NEW TIME - Wealth Transfer, Don't Miss Out! America On The Move

Good morning everybody. This is Adam here with you today. Jason is away at a conference. Covid is over so it's time to start traveling again, I suppose. But we're going to talk today about America on the move following the migration, following policies and arriving at profits and security. So happy late morning to everybody on the east coast. Happy early morning, you on the west coast and people in the central time. Happy middle of the morning everybody else around the world don't know what time it is where you are, but welcome. So glad you could join us. Well me today if you have any questions, comments, anything you want to add to the live stream or share amongst yourselves, throw it up in the comments, let us know where you're watching from. Happy to take I'll take some questions along the way but today just wanted to go over this. We've talked a lot about the pandemic obviously because that's been the story of the world in the past, you know, 14, 15 months, however long it's been going on. And you know, we've discussed how there's been this great wealth transfer as assets get pricier and the rich are able to and even the upper middle class are able to continue purchasing assets. And then we've seen a lot of bailouts have to happen for people with rent, with mortgage forbearance, all of that. And so I wanted to look at where are people actually moving, where of those places could actually be a good place to invest and how can we take advantage of that as real estate investors and as investors in general. So once again welcome everybody. If you have any questions, comments or need assistance, reach out to us@jason hartman.com Fill out any form there and some one of our investment counselors, which I am one of, we'll get back to you and help you with whatever we can. It is free service to you. If you're in the US you can call 1-800-hartman and we will answer the phone and talk to you directly. So good morning Raj and Amarillo. I have actually never been to Amarillo. I've been, you know, driven through Texas a lot but haven't driven through Amarillo and all night. Hyder in San Diego, glad you could join us. Hope you enjoyed an extra hour of sleep or an hour of wake up time before you before you had to come join us. So I wanted to talk a little bit about the move in and of itself. And first off I want to apologize for this slide because I cannot remember when where I found this one so in going through it. So let me See if I can make this a little bit bigger. There we go. In the 2020 moving data that I found, a quarter of Americans moved in 2020 because of the pandemic. Around 35% moved because of COVID and a third of those who moved because of COVID did so to look after family. And as the pandemic hit in the spring and summer, 30% more Americans moved in the fall than in the year before. So it was clearly a big. A big deal, a big shift. The moving trends. People are moving Idaho, man. Idaho boomed. This pandemic has been. I mean, if you live in Idaho, you are probably cursing California and potentially ruin your property taxes. But rolling in appreciation, I mean, the numbers you're going to see, especially for Boise, if you had invested in Boise or if you have a home in Boise, congratulations, you're a lot richer now than you were 14, 15 months ago. But five out of the top 10 destinations where people were moving were in Florida, four of them on the Gulf Coast. 68% more people left New York in 2020 than moved into it. And in 2020, the average move grew by 13.7 miles. So, I mean, that may not seem like a lot, but that is a move to the burbs that we talked about. There's some people that are moving far away, you know, fleeing New York and going down to Florida, fleeing California, coming to Austin, going to Boise, however you want to look at it. But even if everybody stayed in their own city, even if nobody left their city, they're going to the burbs. You know, the inner core is fleeing. You know, you saw that everybody's. Everybody's leaving the core and going, you know, farther out to more space. So, again, the reasons for moving during the pandemic, you have people moving somewhere safer from COVID lost a job or income. So safer from COVID is 36% lost job or income due to Covid. 35% shelter in place or taking care of family, 31%. A lot of people move because of starting work from home. That's 28%. Now, obviously, these don't add up to 100%. People can give multiple reasons for moving. Moving somewhere with fewer Covid restrictions took Covid as an opportunity to sell their job or sell their house or find a new job. Congratulations to anybody who did that. You know, finally got the kick in the pants that you needed to move. And other, the politics, landlord issues, canceled school. That kind of stuff caused people to move. So pretty much the reason that you were expecting to see people move that's why people are moving. So this is just kind of the, you know, people are moving. Proving it. You know, we talk about it all the time. Let's prove it with numbers. Numbers don't lie, I guess. Unless it's lies. Damn lies and statistics, I guess. So how many people moved? This is going from February through July of 2020. So during the biggest, biggest boom of the pandemic, you know, whenever we saw the most lockdowns, whenever we saw, you know, the biggest scare, there was a 4% increase in total movers, according to the United States Postal Service. And there was a 2% increase in permanent movers, a 27 increase in temporary movers. You know, a lot of that was people leaving New York to go to the Hamptons or, you know, just going to a new city and renting a place to live for a few months while, you know, they waited it out. Juan saying, please don't, please don't move to Florida. You got mosquitoes and insects trained to bite Dems. Well, you know, train them well enough, I guess you'll eventually scare some people off. So who won and who lost the pandemic? Like I mentioned, Boise, Idaho, you could not move to a place that had more people coming in. I mean, they saw an incredible increase, you know, 300%. So for every four people who moved, three of them were coming in. You know, so you got Venice, Florida, Georgetown, Texas, which is just north of Austin, Goodyear, Arizona, Sarasota, Florida, Cape Coral, Florida, Simpsonville, South Carolina, Punta Gorda, Florida, St. Augustine, Florida and Buckeye, Arizona. Those are the big winners. I believe this came from Rent Cafe. I apologize, I forgot to note that source losers are the places we expected. New York, Oakland, San Francisco, Omaha I didn't see coming. I believe a lot of that was because just job loss led to industry shutdowns, led to people leaving. Fort Lauderdale, Jersey City, la, Cambridge, San Jose, and Wichita, Kansas. So those were the big winners and big losers inside the the pandemic and All Night Hider. We and Cali need to learn the training of insects to target the morally corrupt. Well, people are still going to flee, even if you have insect issues. So in 2019, this is the big influx versus outflux of people. All the states that are in blue saw more people come in than leave. All the states in yellow saw more people leave than come in. If they're light blue, obviously you're getting closer to even. And the gray is roughly 50, 50. It looks like when I was looking, it was anywhere from like, if it was 45% to 55% coming and going, then they put it in a gray. If it ended up being, you know, 47 leaving, 53 coming in, or, you know, when it got a little bit bigger and when the gap got a little bit wider than like 10%, they made it, started making it light gray or light blue or light yellow. So that's what you're seeing is the dark blue means, you know, at least you got a 60, 40 people moving in versus people moving out. Dark yellow is 60% leaving, 40% coming in. So this is what it looked like in 20, 20, 19. And then in 2020, this happened. So you see the shift here. Look. Look at the map now. And the map in 2020 moved east and south. Not perfectly, but if you look at where the dark blue is and where the light blue turns dark, it's east and south. You know, your northwest area, you got Washington up there. It, you know, it disappears because nobody wants to. Nobody wanted to move there. People were getting out. You know, you still had some people coming in, but more people were wanting to get out. So this is where the Trend happened in 2020. Now, this is from United Van Line Movers. It's a study they did at the end of 2020. So this was kind of what they. I believe it was 4,000 people that they studied. But I could be wrong. It was. It was a lot of people. No, it wasn't 4,000. That was a different study I read. But this was their study of their moving, you know, people coming in versus going out. Similar to the U Haul metric we've talked about, where you look at how much it cost people to move, go one way as opposed to coming the other. I gotta tell you, I did this after Jason mentioned it in the podcast or on a live stream. I forget which one I went. And I did it because I was curious. I thought, you know, I used to live in Long beach back when I was a kid. How much would it cost to move back there? And I did it for, you know, if I moved a full house like I'm in now, you know, rented one of the big trucks and move there, and if I move from Long beach to Austin, it was going to cost me $5,000 to move, to move to Austin. I thought, well, man, you know, maybe I'll move back to California. How much is that going to cost? $980. There was a $4,000 difference coming from California to Texas as opposed to going from Texas to California. And that was just three weeks ago. Whenever I did that, two, three Weeks ago. So this is similar to the U haul metric there. So people are coming south and they're coming east. So let's look at the states, the dark blue states. And this one I found very interesting because this, they broke it down by who's coming and how much they're making. And as landlords, as, you know, investment property purchasers, the, the properties we recommend people buy are for the people who are making anywhere in that 40 to 80 or $90,000 a year probably. You know, the, the rents that we're looking at, the rents that we're targeting, the, you know, thousand dollar rent, $1,200 rent, $1,300 rent somewhere in there, you know, anywhere from 800 to 1700. A lot of times, you know, if you're making a hundred thousand dollars, you can easily afford that, but you may not be able to buy a house. So, you know, let's just kind of ignore this hundred thousand and up area and really focus on the, the middle two, the second and third ones here, the 50,000 to 75,000 and the 75,000 to a hundred thousand, those are the ones that our tenants are going to be in. So in Alabama, you know, you had about 13 and a half percent of those leaving, but you look here and you've got 27% of those are incoming. So you've got a massive amount of renters or people who are potentially in your renter pool coming into the state. Massive mass, you know, double the amount of people for every one person that's left. You've got, you know, two people coming in who may want to rent from you. It's fantastic. You know, you look at North Carolina, another big one, you know, 60% of, 60% inbound, 40% outbound. You know, you had a 2% increase in 50 to $75,000 earners, which is, you know, you look at that, you know, that's, that's a big jump mess. 20% higher than people leaving and you know, 75 to $100,000, it's a little bit off. You know, there's, you're losing about 0.4% more there than you're gaining, but you're still gaining in your renter pool. You look at another good market, another good state where people are moving, Tennessee, Memphis, Tennessee is a market we've been in forever. We love it. It gives great returns to people. You know, you look at this and the 50 to 100,000, you're gaining 30% of the new movers and of the people leaving, it's only 22 and a half percent. I mean, that is just astounding. And 60% of people are coming in and 40% are leaving. So you're gaining an immense number of renters. And as I discussed several months ago, you can go back and look at the live stream where we talked about Memphis. Memphis appreciation is booming because the city doesn't want to get any bigger. So the city's not wanting to get any bigger. They don't want to sprawl anymore. They're trying to build up. This was obviously before COVID but they're not just going to change this plan on it on a dime. If you're not building out, if you're not sprawling, if you're focusing on the land you have and you're getting this many more people coming in, it puts incredible pressure on home prices and it puts incredible pressure on rents as people are coming in and looking for that place to live. And it's also going to limit your vacancy time because you know, your, your property manager, your agent, if you're self managing and you're doing kind of the hybrid model that we talk about a lot when it comes to management. They're going to have a list of people looking for homes. I mean, I had a vacancy in Memphis in May whenever the virus was really kicking up and we had a 10 day vacancy, that was it. Because they had a list of people just wanting to get a property to move into Idaho, where we do not have properties right now. But you know, 70% of the people who are involved in moves in Idaho are coming in and only 30% are leaving. Now you look at it and 33, 33% of the people coming in, make that 50 to 100,000. Only 25% of the ones leaving are. So you're getting again, a huge amount of people coming in and, you know, giving you that rental boost and that appreciation boost. Where is it not so good? Well, we talked about it. California not faring very well. 41% inbound versus 59% outbound. And you know, in California, part of the problem is, you know, you've got, you know, the numbers are just so astounding in terms of losing them that even though, you know, you're, you look at it and there's 22% leaving. Who are your renter pool potentially. Although in California you might have to shift that up a little bit. You know, there's more people leaving in your renter pool than them coming in. And you're really getting the influx from the higher earners. 150,000 and up. But you know, your renter pool is shrinking just because, you know, almost 60% of the people moving are leaving your state. So it's really hurting people in that way. So, you know, obviously California maybe not the best place to be looking right now, as we've discussed numerous times. Where else? New York, New York was hitting, people wise, more than any city in the U.S. 33% of moves were inbound, 67 were outbound. You know, you look at it, the, the percentages aren't too far off. A lot of the outbound were not. And a lot of the inbound were actually the lower earners. The 0 to 50,000 is the biggest increase in inbound. The other ones, you know, you look and they're not too far off. The, the richer people left and the poorer people came, which, you know, for investment properties doesn't matter all that much. But just the, you know, the ratio of leavers to gainers just gets blown away. So, you know, you look here and I mean, you look essentially in the, in the Northeast here, aside from Vermont and Maine, a little bit up here, it's not looking too good. You look at all this, all this yellow up here, as we've discussed numerous times, people are leaving and it's going to take a bit to pull them back. You know, once they get down into the states that really make sense. The states that have, you know, the lower property taxes, the states that have, still have jobs that they can work or they can do remotely convincing them to move back up. You know, moving a family is a big deal as a lot of, you know, you know, it's not a, not a ton of fun and you especially don't want to turn around and do it again, you know, one year later. So then I looked and I thought, okay, well, you know, people are moving to these states. Are they good states to be landlords? And so I went to about 10 or 11 different sites yesterday and kind of pulled up lists of landlord friendly states because it's, you know, every state has different things that they allow landlords to do, different things they allow tenants to do. And it's hard to really tell you these, this state's the best, this state's the second best, third best. But you can get a general idea of what states are good. So I compiled a bunch of lists and I looked and I said, what states overlap the most? What states come up the most? Who's the most landlord friendly? So these are the, the ones that popped up on the most list. It's Indiana Georgia, Texas, Ohio, Florida, Alabama, Arkansas, Colorado, North Carolina, West Virginia, Mississippi and Pennsylvania. Those are the biggest kind of top quarter of the country, landlord friendly states according to, you know, several like the roof stock and rent ready and landlord.com and those kind of websites. So but the question then is they're landlord friendly but do they still have people moving there? You know, that's, it's kind of pointless if you have a landlord friendly state, but people are leaving. You know, it just doesn't make a ton of sense. So let's look at some landlord unfriendly states. You know, let's go the other way. We've got Oregon, we've got Alaska, got Maine, Nevada, Kansas, Vermont, Hawaii, Delaware, Rhode island and Nebraska are kind of some of the more landlord unfriendly states. Now as you saw whenever we looked at New York, Vermont has a whole lot of people coming in as opposed to leaving, but maybe not be a state for a landlord where you really want to be spending your time. So, you know, along those lines, you know, Oregon had people coming in, but you know, if you like rent control and you like your tenants to be able to tell you when they're moving out, then maybe that's the place for you to invest. But that is not the situation that I want to be getting myself into. So where is the overlap? Where do we have more inbound than outbound and where do we have landlord friendly markets? Well, you're going to find those in Arkansas. The four that overlapped were Arkansas, North Carolina, Alabama and Florida. Now this is going to sound self serving because we have properties in all of those states, but it's just the fact of the matter, you know, you, you look at those and where are they located? They're located in the Southeast. You know, what's, there's people moving there, the laws are favorable, favorable for you and you know, you're, you're just set up for success. If you can find markets that make sense inside of those states, you are very, very likely to be in a position where your returns are going to be good. Denise, you ask, what about Utah? Utah is a great state for people moving in and out of. I do not know enough about the landlord laws to tell you whether or not it's a great state. Actually take that back. I was thinking of Idaho. Utah I believe, kind of had the same level of people coming in and people coming out. I guess it really depends kind of where you're talking about in Utah and whether you're in those linear, cyclical or hybrid markets that we Talk about. Because, you know, obviously in Florida, you may not want to be in Miami. You know, you may not want to be in the price. You're probably not going to want to be in the pricey cities there. But if you look for the cities inside of each of those markets. So what makes a good city? Well, I mean, you look at those, and what makes a good city? Population increase. Obviously, you know, if your population's declining rapidly, not good, not a good look, you know, if it's declining a little bit, then, you know, it may not be a bad thing because, you know, maybe they're just moving out to the suburbs. You know, you can get, you can get that happening. But, you know, if you see a big drop, then you're in trouble. But then you also want to look at what industry is fueling that state. What industry is fueling the market that you're in. Is it an industry where they can pick up and move? If it is, then you may want to. Then you need to look at all of the other factors a whole lot harder. For example, in Alabama, the big thing there in your Birmingham, a lot of the outskirts of Huntsville, your Talladega, your Tuscaloosa, is car manufacturing. You know, there's a small place in there in between all of that. It's a market that we are working in that supplies car auto parts for everywhere in, in those markets, car manufacturing is very difficult to just pick up and move. You know, the whole. It's an amazingly expensive process. You know, it's, it's so expensive that even when they placed restrictions and tariffs to try to convince people to come back, to try to convince auto manufacturers to move back to the US Under Trump, a lot of them just said, we'd rather pay our workers in Mexico more and not have to pay to spend money to bring a new factory and a new plant over to the U.S. so these are established industries. You know, you can't move beaches in Florida. You know, if you can find a market, you know, that's focused around there and, you know it's not going to just take up and move. You know, you got to look at what industries are there that it's fueling the market that is either stable in population, relatively stable, or booming. You know, if it's booming and you have a market that can't, or economic factors that can't move, you are primed, you're in the path of progress. It's a beautiful position. You're going to be getting increased rent, increase appreciation. Everything's going to be Lining up for you. So these are the four states that are, are lined up in this wonderful Venn diagram with my horrible colors, as you can see. Wasn't sure what color to make them to make it pop best. But you. Yeah, this is going to be a whole lot shorter than it is whenever Jason's around. I apologize for that. If you all have any questions, I'm, I'm happy to take them. I tend to talk a little bit faster than Jason and we don't have our usual banter. Let's see. So all night, how do you said I'm stuck in Cali with two kids. I'm not willing to leave. Looking to formulate a strategy to purchase a primary residence. Letting the market tell me when to buy. I mean that's, you know, in California, the time to buy might be never. You know, you can get a great rent to value ratio there and you can have great laws as a, or great protections as a tenant. It might be, might not be a time to buy ever there. So Nathan, you said two years in a row, Kansas has more people moving out than in. Yet I'm trying to buy a house and not a single livable house has come on the market for a month now since I started looking. Now that is a completely different situation though, Nathan. I don't know what, what price range you're looking at there, but as I've talked about multiple times and I tell all of my clients, the fact of the matter is we're having an inventory crisis everywhere. And that is because of the fact that the fundamental factors in our economy have not changed and they are not going to change anytime soon. And those fundamentals are such that we have not enough homes being built yet more people are moving into those places and the homes that are being built are not in the price range that a lot of people can afford. Like, they're. I had a chart that I showed several months ago, probably six months ago at this point, with Jason showing the percentage of homes that were being built. It had, it was like a heat graph. And the one that was below 250,000, I think was 8%, 8% of the homes being built, or maybe 10 at the most, were being built under $250,000. Not only that, but we're below the historical average of homes being built, even though our population is the highest it's ever been. We realistically, for us to see a situation where we're building enough homes, we need probably half a million more homes a year being built than are being built. And there is nothing, nothing out there that is suggesting that we are changing our policies and that prices are going to come down enough that builders and flippers and all of these people are going to be able to satisfy the demand out there for years. I mean, I don't even know when to expect that to happen at this point because, you know, as All Nighter Hider says here, building restrictions need to chill out. And yeah, I mean, with the way it is now, with the cost of everything, you know, if, if it takes them, you know, if there are a bunch of restrictions and you know, they can't find the workers that left during the Great Recession that haven't come back, the price, the materials are more expensive, the profit margins aren't as high. So the question is why, if you're a builder, why would you build a home for 2000-001500-00100,000, that's really going to give those the lower end, the lower income earners, the, you know, the price that they need to get into the market. So I'm waiting for those before. And as I've talked about whether we're in a bubble many times before, we are seeing prices run up. That is undeniable. But as far as a bubble goes, the prices are going up for a reason. The bubble will happen. And I'm not saying a bubble will not happen, but a bubble will happen when the fundamentals change, but the pricing doesn't. So if you see building boom to 2.2, 2.5 million homes being built, and you see the costs of construction coming down, and yet you see prices continue to rise, and you see bidding wars still happen, like here in Austin, homes are going for 150, $200,000 over asking, waiving all contingencies, waiving inspections. I mean, it's insane. But the fact of the matter is they're not building homes in Austin that you can buy. People are still moving here way more than they're moving out. There's a fundamental reason why these things are happening. So you have to look for market conditions to change before you can expect the behavior of people to change. So when I see new construction rising, when I see pricing of materials coming down and I still see prices going up, then I'm going to think we're in bubble trouble. You know, it could be something we need, we really need to watch out for. But as of right now, just kind of fighting for the, for the scraps. I mean, unfortunately, that's the way it is. So John Leano asks, what is forecast for mortgage rates in Next two years, will it rise? So mortgage rates are hard to, to go? You can ask Jason. He's, he likes to say he's infamous for being wrong when it comes to mortgage rates. And I'll just go ahead and say that right now interest rates have ticked up. We just locked for a property we're going to close on in the next week or so. It was at 4.375. This is with 20% down. And it's actually, I mean rates, they're roughly what they are before the pandemic started. At this point when it comes to 20% down, we put 20% down on a home that we closed on last January and we, our rate was four and a half percent then. So I mean rates for, you know, Investment properties with 20 down are roughly what they were before the pandemic started. So where they'll be in the future, I mean, the Fed has said that they're not worried about inflation for several years so that they're not going to be raising their overnight rate anytime soon. So for the next two years we don't have to worry about the Fed raising their rates. We do have to worry about people's concerns about inflation. And I think we saw some concern for inflation, especially recently. There was some, some rules that were changing about the, the debt leverage ratio that banks had to have because they excluded them, they excluded Treasuries for a while when covet hit but then they made them start counting them again. And so there, that was a big fear that drove interest rates up for a little bit. That passed. That ended March 31. So the markets kind of calmed down a little bit since then. But I mean for the last four years that I've been buying, you know, we've had anywhere from four and a half to six and a quarter percent. And you can make your properties work really well in markets at those rates. So I wouldn't concern yourself too much with interest rates. You know, just, you know, if you're buying something that's not going to close until, you know, August or September, you know, right now with 25 down, you can get three and three quarter, three and a half, three and three quarters somewhere in there, maybe just factor in three and three quarters or 4% if you're your interest rate to make sure it still makes sense. I mean that's, I think that'd be a fair thing to do. Raj, you asked what is the best market in Florida? Sorry. With most supply demand imbalance, I'm gonna, this is gonna be self serving. I don't know all of the markets in Florida but let me go back here back. Many, many slides go back and too far this one, we have properties in Cape Coral that makes sense. You know, the numbers have obviously gotten crunched since, since interest rates went up and you can't get a 3% rate and because Florida has seen appreciation but the net moves to Cape Coral is you know, over 100%. So you know, that's getting a good population thrust. And you know we, we have, we have at least two builders, I think we have three builders building in the Cape Coral area. So I know there are properties available there that makes sense in that Florida market. I don't know enough about all of the, the other markets to tell you that. But I mean just look kind of here at the, the net winners and, and see you know where, where it might make sense. A lot of these four ones are a little on the pricier side but here, let me make that bigger for you. But you know, those are solid markets to look at and kind of to start your research on when it comes to, to where and Ford to look see all Nighter Hider says I'm in the trades and the workers I see entering do not have any integrity or desire to learn the building trades are being forgotten for the time being in my opinion. I, I unfortunately agree with you. I think we as a society have made a terrible decision to downgrade the trades. You know, to make it seem like you need to go to a four year school. You know, why are you going to go, do you know, why would you go to trade school? Well, you know, you can go to trade school because you can make some really good money doing it. You know, my in laws live out in rural Texas, you know and their electrician there makes well over a hundred thousand dollars a year. You know, he didn't go to a four year school, he didn't come out with $80,000 in debt. He's doing really well. But you know, people look down at the trades for some stupid reason they do. So let's see, let's see. Inflation. If inflation is bad enough, won't the Fed be forced to raise rates? So Lieutenant Dan, there's it, the, the short answer is it depends. The long answer is you have to look at it on the whole. The Fed has said that they want inflation to be at 2% and they want it to average 2% and they want to expect it to average at least 2% before they worry about raising rates. Right now their estimated inflation is around 1%. I think maybe the low one percents. So realistically I think he said they were going to go with like a 10 year average and they're going to base it off of, you know, what's happened in the past and what they expect to happen. So realistically for them to see, they're probably going to want to see at least a 2 and a half percent, 3% inflation in their mind, in their calculations. But the bigger thing that they're looking at is just because the price is going up in one aspect in one area doesn't mean there's inflation across the board. Now we may see it in some things and not in others. It just depends what they're, what they're measuring. You know, right now what they're measuring is seeing very low levels of inflation. So if inflation does get bad enough, yes, they will raise rates. They have given no indication that they're concerned about it for until at least 2023 is the last I, the latest I've heard them talk about. I don't think they've mentioned anything about 2024 yet. But if they're not worried about it until 2023, then we have at least, you know, a year and a half before we really have to concern ourselves with, with them changing their mind. And the great part about it is Jerome Powell has been very, very open about what he sees inflation wise. And with him telling us it's going to take 2% inflation or greater average out over time and him saying we're not seeing 2% happening for a long time, it really tells us that we're safe for now. I mean, yes, prices may go up in other areas here and there, but you know, it, honestly, it doesn't matter what you see inflation wise when it comes to them and their rates. It matters what they're measuring. I know it sounds kind of bad and kind of harsh, but, but it's just kind of the way it is. So yeah, let's see. All Nighter Hider says CPI will be based on rice and beans soon. Yeah, at least they, at least they'll tell us that it's rice and beans. Maybe, I don't know. Let's see. Jason Kincaid Mortgage brokers will be replaced in 2022 by smart AI real estate agents. Commissions will be reset as well, plus 6% on the assets every time they trade will never ever, never last beyond this cycle. I mean it could in some cases, you know, mortgage brokers still have their place. You know, you can, you can work with your mortgage broker on a lot of different ways I don't know how much AI will be replacing them. I assume, you know, technology is always going to be helping them. It's going to be improving their jobs and making it easier. But you still need, you know, doing it by the numbers isn't going to happen. Doing it strictly by the numbers, by a computer, I don't see happening in 2022. So, you know, there probably will be, you know, will be more AI used, but not, not all of it. So Don, Don H says food, gas, homes, cars apparently don't count in our inflation costs. I mean, I haven't looked and seen what they're counting in all of their CPI costs, but. And whatever they're doing, they're, they're not seeing a lot. So. And Juan says the Fed will print enough money to buy Treasuries to keep the yield low. I mean, they, they can, theoretically. You know, I mean, they can continue to buy Treasuries. It doesn't make a ton of sense for them to, to buy them because they're just creating money to buy their own money from. But, you know, if they, there's no reason for them to even sell Treasuries that they don't want to. We don't need the, you know, that income doesn't go for anything. But, you know, they, they definitely can. And, you know, we might, we would probably be better served if they just got out of the treasury buying business. It would allow our rates to settle wherever they're going to be settling, and then we wouldn't have to worry about the Fed coming in. But I don't think they're going to be doing that anytime soon. They don't seem to have any interest in, in stopping. So let's see. Do we have any other questions here? Jason says bubble shovel. The relaxed borders will create a new, a whole new wave of buyers. The main problem is people look from their intuition view. Things will change beyond your conception. I mean, if there's a whole new wave of buyers, then, I mean, I don't see a whole lot of. Well, it depends what you mean by relaxed borders. If you mean, you know, undocumented workers, illegal immigrants coming over, you know, they're not the ones buying homes right now. They're not going to be buying your $200,000 house. If you're talking about, you know, documented workers coming over and having a whole new wave of them, you know, then you do have more people coming over and competing, and that's going to drive up your price more. So I'm not exactly sure when you say relaxed borders, which. Which version of that you're looking at. But, you know, a lot of if it's undocumented, illegal workers, then, you know, most of the time they're living in apartments or very low rent places that, you know, don't require any income verification or anything. And those are not the kind of properties that we're looking at investing in, that we have interest in investing in. Let's see. I think that about covers it. I want to thank you all for coming here. Jason and I will be back in two weeks. I don't believe he will be at a conference then. So it will just be the two of us. I want to thank you all for taking the time out of your morning to watch. And until next time, happy investing, everybody.