Jason Hartman discusses big tech and censorship at the start of the show. He explains the monopolization of web traffic. Then he talks about digital currency and what will happen with crypto and the Fed. Later, he is joined by investment counselor, Adam. They look at the entry of hedge funds like Bullish Invitation Homes coming into the housing market. What does this mean for individual investors?  Will the individual investor have a chance against hedge funds? 

Announcer 0:02
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 multi millionaire 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 on Now, here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 0:53
Welcome to Episode 1577. Good day, everybody. Good day, we’ve got some big news. You may know already big news, by the way. We’re gonna have some big news in a couple of weeks here. We’re doing live election night coverage. Yes. So for all of you friends out there who are politically inclined, but focusing really on the economic aspect of political life. How does it affect taxes, monetary policy, fiscal policy, those kind of people who are interested in those topics? If you want to come on the show on the live stream, join us on election night. So I wanted to throw that invitation out there. Let us know you can reach out through Jason hartman.com. And let us know if you’re interested in joining us for that you can come on for just a couple of minutes to say hello, and we’ll do the play by play on this crazy election season. We have an absolutely crazy one. But what is the big news? What is the big news? Well, you’ve probably heard it already. But can you imagine? Can you imagine if one company controlled almost all of the world’s access to information? Can you imagine that? Could you imagine if your ability to know something? or to even not know what you don’t know? I don’t know. Did that make sense? reminds me of that Donald Rumsfeld things are things we know we don’t know. And the things we add whatever. I don’t remember it. But the scariest part of it is that concept I always talk about on the creating wealth podcasts, which is, you know it, you can’t hear the dogs that don’t bark. You can’t hear the dogs that don’t bark. And when you don’t know what you don’t know, and you don’t hear the dogs that don’t bark, that is a huge problem. It’s worse than fake news, it’s worse than misinformation, because you just wouldn’t be exposed to something at all. And imagine what that is like, that is truly, truly scary and truly tragic. Well, that’s the era in which we live, as most of you know, we have got a few companies that control all of the world’s information. And well, almost all of it. And here’s an example. So this one company that is really wants to be thought of as many companies like 26 letters in the alphabet. Yeah, you know what I’m getting at. So look at the dominance they have in the search market. I wonder if this will be censored? I wonder? We’ll see. We’ll see. We’ll see. Maybe it’ll be ghost posted. Nobody will see it. But at 1.54% of all of the search traffic on desktop computers in the United States. Wow. That’s what they control. The second competitor to them, only 12% and the third less than 5%. So that’s astounding. I mean, hey, congratulations on their incredible success for sure. But then you look at mobile devices, mobile, they’ve got let’s just call it 95% 94.92% of all search traffic on any mobile device in the United States of America, a country with 320 8 million people, all of whom are connected. I am sure every buddy in the United States must be connected by now. If they’re not that really does surprise me but it’s possible anyway. The vast majority of them are connected. And there you go. There’s the numbers right there, folks, that is one Corporation, controlling all of that access to information. And look at the others. By the way, I interviewed the founder of DuckDuckGo on my podcast before on the creating wealth show right here on the creating wealth show not on the live stream, but on the creating wealth show. That is absolutely astounding. Let’s take a look at this. This is an interesting news report.

‘Excerpt from News Report’ 5:28
Now the blockbuster antitrust lawsuit against Google tonight, the Justice Department accusing the tech giant of being a monopoly gatekeeper for the internet. Google handles nearly 90% of what Americans are searching for on the internet. Here’s our Chief Justice correspondent here tops

‘Excerpt from News Report’ 5:44
the Justice Department declaring war on Google every day, billions of people come here with questions, federal prosecutors accusing Google of being a monopoly gatekeeper for the internet, accounting for close to 90% of searches in the country. They claim the tech giant has been engaging in anti competitive tactics, paying phone manufacturers and companies billions to allow Google to be their default search engine, prosecutors alleging the ties were so deep, a senior Apple official Roche, our vision is that we work as if we are one company, according to the complaint. In some cases, even if consumers want to delete Google from their devices, they can’t.

Jason Hartman 6:24
So this is very reminiscent of the Microsoft antitrust suit that we had what was that was in the 90s. Right? Where they wanted Internet Explorer automatically installed on all the computers. But I think this is much worse than that. You know, just because the browser is there doesn’t mean you have to use it, you were certainly able to install other browsers on your PCs back in the day. But this is I mean, 90% of the world’s information, essentially, which is sort of like it’s almost the same thing. So let’s keep listening.

‘Excerpt from News Report’ 7:05
William bar today, calling the lawsuits, a monumental case for the Department of Justice. And more importantly, for the American consumer, ever DOJ is asking a judge to rule that Google violated antitrust laws, and that could lead to the company being broken into smaller pieces. Today, Google responded saying the lawsuit is deeply flawed and would do nothing to help consumers. Google says this will only pop up lower quality search engines, David sorry.

Jason Hartman 7:29
Oh, so what they’re saying is, we don’t want any competition, because our search engine is the best. So we’re just going to prop up lower quality search engines. And are they kidding? It won’t do anything for consumers. I mean, the idea, the arrogance, that one company should control all of this information is just absolutely insane. To me. It violates like every democratic principle. Remember, in the old Soviet Union, how they had the official government news agency, it was called the TASS news agency. And every time you would hear a report on the news, I remember this as a kid, according to the TASS news agency, because that was the only source of news coming out of Russia, or out of the Soviet Union, I should say, out of the USSR back in the USSR, reminds me of the Beatles song. And it was all controlled by this one, entity TAs. And now 90% of the information on internet searches in the entire country, in an ostensibly free and democratic country with a First Amendment is controlled by one company. Now, you ready to be amazed? This is how much they are planning to spend defending the case. Ready for this? One 100 and $20 billion with a B 100 and $20 billion. Of course, there’s a lot at stake here. Right? There’s a lot at stake. And, you know, will this be like, you know, mob Bell, at&t that was split up into separate companies? it back in the old days, right? There hasn’t been much. Really, if you look at it overall, there hasn’t been much of an appetite by the government to engage in prosecuting antitrust cases in really in decades. I mean, there’s only been a few of them these kind of landmark cases and this, this is definitely one of them. So we’ll see how it plays out. That’s the report on that. But check this out. Now, all of the tech giants are concerned about this. Obviously, you saw when they were testifying before Congress. Few what was that a few weeks ago, maybe a little over a month ago. You saw I saw them all on that sort of zoom screen. And you saw Tim Cook at Apple, you know the guy that runs all the sweatshops. By the way, be sure you look up Ricky Gervais’ Golden Globes speech, the self righteousness of some of these folks, it’s just mind boggling. It really is. But all of them, all of the tech giants are stepping up lobbying efforts. And they are just, they’re going to do their best to buy off the government. Okay, of course, present company whose platform we’re on now, will probably be censored. There’s probably like nobody watching this right now. They’re gonna spend $19.3 million, which I don’t know, well, that’s just on lobbying. It’s not on legal. It’s not on public relations. It’s just strictly lobbying. So, you know, I spent a day as a lobbyist, by the way, that was really interesting. I went to Capitol Hill, with a group of real estate investors. This was I don’t know how long it was take maybe 10 years ago or something. We went to Capitol Hill, and we lobbied, you know, a congress and we went in, you know, I went to Nancy Pelosi ‘s office and Dianne Feinstein’s. And who else would be arlen specter, I remember, you know, sometimes they would sit down with us, usually, it was like their aides, and they come and sit down and hear, you know, the pitch of why this needs to be that way. And this, you know, that way, but the real lobbyists, I mean, I was just an amateur, you know, that was like a field trip for me. But the real lobbyists, they bring the money in the brown paper bags, right? You know, here, let me slip this little box to you, right, and you know, it’s a box of cash, right or something. They do all kinds of favors. It doesn’t even have to be like that there. It’s so easy to do that kind of stuff. Oh, well. I mean, listen, ask the expert, who’s the expert? That would be Joe Biden, Joe Biden, and hunter Biden experts. Yep, definitely. You know, it’s like, let me see, well, son, you know, I gotta go over and talk to the mayor of Moscow. And, you know, let’s see if we can get some favor there. You know, nepotism, keep it all in the family. And so there, there’s just all kinds of ways to do pale. I mean, look at if you don’t think our government is totally bought and paid for, first off, you’re out of your mind. Right? Most people won’t disagree with me on that one. But first of all, learn about Citizens United, that famous case Citizens United. Okay, that famous famous case, you know, I’m sure there are many documentaries on it. So learn about Citizens United, first off, but then just think about all of the ways to do payola. And all of these deals, you know, someone wants a bank charter, and they want to open a bank, real estate developer wants to develop some land. And you know, it’s like, well, you know, you do this, and there’s this like, subtle favor, that, you know, is worth millions and millions of dollars, maybe 10s of millions of dollars. It just happens all the time. And if you don’t believe it, then ask yourself, How did a communist like Bernie Sanders, get three beautiful houses? How is it that these people enter government, whatever level of government, and they’re, you know, a lot of them are just total losers. They’ve never made any money in their life. They they’ve never owned a house, you know, they’ve never invested in anything, really, they’ve never run a business. yet. They they’re in Congress, or they’re in any any part of government doesn’t matter doesn’t have to be Congress, but Congress is a good one, because, hey, where’s the House Ways and Means Committee? Right? That’s the powerful committee. So that the taxes and spends and, and they they were in government for 10 years, and suddenly they’re wealthy? How did that happen? You know, they’re making what hundred 80 grand a year with their government job, which, you know, they got some nice perks and benefits, too. But how did they become multimillionaires doing that job on that salary? I don’t get it. You know, it’s just kind of amazing how that happens really is. But look at the lobbying effort. They’re all stepping it up. You see here from 2010 2015. Now 2020 lobbying efforts have doubled in the last five years for most of these companies, whether it be Facebook, Amazon alphabet, which is Google, or Apple, all of them, they’re all really getting into the business of lobbying. So anyway, more to come on this stuff. Maybe I’ll just give you a little another tidbit here before I go. I didn’t get a chance to talk about this yesterday, but the digital dollar is coming. And I’ve always said the cryptocurrency that is going to take over the world. That’s Going to be the digital dollar. It’s not going to be and I’d love to be wrong about this. I want to be wrong about this. It’s not going to be Bitcoin. It’s not going to be a theory and it’s not going to be any other cryptocurrency it is going to be a cryptocurrency, a digital currency backed by the two most powerful entities the human race has ever known. What are those two most powerful entities, governments and central banks? You know, no, cryptocurrency has a standing army. No, cryptocurrency has a fleet of what? 12 aircraft carriers. Okay, that’s what the dollar has. So all of this crazy stuff about the dollar is not backed by anything. You know, you’re, that’s this, these arguments are just nutty. Okay. So yeah, that’s, that’s the deal. So you can see the steps toward it now, you know, they’re talking like, oh, China is rushing to develop their digital currency, right. And, you know, I’m not against digital currency, I think it’s great. But the way it’s going to be used and abused is going to be terrible for us. Little citizens, it’s going to be Orwellian, it’s going to be a complete loss of spending, privacy, and a complete way to treat us all as puppets on a string. So that Think about it. When that cryptocurrency is put into the app on your phone, on your mobile device, the government can do things like make it expire, they can say, Okay, this expires at the end of the month, so you have to spend it before it expires. Or maybe its value declines like they used to do on gift cards. And in most places, that’s illegal. Now, because it’s a scam. By the way, don’t buy gift cards ever. That’s the ultimate fiat currency are trading dollars that are widely exchangeable for gift cards that are hard to use access, have expiration dates, all that stuff, right here, I’ve got three Banana Republic gift cards I haven’t used and they all have like varying amounts of monies, I gotta scratch the thing off the back and figure out how to put them together just so I don’t lose my money. I got another one here. And American Express gift card, you know, this is total money, folks. Okay, don’t buy those and don’t buy them for other people, either. They’re just there. And it’s a whole different thing. But of course, this kind of thing will help prevent money laundering, as the article says, it’ll help prevent illegal activities, drug smuggling, arms, dealing, etc. but also prevent a lot of freedom. Because one of the few freedoms that you have with good old hard cold cash is spending privacy, you can spend your money in with a relative amount of privacy, if it’s not electronic money, right? If it’s not on a credit card, etc. And so that’s something to be very careful of, but it’s coming. And the technology will be great. They’ll make it super convenient. But again, we’ve got to be forever vigilant for our freedoms and our rights and, you know, democratic values, in which by the way, these big tech companies are not acting with democratic values. Clearly, we we see that I want to give a big shout out to the government. Oddly, the the DOJ, the Department of Justice, that finally got around to doing this antitrust case, it took them long enough took them way too long. They’ve been thinking about it forever. But you know, it just took them forever. So anyway, that’s that. Okay. I want to talk to you about senior housing. We’ve got to talk about apartments and how what’s what’s going on with apartments, we got to talk about housing inventory. I’ve got another study on that. All kinds of stuff. So we’ll get back to that. We just got a whole bunch of stuff to talk about on future episodes. But I’ve got Adam on the show today. So I’ve got to get to that if you’re watching on live stream. You won’t see it. It’ll be on the podcast that’ll be published in about an hour, but just wanted to do the intro portion here on the live stream. So thank you for joining me and until next time, happy investing to all. We are coming to you to talk about invitation homes institutional investors and their incredible bullishness on the real estate market, as well as the Memphis market and a little bit about what’s going on there. Adam is here with us, Adam from Austin a Adam. Ha ha.

Adam 19:53
It’s great to be here.

Jason Hartman 19:54
Good to have you. So you know we start off with a slide just to remind everybody of the greatness of the most historically proven asset class in the entire world. That is, of course income property. And it is ideal as an acronym, because it offers income, depreciation, and we mean depreciation in a good way, because that is a huge tax benefit. In fact, it is the best of all tax benefits, depreciation, and equity, growth, appreciation and leverage. Those are five characteristics that make it ideal, but there are really more than five characteristics. This does not include because this is an old fashioned saying the ideal component. This does not include, of course, the originator Jason Hartman himself, what do you think about people talk about themselves in the third person?

Adam 20:49
Rickey Henderson, the baseball player, he always talked about himself in the third person.

Jason Hartman 20:52
Oh, does he really? That’s funny. It doesn’t include Of course, inflation induced death, destruction, I BD. But that wouldn’t make a very good acronym, would it? Anyway, Adam, let’s dive in here. You’ve prepared some great slides and some great stuff for us. So let’s take a look at them. And first of all, of course, welcome everybody formally welcome, contact our investment counselors, our team members at Jason hartman.com, or one 800. Hartman, if you’re in the United States, let’s check this out. So here is an article I just saw. This was in globe Street. And Adams got an interesting theory about this. I’m gonna have them share that in a moment. But this just shows you the incredible, the incredible incredible bullishness and optimism of the big institutional players in the marketplace. I think invitation homes owns around 80,000 homes in the United States 80,000 single family homes as rental properties. They’re the biggest landlord, for single family homes, there may well be a bigger apartment landlord, you know, before the Great Recession 1012 years ago, depending on how you count it, it was really rare for institutional investors to be owning a lot of single family homes. Of course, they own big apartment complexes always and other types of real estate office space shopping centers, etc. But now, in the last 1012 years, they’ve really fall in love with the fallen in love. And this is a love stream, by the way, not a live stream or something you love folks. Oh, Adam explained that one in a moment. But typo. But it’s good. I like that. I’m sticking with love stream. I think it’s good. And they’ve really fallen in love with the single family home asset class. But Adam, you have an interesting thought about this. You shared with me before we went live today. tell tell our viewers about that.

Adam 22:45
Yeah, I was just saying if you were in the real estate game before the Great Recession, you know, it was it was fine. Then the great recession hit. And it was almost one of the one of the worst things that’s recently happened to real estate investors because you were able to get great deals during the Great Recession. But now, it’s not just Adam competing for a property against Jason. It’s Adam competing for property against Jason and a billion dollars from invitation homes and rockpoint. And they’re, you know, it’s being harder and harder for, you know, real estate investors, the mom and pops to get in, for example, our Alabama provider, I know in the you talked in the past on the podcast, how hedge fund came in and bought a large share of what they were offering up.

Jason Hartman 23:29
And I wrote on dozens, and I think they’ve got I can’t remember the number now. But I was like 53, I think or something like that 53 of their properties. And they wiped our inventory out.

Adam 23:39
And then I was talking to him earlier or late last week. And he said, Hey, we have a hedge fund who’s interested in buying who said they’re gonna buy all this stuff around Birmingham, they have it under contract. But if they fall out, you know, we would get a ton of inventory, because he hadn’t put it up on our site yet, because the big hedge fund had said they wanted it. And so they’re not only keeping, they’re not only taking inventory, they’re keeping inventory away from us. So you know, they would rather sell, you know, builders would rather sell all of their stuff at once. So one empty, because they know that cash is just going to get to their bank account. And these people aren’t leveraging, they’re just buying. So they’re gonna take the money where it is. So it’s been really hard. The investor, it was hard on the homeowners when it happened, and now it’s hard on the investors to compete against the big guys. So it’s a somewhat bad thing for us.

Jason Hartman 24:30
Yeah, it definitely, I’d say it’s a mixed bag. It’s good and bad. You know, it’s definitely bad from the point of the perspective that you talked about, because it does create a lot of competition, it pushes up prices, and so forth. But one of the things I’ve been saying for the past 16 years I’ve been telling our followers is this idea, it Now initially frustrates investors this thing I’m about to say, but my answer has been embrace the French augmentation. Adam, you’ve heard me say this many times if and the concept is that investors get frustrated, because they don’t like the way that when they’re investing in multiple markets, or just investing even in one market, but hopefully they’re investing in in at least three markets, but not more than five. Okay? Because that’s always our advice, thou shalt diversify. That’s one of the 1010 commandments, the original, the original 10 Yes, there are now 22 commandments, folks, but that’s the original tenant says 2210 commandments. And the idea is that, in the single family home investment game, everybody does things differently, you know, every property manager has their own way of doing things, every local market specialist, you’re dealing with personalities, and some of them have no personality, or they have a bad personality. And, and you’re dealing with all these different people in different ways of doing things, right. And when you cross state lines, of course, you know, the agreements look different, the laws vary a little bit, the customs vary a little bit, not too terribly much, but a little bit different. You know, certainly the eviction laws vary if you’re crossing different markets, even in different cities or counties. And so this is frustrating for investors in some ways, and I can understand that, you know, it’s not consistent all over. Like, if you buy a stock, you’re buying something that is federally regulated, right, if it’s a publicly traded company, Now, granted, you know, nobody pays too much attention to this. But of course, you can buy on different stock markets, right? The Nasdaq has different rules than the nysc, the New York Stock Exchange, as does the London exchange, and, you know, the Hong Kong exchange, and you know, so forth, and so, so on. So those are different, but nobody really pays attention to that. They just buy it or don’t buy it. And so what I always say is, look, that frustration you’re having is what keeps the big institutional players out of our market, it keeps them from eating your lunch, right. So I always say, embrace the fragmentation, because that that actually benefits you. This is such a fantastic asset class, it’s, it’s the most historically proven in the entire world. And if it was really simple, for Goldman Sachs, or any of these big institutional investors, to just deploy $15 billion into the market at the click of a mouse, or, you know, maybe they get a due diligence report that they don’t even read, and then they deploy the money, you just deploy billions and billions of dollars, like really quick, they would be all over the place. Now, granted, we’re looking at an article that says invitation homes and rockpoint are just doing a billion dollar deal to buy more single family homes. But folks, in the overall scheme of things, these institutional players are like a drop in the bucket there, they’re nothing. Now granted, they’re getting bigger, and they’re interested, they love the asset class, they’re buying more and more, but still, compared to the overall market size. Now, here, I’m talking about two markets. One is the overall marketplace for single family properties, or really one to four units, you know, duplexes for plexes triplexes they count in there. And that’s the overall marketplace, which is a huge marketplace, you know, it’s a lot, right. And then there is the investment marketplace. And that’s about 16 million single family properties in the hands of mom and pop investors. So still, these guys are nothing. Okay? Nothing, even though they’re huge, right? They seem huge. When you look at an article like this, oh, my God, a billion dollars going into the market. But this is such a big marketplace, that this really is like a bucket of water in the ocean. Now it’s getting bigger out.

Adam 29:00
Yeah, one of the things that interested me about this article is that if you look at where they’re investing, they’re not investing in New York, and LA, you know, and all of the big, big name cities across the country. They’re investing in part of the Western US in the southeast us, Florida and Texas. So they’re starting to get away from just your cyclical markets and coming into where we’re investing.

Jason Hartman 29:27
Yeah, they like these good, solid linear markets. Again, three types of markets, linear, cyclical, and hybrid. More information on that on the podcast, the creating wealth podcast. And by the way, if you’re new to our work, and you haven’t been following us for many years, you can just go to Jason hartman.com slash start, you know, we’ve got almost 600 episodes or 1600, sorry, 1600 episodes of the creating wealth show now, but for some handpicked episodes, that give you some of the fundamentals, just go to Jason hartman.com slash start, and you can get our quickstart podcast, which which has some kind of fundamentals. Okay. So those are sort of handpicked for you for that purpose. Yeah. Any other thoughts on the institutional investors? Adam?

Adam 30:15
No, I don’t think so. Just the where they’re investing in that they’re still here. They just need to go away. Yeah.

Jason Hartman 30:21
Oh, you want to get rid of them? No. Hey, actually, by the way, this, I wanted to stay

Adam 30:26
out of our markets. How about Yeah,

Jason Hartman 30:27
yeah, I understand that feeling, certainly. But I’m gonna give you a counterpoint to that in a minute. But since I’ve got this slide on the screen, now, if you go to pandemic investing calm, you can get a free mini book on pandemic investing, and then attend this event, which is, which is going to be a fantastic opportunity for you, you’ll learn a lot about the strategy. And hopefully you’re adjusting your strategy as an investor of any kind right now, because the world has massively changed. And we are undergoing a massive wealth transfer of pandemic proportions.

Adam 31:07
Before we move on, we do need to address john Wright wrote in and said, every market is so different, they would have to have an Amazon sized footprint to buy in each market. And yeah, don’t give Amazon any ideas, john?

Jason Hartman 31:19
Yeah. Yeah. JOHN, thank you for that. That’s that’s a good point. And then you also said, embrace the fragmentation, really some of the best advice. Thank you, john. I’m glad you like that advice. And, and that’s what you need to do. And again, the big institutional players, and I’m talking big, big, not this drop in the bucket stuff we talked about back and warm up. They don’t want to deal with this fragmentation. Okay, this that’s a huge hassle for them. They want to be able to deploy billions of dollars super quick, without having to agonize about it and deal with oh my gosh, how are we going to manage these properties and all that kind of stuff? So that’s why you should embrace the fragmentation. All right, Adam, let’s talk about Memphis. Now. We have many different markets. If you go to Jason hartman.com, slash properties, you’re gonna find Jacksonville, St. Augustine, of course, Memphis. We’ll talk about that in a moment. South Central Pennsylvania, Little Rock, Arkansas. By the way, Arkansas is the most landlord friendly state in the entire country. You’ll find Indianapolis, our longest running market, we’ve been in Indianapolis for Gosh, 12 years maybe. I don’t know. It’s been an awfully long time. And Northern Indiana, Indiana, Jackson, Mississippi, Kansas City, Orlando, Dayton, Huntsville, Birmingham, and then Tuscaloosa. And then we have additional markets as well, that are not quite as active as those we just mentioned. But Adam, you’ve been looking you’ve been doing some more research on Memphis is a really large market. We’ve helped hundreds and hundreds of clients invest there over the years,

Adam 33:03
I’ve been reading some really fun in depth stuff like the state of Memphis housing 2020 recently, what can I say? I’m in the in the good stuff.

Jason Hartman 33:13
Okay. So in other words, are you saying you have insomnia and this is a cure for insomnia?

Adam 33:18
It didn’t hurt. I’ll put it that way. didn’t hurt my sleeping. I helped

Jason Hartman 33:21
you helped you get to sleep. Okay.

Adam 33:23
Tell me one of the the big reason I wanted to talk about Memphis today was I’ve had several people comment to me, and express concern and say, Hey, you know, there’s people have been investing in Memphis for a long time. It’s been the darling of investors for so many years. Is it overbought by investors? And so I was like, Okay, well, let’s see, is it overbought? That’s a valid

Jason Hartman 33:44
question. And you know, every time I look at, Oh, my gosh, we just did another transaction in Memphis. I think the same thing myself, like, how many rental properties can this market absorb? You know?

Adam 33:57
Yeah, and the answer is a lot. So if you can see here on the slide, that 89.6% of the city’s neighborhoods saw an increase in rental housing, so it is continuing to grow. But on the other side of it, you see, according to the 2020, national low income, affordable housing gap analysis, Memphis needs nearly 30,000 more affordable units to meet the city’s need. So we are buying the the homes that were foreclosed upon that are then available to us, but there is still a massive, massive need of people to get in. So our tenants, well, I hate to say, but they can’t really find anywhere else to buy and go. So they’re going to be renters for the foreseeable future. I mean, it just doesn’t. And it’ll be explained a little bit more in the future slides. But there’s still, even with all the investors, there’s still a market to be served, and it’s just not being met by others. So we’re gonna do it. Good stuff. Okay, so john, who just made those great comments. He is from since unnati we’ve got Julian from Dallas. And we’ve got Jordan had no idea how much gold would be on this live stream. Oh, hey, thank you. Well, it’s not gold. It’s real estate.

Jason Hartman 35:12
Income property, but I’m glad you’re enjoying it. So thanks for thanks for watching and let us know where you’re located or I think you did in just a moment. Okay? So Ken is from Mission Viejo in the People’s Republic of California. I call it the Socialist Republic of California. But yes, I know Mission Viejo. Well, when I was in traditional real estate, I sold many homes in Mission Bay. Whoa, so good stuff, right? By the the El Toro y, the Y is where the five and the four or five freeways meet, or and converge. And that is a famous location for a little bottleneck of traffic, but they’ve expanded it a lot over the years. So I don’t I wonder how is the why nowadays can if you’re going north, okay, and then Jordan is from Dallas, The Big D, Dallas, and then Brian long term podcast listener from Dayton, in Cincinnati area. Thank you, Brian. Okay, so Adam, let’s continue here. keep letting us know where you’re watching or listening from?

Adam 36:13
Yeah, so here, we’re just looking at how not only is it getting fewer affordable homes, but the rent prices that were that a lot of our properties are in the 789 hundred range, are disappearing. So these are these are properties that are still in high demand, where this means this means 789 hundred dollars per month rent, right? Yes. Okay. So the that rent range, because of appreciation in the city, and everything else, they’re losing affordable rental units. So not only do they not have affordable housing, they don’t have a whole lot of affordable renting, either. And we are able to get properties. And it’s because of that, if we can provide properties in the 788 50 range, which we are, we’re able to get renters really quickly. For example, I had a Memphis turn, during the pandemic in the middle, and I was worried it was the end of May, was your own property or my own personal property. The tenant, the lease ended at the end of May. And I thought, Oh, good grief, we’re going to be doing a tenant turn and the beginning of a pandemic is going to be terrible. They had the rehab done, and a new tenant sign in 11 days. It was fantastic. Yeah, so and it was in the price range, it was right around the rent on that property is right around $800. And so I mean, the affordable rental units, if you’re able to buy them, if you can find them, which our providers are finding and presenting to our buyers, it’s in high demand still.

Jason Hartman 37:40
So that’s simple. Yeah, there’s a lot of demand for this type of housing. And, and folks, it’s hard to do a an analysis on this, Adam, I think we should try to figure this out. But here’s the idea, since the Great Recession, nobody but nobody. Now that’s a figure of speech. I mean, almost nobody, it’s so minuscule. is building houses like this. There is just no new inventory creation yet. We have, unfortunately, a widening gap of wealth inequality. Am I starting to sound like you, Adam, like a democrat?

Adam 38:17
I mean, this is just facts, let me know what you do about it. It’s different. It is it is.

Jason Hartman 38:23
And we have that the rich are getting richer, the middle class is under attack from both sides, you know, hopefully, we’re here to help you move up into the upper middle class, if you’re not there already, if you’re in the upper middle class, we’re going to help you move up one level above that, maybe two, and stay out of the lower classes, because that segment of the population is getting larger and larger. And when you look at what the plan demick has done to the job world, I mean, it is really, really tough. A lot of those workers have been hit really hard from the situation. And so this just increases demand for affordable housing, and it’s not being built. And even if that wasn’t happening, even if the wealth gap wasn’t widening, even if the pandemic didn’t occur, this would still be an issue simply because of population growth and no new supply. Right? Where are the Gen Z ers and the especially the younger millennials, that’s Adams demographic cohort. I’m a Gen Xer. This will be continued on the next episode.

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