1495: Arbitrager, Real Estate Investor, Trickle Up Economics, Cantillon Effect

Welcome to the Creating wealth show with Jason Hartman. You're about to learn a new slant on investing, some exciting techniques and fresh new approaches to the world's most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine, self made multimillionaire who's actually been there and done it. He's a successful investor, lender, developer and entrepreneur who's owned properties in 11 states, had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason's footsteps on the road to your financial Independence Day. You really can do it. And now here's your host, Jason Hartman with the complete solution for real estate investors.

Welcome to episode 1495. 1495. Thanks for joining me today. As we look at an economy and a real estate market that is, and I'm doing air quotes here, folks. Booming.

How can this be? It doesn't make any sense. Of course it doesn't make any sense because very few things actually make sense in an economy and a real estate market that has this much intervention. An unbelievable amount of intervention. Historic, never before seen in human history. You are living through an incredible time. In many ways it's an amazing time to be alive. As I always say, it is an amazing time to be alive. But wow, some of this stuff is so, so outlandish that you just couldn't write folks like this, could you? You couldn't, you couldn't. Okay, so I'm looking at a chart here. New home sales will soon breach the pre Covid level. Now this is the Mortgage Bankers association, otherwise known as the mba. Not to be confused with the overpriced college degree. Hey, I think it's great if you get an mba, but just don't get ripped off in the process. You're supposed to be a good business person. Don't overpay for an education. That's the first rule. That almost was a tangent, but it's not. Anyway, so when you look at new home sales, they are almost at the pre Covid level. Okay. They've almost eclipsed that is what I mean. Mortgage applications are through the roof for both refi and purchase mortgages, purchase money, mortgages and refinances. Everyone wants to cash in on these very, very low interest rates, including oddly. And you know, this stuff is complicated to sort of tease out the data here to really understand what's happening. And that's why we try to do it here with you five days a week. So luxury markets, let's Talk about the luxury home market. What are those rich people doing? Where's Robin Leach with Lifestyles of the Rich and Famous? Some of you don't even know what I'm talking about, do you? Yes, you youngins, you don't know. There was a show called Lifestyles of the Rich and Famous and Robin Leach would say champagne wishes and caviar dreams.

That was the funny thing. But that's when the wealthy class was a lot smaller than it is today. A lot more people have moved up and sadly, a lot more people have moved down. So we've seen the hollowing out of the middle class over the last few decades. And love them or hate them, Donald Trumpster is trying to bring that back. But there are some pretty big forces that are trying to prevent that. But what are the rich doing? Well, amazingly pre Covid, we saw expensive real estate markets declining, declining, declining. They were overvalued a lot of these markets. But we are seeing some of that change, certainly. So we got a couple stats here for you from realtor.com first of all, since January only, that's an only 25 of the 94 luxury markets that realtor.com tracks showed listing price growth. Okay, so prices growing in 25 of 94 luxury home markets. The results of the pandemic slowed the growth in the luxury market. And here's one of the parts that makes that tough to understand. Was that decline in growth due to people pulling their houses off the market or not listing them all? I mean, think about it. There were probably lots and lots of people in any and every segment of the housing market who in November, December, January were thinking to themselves and talking to their spouse and thinking, well, you know, when spring home selling season comes, when that rolls around, let's put our house on the market and let's move this year. But then the COVID scare hit and they thought, I don't think we want a bunch of strangers and their viruses coming through our house right now. Not a good idea. And even if they did want a bunch of strangers and viruses coming into their home, those strangers and their viruses were staying home. So they didn't want to go into someone else's home. So a whole selling season was pretty much lost. And now we've pushed it back a few months, maybe three months. And it's happening now. So spring selling season is now the summer selling season, which is a little bit unusual. Usually it happens earlier. It happens before summer and summer actually, it usually slows down a little bit. Now when you look at that You've got to understand that there's a lag. You know, if you're looking at stats and you're thinking, well, Jason is wrong, because I saw this chart that showed that over the last 20 years, the summer was a really busy time for real estate. Well, guess what you were looking at? You were looking at the closings, not the originations of the deal. Remember that lag time? Always remember, real estate reports slowly. It's about a 60 to 90 day lag, sometimes longer. Remember, deal happens, people buy, deal closes. That's 45 days later. Maybe, maybe it's 60 days later. It might be 30 days. It depends. Sometimes it's even longer. If it's new construction, it's longer. Longer. And then that deed gets recorded, and then those recording documents, those statistics get aggregated to all of the news sources and the aggregators like CoreLogic and so forth. And then there's another lag time before it gets reported to the media. So it's always complicated. So just understand that. But speaking of which, according to Zillow, new home listings of higher end homes, they don't tell you what that exactly means, but take it for what it's worth. Have been down by you ready for this? 46% while less expensive homes were down by 32%. Okay, so you see the decline in inventory, which if you have a decline in inventory, you automatically have a subsequent decline in sales. Right? But look at this. Remember, we've talked a lot about New York, the most populous city in America and certainly a hotspot for contagion and subsequently civil unrest. So not only are luxury listings seeing more viewers, but popular second home markets are seeing the love too. Now this article is talking about how views have increased dramatically on listing sites like Zillow and realtor.com. okay. Suffolk County, New York, where the Hamptons is located, Palm Springs in Riverside County, California. That's beautiful luxury area. I love Palm Springs. Great place. In fact, I've done some podcasts from there because we had a Venture alliance trip there and then Carmen and I visited Palm Springs last year as well. Really cool Place and Greenwich in Fairfield County, Connecticut are all ranked as the top five markets with the increase in listing view growth in May. Okay, so realtor.com, this is their stats. So the views for these markets accelerated by 56%. 56% in the Hamptons area, 28% in Palm Springs and 24% in Greenwich, Connecticut compared to January's trends. So people are looking for these outlying areas, just as I predicted in New York, where COVID 19 has remained a constant hotspot. Luxury home buyers are gravitating outwards. So there you go. What a surprise. It's not a surprise to any of us. Now the luxury home buyer market is kind of interesting because in every market cycle it always seems, and this is a bit anecdotal, I'm not going to present like any big data on this, but it's just kind of an impression that the market either increases or deteriorates from one segment or another. Sometimes it's a domino effect where the entry level buyers start selling their first home and then they go buy a more expensive home and then those people go buy a more expensive home and, and so on and so on and so on. And you have that domino going up to the high end. But sometimes the high end market collapses and a lot of that is tied more to the financial system because we live in this completely ridiculous over financialized world where so many people are making absolute ridiculous fortunes based not on producing anything but, but just on having a derivative, a financial derivative of that production. So for example, you have companies that produce widgets and to the outside world it looks like they're in the business of producing widgets, but really what they're in the business with a lot of times is they're in the business of financial instruments. They're in the business of creating stock, which is a fiat concept. Remember, stock has no intrinsic value. It's paper. It's literally fiat. It's like printing your own money. Hey, Federal Reserve, Treasury. Yes, it's just like that pretty much in a different way. And the same with bonds, right? So we live in this highly financialized economy and then don't even get me started on all of these crazy derivative instruments and all of this financial innovation. Whenever you hear that term, be worried. Financial innovation gets worrisome. Like, I'm looking for a new car right now. My lease will be up on my German car. And I'm thinking, you know, I'm not going back to that brand anymore. I'm going to do something else. And I'm shopping around and I keep reading these articles that auto sales have plummeted and it's a great time to buy a car. And of course interest rates are super, super low. And even though I could pay cash, I never would. I want to finance my car. So I look at the rates for purchases versus leases and what you come to realize is that you think, okay, here is an auto dealership. How much money does that dealership make in the sale of the actual car, how much does it make in the financing of the car and how much does it make in the service department on servicing of car, both warranty and non warranty servicing? And I do not know the answer to that, but I will venture to say it's about a third, a third and a third. If anyone owns an auto dealership or knows that industry, go to jasonartman.com ask and edumacate me because I need to be edumacated. So do that. But it's really interesting that you see so many of these companies and when we look at the big mega corporations, the multinational corporations that have no allegiance to anything except the almighty, well, mostly $, even though they hide their money offshore, they play games, they domicile different businesses elsewhere, and they suck all the profit out of their high tax jurisdictions to their low tax jurisdictions, which by the way, you should do that too, because that's the game. And we don't live in a world anywhere anymore, sadly, really sadly, where doing what's morally right is the thing. We just live in a world where everybody goes to get the best deal they can. And that's the way the world works. Okay? So for better or worse, we want to align our interest with these big giant, many of them disgusting multinational corporations and ridiculous governments and ridiculous central bankers. And I'm going to tell you another way you can do that. Now we've talked obviously many times over the years about inflation induced debt destruction. IIDD Inflation induced debt destruction, my trademark term. And that is a very good way to align our interest and financialize more of our lives in a good way where we can profit from it. So when you are a landlord, are you in the business of renting out homes to people? Are you in the business of renting homes to people? Well, yeah. And if you talk to anybody at a cocktail party, oh wait, you probably wouldn't do that anymore. You'd have a happy hour on Zoom, just like we're doing for our upcoming Meet the masters event on July 31, which is we have a happy hour welcome reception that's going to be real fun. And that'll open Friday night and start that at 7 o' clock Eastern. So it'll be 4 o' clock for you folks in Pacific and you listeners in Hawaii. Well, hey, you'll have to start drinking with us early because it's five o' clock somewhere, as Alan Jackson would say. By the way, that is a fantastic music video. And I remember last year Carmen took me to this bar not too far from my place here in Florida for the first time. And it was a really cool, like, very casual outdoor bar. And I looked around there and I couldn't help but thinking I had seen that bar before and didn't look exactly the same as it did in the music video. But I thought this is the same place where they filmed the music video for Alan Jackson's song. It's five o' clock somewhere. Great song. Check out the music video, you'll love it. It's really good. And you know, it just has a cool vibe that sometimes we all need a little escapism. And that song is all about it. And it's a great video, one of the best music videos of all. So, yeah, I asked the staff and she told me, yes, that video was filmed there. So I was right. And that's, that's pretty cool. And I went there later with another one of our fans and listeners and that is Jason, who is listening probably, he's probably listening. He was on the show before and talked about economics. But anyway, back to the topic at hand here. So it's five o' clock somewhere. Oh, yeah. Well, that was just a little tangent on our upcoming Meet the Masters event. And we're looking forward to seeing you there. Our virtual event. Oh, yes, that was the thing we were talking about. If you're talking to someone at a cocktail party, right. And you wouldn't have a real life cocktail party now because you'd probably do it online. So you'd be on zoom, you'd have your cocktail party and you'd be talking to someone. They say, well, you know, what do you do? What's going on with you? Well, I'm a real estate investor. Oh, so you rent out houses to people? Well, that's what it looks like on the surface, but really there's a lot more to it than that because we live in this highly financialized world and we as investors are learning to financialize our lives just like the big corporations and the big governments and the big central bankers. And we're going to take advantage of those same wealth building benefits that they are. We look like a landlord. That's like the front. You know, when I used to live in Newport Beach, California, there's a little sub area of Newport beach called Corona del Mar. And I always wondered in Corona del Mar, there's not so many of them around now, but back in the day, you know, in the, in the 90s and the early 2000s, they had right along Pacific Coast Highway, PCH in Corona del Mar, they had a bunch of these, these rug stores. And I was a local realtor. I owned a real estate company there. And I. I mean, not in Corona del Mar, but, you know, we service that market, right? It was right next door and this was the funny thing. So I kept thinking to myself, there are all these stores along PCH here that sell like these Persian rugs and these Turkish rugs. And I thought, here I am a person who's been in so many of the homes around here, and I just don't see those rugs. How can these stores stay in business? I don't see a bunch of places with Turkish rugs and Persian rugs and, you know, flying carpet type rugs. You know, I bet someone will find that offensive. Oh.

We live in a ridiculous world nowadays. Everybody's just looking for a reason to be offended about everything nowadays, aren't they? Now more than ever, if we have time, I'll give you a couple examples of that. So anyway, I don't see any of these rugs in any homes yet. There are all these stores that sell these rugs, supposedly. I always believed that they were little front businesses for money laundering. Basically, you know, money laundering in one form or another, some of it is really.

Really more illegal than others. Some is just, hey, have a business is kind of a thing to say. You do it right. So there's varying degrees of money laundering, I guess, sort of pseudo legal, just kind of practical and then completely illegal. Like if you watch the show. What is that show called? I can't think of it right now. You know the show I'm talking about where they're in Missouri and they're money laundering and. Yeah. Anyway, I saw a few of those. So how can you financialize your life more and get closer to the action? Well, you know, we had Max Keiser on my show a few years back and I was listening to one of his videos. His wife Stacy is so brilliant. Love her. We need to get either of them back on the show. Anyway, they were talking about Richard Cotillion. Okay. And this is an economist I haven't thought much about for a long, long time. You know, I. I study economics all the time and I hadn't thought about this guy for a while, so I'm glad they reminded me of him. Let me tell you about this guy a little bit and why this is important and what it means to us as real estate investors. So he was born. And I'm looking at Wikipedia here, He was born back in.

And he only lived till 1734. 54 years old. And he died in London. Okay. He was born in Ireland. He wrote, basically one contribution to economics that was really not revered in its time and it was kind of forgotten about for a long time, because the old saying, no profit is ever revered in his own time. And I added to that idea and I say no prophet is ever revered in his own home or his own town or with his own family. Right? So there you go. So you got to be from out of town, talking to strangers in a different era, and then people will revere you and respect your thoughts and opinions. Right. So anyway, he wrote this essay on the nature of trade in general, and it was later considered by, by William Stanley Jevons to be the cradle of political economy, but again, not in its time. So he was a successful banker and a merchant at an early age. And his boss, his early boss had introduced him to something you've heard me talk about many times over the years, which is John Law's Mississippi Company, one of the most famous stories about money and bubbles and fiat money and inflation of all time. Probably number two, after the tulip bubble, maybe, I don't know, maybe it's not number two, but it's a big deal. So John Law's Mississippi Company, we've talked about that in the past. And Cotillion got very wealthy from his investments in this. And it was a total speculative bubble. And it obviously, like all speculative bubbles it built, blew up. Right. But let's move on here. I gotta turn a couple of pages because I highlighted some things I really want to tell you about here because reading this whole thing would take forever. And there is a big lesson for us as real estate investors here. You ready? I hope you're ready. He provided an advanced version of John Locke's quantity theory of money, focusing on relative inflation and the velocity of money. We've talked about these two things ad nauseam on the show because they are extremely important. Cotillion suggested that inflation occurs gradually and that the new supply of money has a localized effect on inflation, effectively originating the concept of non neutral money. Furthermore, he posited that the original recipients of the new money enjoy higher standards of living at the expense of later recipients. Whoa, that's brilliant.

Did you catch that? That's important. Why is that important? What he's saying here is that the people closest to the financialization, closest to the money, get the richest and the people furthest away from the money benefit the least. This would be another way of talking about trickle down economics, which you heard in the Reagan era a lot, and you've heard me talk about it. And I also. I don't know if I coined this, but maybe I did. You know, sometimes you're not sure where an idea came from. So just do what Bill Clinton does, take credit for it. Clinton would take credit. Why shouldn't I? So the opposite of that, but it's also so related, which is trickle up economics. So there's trickle down economics and trickle up economics. And 12 years ago, I started talking about trickle up economics during the Great Recession. And why was I talking about that? Because what was happening then was this interesting concept where everybody was just breaking their contracts. And I was renegotiating with our landlord. We have this gorgeous office space in Orange County, California at the time, one of several offices I've had over the years. And I was renegotiating with our landlord and I wrote him a big letter and I said, hey, look, you got to renegotiate this lease with us. It's a ripoff. I didn't say that, but essentially outlined that. And I said, every contract in the world is being renegotiated right now, and it's trickling up. And what's happening is the tenants. This was a commercial property, so it's a little different, but the tenants renegotiate their leases with the landlords. And everybody was doing that. Everybody was doing that. Every tenant basically was renegotiating their lease. Okay? Like in the whole country, in the whole world. And then the landlord goes to their lender and they say to their lender, hey, guess what? My tenants are renegotiating their leases. So you got to renegotiate our deal and give us a loan modification. So these were big office complex, probably had 40, $50 million worth of loans on those buildings. I don't know, maybe more, I'm not sure. And they went to their lender and said, renegotiate with us. And they were a big, giant, worldwide, publicly traded company. They probably went to their bond holders or their bond broker and said, hey, renegotiate with us. And so it just trickles right up. It trickles up and it also trickles down, as Reagan proved. And there are detractors of all these systems. But no matter what Richard Cantillian talked about this theory that the more local you are to the money, the more you will be enriched by it. And why is that true? Well, because of the velocity effect. The velocity of money. Yes. But it's also because everybody's taking their cut of the pie. Everybody's taking their handling fee on the way Down. So, as a real estate investor, you might be asking yourself, how do you get closer to the money? Well, you just financialize your life the same way the central bankers, the governments, and the Wall street crooks do it. Yes, good role models we're imitating here, huh? We're doing this all legally, of course, but it's one of the principles they use. And one way you definitely do this is through inflation induced debt destruction. Let's go back to that Zoom cocktail party. You were talking with someone, right, and they were saying, hey, you know, what are you up to nowadays? Oh, I'm investing in real estate. Oh, so you're a landlord, huh? That's gotta be fun. Have you had the garbage disposal break yet? And they're, of course, clueless because they don't get what you're really doing. Because you could answer that question by saying, I'm an arbitrager. And then they'd say, what's that? Well, I do arbitrage deals. Arbitrage, huh? Yeah, arbitrage. That's basically, according to Jason Hartman. It says it's exploiting the differences in things. That's the Hartman simple definition. You always ask yourself, compared to what? Well, if I can borrow money at this rate, and I have inflation at that rate, and I have tax benefits at that rate, and then I have rental income at that rate, and then I have all these other things that all come together in my beautiful multi dimensional asset class. I'm an arbitrager. So who are some of the other famous arbitrageurs? Well, it's all these people that trade currencies, these hedge fund people. Probably the most infamous, and I'm not going to say he's famous because I don't like the guy at all, but maybe the most famous arbitrageur is George Soros. He essentially bankrupted the British government. Okay, that's a long, complicated story. You know, it's just look it up. But you're an arbitrage. That's what you do as a landlord. You think you're a landlord. You think, oh, the car dealership thinks, oh, we sell cars. No, not really. You do a lot more than that. You financialize. And cars are just this, well, pardon the pun, vehicle so that you can financialize. And so you are getting to financialize a lot of your investment as a real estate investor because it has huge benefits like that. Now, rich people financialize everything, but what do poor people do? Well, they do financialization in reverse. They do a terrible job of this. They go and they they need to be listening to Dave Ramsey. Here's where I like Dave Ramsey, because Dave Ramsey really does help these people. But once you advance beyond this point, Dave Ramsey becomes completely clueless. So he's good for a while. You go to sixth grade with Dave Ramsey, maybe eighth grade, ninth grade, and that's all good. But not high school and college. In the investment world, just to use a metaphor, that's what you do. So the poor people do it in reverse. They go get themselves into credit card debt, they got a bunch of high interest debt, and it's not tied to any asset that produces money. It's tied to assets that go down in value. They get into debt over all kinds of silly things that just don't work. They don't produce any income, they don't arbitrage at all. They get reversed arbitrage by other people. You know, there's an old saying, if you don't have a plan for your life, you're going to become part of somebody else's plan. And sadly, that's exactly what happens to the poor. They didn't have a plan. They didn't learn about arbitrage. They didn't learn about how to properly financialize their life in a good way, I mean, beneficial to themselves. And so they got financialized by somebody else. You're either going to have your plan or you're going to become part of someone else's plan. That's pretty much the way the law of the jungle works. So let me wrap up this thing on Richard Cantillian, okay? The concept of relative inflation, or a disproportionate rise in prices among different goods in an economy is known as the Cantillion effect. He also considered changes in the velocity of money, quantity of exchanges made within a specific amount of time to be influential on prices, although not to the same degree as changes in the quantity of money. So there is the amount that determines things and then there is the time in which it occurs. Because remember, that time thing is part of the, you know, you've heard of the supply chain. That's a term that's used frequently. But money itself and financialization also has its own supply chain. Just the trading of the money in that financialization is hugely important because if you get it sooner, you're going to be richer than the guy that gets it last. And in our world, fair or unfair, for better or worse, the person who gets it first is the person that's right near the financial system, right near the fire hose. Who are they? Well, they're Jamie Dimon, Boyd Blankfline, all of these people that are in the game, they're all the people in Congress doing their crooked deals with lobbyists. They're all the people on Wall Street. They are close to the fire hose. They're Bobby Axelrod in the show Billions. Okay, which is a great show, by the way. Do you watch Billions? You need to be watching Billions. It's good anyway, be closer to it. And, you know, I remember when I was 19 years old and I started in real estate. I was going to Long Beach City College, and we couldn't afford to send me to, like, a real university. And, hey, I wasn't any super student or anything either and didn't have any connections, know how to get scholarships or things like that. You know, that just wasn't the world I lived in, unfortunately. Or maybe it worked out better, actually. But when I was 19 and I got my real estate license a couple weeks before my 20th birthday, and I went to work for this Century 21 Academy on Beach Boulevard in Anaheim, California. And I remember sitting in that office, that tacky office, by the way, filled with smoke. Because back then, I know you can't even believe that people would smoke in the office. You'd walk in there, there was like a fricking cloud. Disgusting, huh? Yeah, totally disgusting. Anyway, I remember there'd be a sales board, a whiteboard. Hey, at least it wasn't a blackboard. I'm not that old. It was a whiteboard, and it had lines on it. And, you know, people would write down their sales. They had a little bell there. They'd ring the bell when they made a sale, and everybody would look over and maybe clap, hey. And I'd look at the price they put up there, and that was back when real estate was a lot cheaper. And, hey, Anaheim's a cheap area, too. And they put up the numbers, and I thought, gosh, here I am. I'm just a kid. I'm literally a teenager. And here I am in this little tacky office. But there's a lot of money changing hands here. There's hundreds of thousands of dollars, and someone would put up a sale. Like, the top producer in our office was a woman named Renee. And it was like a big deal back then to make $90,000 a year. And she was the big deal in the office. She was the top agent. She sold, like $3 million a year worth of real estate, you know, 3%, 90 grand. And she'd go in, put a sale up there, and it'd be for, like, $180,000. You know, $250,000. We thought that was a big one back in the day. You know, things have changed, haven't they? Inflation, inflation, inflation, right. It's all relative. Funny, when I was your age, a postage stamp cost a penny and you could mail a postcard across the country for $0.01. And a candy bar cost a nickel. And now it's a dollar. You've all heard that conversation. I know I'm terrible at accents. I'm not getting a job in acting anytime soon. Don't worry. So, you know, I thought to myself, I thought, you know, even in this tacky little dumb real estate office, there's a lot of money changing hands. If I could just get a part of that. And I felt like I was close to it. So I had the Richard Cantillion effect right there in the real estate office. And I ask you this question. In your life, we talked about financializing it so you take advantage of inflation induced debt destruction. And by the way, let me just back up a little bit. What I came from was working at my mother's Pioneer Chicken franchise. That's what I did right before I got my real estate license, okay. I would work at the Pioneer Chicken office in LA in this terrible area where literally my mom got held up at gunpoint several times. One time they came in and, you know, hit her over the head with a gun and her head was bleeding. When I rushed up there and the police were there and they would shoot the windows out and the Pioneer Chicken, some morning she'd come in, the windows would be shot out. You know, they just drive by and shoot at the windows and just, you know, the glass was all on the floor. Unbelievable, right? So that's where I worked. And the contrast was so stark in when I worked at the Pioneer Chicken, I had to smile to make $2, okay, to make a little tiny sale of selling a basket of chicken and maybe a pudding that went with it. And then when I got into real estate, I thought, hundreds of thousands of dollars. This is great. And I bought my first little cheap condo in Huntington Beach, California, in Coventry Lane. And it was like less than $100,000, I think. I don't remember the price of that deal. I got to find that. I probably actually have the paperwork from that. So I got to find it and just be around the money. So when you collect your rents, Maybe you own 20 properties, and each of those generates $1,500 a month or $1,200 a month. That's significant amounts of money, but that's not what it's about. Look at how much debt you have on those properties. Hopefully you have a lot of cheap mortgage because you're arbitraging those interest rates and tax rates and tax deductions on that mortgage versus the income versus inflation. And so you are financialized in a good way. That's great for you. You are close to the money. Richard Cantillian would say that's a great thing. So that's the lesson for today. A little bit on Richard Cantillian. Check them out. And if you need us, reach out. We're here to guide you every step of the way. Build your nationwide portfolio. Inventory is very tight, so do not rely completely on our website. You've got to be working with one of our investment counselors. We just had a hedge fund come in and buy 53 properties from one of our providers. So inventory got a lot tighter when that happened, and we were kind of bummed that it did because inventory is challenging. But when you're working closely with an investment counselor to get the deals for you and source them quickly, we can definitely help. And you know, this is so counterintuitive to what probably everybody thought three months ago, isn't it? Four months ago they thought the world was coming to an end. But the real estate market is booming. The stock market is fake. The luxury home market is fake. But the necessity housing market is not fake. That's a real human need. One of the three basics, food, clothing and shelter. Let them rent that shelter from you so that you get the advantage of the financialization. The tenant does not get that advantage. They don't get to be an arbitrageur at a cocktail party. Oh, where do you live? Oh, I rent a house over there. Oh, they definitely can't say they're an arbitrager. But guess what? You as their landlord, you get to be an arbitrageur. So you get to be closer to the money than they do. So you get more advantage than someone downstream. That's very important. So we're here to guide you and help you build that nationwide portfolio. Reach out to us@jason hartman.com or 1-800-hartman if you're in the US and until tomorrow, happy investing.

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