structures to bring back business and don’t have that infrastructure and in certainly, you have some tax gain benefits. I think
Jason Hartman 34:49
they’re going to have to make that tax benefit even sweeter now, because a lot of those opportunity zones are places where there’s been a lot of civil unrest. I mean, I can’t imagine businesses wanting to go into those places. Or developers wanting to, you know, anybody wanting anything built there. But you know, I know people will chase tax credits, obviously. But I think before I look at opportunity zone is a pretty complex thing, right. And I interviewed one of the authors of the opportunity zone for the Obama administration on the show before. And you know, you got to be a developer, you’ve got to do improvements, which I think ultimately is just going to cause gentrification, every government program just backfires. I’m not I’m not very optimistic about government programs doing what they say we’re gonna do, but Sure, that’s a that’s a philosophical discussion, but but you know, now, I mean, have you seen any projects halted or, or maybe just less interest in stuff because of the civil unrest and, and also, a lot of those areas, I would guess would be higher density too. So there’s the COVID problem, too. I mean, what do you think about
Julio Gonzalez 35:53
that post pandemic, the antivirus just fell off the cliff. I mean, we’re we were seeing funds and developers, you know, being very proactive that’s completely halted. We’ve seen projects just stop in the foot tracks. I mean, the pandemic is basically, you know, from what we’re saying, shut it down.
Jason Hartman 36:12
Oh, wow. So what do you what do you think about that? Is it because, you know, it’s sort of earmarked for areas that would be highly affected, like the migration out of places like that, due to the pandemic, and then the civil unrest? I think that’s a
Julio Gonzalez 36:27
big part of it. And like you said, you know, for that to go, come back, you know, you’re gonna have to greatly sweeten the smart buy.
Jason Hartman 36:37
Yeah, I agree with you. I agree with you. Well, good stuff. give out your website and wrap it up with any closing comments you have.
Julio Gonzalez 36:44
Well appreciate it. Our website is engineered tax services.com. And, you know, we appreciate being on your show, and we’re very thankful for what you do. And let’s continue to get the education out there to help people
Jason Hartman 37:00
Absolutely. Well, thanks so much for joining us.
Julio Gonzalez 37:02
Oh, my pleasure.
Jason Hartman 37:08
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