8/14: The Black Swan Event Is Here

Del Walmsley
Monday, August 14th
The type of growth experienced in the real estate market is an ever-pervading stimulus that is almost alive itself. Loan practices inform buying/renting power, which influences building activity and translates into widespread consumer spending, ultimately lifting entire cities from their humble beginnings. But, this in all its might is only what can be seen. Today, Del Walmsley has his eyes on what could not have possibly been predicted in a thousand years, and yet it is now here before us – the black swan event of real estate investing.

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Take a talk with you anywhere we'd be on the news talk thirteen seventy app was your favorite shows. Keep up with the latest breaking news and our search for top thirteen seventy in the App Store or find the links at top thirteen seven. Welcome to the until clumsily radio show. Children. Questions. Powers you to return to. If they're true. Next hour we'll change your life. CEO went for. Welcome to Dell wantonly radio show where the hype and some help begins tiger hosts still wildly and is always. We're working on your financial freedom all my friends have you ever heard the term the Black Swan event in life. The Black Swan event as I have come to understand it to mean. Is. The idea that although markets in cycles occur in life. That life is just a series of ups and downs in a series of cycles. That the blacks wanted to and is something that happens. That totally disrupts the cycle completely. It's something you couldn't play and for even if you had charting. The highest level computers in the world you charted the investment world one way or another to predict cycles. That your charting software. Your computer. Even if it's the largest computer in the world. Could not account for a Black Swan event something that would completely change. Everything as we know it in a particular field or a particular investment. Both. In a small market or a large market situation. And today I'm gonna talk about what I believed to be a blacks want object of the discussion today is going to be. In depth but I am gonna start. With the story. And I'm gonna work. Towards important. To get wanna hang on here you're not gonna wanna miss this because before the show's over today. I may change your entire theory of how you're gonna invest in the next ten years. That's how important this Black Swan event. Could be. Let's start this story back in 2007. When the market had driven. The prices of real state to the highest peak that they've ever been in. Where people were speculating unrealistic. Were brand new homes were being sold at auction they weren't even being purchased. That offer price is there were literally being built up before they re doing constructed. This frenzy this insanity. Was driven by. A marketplace. That was controlled and manipulated. By the United States government. And by the big bankers on Wall Street. What was happening. Is it to people came together and decided to change the world. The first guy whose name was Barney Frank. Barney Frank decided. That. The concept of redlining neighborhoods and other words not lending. To poor people was a bad idea. Did not lending to people that couldn't afford their bills. Was a bad idea to let needed to not lending to people that didn't have Dell. Was a bad idea. To not lending to people that bad credit was a bad idea no Barney Frank felt that every purple martian on this earth. Should have the right to borrow as much money as they want. So they went together and he got with a another guy by the name George Bush. George Bush believes that he needed to increase the economy. The number one way to increase the economy. In any. Economic situation. Is to increase house. When you increase housing and construction. Do you create more jobs than any other industrial United States because we're out building named thing in the United States anymore. And so they started creating all these shops that he wanted more jobs. It increases the amount and consumption of supplies. It takes more materials to build a house of varied. Types. Shapes. And they. Lead to more sales. Of more items so now you have increased payroll. You have increased. Materials costs. And now with all that extra income coming in. Now you have secondary job creation because now all those people their jobs won't spend that money. And they wanna be able to go out and buy things cars and automobiles. It's hundreds that are. And then the people who buy the houses wanna fill those houses with the new furniture that went to the role furniture in there they want new furniture in new drapes to new carpets. It's Cedric Cedric Cedric. And this could take ten old stimulation to every dollar spent. On building a new home. Because this. George Bush wanted to see housing rocks so together they created. What. Became the great American myth. What is the great American myth. The great American myth is that every single American actually wants to hold all all they literally started advertising. And politicking. To get across the idea that you're nothing in less fuel your own home. Fisher wasting money on rent each and every day that you just throwing it away if you're not buying your own home. Now this was critic all kinds of home ownership demand. People now we're feeling disenfranchised. If they didn't know hole. The next thing that happened was. Did build out Robert L jut a cone Tommy boot the mileage rather grand Collins sheets and every other real state do out there was crisscrossing the country. With midnight madness commercials. And one day to day seminars. Teaching people the secret panacea to wealth. Was buying real state. And so. We created entire frenzy. For entrepreneurs to get out of the stock market being negated a real estate investing. But what happened was before that and during that and after that the US government got involved. Barney Frank and George Bush. Pass laws. That stated that mortgage companies had to lend to anybody and everybody. They had to loosen up their lending standards. They had to create bad paper and it's great mortgages it would never get paid off George Bush called this initiative. Know. Lower left behind. Are no home left behind I think it was. No home left behind there was little hold out there are no matter what you prices that hit some poor schmuck wouldn't overpay for. Why is he willing to overpay for because he's gonna get it for nothing down. He's not even have to prove is income. These were called low doc loans. And later became known as liars loans. Because you go in and try to apply for one of these loans and what would they say they always say you don't have enough income Q do you have any other income you're now telling us about. And then the people get a wink. And a shake of the head and the guy go oh yeah I've got down I had this other income here. And they go back and change their income or they just walk out of that mortgage company go to another mortgage company and lie about their income. Many many mortgage companies. Started telling people they can get loans no matter what mortgage companies then got into cahoots with builders. And realtors guided to concludes with a all of them. And what would happen is builders. Would sell there houses. And a very very high price. They're real estate agents would sell to people that didn't qualify and taken to special mortgage companies that didn't care that they didn't qualify. And would give a liar loans no doubt globes now we know all this everybody knows this is don't I'm not telling you anything that you don't already know. But what I'm telling you. Is that what came of that is one of the most interest in Black Swan events I've ever seen in my life because I'm living through it and I'm seeing. Atom and explain UD day before you get out here what this says done to our economy what this is done to our real estate market. And how you can benefit from it if you just understand where your. Because remember. When you have a Black Swan event. When something like this occurs. All pass reference. As to what would be normal and natural. Goes out the window. DC. Cycles. Have normal. Restrictions upon him. The ups have restrictions that eventually stop the up and the Dell has restrictions that eventually stopped today. And if it was a pure in open marketplace. You could count on cycles to keep us going in the right direction. In a safe zone forever. But my friends. When the government gets in and Sherri meanders the world. Then. Cycles are not pure. And that's exactly what's happened are real estate cycle has been so gerrymandered and so manipulated. But not in the way you think that in another way that right now. It is going to for ever or at least for the near future five years or so change. What is happening in the real estate investment world. You do not want to miss it you're gonna wanna come back after this break. If you wanna call live you can call it. But otherwise. Don't that this will be right back with. You don't want to break. Listening to their Joseph want. Principles of justice. Lifestyle some limited is the real estate investor education and mentoring group that is taking people by the hand and taught them how to invest in real state for over 24 years our students have been so successful at creating mountain pass having found that they won local state and national investor the year awards nine of the last nine years it's easy to see my personal real estate investor magazine named as the best in the US if you're ready to add real estate your portfolio go to lifestyles unlimited Austin dot com to access our free live training event schedule. Wondering who the free workshop is for we did amazingly successful with people who are pressed for time. Doctors lawyers small business owners and corporate professionals. Who are grinding their lives away for earned income until realized they can start creating passive income today. Within that confines of their schedules and commitment. Want to get started now go to might passive income workshop dot com. That's my passive income workshop dot com. Get the latest business news from CNBC. Weekday mornings at 63830. AM weekday afternoons at 12343530. We. Make you smarter. Hopefully it'll also make use some money yeah. Stay connected with talk thirteen seventy the right choice. General wisdom just that you. The man on a mission to retire road America one for. One slowly. They were talking about the Black Swan event that might completely change we'll see investing for the next five to ten years. I'm telling this story can get you there you're gonna have to listen you can have to stay with us I know you gotta go back to work or whatever. Call in sick it's worth it that's how. Different you're going to see the world after you you're the Russian story so we've taken up to the point where they've allowed to. With the you know. House left behind program from George Bush and Barney Frank they've allowed all these terrible mortgages to get written. And finally everything crashes we all know that. Foreclosures abound everywhere. Gambling and speculation and houses has been occurring for the last couple years. But people have no idea what they're doing in the real estate world and actually no reason that should be out there investing in real state. They have no money no credit no knowledge no brains even in fact. And the route their gambling speculating because of all the gurus crisscrossing the country telling everybody that they should be doing this midnight madness stuff. So that what happens the crash occurs and now the world caves in. What is the result what is the reaction that always occurs when these things happen the pendulum swings way too far the other direction. And so now all the sudden you can't get loans investors can't get loans homeowners can't get loans. And you've got all this product sitting there on the market for fifty cents on the dollar because nobody can buy it. Except people who had money investors. Rich people successful people and so what are we rich successful people do. We start buying this stuff up fifty cents on the dollar Aviv and bought stuff 25 cents on the dollar. During 20082009. It was unbelievable. We were making a killing like you would never believe our cash flows were astronomical. And our purchase prices were next to nothing. And while all that's going on the government says was helped these guys rape the countrywide. Let's lower interest rates down to three point 85%. And let them just have all this stuff for free so tool for next to nothing and finance it for almost no interest. That was your government at work. Yes trying to recover from the less stupid thing they did they created even more insanity. Now what's happening as these gurus are crisscrossing the country their convincing all the rich people they need to get out of the stock market and get into real estate investing. Myself included telling people the same thing because it was true. You can make millions during this period of time. And then what happens to everybody started doing. And as everybody started doing it. They started battling over the price. For a fifty cent on the dollar deal. I was buying houses at twenty Dell's square foot that'd originally sold 400000 square foot. It was 25 that I couldn't get a loss in thirty dolls square foot. Over the next four years they went from twenty to 25 to thirty to 35 to forty to 45 and right now people are lucky to get fifty. Dollar a square foot deals. So what is going on what's going on. Is that the people out there that are buying these things are making tons of money with them so they are rounding the marketplace for the investment dollars in fact it became so lucrative. That it became institutionalized. The day Warren Buffett said if I had it the money right now to do it if I had a way. To manage properties are by 101000 houses today. And guess what somebody figured out how to do it their way out of what 101000. 56845000. All the stood institutional buyers are sucking the houses on the market left and right. And making even more demand for these rent houses. Now. What's going Corley what's happening with the average buyer the average buyer out there in the marketplace. Stops by. Why they stopped boggles look at all the things that happened first ball. There were used to be a 69%. In 200469%. Of the people this country all go home. Blue didn't own home. Compared to only 31%. That rented. As of right now you're talking about only 63%. Compared to 37%. Now reds. There's a 6% turnaround. On 400. Million people think about how many people that is that's an astronomical number of people so what is happening. Wall all right along side of the investors buying everything they can get their hands on. You've got homeowners decide they don't want older homes anymore. Why they saw their mother their father the sister the brother cousin. Lose their life savings in the home they've been told the hole was the most important announcement that they would ever ask. And that they should pay it off every guy out there said you should have the short loan mortgage this that. And they're paid down that equity at all that equity what do way. And many of them lost their jobs because the recession couldn't even pay the mortgage payment and lost their homes millions of homes went into foreclosure. How Olson's per week here in this country. And these people. You'll never won all the home again they have been displaced out of the marketplace. For at least a seven year period while they clean up their foreclosures. Out of their system. But they may psychological would be closed out of the market for the rest of their lives they just flat don't wanna haven't happened and again. Just like I never invest in the stock market again after black Monday. On October 20 1987. When I lost all that money one day I said that's it. You know messed me once shame on you messed me twice shame on me well that's way people feel about homeownership. Cool auto and all of whom I don't wanna maintain it I don't wanna pay the mortgage I don't like the fact that taxes go to every year I want nothing to do with that I would lose some place rush give myself or. Give my owner a rain check and just forget about it I didn't daycare the place I don't wanna do all that. So we lost all those people used to own stuff at the very same time people coming into the market to new Melissa deals. Are saying are you do you mind. I don't know if I can get a job right now the economy's crushed I don't know that I do you contribute to use my college degree I've got a 100000 dollars with a dead my name. From going to college now. They gonna see me by the house and unite and you soon because I mean ever won a buy house number what I need to be and I need to be flexible I gotta be able to move. To get a job in this job market you may never did get a job if you don't stay flexible. So I'm not gonna bicycle we have some appearance lose everything they have so why not gonna buy. Thirdly. You have to put down 20% down 10% now you have to put large and I don't have any money in fact. I couldn't even qualify for loan why cannot qualify for Lanka's three reasons I don't have credit I don't have money. And I have debt massive amounts of data mining so the Linear also are out of the marketplace so now you lost the people the use told thousands. Now I've lost the more deals. Out of the marketplace. Now you have seniors that are figured out for the first time in their life. The the 41 Kate didn't work did tiger scale that they've been dead for thirty or forty years is coming to light. They're broke and they're trying to retire. Whatever equity they have announced they wanted out they wanted out now so they can survive they do not want to go into long term person in my house. So there you go. They're out of the marketplace. What's left. Not very much. Even if the market starts to turn around. And people wondered about it there's almost nothing with the ball. Why. Because of gold reform bill. Forty mean the dole reform bill that builders refused to build. In a moment ago that we come back because if you understand that part of the cycle mixed in with what I've already showed you you're gonna realize. That this is a Black Swan event. This is the point where this article should be changing. But it shifting the other direction. It's actually. Going the wrong way. We'll be right back with don't want to reach the. Listening to the Joseph want. Changing principles and Justin. Longtime lifestyles member Curtis Payne. It's a real choice for me looking back. Is helping others and I wouldn't be able to have done it without the support of lifestyle ladies can't please thank you enough feel for that. If we were to ask people if they could vote on the top ten guys. That help for the people you'd be one of them there's no doubt about it here. Have this roadmap of holy success stories on this one I'm just. One person out of left thousands fantastic success story that each and every person can learn from that's my life. Take Curtis Haines advice coming felt like minded successful investors who are helping others just like dale helped him. Attend the workshop get your map safely and quickly build wealth and passive income so you never have to worry about working till you drop. Losing your job or retiring in poverty. Call 18669718970. Or go to lifestyles unlimited Austin dot com that's lifestyles unlimited Austin dot com to register for the workshop it will change your life. If every talk radio program for the same what would be the point the Michael very shows a little bit different. We're gonna talk about politics but we'll also talk about how great it is to live in Texas weekdays from five to seven on talk thirteen seven Michael Berry show. Joseph wisdom just sets you free from the man on a mission to retry. No one's going. Quarterback a del Walters radio show that they were talking about the blacks wanna bet they change real estate investing for five to ten years into the future. This is something that these soul profiled. That if you dare turn the radio show off you're going to miss something could change your financial future I'm sharing this and everybody. Because I think is so profound the whole world needs to know this and I don't think anybody else has figured this out. I know that sounds arrogant but they just not put all the numbers together and figured it out as are all looking at it. From their own arrogant and eager to mystical and salts that are points of view. But if you bring all these facts together and see what's actually going on. You're gonna understand by the into the show what you might be able to make more money in the next five years than you've ever made in your entire life. So let's talk about. Now we've got people not buying I've told you all these reasons people that used to wanna buy houses are not buying houses and homeownership is on the decline it is. Radically on the decline IC in the near future housing. Ownership might be doubt it's almost 50% to 50% renal 50% ownership. I feel it happening it's all around us every report I read report after report says the same thing. People are not buying it they are renting. So let's talk about why builders are not building. Well first of all because no one's buying that's the most important reason the second reason they're not building. It because they can't afford to build homes that the average first time hold her homework. Would want a box. The old people used to buy expensive homes they no longer what expendable it's what happened or expensive films does to their financial situation later in the life. And younger people can't afford more expensive homes but builders can't build inexpensive homes anymore why. Because of governmental regulation. The government has destroyed. The construction business on four of five different fronts it's. It's unbelievable. Was just talk about. The regulations for energy. The energy regulations alone. Could raise the cost of house by 30% from what it would cost ten years ago. What you mean Dell we you have to have a thirteen. Seer air conditioned compared to eight cedar air conditioners air conditioners use cost 500 bucks they now cost. And that thousand dollars. Now think about that I can still by the old kind of air conditioners that we use which were tense here conditioners I can buy them for 500 box. You're paying 101000. Dollars for an air conditioner. I know because I just bought one of my high and air conditioners when out. And there were tell me it's 5000 dollars for just the exterior part of the air conditioner not in talk about the internal part. You're talk about hot water heater regulations. Have gone up fourfold. You're doubt that gonna be little while water heater for less than 2000 bucks we used to buy them for 200 dollars. The Cisco down on the line the electrical costs of changing electricity and electrical equipment to where it needs to be. The thermostats the installations. Everything is gone through the roof because of government regulations. Let's take another step. What about workers' compensation what about workers employees laws they have made it so that aid to hire people you can't hire people. Number two there have eliminated. Skilled jobs what do you mean by that deal. Because they have told everybody for the last ten years. That every single stupid person on this earth should go to college and come out with a doctorate in German dance or a doctorate in these really relationships or a doctorate. In government and society. And you know all those political college stuff is all wasted time. Can anybody tell person out of frame house can anybody teach people how to lace and that does anybody know how to put on a roof. No they don't and sold the availability. Of personnel to do construction. Has become very limited and so the demand. Is outpacing the supply. Of trade workers and hence the price is going through the ceiling. Secondly you look at the materials. The materials that are being used now or wait more expensive. They're high tech they're costly. And the availability to them is next loving why because our government does so many dumb international things that right now. Concrete almost was almost unavailable for a couple years in a row. Duplicate framing you can't cut down trees anymore so it just it goes on and on and on the government is done. To make housing. Funded Opel. It's just too expensive develop houses so what happens well they build the houses that do get built are very expensive so let's go back. Now days to entry level orders won a buy expensive homes no. They don't want to nor can mandate they can't afford that remember. The mortgage situation such that it's hard to get a mortgage but still there's still that lingering taste in your mouth from watching your parents lose everything they had. So to go out there and have to have enough money to put out an expensive home enough credit for Downey's principal. To not have enough to get rid of all the debt you have from college is almost an impossibility again on the other side or people don't want any. And on the third. Edge of the try to go to the people that have foreclosures in the name and they're not going to be able to get out of that situation. Even if they wanted to so hence no one's by those houses now let's go back to the investors. Remember we provide these houses fifth twenty cents a dollar fifty cents on the dollar 60708090. Cents on the dollar. Why did the prices keep going up but nobody was buying them because investors were bought it here's what's happening. As all these people don't wanna buy thousands and as the market for housing as the number of families that are. Help there that need a place to live is expanding rapidly because of job growth. Because of people moving out of their parents' basement because of people coming out of college these people need a place to live they're not buying houses so they're renting. So investors are buying houses and rent the amount and making tons of money on fears the deal. This cycle should of ended. It should of ended. When houses got this expensive foreign investors couldn't buy them for fifty cents or even 75 cents on the dollar it should have been over. Investors should of gotten out of the marketplace and gone back to something else or just held the property is they had. For rental income but that's not what happened. These investors made so much money. That they refinance their money out these houses massive equity. And they refinance all that money out of those houses at out of these apartments tax free. You understand that. They're ending up with illusions of dollars each investor. I think I pulled out somewhere between five and ten million don't hold me down to an exact number but I mean millions even if it's just one million. I know one deal I pulled out one point three million dollars in one deal tax free money. Right I'm not the only person out there doing this there are thousands tens of thousands of people are doing is making millions now what do you do with the millions. Bolt typically you would stop buying with those millions because. House prices would have got up so high. That the reds would not cover the mortgage in a bit over the site could be over. And wrenching it's you know was stabilized and house prices and Steve but that's not what happened. What happened was. As more and more more new candidates came into the marketplace. They pushed rental prices all high demand. No supply wise or those bunkers and a Bill Kennedy thing. Right so then you go over here you look at all these old people coming out of homeownership because they don't wanted to do more to push a rental rate up rents go up. I you look at the situation all the people with bad credit they got a red demand goes up rents go up. What's happening is there's more and more and more rental income. The higher the rental income goes the higher the price and investor can afford to pay for house. So we never would have thought of buying a house above 7580000. Dollars a couple years ago. That would buy with a 1002050. And her casual like big dogs 5060700. Ultima positive cash flow. It's unbelievable rates have gone up a 100%. In some locations over the last ten years it's just unbelievable. Effect. I think a 100% to like I think I read something like 60% in some of the higher market just. Insane. Can you imagine if you're richer and ten years later you read 60% higher the cost of living. What's happening is used to beaded. Housing wouldn't be more than 25% of your cost of living right now housing is as much as 45%. Of some people's cost of living. It's just my inbox but what is that doing for the investors it's allowing them to keep buying when prices are going up. And they keep buying because they keep making more money and the more money they make the more they want apply QB that's the other stimulates the appetite. As they buy. Their pricing themselves out of their own market except it's not happening why because the higher the prices. The less number of owners. People don't wanna be owners potential owners can afford to buy these houses. They're changing the markets such that entry level buyers will never build afford to get in not the way the cycles going right now. So what you're looking at my friends is yet they're going to drive those prices up so high that. Know what's gonna do for us. Except those rich. Landlords. Will be right back and Dell wants to. You're listening to their Joseph want. Principles and Justin. Did you know that every dollar you put into a piece of real estate makes you money five ways. Cash flow of money in your pocket each month. Equity capture this thousands of dollars you create when you have the right team and by the right property using the right map. Appreciation. Real estate doubles in value about every ten years equity buildup. Renters pay down your mortgage each month and finally there's tax advantage we pay almost no taxes on our cash flow and capital gains. These are the five ways we make money in real estate which is why realistic accounts for more millionaires in the world today than any other investment vehicle. You should have some real estate in your portfolio. To learn how to attend one of our free workshops call 18669718970. Or go to lifestyles unlimited Austin dot com and register for the next available workshop. That's 8669718974. Go to lifestyles unlimited Austin dot com. And breaking news exclusive contests and more delivered right here rim not to like doing things doing the right choice club that talk thirteen seventy dot com and you'll be in the just go to talk thirteen seventy dot com and click on the right choice club from top thirteen seventy the right choice. What would happen if you didn't show up for work tomorrow. For the next couple of days for a week a couple of months a heat how long until you lose everything you've worked for in a fraction of the time it took different. If this fear keep you up at night it's time to learn the strategies we teach at lifestyles unlimited start with the free workshop. Go to Mike passive income workshop dot com and find your true financial piece like so many of our members already have. That's my passive income workshop dot com. 57. The man on a mission to retry. No one's really. The last segment dollars and radio show today we talk about the Black Swan event. I've been making the argument through a story throughout Tuesday's radio show. That hey we're in for a completely different type of rules state market that we've ever seen before the normal cycle. That would occur that would of turned us around and headed is back in the right direction real state wise. Has not occurred the government has put too many stops in the way. Has created too many problems and they are going to be generational. Problems. Meaning. That the people colonials as they're called right now will never have the same desires that their parents had in fact. I can tell you from my own experience with the children that I'm associated with the much my child and my girlfriend's children they have no desire to zero desire to own homes. To get ahead to get a job to hold that job down. Added to grow well none of that there in the I won it it's Mimi Mimi right now right now right now generation. And living wherever they can just throw their hat. These caps lead the way they wanna live and they're not changing there's not gonna change its not like. Also they're gonna grow up in salt in it makes sense to them in if it does it's going to be ten or twenty years from now. It's like to see a guy. Pull into. Restaurant somewhere you see the guy with long long hair and a bald head and you go man that got stuck in the seventies. He never got out of it that hippie lifestyle that he created for himself he never could ever change his attitude. That I am not gonna conform I'm gonna formidable for every liberal whack go idea if there ever was. Because one day I decided to smoking pot was more important than anything else in my entire life and so on gonna stand by my guns and I'm gonna grow wider along. Nowadays it's that tattoo piercing people. The element attacked by body up and it's never gonna go way out to be chatter for life pulmonary appears to have holes in my body. But I never gonna change my attitude you're never gonna make me get a job and go to work. And actually be somebody I refused to be somebody you're just materialistic. You're just all those bad things that we want nothing to do it I'm gonna live my life for fun and and helping and caring about other people and we think the government should help and take care of everybody we are going to become prisoners of our own liberal ideas and they will allow the government through voting for the government to expand the government to control. Everything they do to the point there rule nothing in fact. Our country's going to be in this situation before long. Where are you going to have the haves and the have nots is not gonna be there's gonna be no middle class. There's nothing there's going to be all of you guys who voted for liberals would have nothing you know nothing the government spoon feed you every day. And then there's gonna be us the hunt for new workers to capitalists. And we're good old. Everything why. Because we're gonna keep buyer and the thrills to my friends with you realize it or not as these prices go what we're gonna keep buying these houses but what's happening is. Is that there's no place to invest in the board there's no place to put your money there's no interest you can't raise. Money can't retire. You can't go out there and Bob Barr and. Or CDs and retiring anymore. You're going to be forced to buy real state. And the people have million dollars in their savings account the retirement accounts if they want to survive it's not gonna be about earning one or 2% on bonds. It's not going to be by getting an annuity for 4% no my friends. They're gonna go up by real state and that's gonna draw the rate of return a real state down from twenty or thirty pursuing cash flows. Down into the 78910%. Cash flows but 10% capsule still gonna be better. Then a two or three or 4% return. You're gonna see people buying real state left and right it's all gonna be rich people by and it. Because support people won't build afford to buy it won't be able to get belongs to abide there won't have the money for the down payments to buy it. And rich are going to get richer and richer and richer and richer and always control everything. There's not gonna be a place for people live in fact the only place people can afford to live is gonna be apartments but all the new apartment complexes that are being built. The red start out over a dollar B twenty dollar 52 dollars per square foot to read that means people buying. Are are moving into apartments now people apartments that cost 15100. To 2500 to 3000 dollars a month to live in a stupid apartment in the midwest. You've got people on the West Coast paying 5000. Dollars a month. To rent an apartment. 3500. In LA. So after Cisco is 5000. Do you understand. That everybody is gonna be a slave to their housing costs. They're not gonna have money to build a body other things because all of their cost are gonna go to housing and there's nothing to governments could be able to do before they just can't stop it. Because the government can't run businesses is kit start businesses. It can't do anything to stimulate out for new realism and the only place where you can actually get out there and do this and make money. It's going to be real state think about it can Eagles started foundry. Can you go start factory. Can Eagles started grocery chain. What can you do these days you me America mom and pop what do we do with the money that makes any sense at all can make its large amounts of money. Capital gains anywhere from. 1020305000. Actually capital gains we see all the time. What can you do that. The stock market. And no my friends a stock market's gonna be the same thing it's gonna be the rich and have tons of money sitting there throwing it into the stock market hoping something will happen. Yeah the capital gains will go up. But there's no cash flow they can't live on that when they start to try to live on it. What's gonna happen they're gonna have to pulled money out to the waters they pull out they'll have less and less money in the market as we have less less money in the market. They have less and less a return on that money does is less money ever return on that let's add this. As old people get old. Right they don't want risk anymore and so. There has been predictions by very famous economists. That are around 2020. People. Better already in my age group will liquidate. All of their 41 case. Pulled out money out of the stock market and live off of it. And then the stock market will go away but even when the stock market goes away and the jobs go away people still have to have a place to live. And we are going to hold the solid assets of this world. The real lessons the ones that you can't. We produce why can you not reproduce these assets because it cost too much the government. Has gerrymandered. The playing field. No one else can get into it because it costs too much. Only the rich can get into it and the rich will grow. What I'm telling you my friends is over the next five to ten years the rich are going to get extremely richer through real state. And the poor are gonna get extremely poor. Because if you don't own assets like your own personal residence nothing's ever appreciate you your life you're checking account doesn't appreciate you have no money. You have no access you have nothing. Guess my friends I tell you all the time that we do this not for the money but for the lifestyle. But I am telling you today. This is the body have a wonderful day. From listening to the dome on the radio show to continue the opposite of and soft so that you can obtain the results. Join us every Monday. This in lifestyles and when. 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