1577: Monopoly & AntiTrust, Bullish Invitation Homes $1 Billion JV, Memphis Market

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 1577. Good day, everybody. Good day. We've got some big news you may know already. Big news, by the way, we're going to have some big news in a couple of weeks here. We're doing live election night coverage. Yes. So for all of you friends out there who are politically inclined, but focusing really on the economic aspect of political life, how does it affect taxes, monetary policy, fiscal policy, those kind of people who are interested in those topics. If you want to come on the show on the live stream, join us on election night. So I wanted to throw that invitation out there. Let us know, you can reach out through JasonHartman.com and let us know if you're interested in joining us for that. You can come on for just a couple of minutes to say hello and we'll do the play by play on this crazy election season. We have an absolutely crazy one. But what is the big news? What is the big news? Well, you probably heard it already, but can you imagine, can you imagine if one company controlled almost all of the world's access to information? Can you imagine that? Could you imagine if your ability to know something or to even not know what you don't know. I don't know. Did that make sense? Reminds me of that Donald Rumsfeld things. There are things we know we don't know. And the things we, whatever, I don't remember it. But the scariest part of it is that concept I always talk about on the Creating wealth podcast, which is, you know it. You can't hear the dogs that don't bark. You can't hear the dogs that don't bark. And when you don't know what you don't know and you don't hear the dogs that don't bark, that is a huge problem. It's worse than fake news. It's worse than misinformation because you just wouldn't be exposed to something at all. And imagine what that is like. That is truly, truly scary and truly tragic. Well, that's the era in which we live. As most of you know, we have got a few companies that control all of the world's information and, well, almost all of it. And here's an example. So this one company that is really wants to be thought of as many companies like 26 letters in the Alphabet. Yeah. You know what I'm getting at? So look at the dominance they have in the search market. I wonder if this will be censored. I wonder. We'll see. We'll see, we'll see. Maybe it'll be ghost posted. Nobody will see it. But 81.54% of all of the search traffic on desktop computers in the United States. Wow. That's what they control. The second competitor to them, only 12%. And the third, less than 5%. So that's astounding. I mean, hey, congratulations on their incredible success for sure. But then you look at mobile devices. Mobile, they've got, let's just call it 95%, 94.92% of all search traffic on any mobile device in the United States of America, a country with 328 million people, all of whom are connected. I am sure everybody in the United States must be connected by now. If they're not, that really does surprise me. But it's possible. Anyway, the vast majority of them are connected. And there you go, there's the numbers right there, folks. That is one corporation controlling all of that access to information. And look at the others. By the way, I interviewed the founder of DuckDuckGo on my podcast before on the Creating wealth show. Right here on the Creating wealth show. Not on the live stream, but on the Creating wealth show. That is absolutely astounding. Let's take a look at this. This is an interesting news report. Now to the blockbuster antitrust lawsuit against Google. Tonight, the Justice Department accusing the tech.

Giant of being a monopoly gatekeeper for the Internet.

Google handles nearly 90% of what Americans are searching for on the Internet. Here's our chief justice correspondent, Pierre Thomas.

The Justice Department declaring war on Google.

Every day, billions of people come here with questions.

Federal prosecutors accusing Google of being a monopoly gatekeeper for the Internet, accounting for close to 90% of searches in the country. They claim the tech giant has been engaging in anti competitive tactics, paying phone manufacturers and companies billions to allow Google to be their default search engine. Prosecutors alleging the ties were so deep. A senior Apple official wrote. Our vision is that we work as if we are one company. According to the complaint, in some cases, even if consumers want to delete Google from their devices, they can't.

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

Traditional antitrust principles and must be stopped.

William Barr today calling the lawsuit a monumental case for the Department of Justice and more importantly for the American consumer. David DOJ is asking a judge to rule that Google violated antitrust laws and that could lead to the company being broken into smaller pieces. Today, Google responded saying the lawsuit is deeply flawed and would do nothing to help consumers. Google says this would only prop up lower quality search engines. David.

Sorry. Oh, so what they're saying is we don't want any competition because our search engine is the best, so we're just going to prop up lower quality search engines. And are they kidding? It won't do anything for consumers. I mean, the idea, the arrogance, that one company should control all of this information is just absolutely insane to me. It violates like every democratic principle. Remember in the old Soviet Union how they had the official government news agency. It was called the TASS News Agency. And every time you would hear a report on the news, I remember this as a kid, according to the TASS news Agency, because that was the only source of news coming out of Russia or out of the Soviet Union, I should say out of the ussr. Back in the USSR reminds me of the Beatles song. And it was all controlled by this one entity, TASS. And now 90% of the information on Internet searches in the entire country in an ostensibly free and democratic country with a first amendment is controlled by one company. Now, you ready to be amazed? This is how much they are planning to spend defending the case. Ready for this one? $120 billion with a B.120B billion dollars. Of course, there's a lot at stake here, right? There's a lot at stake. And you know, will this be like, you know, mob bell AT and T that was split up into separate companies back in the old days, right? There hasn't been much really if you look at it overall, there hasn't been much of an appetite by the government to engage in prosecuting antitrust cases in really in decades. I mean there's only been a few of them, these kind of landmark cases and this is definitely one of them. So we'll see how it plays out. That's the report on that. But check this out. Now all of the tech giants are concerned about this. Obviously you saw when they were testifying before Congress a few, what was that a few weeks ago, maybe a little over a month ago, you saw them all on that sort of zoom screen and you saw Tim Cook at Apple, you know, the guy that runs all the sweatshops. By the way, be sure you look up Ricky Gervais Golden Globes speech. The self righteousness of some of these folks, it's just mind boggling, it really is. But all of them, all of the tech giants are stepping up lobbying efforts and they are just, they're going to do their best to buy off the government. Okay. Of course, present company, whose platform we're on now will probably be censored. There's probably like nobody watching this right now. They're going to spend $19.3 million, which I don't know. Well, that's just on lobbying. It's not on legal, it's not on public relations. It's just strictly lobbying. So you know, I spent a day as a lobbyist, by the way, that was really interesting. I went to Capitol Hill with a group of real estate investors. This was, I don't know how long it was, maybe 10 years ago or something. We went to Capitol Hill and we lobbied, you know, Congress and we went in, you know, I went to Nancy Pelosi's office and Dianne Feinstein's and who else did we got? Arlen Spector, I remember, you know, sometimes they would sit down with us, usually it was like their aides and they, they'd come and sit down and hear, you know, the pitch of why this needs to be that way and this, you know, that way. But the real lobbyist, I mean I was just an amateur, you know, that was like a field trip for me. But the real lobbyist, they bring the money in the brown paper bags, right? You know, here, let me slip this little box to you, right? And you know it's a box of cash, right, or something. They do all kinds of favors. It doesn't even have to be like that there. It's so easy to do that kind of stuff. Oh well, I mean Listen, ask the expert. Who's the expert? That would be Joe Biden. Joe Biden and Hunter Biden. Experts. Yep, definitely. You know, it's like, let me see. Well, son, you know, I got to go over and talk to the mayor of Moscow, and, you know, let's see if we can get some favor there. You know, nepotism. Keep it all in the family. And so there's just all kinds of ways to do payola. I mean, look it, if you don't think our government is totally bought and paid for, first off, you're out of your mind. Right? Most people won't disagree with me on that one. But first of all, learn about Citizens United. That famous case. Citizens United, Okay? That famous, famous case. You know, I'm sure there are many documentaries on it. So learn about Citizens United first off. But then just think about all of the ways to do payola and all of these deals. You know, someone wants a bank charter, and they want to open a bank. Real estate developer wants to develop some land. And, you know, it's like, well, you know, you do this, and there's this, like, subtle favor that, you know, is worth millions and millions of dollars, maybe tens of millions of dollars. It just happens all the time. And if you don't believe it, then ask yourself, how did a communist like Bernie Sanders get three beautiful houses? How is it that these people enter government, whatever level of government, and they're. You know, a lot of them are just total losers. They've never made any money in their life. They. They've never owned a house. You know, they've never invested in anything, really. They've never run a business yet. They. They're in Congress or they're in any. Any part of government. Doesn't matter. Doesn't have to be Congress. But Congress is a good one because, hey, where's the House Ways and Means Committee? Right? That's the powerful committee. So that taxes and spends, and they're in government for 10 years, and suddenly they're wealthy. How did that happen? You know, they're making, what, 180 grand a year with their government job, which, you know, they got some nice perks and benefits, too. But how did they become multimillionaires doing that job on that salary? I don't get it. You know, it's just kind of amazing how that happens. It really is. But look at the lobbying effort. They're all stepping it up. You see here from 2010, 2015. Now, 2020, lobbying efforts have doubled in the last five years. For most of these Companies, whether it be Facebook, Amazon, Alphabet, which is Google, or Apple, all of them, they're all really getting into the business of lobbying. So, anyway, more to come on this stuff. Maybe I'll just give you a little another tidbit here before I go. I didn't get a chance to talk about this yesterday, but the digital dollar is coming. And I've always said the cryptocurrency that is going to take over the world, that's going to be the digital dollar. It's not going to be. And I'd love to be wrong about this. I want to be wrong about this. It's not going to be Bitcoin. It's not going to be Ethereum. It's not going to be any other cryptocurrency. It is going to be a cryptocurrency, a digital currency backed by the two most powerful entities the human race has ever known. What are those two most powerful entities? Governments and central banks. You know, no, cryptocurrency has a standing army. No, cryptocurrency has a fleet of, what, 12 aircraft carriers? Okay? That's what the dollar has. So all of this crazy stuff about the dollar's not backed by anything. You know, you're. That's just. These arguments are just nutty. Okay? So, yeah, that's. That's the deal. So you can see the steps toward it now. You know, they're talking like, oh, China is rushing to develop their digital currency, right? And, you know, I'm not against digital currency. I think it's great. But the way it's going to be used and abused is going to be terrible for, for us little citizens. It's going to be Orwellian. It's going to be a complete loss of spending, privacy, and a complete way to treat us all as puppets on a string. So that, Think about it. When that cryptocurrency is put into the app, on your phone, on your mobile device, the government can do things like make it expire. They can say, okay, this expires at the end of the month, so you have to spend it before it expires. Or maybe its value declines like they used to do on gift cards. And in most places, that's illegal now because it's a scam. By the way, don't buy gift cards ever. That's the ultimate fiat currency. You're trading dollars that are widely exchangeable for gift cards that are hard to use, access, have expiration dates, all that stuff. Right here I've got three Banana Republic gift cards. I haven't used. And they all have like, varying amounts of monies. I got to scratch the thing off the back and figure out how to put them together just so I don't lose my money. I got another one here, an American Express gift card. You know, this, this is total money, folks. Okay? Don't buy those. And don't buy them for other people either. They're just, yeah, it's a whole different thing. But of course, this kind of thing will help prevent money laundering, as the article says. It'll help prevent illegal activities, drug smuggling, arms dealing, et cetera. But it will also prevent a lot of freedom because one of the few freedoms that you have with good old hard cold cash is spending privacy. You can spend your money in with a relative amount of privacy if it's not electronic money. Right. If it's not on a credit card, etc. And so that's something to be very careful of. But it's coming and the technology will be great. They'll make it super convenient. But again, we've got to be forever vigilant for our freedoms and our rights and democratic values, which, by the way, these big tech companies are not acting with democratic values. Clearly, we see that. I want to give a big shout out to the government. Oddly, the doj, the Department of Justice, that fund, finally got around to doing this antitrust case. It took them long enough. Took them way too long. They've been thinking about it forever, but, you know, it just took them forever. So, anyway, that's that. Okay. I want to talk to you about senior housing. We've got to talk about apartments and how, what, what's going on with apartments. We got to talk about housing inventory. I've got another study on that, all kinds of stuff. So we'll get back to that. We just got a whole bunch of stuff to talk about on future episodes. But I've got Adam on the show today, so I've got to get to that. If you're watching on live stream, you won't see it. It'll be on the podcast that'll be published in about an hour. But just wanted to do the intro portion here on the live stream. So thank you for joining me. And until next time, happy investing. To. We are coming to you to talk about invitation homes, institutional investors and their incredible bullishness on the real estate market as well as the Memphis market and a little bit about what's going on there. Adam is here with us. Adam from Austin AA Adam Nothing.

It's great to be here.

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

Ricky Henderson, the baseball player. He always talked about himself in the third person.

Oh, does he really? That's funny. It doesn't include, of course, inflation induced debt destruction, iidd. But that wouldn't make a very good acronym, would it? Anyway, Adam, let's dive in here. You've prepared some great slides and some great stuff for us. So let's take a look at them. And first of all, of course, welcome everybody, formally welcome. Contact our investment counselors, our team members, Jason hartman.com or 1-800-hartman if you are in the United States. Let's check this out. So here is an article I just saw. This was in Globe street and Adam's got an interesting theory about this. I'm going to have him share that in a moment. But this just shows you the incredible, the incredible, incredible bullishness and optimism of the big institutional players in the marketplace. I think Invitation homes owns around 80,000 homes in the United States. 80,000 single family homes as rental properties. They're the biggest landlord for single family homes. There may well be a bigger apartment landlord. You know, before The Great Recession, 10, 12 years ago, depending on how you count it, it was really rare for institutional investors to be owning a lot of single family homes. Of course they own big apartment complexes always and other types of real estate, office space, shopping centers, etc. But now in the last 10, 12 years, they've really fallen love with the fallen in love. And this is a love stream, by the way, not a live stream. Just so you know, we're sending you love folks. I'll let Adam explain that one in a moment. The typo. But it's good. I like that. I'm sticking with love stream. I think it's good. And they've really fallen in love with the single family home asset class. But Adam, you have an interesting thought about this. You Shared with me before we went live today. Tell our viewers about that.

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

Yeah, And I just, they bought dozens and I think they bought, I can't remember the number now, but it was.

Like 53, I think, or something like that.

53 of their properties. And they wiped our inventory out.

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

Yeah, it definitely, I'd say it's a mixed bag. It's good and bad. You know, it's definitely bad from the point of the perspective that you talked about, because it does create a lot of competition. It pushes up prices and so forth. But one of the things I've been saying for the past 16 years I've been telling our followers is this idea. Now, it initially frustrates investors, this thing I'm about to say, but my answer has been embrace the fragmentation. Adam, you've heard me say this many times, and the concept is that investors get frustrated because they don't like the way that when they're investing in multiple markets or just investing even in one market, but hopefully they're investing in at least three markets, but not more than five. Okay? Because that's always our advice. Thou shalt diversify. That's one of the 10 commandments.

The original 10.

The original 10, yes. There are now 22 commandments, folks, but that's the original 10. It says 2210 commandments. And the idea is that in the single family home investment game, everybody does things differently. You know, every property manager has their own way of doing things. Every local market specialist. You're dealing with personalities, and some of them have no personality or they have a bad personality. And you're dealing with all these different people and different ways of doing things, right? And when you cross state lines, of course, the agreements look different. The laws vary a little bit. The customs vary a little bit. Not too terribly much, but a little bit different. Certainly the eviction laws vary if you're crossing different markets, even different cities or counties. And so this is frustrating for investors in some ways, and I can understand that. It's not consistent all over. If you buy a stock, you're buying something that is federally regulated, right? If it's a publicly traded company. Now, granted, nobody pays too much attention to this, but of course, you can buy on different stock markets, right? The NASDAQ has different rules than the nyse, the New York Stock Exchange, as does the London exchange and the Hong Kong exchange and so forth and so on. So those are different, but nobody really pays attention to that. They just buy it or don't buy it. And so what I always say is, look, that frustration you're having is what keeps the big institutional players out of our market. It keeps them from eating your lunch, right? So I always say embrace the fragmentation because that actually benefits you. This is such a fantastic asset class. It's the most historically proven in the entire world. And if it was really simple for Goldman Sachs or any of these big institutional investors to just deploy $15 billion into the market at the click of a mouse, or, you know, maybe they get a due diligence report that they don't even read, and then they deploy the money, just deploy billions and billions of dollars, like really quick, they would be all over the place. Now, granted, we're looking at an article that says Invitation Homes and Rockpoint are Just doing a billion dollar deal to buy more single family homes. But folks, in the overall scheme of things, these institutional players are like a drop in the bucket. They're nothing. Now granted, they're getting bigger and they're interested. They love the asset class. They're buying more and more. But still compared to the overall market size. Now here I'm talking about two markets. One is the overall marketplace for single family properties or really one to four units. You know, duplexes, fourplexes, triplexes, they count in there. And that's the overall marketplace, which is a huge marketplace. You know, it's a lot. Right. And then there is the investment marketplace. And that's about 16 million single family properties in the hands of mom and pop investors. So still these guys are nothing, okay? Nothing. Even though they're huge, Right. They seem huge when you look at an article like this. Oh my God, a billion dollars going into the market. But this is such a big marketplace that this really is like a bucket of water in the ocean. Now it's getting bigger. Yeah.

One of the things that interested me about this article is that if you look at where they're investing, they're not investing in New York and la, in all of the big, big name cities across the country. They're investing in part of the western US in the Southeast us, Florida and Texas. So they're starting to get away from just your cyclical markets and coming into where we're investing.

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

No, I don't think so. Just where they're investing and that they're still here. They just need to go away.

Oh, you want to get rid of them now? Hey, actually, by the way, this, I.

Wanted to stay out of our markets.

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

Before we move on, we do need to address John Wright wrote in and said every market is so different. They would have to have an Amazon sized footprint to buy in each market and don't give Amazon any ideas. John?

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

Yeah, I've been reading some really fun in depth stuff like the state of Memphis Housing 2020 recently. What can I say? I'm into good stuff.

Okay, so in other words, are you saying you have insomnia and this is a Cure for insomnia.

It didn't hurt. I'll put it that way. Didn't hurt.

My sleeping helped you get to sleep.

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

And, you know, every time I look at, oh, my gosh, we just did another transaction in Memphis, I think the same thing myself. Like, how many rental properties can this market absorb?

Yeah. And the answer is a lot. So you can see here on the slide that 89.6% of the city's neighborhoods saw an increase in rental housing. So it is continuing to grow. But on the other side of it, you see, According to the 2020 National Low Income Affordable Housing Gap analysis, Memphis needs nearly 30,000 more affordable units to meet the city's need. So we are buying the homes that were foreclosed upon that are then available to us, but there is still a massive, massive need of people to get in. So our tenants, well, I hate to say, but they can't really find anywhere else to buy and go. So they're going to be renters for the foreseeable future. I mean, it just doesn't. And it'll be explained a little bit more in the future slides. But there is still. Even with all the investors, there's still a market to be served, and it's just not being met by others. So we're going to do it.

Good stuff. Okay, so John, who just made those great comments, he is from Cincinnati. We've got Julian from Dallas, and we've got Jordan. Had no idea how much gold would be on this live stream. Oh, hey, thank you. Well, it's not gold. It's real estate income property. But I'm glad you're enjoying it. So thanks for. Thanks for watching and let us know where you're located. Oh, I think you did. In just a moment. Okay, so Ken is from Mission Viejo in the People's Republic of California. I call it the Socialist Republic of California, but yes, I know Mission Viejo well. When I was in traditional real estate, I sold many homes in Mission Viejo, so good stuff. Right by the El Toro Y. The Y is where the 5 and the 405 freeways meet. And Converge. And that is a famous location for a little bottleneck of traffic. But they've expanded it a lot over the years. So I don't, I wonder how is the. Why nowadays, Ken, if you're going north. Okay. And then Jordan is from Dallas, the big D, Dallas. And then Brian, long term podcast listener from Dayton and Cincinnati area. Thank you, Brian. Okay, so Adam, let's continue here. Keep letting us know where you're watching or listening from.

Yeah, so here we're just looking at how not only is it getting fewer affordable homes, but the rent prices that we're, that a lot of our properties are in the 7, 8, 900 range are disappearing. So these, these are properties that are still in high demand.

So this means, this means 7, 8, $900 per month rent, right?

Yes. Okay, so the, that rent range, because of appreciation in the city and everything else, they're losing affordable rental units. So not only do they not have affordable housing, they don't have a whole lot of affordable renting either. And we are able to get properties. And it's because of that, if we can provide properties in these 7, 8, 850 range, which we are, we're able to get renters really quickly. For example, I had a Memphis turn during the pandemic in the middle, and I was worried it was the end of May.

This is, this is your own property.

You're my own personal property. The tenant, the lease ended at the end of May, and I thought, oh, good grief, we're going to be doing a tenant turn in the beginning of a pandemic. This is going to be terrible. They had the rehab done and a new Tenant signed in 11 days. It was fantastic.

Yeah, so.

And it was in the price range. It was right around. The rent on that property is right around $800. And so, I mean, the affordable rental units, if you're able to buy them, if you can find them, which our providers are finding and presenting to our buyers, it's in high demand still. It's that simple.

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

I mean, this is just facts. I mean, it's what you do about it that's different.

Yeah, it is. It is. And we have that. The rich are getting richer. The middle class is under attack from both sides. You know, hopefully we're here to help you move up into the upper middle class. If you're not there already, if you're in the upper middle class, we're going to help you move up one level above that, maybe two, and stay out of the lower classes, because that segment of the population is getting larger and larger. And when you look at what the pandemic has done to the job world, I mean, it is really, really tough. A lot of those workers have been hit really hard from this situation. And so this just increases demand for affordable housing and it's not being built. And even if that wasn't happening, even if the wealth gap wasn't widening, even if the pandemic didn't occur, this would still be an issue simply because of population growth and no new supply. Right. Where are the gen Zers and the especially the younger millennials? That's Adam's demographic cohort. I'm a Gen Xer. This will be continued on the next episode. Thank you for listening and happy investing. Thank you so much for listening. Please be sure to subscribe so that you don't miss any episode episodes. Be sure to check out the show's specific website and our general website, hartmanmedia.com for appropriate disclaimers and terms of service. Remember that guest opinions are their own, and if you require specific legal or tax advice or advice in any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to itunes or Stitcher Radio or whatever platform you're using and write a review for the show. We would very much appreciate that and be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.