Episode 101: Kevin and Steve emphasized that only 5% of Americans are engaged in real estate investment, linking this to the mindset of consumers versus producers. They argued that the wealthiest individuals thrive because they invest, build businesses, and provide services. The conversation touched on the impact of stimulus checks, with a prediction that the money would ultimately end up in the hands of the top 1% due to their investment mindset. The hosts encouraged listeners to shift their mindset, overcome fear, and take steps towards real estate investment, citing tax advantages and a wide-open opportunity. The episode concluded with a passionate call to action for individuals to expand, become producers, and recognize their God-given right to thrive.
The Replace Your Income Podcast is geared towards regular individuals seeking financial empowerment through real estate investment. The hosts, Kevin and Steve, target those who may have hesitations or uncertainties about venturing into real estate. The podcast addresses common barriers to entry, offering insights, strategies, and success stories to inspire and guide listeners.
The discussions on real estate in the podcast serve a dual purpose. First, they aim to shift the mindset of potential investors, encouraging them to overcome fear and take action. The hosts stress the importance of becoming producers in the real estate equation, highlighting the potential for financial growth and the positive impact on household income.
Second, the podcast delves into practical aspects of real estate, such as tax advantages and market opportunities. By providing information on how to navigate the real estate landscape, the hosts empower listeners to make informed decisions and take steps towards building a real estate portfolio. Overall, the Replace Your Income Podcast serves as a resource for those looking to transform their financial future through real estate investment.
0:00 - Happy Holidays!
2:30 - Statistic 1
11:12 - Monopoly
13:44 - The Rich
19:40 - Statistic 2
28:30 - Thriving Economics
31:50 - Statistic 3
35:15 - Who Profits
00;00;00;00 - 00;00;20;14
Unknown
I love to ask how many of you are currently in real estate? You've heard me do this, and some people will raise their hands and then I go wrong. You're all in real estate. You're either on the side of real estate that's making you money or on the side of real estate that's making someone else money.
00;00;20;16 - 00;00;38;20
Unknown
All right. Well, hello, everybody, and welcome to replace your income with Kevin and Steve. How are you today, Kev? Steve has been working really hard on his impersonation of the dogs singing Jingle Bells. So we're going to kick it over to you, Steve. In three, two, one, go. That was a good try again. Okay. All right. Well, I thought we'd.
00;00;38;25 - 00;00;59;24
Unknown
But you know, what we are doing today is because it is towards the end of the year, we thought this would be a really good opportunity to kind of say, all right, what's the state of the market? We've got some really cool statistics that we looked up and then we're going to be talking about. This is just some really interesting things about what we're seeing in the market, what's kind of happening in general with investment, real estate.
00;00;59;27 - 00;01;30;23
Unknown
And so we are calling this episode stats that stun mostly because I like alliteration, but also these are really kind of fascinating statistics. So, Steve, should we dive in? Let's do it now before we dive in. Actually, I just want to remind everybody listening and watching that very soon you are going to be hearing some announcements about the first opportunity that you're going to have to be able to get your hands on microloans to millions.
00;01;30;29 - 00;01;45;11
Unknown
We've done the episodes on the book and what's coming in the book. We are really close to being able to launch something and I'm so excited. And so I want everybody to just kind of, you know, I hopefully you're sitting with bated breath waiting for the opportunity, get your hands on this thing, because that's going to be awesome.
00;01;45;11 - 00;02;08;05
Unknown
So stay tuned for that. It's going to be coming and we'll have a special podcast episode probably early January of 2024, where we're going to be sharing some stuff. So it's going to be awesome. But for now, Steve, let's jump into these stats. Every time I hold a piece of paper, I always feel like I need to do the Rush Limbaugh thing and I just straddle the paper.
00;02;08;05 - 00;02;33;20
Unknown
That's funny. I think I think the same thing. And I'm sure that Justin, when he's editing this podcast, I'm sure that's really fun on the microphone. Is that good? I just I don't know. Don't you want to, like, say something like in my formerly nicotine? Yeah. They get to trading fingers. That's right. Minor more Diet Coke stained that's and still currently which is weird that I'm sticking my fingers in Diet coke anyway.
00;02;33;26 - 00;03;02;12
Unknown
Okay. Let's go to the statistics. All right, Steve. So this first one that we're going to share is kind of an interesting one. Here's what it says. It says only 17 million Americans own at least one investment property. Now, here's what that means. That means that less than 5% of Americans own investment real estate. Now, granted, we're taking that stat based on the total number of Americans, which as at the time that we're publishing this podcast, is just under 331 million.
00;03;02;12 - 00;03;22;18
Unknown
And as you pointed out before we started rolling, obviously there's going to be children in there, but there are still hundreds of millions of adults in the United States of America. And if we just look at the stat on a surface level, there's only 17 million investment properties across 330 something million Americans, meaning 5% of Americans own investment real estate.
00;03;22;19 - 00;03;51;01
Unknown
Now, of those, Steve, one of the other things that we've seen and that the stats are kind of showing is that the majority of real estate investors own ten or fewer properties, which is a pretty interesting thing to contemplate. And the significance of that and what that means to us is as individual real estate investors as well, the fact that the vast majority of all rental property owners are mom and pop shop kind of businesses.
00;03;51;03 - 00;04;18;16
Unknown
So it's just, you know, individuals, just regular, regular people. Yeah. Buying rental properties. And, you know, yesterday we watched a clip in our weekly meeting with our team and we watched a clip from Barbara Corcoran and I think Barb from Shark Tank, and she made her her most of her wealth initially in real estate. You know, she sold her real estate brokerage for like $66 million.
00;04;18;19 - 00;04;40;21
Unknown
But she an individual close to her pointed out to her, it's like, well, but that was a very small amount compared to the real estate that you purchased that you held onto for a number of a number of years. And I love the phrase that she used, which was I wait for the properties to become fat and juicy, and then I take them out.
00;04;40;21 - 00;04;58;10
Unknown
And she talked about how like initially most of these properties, many of them like had negative cash flow, some of them just cash flow it a little bit and other ones did a little bit better than others. But she built this portfolio understanding that in the beginning stages of it, there wasn't a whole lot of return, so to speak, there.
00;04;58;17 - 00;05;24;04
Unknown
You know, overall, it sounds like she had some return, but she waited and she was patient and on some properties as long as 18 to 20 years. And that's when she called them fat deuces and that and that's when she harvested them, when she sold them or refinanced them or did something like that. And and that was the larger portion of her wealth that has been created over over years.
00;05;24;04 - 00;05;41;21
Unknown
So not just the brokerage but the property she bought. And so my point in bringing her up is she started out as a mom and pop shop. So she was just a regular person who got started in real estate. And even when she had a real estate brokerage and she probably was doing pretty good with that, she just would buy a property here and buy a property there.
00;05;41;23 - 00;06;10;09
Unknown
Single family homes, multifamily, you know, complexes, commercial buildings and just bit by bit over many, many years built this portfolio. So here's a question that I've got. So why is it now, when I first saw that statistic, just in terms of the percentage of Americans that own investment real estate, it kind of took me back a little bit because I go, okay, I don't know that I've ever okay, maybe I'm sure at some point I've had a conversation with somebody who's like, No way.
00;06;10;09 - 00;06;27;13
Unknown
Real estate's the worst thing I've ever heard of. But for the most part, most everybody that I talk to is always interested in real estate. Like everybody. I get this all the time. I get it at church, I get it when I'm coaching basketball, which I just started coaching basketball for my son. And I was talking to one of the parents last night.
00;06;27;19 - 00;06;46;01
Unknown
I get it at church when we had our Christmas party at church and I had two or three people talk to me like, Hey, we've been seeing your podcast in your shorts and they're talking about real estate. And in general it seems as though the vast majority of adult Americans would love to own buy have something to do with investment real estate.
00;06;46;08 - 00;07;12;06
Unknown
So why is it that only 5% of Americans in general are owning investment real estate like what is? I would love for us to try to figure out why that is. Like, how would we diagnose that? My guess is this, Kevin, because there are a lot of people who have the resources to get into investment real estate, but they don't realize or recognize that the number one have those resources.
00;07;12;09 - 00;07;34;12
Unknown
They haven't identified the fact that they could use a, you know, a41k or their retirement funds. They don't realize that, you know, their friend, their neighbor, their brother, a good, you know, somebody who they know wealth is a resource to them and they could partner with them. They don't recognize the the equity in their whole life insurance plan.
00;07;34;14 - 00;07;52;22
Unknown
Like there's a myriad of different resources that people don't recognize that they have. Number one, they don't think they have the resources. Number two, they don't know where to begin. They don't know where to start, Right? They don't know if their own personal market, a home down the street, would make a good rental property. And so it's kind of like this idea.
00;07;52;22 - 00;08;15;20
Unknown
It's like, well, do I? Some people only think of of rental properties as being like multifamily. It's like, well, if it's not a duplex or a four plex, then it's not investment and they're not thinking single family. And so the other thing is not understanding like what to get into the rent, but then it's like the hassle and the and the lack of confidence in kind of the expertise.
00;08;15;23 - 00;08;32;26
Unknown
It's kind of like, well, I could like go buy a property, but then what? Like, what do I do with it? Like if, if it needs some fix up, where do I put my money? A lot of people put their money into areas of the home that don't produce a return. There are certain areas of the home where you get your biggest bang for your buck.
00;08;32;28 - 00;08;51;11
Unknown
And so people understand that maybe intuitively, but they're kind of lacking that that definitive knowledge and that confidence to move forward. Another thing that they're lacking is like a team. It's like, number one, like how do they like find properties, let alone like, how do I identify the right market, but how do I, like, get out there and actually find a property?
00;08;51;13 - 00;09;11;00
Unknown
And how do I know if I found a good one? And, you know, again, lacking that, that expertise, that knowledge, that understanding, that confidence to build, to pull the trigger on a property thinking or knowing that, hey, this is going to make a good a good investment and the next thing, well, what are you going to do that property, depending on what the market is doing.
00;09;11;00 - 00;09;29;26
Unknown
And a lot of people a lot of people are kind of like, well, I don't really know what the market is doing, Even if they do think they know what the market is doing, they're wrong about what they think the market is doing. Right. And again, it gets back to that that confidence level. And then another factor, of course, and this might be one of the biggest ones is just the time factor.
00;09;29;29 - 00;09;52;11
Unknown
People are so busy, they're caught up in their lives. Right. It's like investing in real estate is one of those things where it's like it's a someday I'm going to get to it, you know, when you know this situation, right? And so between where future family. Yeah their you know, their church stuff or sports like kids all that kind of stuff.
00;09;52;17 - 00;10;15;05
Unknown
Like doing real estate is time consuming pickleball. I mean, pickleball is a big thing and how much time that it can take dominate your life, it can dominate joy. And so the time is another big factor. So I think that all of those carve like and you combine all of those together and there's a fairly significant barrier to entry for again, for for the small investor to get into it.
00;10;15;12 - 00;10;32;24
Unknown
And the other thing that Barbara said yesterday when we were watching this, Barbara Corcoran, is that it's that first property that's the hardest one to get into because it's kind of that inertia, right, to make the decision to do all the things go through all of the steps to actually get in that property and what do our clients say all the time.
00;10;32;24 - 00;11;01;25
Unknown
It's kind of like, well, that wasn't so bad. Yeah, that wasn't so hard. And so it's kind of that in that initial, like just figuring things out, getting into that first property and from there things can kind of grow and snowball and move forward. I actually disagree with all of that, and I think that the main reason that people don't get started is because they're not sure when they get to get four homes on that property How to make it into a hotel that's a monopoly reference is what that was.
00;11;01;25 - 00;11;17;26
Unknown
In case you missed that. But you know what? But I was literally I was sitting, you know, I totally got a call. I'm just kidding. I was thinking about Monopoly because I'm like, this is what's interesting to me. Every single kid has played Monopoly, right? My kids have played Monopoly. And here's what we learn in Monopoly, right? Yeah.
00;11;17;26 - 00;11;38;20
Unknown
You learned that you may go to jail, but you also learn that you keep going. You earn some money as you go. And the idea is, I want to own property, I want to buy property, and then I want to buy more property. And if I get enough property, that's all in one sort of location, I can start to make more money.
00;11;38;20 - 00;12;09;21
Unknown
But if you think about it like we learned, even in Monopoly, this game that everybody loves, there's about a billion kajillion versions of Monopoly and it's always the same thing by cash flowing property and then by more. And then the more you buy. And you know what's so crazy is you think about Monopoly. Like sometimes people are just, you know, there's always those people that sort of hold out for Park Place and Boardwalk and if they can get it and they can get those too, they can start to turn some major profits, Right.
00;12;09;21 - 00;12;30;22
Unknown
Just like maybe you would if you owned real estate in Manhattan, one of these really nice buildings. But for me, I usually would buy my kids because I start to buy all the other stuff that they're not interested in. This is just what I do. And all of a sudden, before they know it, every time they're going around the board, they're terrified because they know they're going to have to pay me.
00;12;30;24 - 00;12;55;16
Unknown
And it's just it's such a fascinating concept that you start somewhere and that somewhere starts to earn something, which gives you the ability to acquire more. And the more real estate you acquired, the quicker you can win the game. And so we have this as a baseline foundation for all of us who play Monopoly. Yet then we become adults and we're like, Well, I don't think that that's true.
00;12;55;16 - 00;13;22;17
Unknown
And probably because we know that when you own property, it doesn't mean you can just put more houses on it and turn it into a hotel. But it's just so fascinating to me that if only five were all playing Monopoly, but only 5% of us are actually owning investment real estate. And if I were to summarize all of the amazing stuff that you shared about why people are not doing it for me, one word besides thinking of Monopoly, one word came to mind and it's this uncertainty.
00;13;22;19 - 00;13;44;13
Unknown
I'm just not certain. Right? And if we were to equate uncertainty to sort of an emotion, we would probably equate it to fear and fear is absolutely crippling. And there was never anything in history that was accomplished if we were completely acting out of fear. And fear is different than caution. And I think that we sometimes confuse the two, right?
00;13;44;18 - 00;14;04;04
Unknown
We we sometimes think, well, I've been I've been conservative and cautious when really all we're being is fearful. And so there's all of these factors that you just described which all amount to uncertainty, which really we could boil down to fear because all of a sudden it's real life in real money. It's not monopoly money, even though actual money is kind of fake money, too.
00;14;04;04 - 00;14;25;04
Unknown
But in a certain sense, Right. I mean, it's all in. Here's one more reason why people like don't get into the market, because oftentimes people feel like I missed it. I missed yeah, I missed the opportunities. Like I missed the 2007 recession I didn't buy when when when home prices were cut in half, like I might as well never try again.
00;14;25;06 - 00;14;46;17
Unknown
And then the same thing happened again, you know, right before COVID and then after COVID. And it's like everybody's always feeling like I should have back then and that. So it gets back to what we see all the time, which is when is the best time to buy real estate? 20 years ago. Yeah. And when is the second best time today.
00;14;46;19 - 00;15;09;24
Unknown
So that's a that's a you know, that's something that's easily overcome. A bull may be easier said than done because I totally get kind of the mentality that the thought is like, man, the average priced home in Utah right now is like $535,000. It's like, like, like things are going to aren't going to keep going up. But that's what we always say.
00;15;09;24 - 00;15;47;28
Unknown
It's all relative. Yeah, I would even say this. You know, people talk about the debt like the national. Yes, the national debt. Like we get all of the debt that debt clock thing and Yeah. All get depressed together and Yeah. And the one thing that that I think is important to remember is the debt, the national debt. It's all relative If our economy continues to grow and I can't remember the exact stat, but if our economy grows on average, I things like 1.5% annually over the course of, you know, years, if we were to kind of hold our debt steady at this point, like the debt becomes nothing within like I think 10 to 15
00;15;47;28 - 00;16;12;10
Unknown
years or so because our economy is so massive, it just outgrows. Yeah, it's kind of like, like when I first started out, you know, my my career, my adulthood, it's like for me to go out and get like a, a car payment of $95 a month like that was huge. Yeah. When my dad buy his first house, his payment was $135 a month, and he didn't know if he could afford it.
00;16;12;10 - 00;16;39;03
Unknown
And he didn't. He shared this with me. He's like, I didn't know if I was being wise, a wise steward of my money to go and take on this debt for this home, for this payment of $130. Right. Well, and what happened to his personal economy? What happened to my personal economy? My personal economy? His personal economy? It grew over time to where that $135 a month debt became literally insignificant.
00;16;39;05 - 00;17;10;23
Unknown
So from that standpoint, you know, I just I, I relate that to, you know, to the national debt. It's the same thing. Like people just think it's like it's going to destroy us. And and it will it would if our economy stopped growing. Right. If our economy continues to, you know, to grow. So it's the same thing when we just look at ourselves individually and we're thinking to ourselves, it's like, man, it's like, I'm going to I'm going to take on this, you know, now an investment property in our property, The properties that we buy, the average purchase price is 275.
00;17;10;26 - 00;17;41;06
Unknown
And we think it's like, man, it's like, that's a big burden. Like, that's a big risk. And and there is risk and it could be a burden in certain situations. But looking at it from, from the whole like that payment on that, on that 270, $275,000 property and you got this call it an 18 or 16, 17, 1800 dollar a month payment that is hopefully being paid by your tenants most months.
00;17;41;08 - 00;18;05;25
Unknown
And we've been getting all the benefits because we talked about we talked about that all the time. But but this concept that ten years from now, 15 years from now, like you're going to be saying to yourself, then what you were saying to yourself now that I should about ten or 15 or 20 years ago, and if you did buy that home, you're going to be ten or 15 years from now, you're going to be saying, I am so glad that I bought it.
00;18;05;25 - 00;18;36;07
Unknown
It's like, can you believe it? I bought that home for $275,000. It's worth $475,000 now. And that payment, it's like my I pay my kids that an allowance every month now you know so it's all relative and I think that that's an important thing for people to understand as they consider this this this this idea, this fact, this data that you shared with us, that only 5% of the population is actually investing in real estate and the rest aren't for all of the reasons that we just discussed.
00;18;36;09 - 00;19;02;02
Unknown
But if if a person can get over that can get through that it can be one of the single greatest economic decisions that they make to propel themselves forward. And, you know, as you're talking just about all this stuff, here's another thought that occurred to me. And this might be a little bit of a controversial hot take, but we did an episode a few back on, you know, me getting a Tesla.
00;19;02;07 - 00;19;21;11
Unknown
And it was funny because the comments on YouTube somebody I don't know if you saw it Justin somebody was like criticizing the fact that I was wanting to get a tax benefit, right? And then somebody I know, then somebody else was like, No, no, no. The idea is you, the government's going to tax, government's going to tax K government's going to government and government's going to tax.
00;19;21;19 - 00;19;46;19
Unknown
So it's our job to try to mitigate and minimize the amount of taxes. It's not to say that we don't want to pay taxes and we don't want to contribute. It's just that this is this was the thought you were talking about the debt being relative. Right. And I was thinking about this. I was kind of joking in my mind because, you know, if you listen to this podcast, you know, probably kind of how we feel about taxation, about, you know, government involvement in people's lives and about freedom and stuff like that.
00;19;46;27 - 00;20;08;06
Unknown
But I was like, here's a really easy way to limit the amount of debt. You just tax everybody to death, right? And then I was like, obviously that's not the case because what you do is you incentivize people to produce. And so here I'm thinking about real estate and I'm thinking about why people are not buying real estate and thinking about the fact that the 95% of Americans that aren't owning real estate are missing out on tax benefits.
00;20;08;11 - 00;20;36;29
Unknown
And whoever our person was on YouTube, I don't think they were trying to troll us. But, you know, they're saying, well, you know, we're paying for your tax benefits is basically what they were saying. And here's the idea. If the government's going to tax no matter what. Right. That's just good. That's going to if we want to grow the economy so that the debt is relative, it it becomes incumbent on those of us that have a desire for expansion to expand that which we are made stewards over.
00;20;37;03 - 00;20;55;00
Unknown
Now, the expansion can come from the income that we make on our day to day job. And how do we use that income? How do we allocate that income? Are we wise stewards of it? Your property is going to grow in equity. If you own a primary residence, it is going to grow in equity. So you could hoard that equity and feel really good about it.
00;20;55;00 - 00;21;13;09
Unknown
That's totally fine, but that's not necessarily expansion. If you were to tap into some of that equity, assuming that you're doing it the proper way, working with a company like ours, it doesn't have to be us, but somebody who can advise you on how to allocate and utilize that equity, whether that's in a home equity line or whether that's through a refinance or however you want to do it.
00;21;13;14 - 00;21;43;08
Unknown
And all of a sudden now that which has expanded for you, you now take and allocate to another piece of real estate to create some additional expansion and minimize the amount of taxes that you're paying, all of that translates to you expand your wealth, expands your real estate, expands, your income expands. And that's why one of the other statistics that that's on this paper, I got to find it real quick because it it says Real estate investors earn 45% more household income than the average household.
00;21;43;11 - 00;22;09;13
Unknown
And now that one, we could say, well, of course, because they're already wealthy. And so they already earn more. But I take it that's not what I think. I think what this is, is I look at when we started to invest in real estate and all of a sudden my entire financial life expanded because I was paying less taxes, I had more income coming in real estate, as we've talked about one bajillion times on this, on this podcast provides financial benefits for you in multiple ways.
00;22;09;19 - 00;22;30;10
Unknown
It's all about multiplication and expansion. And so it's incumbent upon us as Americans, if we want that national debt or whatever it may be to be, you know, kind of relative, we've got to expand that which we're given in. Only 5% of us are doing it from a real estate investment standpoint. And to me, I just it's kind of depressing, honestly.
00;22;30;13 - 00;22;53;15
Unknown
Well, one of the biggest things to this stat that you just shared where the individuals who who own real estate, they have 45% higher, you know, income, wealth, household income. So I think that that has more to do with the mindset than than anything. Right. And the reason why I bring this up, yesterday I was listening to Charles Payne.
00;22;53;18 - 00;23;17;13
Unknown
He is he is a he's a broadcaster. He's in news, but he is an investor. And everything that he does, he's written some books on it and that kind of thing. And he he made a really interesting comment and he said of all of the stimulus checks, which were meant for those who needed help. Yeah. Those who were suffering from the pandemic and that kind of thing.
00;23;17;15 - 00;23;53;06
Unknown
The government set up like literally trillions of dollars. Right. Money. Right. He made this comment. He said within 5 to 10 years, all of it, every last penny of those stimulus checks are going to reside in the pockets of the of the wealthiest people in the country. Right. And the reason that happens is because of the mindset of the wealthiest people who they are investing, they are building businesses, they are providing products and services to the rest of the rest of the country.
00;23;53;09 - 00;24;30;16
Unknown
So what did everybody do when they got their stimulus checks? They bought flat screen TVs, the upgraded their phones, they paid their rent, they bought products, they had to buy food. All of these things that they then sent that money to the businesses that provide those products and services. And he kind of check is like every one of those dollars will end up in in the hands of the top 1% of the country anyways because they are providing the products, the service they are investing in, providing all of that and everybody else is spending.
00;24;30;18 - 00;24;49;21
Unknown
And so those dollars went in their pockets, out of their pockets into, you know, into the businesses. And then those businesses paid employees who then went and bought more products and services, who the money went back to a different company. And so but so eventually, like those dollars, like everybody can empty their pockets, they pull out their pockets.
00;24;49;21 - 00;25;17;29
Unknown
They're empty right now. Right. You got a stimulus check and and those dollars, where are they? Like when they're there in those who have that mindset. So I get back I get back to the mindset of what do we do with the dollars that we get it? What sacrifices do those who are investing make in order to accumulate enough of those dollars to go and buy some real estate or to build a business or to do something like that?
00;25;18;01 - 00;25;35;29
Unknown
And in so many ways it's such an interesting conversation and and it answers your question of or that not your question, but the stat that you shared. Yeah. That the household incomes of those who are investing in real estate because of their mindset. Yeah it's a little bit higher because they didn't just go out and spend those dollars, right.
00;25;35;29 - 00;25;54;14
Unknown
They saved them. They sacrifice going and buying that flat screen TV in order to be able to go buy some real estate and make that investment, which then increase their income. Well, sometimes when I go do real estate seminars, I love to start with this sort of question. Right. And I always love to ask, especially a cold audience that doesn't know us.
00;25;54;16 - 00;26;11;18
Unknown
I love to ask, how many of you are currently in real estate? You've heard me do this, and some people will raise their hands and then I go wrong. You're all in real estate. You're either on the side of real estate that's making you money or on the side of real estate that's making someone else money. You're all living somewhere.
00;26;11;18 - 00;26;36;29
Unknown
You're all in a building and there are owners and then there are occupants, right? And that's just the reality. It reminds me as well, Here's a good reading recommendation. I think we've probably talked about on the podcast, one of my favorite books of all time. It is a beast. It is long, It's phenomenal. It's called Atlas Shrugged and in Atlas Shrugged, and it's only just over 1500 pages.
00;26;36;29 - 00;26;59;07
Unknown
Yeah. And if you listen to the audiobook, it's only like 45 hours of audio, but it's so worth it. And in there they really dichotomies kind of the idea of two groups of people right there are the consumers, right? Those that want to consume the goods, the ones that got the stimulus checks and said, Cool, I can go buy a flat screen TV.
00;26;59;09 - 00;27;21;15
Unknown
And then there's the producers, right? And the producers are the ones that are owning the businesses and owning the services. So the rest of the world goes round. This is precisely why the idea sorry if I'm offending anybody out there, who knows We make it. Not that we make a lot of money on YouTube, but you need to subscribe and tell more people about YouTube.
00;27;21;15 - 00;27;49;29
Unknown
So we make money on YouTube, so we're not going to get demonetized because we're not making any money on YouTube. But you might get mad at me because stop offending so many people. I'm so sorry because this is precisely why the idea of socialism doesn't work, right, is because when you take from the producers and you give to the consumers, and the consumers have no incentive to produce, but you penalize the producers for producing, that's when you shrink the pie.
00;27;50;02 - 00;28;06;18
Unknown
That's precisely when you shrink the pie. One of my other favorite book of mine is called The Science of Getting Rich, which is phenomenal and in the Science of Getting Rich. Wallace de Waal talks about the idea of increase, and he makes this comment that so fascinating to me. And he's talking about sort of how wealth works, right?
00;28;06;18 - 00;28;31;29
Unknown
And you say, look, if you apply this mindset, it's kind of along the lines of thinking grow rich, he says. If you apply this mindset that these principles, the science of getting rich, then you will have it expansion. But now you may ask yourself, well, if I'm applying the principles and Steve's applying the principles and Justin's applying the principle of principles, and Joe Schmo and and Becky, you know, and Betty are all applying the principles, don't we shrink the pie?
00;28;31;29 - 00;28;52;27
Unknown
Because that's when we're looking at wealth creation as a zero sum game, right? It means if I have, you must not have. It's not expansion. But frankly, I believe in God and I believe that God is a God. He is an expansive God. And I believe that he wants all of us to thrive. And if we're all meant to thrive, then doesn't that mean that there must needs be some sort of an expansion possible for all of us?
00;28;53;03 - 00;29;17;08
Unknown
And while to see what else talks about, as he says, let's say that there's a bunch of people that are applying these principles and let's say you're nearing he doesn't say that these words. I'm totally paraphrasing, but let's say you're nearing the end of maybe the wealth that exists, whether that's diamonds or gold, What will happen is God will inspire the mind of somebody to go and find a new diamond mine where they can buy new diamonds or a new vein of gold in the ground, or whatever the case may be.
00;29;17;10 - 00;29;43;23
Unknown
In other words, saying there's always the possibility of the expansion and additional wealth creation. The pie expands. It does not shrink. But when we want to penalize producers, the pie will shrink. That's just the way that it works, because the consumers will consume and they will send the money back to the business owners. And then the government wants to get involved and penalize you for producing.
00;29;43;23 - 00;30;05;26
Unknown
Now we're the government right now was not penalizing us is in the event of real estate. Right. If we use the tax code and if we use what's there from a real estate standpoint, there are major tax advantages. So that it brings me back to the very first statistic that we talked about, which is this idea of how is it that only 5% of Americans are owning investment real estate?
00;30;05;26 - 00;30;27;13
Unknown
Look, this is ripe for the taking. It is there for you if you don't know how to do it. That's not an excuse to sit on the sidelines and do nothing. What it should be is a reason to figure out something. And that's what a lot of people just refuse to do because they have that uncertainty, which translates to the fear which cripples their ability to act.
00;30;27;19 - 00;30;46;28
Unknown
And that is the reason why 95% of us are not only now, chances are if you're listening to this podcast, you're either on the road to owning or you do own. And so you're probably part of the 5% are going to be part of the 5%. And hats off to you and I love you for it, which is why you want to share this precise podcast with any of the other 95 percenters out there.
00;30;47;04 - 00;31;24;11
Unknown
By the way, it's also interesting to bring up another topic, not a topic, but another production that I really love, which is the strangest secret, which was this record that sold a ton of copies, but in the strangest secret, he says something towards the beginning, and he says something along the lines of If you were to take 100 people all equal at age 25, all graduating from college or whatever it is, all with kind of this this, this, this attitude of I'm going to go and take on the world and you track them through their life, what's going to happen is that 95% of them will end up being reliant on others or will, you
00;31;24;11 - 00;31;44;01
Unknown
know, not be wealthy. 5% are wealthy. It's just statistically. And that totally translates to this exact 5% that only 5% of Americans in general are owning investment real estate. And so I think what we're trying to say, Steve, is like, let me read one more statistic and then we could kind of wrap the episode. One of the things that I looked up was about Gen Z, right?
00;31;44;01 - 00;32;06;10
Unknown
So Gen Z are like the young adults, and it says that Gen Z is making its mark in the marketplace. Okay? 30% of Gen Zs are that own homes. They're 30 excuse me, 30% of Gen Zs are owning homes at age 25, which means 70% aren't. But these are the adults that are coming out of college that need a place to live that may not believe that they can go and buy real estate yet.
00;32;06;10 - 00;32;20;09
Unknown
So do you want to be on the side of the real estate equation that's making money, or do you want to be on the side of the real estate equation that's making someone else money? Because, listen, if 95% of us are not doing it and just chances alone, 70% of them are not owning real estate, but they need a place to live.
00;32;20;16 - 00;32;50;12
Unknown
And then we look at the fact that 45% of Americans, their household in excuse me, that that of those who own real estate, their household income is 45% more. All of that to me adds up to all of these mom and pop investors just need to keep buying real estate. The opportunity is ample. The total amount of real estate transactions in a year only 20% of all the real estate transactions in a year are investment transactions.
00;32;50;14 - 00;33;30;10
Unknown
So that means that the 5% that are buying real estate are doing 20% of the transactions, earning 45% more of the income, catering to the 70% type of folks of Gen Z that are not owning real estate like, I don't know how to read these statistics any differently than the opportunity is wide open for you to expand, for you to have expansion, for you to be a producer and not just a consumer, for you to be able to take a step outside of what may be your comfort zone and step into uncertainty, not through fear, but through the power and understanding that you have a God given right to be able to expand that which
00;33;30;10 - 00;33;59;29
Unknown
you have stewardship over. So just go do it. So in the words of our esteemed colleague Mike Chamberlain, Amen. Hallelujah. Hallelujah. Shut up. All right. That was a great that was that was great. Give a look. You know, every now and then, Steve, you and I have a tendency to soapbox and really, you know, we joke around about the fact that we may get on our soapbox and you get really passionate about something or I get really passionate about something.
00;34;00;03 - 00;34;20;15
Unknown
To be clear, with everybody listening, that passion comes from nothing more than a desire for you to do something more. That's it. Yeah. If you maybe if you decide to do something more and you come and work with our company, it allows us to continue to expand our real estate portfolios if we do enough and serve enough people.
00;34;20;15 - 00;34;48;01
Unknown
Right. Well, I was just going to say is like quite literally, like everything that you just shared right there is why we exist. Like our underlying objective is to take the opportunity of single family residential real estate investing to the regular person, because there are those who have a lot and there are organizations and companies who have a lot who do invest in real estate.
00;34;48;03 - 00;35;15;27
Unknown
But our client is the regular, ordinary person who has all of the characteristics that I described as to why people don't do real estate. Right? And although we do work with some more sophisticated investors, the vast majority of the people who we help invest in real estate without our help otherwise would not get into the game. Right. Like, and that is one of the most rewarding things that we get to participate in on a daily basis.
00;35;15;27 - 00;35;40;16
Unknown
And we talk about it all the time. And, you know, obviously we are a for profit company, but we have like this underlying premise and reason for doing what we do. And it's it it's one of the reasons why we find so much satisfaction in what we do all day, every day is what we get to think about day and night.
00;35;40;19 - 00;36;09;28
Unknown
And and those who who benefit are just the regular, hardworking Americans who weren't sure if they could do it, didn't have the time to do it, didn't have the expertise to do it, didn't have the team to do it. And we stepped in, were able to provide that solution for them. And so it's one of the greatest opportunities I think, that we have in life is to build to provide that service and that benefit to those individuals who who want to and just need to get that first home under their belt.
00;36;09;28 - 00;36;38;07
Unknown
And then they see the bigger picture and then they get after and start going after that ten property portfolio. It's a great way to end the episode and I will echo. Amen. Hallelujah. All right, everybody, thanks so much for tuning in. We appreciate you. And we'll talk to you real soon. See you later.