The Housing For The 21st Century Act : What Every Homeowner and Real Estate Investor MUST Know !

What's up everybody? Welcome back to the New and Experienced Investor Podcast. Today we're talking about the Housing for the 21st Century Act. Big bill actually just passed through the Senate. We're going to talk all about it. I'm one of your hosts. I'm Alex Barnett. I'm the new guy.

I'm Joe Homs. The experienced guy, and we're not in the 22nd century yet? I feel like it.

Probably, yeah.

Yeah, I feel like it.

Yeah.

Okay.

Yeah.

I hear you. 21st still.

Yeah, yeah, exactly. So yeah, it's just, uh, it's a bill that the House of Representatives— it was basically bipartisan, meaning, you know, Republicans and Democrats came together on a massive housing reform bill, and it was heading to the Senate, but We got breaking news that it passed.

So, wow.

Yeah, with just 10 nos. So 3— it was 390 to 9.

Those are 10 people that actually didn't own a house.

Yeah, exactly. Yeah, they're like, this doesn't affect me at all. So, uh-huh.

So, uh, yeah, let's vote no.

Yeah, let's vote no. So we're going to talk about what this means to you as a homeowner, a first-time buyer, or a seasoned investor. But before we do, We have a little word from our sponsor. Oh, kind of. Whoops.

It's okay. Looks good. It looked good. All right. All right. Thank you. All right.

Yeah. So why don't you tell them a little bit about it, Joe?

Uh, Pelican's, uh, our brokerage. And, uh, like it said, $85 a month, $8.50 per transaction. And there's no other fees. Like, what are you waiting for? And we do everything traditional real estate, but mostly investor-friendly, investor-focused deals like flipping, like that. There you go. Flipping. So yeah, if you're interested, reach out to the number, give me a call, find me on YouTube, wherever. I'm out there.

You're out there and you're looking for new hungry agents.

New hungry agents that want to learn.

Perfect. So let's go ahead and dive into the Housing for the 21st Century Act, and we're gonna listen to one of the people that, uh, put it up there. One is your favorite. There was 2 people, 2 senators, Tim Scott and Elizabeth Warren. One of these—

Yeah, one's my favorite.

Thank you, sir. I ask for unanimous consent to suspend the quorum call.

Without objection.

I ask unanimous consent to speak for up to 5 minutes prior to the scheduled roll call vote.

Without objection.

Thank you, Mr. President. Mr. President, the issue of housing, it's not a Republican issue or Democrat issue. It's an issue about helping moms like the one that raised me, the amazing woman that she was, become I grew up in, on, in rental property. My first home that I remember was the one that my grandparents were renting, a little 700-square-foot place where me, my mother, and my brother shared a bedroom and a bed. Our experience was one that was filled with tragedy and challenges and a lack of resources. But the one resource we had a lot of was love and hope. The legislative process today gives us an opportunity to restore hope for so many people who want to just experience their version of the American dream, which is so consistently homeownership. I am so thankful that back in those days when I was growing up, there was a group of legislators. Back in the late '70s and early '80s, who created a program through the USDA that allowed my mom to become a first-time homebuyer at 38 years old. But today, today the average age of a first-time homebuyer is 40. 40 years old before you ever experience the American dream. That age is too old, and we as a legislative body can do now what a legislative body did then: create opportunities, restore hope, and let young people experience for the first time the American dream, the dream of homeownership. I am so thankful That's so far so good, but we must finish the task today. We can do what so many folks failed to do in this legislative body for the last few decades—not few years, but few decades—that is pass consequential legislation. That makes it easier to become a homeowner for those who are ready for that part of their journey. I urge this body to vote yes on this bill, and let's create more homeowners at an earlier age. The age of affordability is now, and the solution to affordability is in fact us. I urge my colleagues to vote yes on this bill, and let's get the ball moving. Thank you, Mr. President.

Ba-boom! I don't know, he's a politician, he didn't really say that much, but—

Yeah, but well, I think the big thing is that, um, both sides are agreeable.

Yeah.

Which you don't see that very often.

Oh, that makes me go like, what's going on here? Where— they're all making money. They're all making money is what that means.

Oh, that could be, but I think it's a good thing.

Oh yeah.

I think we're headed in the right direction.

Definitely. Yeah, definitely. I mean, really, it incorporates parts of at least 43 pieces of legislation. Um, its stated purpose: to make it easier to build and afford housing, including modernizing outdated government programs, lowering costs by removing unnecessary federal requirements, and increasing local flexibility over housing decisions. I mean, that's good if you're an investor.

Yeah, absolutely.

It sounds like permitting could get easier.

Gosh, I hope so.

Junk fees and all that stuff that just got put in there.

Yeah.

I don't know how long it takes from today, it passing, to it trickling down and you actually seeing it.

Well, I think the president has to sign it.

He's gotta sign it, right? He has to sign it. And then I think he said he wasn't gonna sign it until some other thing passed. Oh, I think he's trying to like push another bill in there.

Who are we going to bomb now?

Exactly. He's like, I got to bomb these people before I sign.

Who are we going to bomb now?

We'll see. We'll see. But it could be good. I mean, one of the big things, and this could be whether an investor or first-time home buyer, is the bill increases the maximum loan limits for FHA. And you were kind of looking at this before.

I was looking at it earlier. Yes. I was very, very impressed.

Right. So we're looking at FHA multifamily loan limits on a duplex. It goes up to $1.59 million, um, triplex $1.9 million, and a fourplex $2.4 mil.

Wow.

Yeah. So—

Wow. That is awesome.

That's you putting as little, you know, down as 3.5%.

And those, and those price ranges, that's something you could actually buy in Orange County?

Right.

You know? Yeah. I mean, obviously not along the beach, but close. You know, it's 2.4. Yeah. A 4-plex. Yeah. And then live in one and rent the other 3, because that is a requirement of FHA that you live in there at least a year. Right. You know, I might be able to talk somebody into that. You think so? I don't know. What happens if you buy something in Santa Ana?

No, it can't be Santa Ana. It has to be like Rancho or Mission Viejo or something like Yeah, Huntington Beach.

Huntington Beach. There's there's not honestly there's not many places like Forest. There's something off of El Toro, Mission Viejo. Not a lot of stuff. I can't think of anything at all in Mission Viejo. I know they didn't really cater to multifamily. So you know you'd be talking Orange, Anaheim. Okay. You know the older cities.

Right.

Santa Ana.

On the good side, it's up and coming now.

Yeah. Huntington Beach. But yeah, now you're getting a little bit pricey. But you know, maybe towards the 405, closer, not closer to the beach.

Well, you were looking for somebody for multifamily. What were you seeing price ranges for quadplex, duplexes, and triplexes in like San Clemente and 4.6 to 5. All right.

Yeah. So I'm saying you're not gonna find anything along the beach for 2.5.

Yeah. It's still good.

I mean, I don't know. Maybe, maybe if you're like way off the beach, off the 5 on the other side of the freeway, if you know what I mean. Yeah. Right up against the side. Not the beachside, but the other side. You know, overlooking the freeway and the traffic coming by. Yeah, yeah, maybe you'll find something at 2.5. Yeah, put up for it, you know, for a year.

You could do anything for a year.

Why not?

That's good. Yeah, could be worth it. Um, so that's, that's interesting. Um, again, I wonder how long from, you know, I guess when he signs it to— is it immediate or—

Yeah, once he signs it.

Oh, okay. And lenders will kind of Yeah, put that in there. Yeah. Okay.

Yeah, absolutely. So that's good. Start looking now.

Start looking now.

You need any help? Yeah, you know where to reach out. Exactly. Let us know.

Exactly. So, um, yeah, so you can do that too, I guess, house hack. Or, you know, a lot of people use that as their first step to getting into the rental game. Just have it cover all your expenses at first. And then—

So how much is a duplex loan?

Uh, it was $1.59 million.

Okay. And the fourplex?

Fourplex is $2.4 million.

Oh, another million.

Yeah.

For another 2 units.

Yeah.

Go for the gusto. Yeah. Yeah.

Let's do the 4.

Go for the big one. Yeah.

Yeah, exactly.

Do the 4. Yeah.

So that's, that's huge. Um, you know, again, you'll have to just make sure that it pencils out, but Yeah, might as well get in there.

Get in there while you can.

Absolutely. Um, and then we also have the Wall Street ban. You know, we've been talking about this for a little bit in the past episodes. Big corporations are getting kicked out of single family.

So that was in there. I thought you said banned with a D, not with an N at the end.

You're right. Wall Street banned. Yeah, banned. Banned.

No, not the actual band.

Yeah.

Okay, okay. Yeah, so, um, I don't think Wall Street has any musical rhythm.

No, probably not. But there might be some guys. There might be a Wall Street band somewhere out there.

Yeah, they're concentrating on making money. Yeah, exactly. Um, okay, so they're permanently kicking them out of the business.

Yes, so I guess the provision is it would Ban large institutional investors possessing 350 or more single-family homes.

That's a big number.

Yeah.

That's, that's more than—

From purchasing—

You know, I would say mom-and-pop size.

Like, wow. I mean, there's—

if a mom-and-pop gets to that level, like, how many homes do you have? 349. I'm just under the limit.

Yeah.

Like, wow.

I know.

That's a lot.

I mean, I bet you there's some people on BiggerPockets that own that, that many.

You think?

Probably. Yeah, there's— I mean, maybe they're all just talking crap, but they're like, I own 1,000 doors.

Where at? In Chicago? They bought them for $20,000 each or something?

Yeah, there was a guy I met at a mastermind. He owned maybe like 400 in Alabama.

Okay, same, same thing.

Montgomery.

Same thing. So— oh wow, I'm surprised. That's a big number. You know what? I think they took a poll of all the senators and congresspeople and they said, how much do you guys own? Right. And some, some guy stepped up and said, I own 351. 351. Okay, we'll make it at 350 if we get your vote. Okay, sounds good.

I'll sell off one of mine. Yeah. So, um, yeah. Okay. The bill provides exemptions. Okay. This is what I was wondering because Warren Buffett just went really heavy.

Is he still alive?

Yeah.

Yeah.

Yeah. Warren's still kicking.

But he retired.

But he retired.

Okay.

The bill provides exemptions for qualified build-to-rent and rent-to-own and renovate-to-rent programs. However, investors are still required to divest these properties within 7 years. So he went—

He did a carve-out.

Yeah. So he dumped a bunch of money into Lennar and Lennar's doing a bunch of build-to-rent models. And so they're going to package them all together, probably sell them to Wall Street within 5 years, and then make their money and then move on.

So he did a carve-out. Yeah, somebody actually listened to him, right? So it's kind of because it's money.

Oh yeah, yeah, somebody's making money there. Yeah, there's still lobbyists attached to all this stuff, so I'm sure they, they made sure people didn't get too hurt. Um, what this means for individual investors, less competition possibly. I don't know if we're necessarily competing with Wall Street.

No.

Just one-offs around here.

Yeah.

And more inventory, or inventory, fairer pricing. I'm not— I don't know if it's going to affect pricing really.

If they build more, possibly. We haven't gotten there yet, or maybe we have. My question is, are they going to actually force them to sell what they have now?

That I don't know. That will have to be—

That would have been like the plan, right? So it's like, not only can you not do this anymore, but please put all the inventory that you have back on the market again.

Yeah, no, exactly. That, that would be huge. Yeah, actually, let me, let me take a little look-see, see what, uh, see what they say.

So that's a pretty good question, isn't it? Yeah. Yeah. What are you ChatGPTing it or what?

So I'm just putting it into a search, but, um, let me see what it says. Would impose significant restrictions requiring them to sell certain homes within 7 years of purchase.

Oh no, but that's the, uh, that's the other one.

That's the build-to-rent. So specifically homes acquired through build-to-rent must be sold.

Yeah. That's the Buffett thing.

Okay.

But they should have, you know, they should have also said, hey, we'll give you 10 years or less.

It's saying would be banned from purchasing additional single-family homes unless the transaction qualifies for an exception.

Oh, is there exceptions?

Yeah. Exceptions include newly constructed homes, properties needing substantial rehab, and portfolio transfers between institutional investors.

Got it. So no, they don't have to sell what they have.

No forced, um, divestitures apply to homes owned before the bill's enactment. So they get to keep them. So they're just gonna trade them back and forth between each other or something. Yeah, but, uh, interesting. Okay. Yeah, we'll see. We'll see what that does. Uh, another big portion of the Act is less red tape. So zoning permits and environmental reviews. I mean, California, it's going to be interesting to see what Gavin Newsom does to push. Well, I guess he can't really push back on this because it was bipartisan. If it was like a Trump thing only, he would be, you know, he'd be like, no, we need more red tape.

He'll still push back on it until he's gone. Yeah, at the end of the year.

So I guess a big part of it was a single stair reform. The bill directs HUD to establish guidelines for single stairway apartment buildings up to 5 stories, which now currently require expensive double staircases, making narrow urban lot development more viable. So, I mean, there's already kind of a pushback with Los Angeles and the new bill that they passed, making it easier for people to develop within urban areas and tear down single-family homes and build multifamily. There's been some pushback against that because obviously people don't want to live next to a giant.

You don't?

I mean, people don't.

Oh, okay.

I don't care one way or the other.

You're people.

I mean, I guess, yeah, if you were in a neighborhood of all single-family.

No, actually, you say that, I've been in Mission Viejo in my house for 45 years. There is an apartment complex right next to me. And they're proposing to tear it down, the middle portion of it, and build like 6 stories high.

Is it Del Lago?

Yes.

Yeah. I saw somebody bring that up in the Rancho chat group.

Yeah. Yeah. It's like—

People are not happy about it.

No, not happy at all. Well, I mean, You know, it's the NIMBY thing.

Yeah, not in my backyard.

Yeah, not in my backyard.

So I mean, I see it both ways. I see it both ways.

I do too, but it's in my backyard, so I don't—

You don't want it. Yeah, no, yeah, you don't want it. No, exactly. So I understand, you know, and, and I don't know, it's just like the developer is gonna get in there and he's gonna— so the argument that this lady was making was that it's You know, kind of run down, I guess, at this point, or there's a lot of— it's not?

No.

Okay. Well, it was built in the '80s.

The complex?

Yeah.

Oh no, it's gorgeous.

Oh really?

Oh yeah.

Was it built in the '80s?

Yeah, but so was my house. Okay. Yeah, that's true. It's not run down. They've taken really good care of it.

Oh, okay.

It's got, um, you know, it's, it's, it's back from Marguerite up on the hill. And so you don't see a lot of it until you actually drive in, but you drive in, it's, it's not like, you know, you're in Uh, a bad area at all. It's very nice.

Oh yeah, yeah, yeah, yeah.

It's got the, you know, original stucco and architecture for that neighborhood, so it fits in perfect.

She made it seem like it was like falling apart.

Oh gosh, no, no, no, no.

And this was just one lady, and then the whole— everyone was like, we don't want that, we don't know about the traffic it's gonna cause, and all this other stuff.

Oh, of course. Yeah.

So yeah, interesting. I mean, it's, it's, that's the part. If you live in the neighborhood, you don't wanna see a giant skyscraper go in right next to you.

True.

You just don't.

True.

But at the same time, we also need more housing. So I don't know what the answer is.

Yeah.

I mean, there's, there's options to build on other pieces of land that haven't been used yet, but in order to do that, the development costs and all the fees, it just, it's not viable. For any developers in Southern California right now, because usually they want to exit or hold onto it and rent it out. But where the rents are, especially in LA, because they're capping the rents and not letting people, it just doesn't pencil out. And so it makes it hard. But apparently this act is going to help. It's a nationwide thing, so we'll see if it actually does anything for—

We'll see.

our area around here. We'll see. Um, it's also going to streamline the National Environmental Policy Act, uh, review process for small-scale construction, rehabilitation, and infill development, cutting months off of development timelines. So that's probably where—

That's a good thing.

Yeah, it's really good. That's where like a guy comes out and he sees like a little shrub and he's like, we need to protect the shrub at all costs.

And then you have to like—

because it's like you have to take it out and move it to like an endangered shrub. Yeah, yeah, I know. I mean, I get it's, it's all just a pendulum swing because I'm sure before that people were just leveling areas and like getting, you know, probably killing off endangered species.

During my day.

Yeah, exactly. This is like, that's when everything was built and it was a golden age.

What? You're burying what? Yeah, it doesn't matter. Just keep going. Keep going. Don't ask, don't tell.

And then dumping all the trash into the river.

Yeah. You know, my dad's not here anymore, but, you know, it reminds me, he bought one of the first houses in the first housing tract in El Toro at the time, Lake Forest now. So we literally had Nothing in front of us, our home, from Lake Forest all the way to Dana Point. Just hills, just dirt. And we used to do— he used to do oil changes. And where do you think the oil went?

Right in the ground.

Right in the ground.

That's where it came from.

Oh my God. Right in the ground.

Yeah.

Right in the ground. Yeah. The dirt could absorb it. We used to kill Jackrabbit. Yeah. And he goes, you ever had jackrabbit? And I go, no, gosh, no. Have you ever had jackrabbit?

I haven't, no.

Oh God, don't.

I don't know where you get it.

It didn't taste very good.

Well, he probably didn't know how to season it.

Could be, but, uh, different times.

Different times. Exactly. Yes, there's a lot less people, so if one guy is doing that, it's probably not a big deal. If you get millions and millions of people doing it, then true, it's all running off into the ocean. It's probably better going into the dirt than it is going into the ocean. I don't know.

That's where it came from.

Exactly. That's what I'm saying. Get reabsorbed. Yeah. So Mother Nature.

Okay, so he did a good thing.

He's doing his part. Um, another segment of this is the missing middle zone zoning push encouraging cities to allow duplexes, triplexes, and fourplexes to be built By right, no lengthy permitting battles. So what does by right mean?

I don't know. I oh like it's your right. I guess. Is that yeah? What's by right? I don't know. Let me see how you spelled it. Where where's it at? Where'd you oh by right? Yeah, that means that you know it's your right to do that. You don't need to get permission from. The government.

Okay. Yeah. By-right development refers to a zoning and approval process where a housing project qualifies for construction automatically.

Yeah.

See, if it strictly conforms to existing zoning. Okay.

That's why I'm the experienced one.

Exactly. Yeah. Makes sense.

By right.

Well, yeah. And it's like these, these cities and these city officials have had so much power And just blocked so much progress. I think their time is done.

Yeah.

So it's about time.

I hope so.

You know, because they don't know anything about, you know, like urban planning or development or real estate in general.

Does this talk anything about property taxes?

Um, let me see here. I haven't seen anything about property taxes, but I have seen that states separately are voting on—

Yes.

The +65.

Florida is doing it. Texas, I heard. And California, they're trying to put it on the ballot for this year. And I'm hoping that it gets on the ballot because Yeah, you would. We have millennials that, you know what, are probably gonna— if they're thinking, they'll vote yes. But if they're not, they'll vote no. But thank God, us baby boomers are still in power.

I know.

You know, it's like, there's more baby boomers than millennials.

I know. Yeah.

You know?

Yeah.

And especially you guys, you guys don't, like, have babies anymore.

I'm trying to catch up. Yeah.

One and then done. It's like—

Not me, hopefully.

So no, we're gonna vote that in. And anybody over, I think it said 55 or 65, one of the two.

There you go.

If you own your own home and you live in it, so it's your primary residence, you don't have to pay property taxes anymore.

That's amazing. That's how it should be.

I agree totally.

And then the problem—

You have my vote.

Yeah, I mean, the problem is, you know, let's say you do have a house that's paid off, Okay, it went up in value. They love reassessing.

Yeah.

Reassessing and then making sure, you know, grandma and grandpa have to pay their fair share on a fixed income. You know?

I was at a seminar lunch today and we had that little topic and discussion. And of course one lady says, well, if we don't, if you don't make you guys pay it, then who's gonna make up the difference? And I, and I go, wait a second, lady, we've been sending this government way too much money and they spend it. Maybe if we send them less, they can't spend it, right?

Exactly.

Hello?

Yeah, it's not like a fixed amount that they need. They don't— they can't even account for any of this.

This is a spending problem.

Yeah.

And if they don't have the money, they can't spend it.

Exactly.

You know, they're gonna make it worse. It's like, you know, putting your wife on a You know, like an allowance. An allowance.

Yeah, exactly.

It's like, honey, you can spend this much a month.

This card has $300 on there.

You know, stuff. And that's it. It's done. It's done. Nails.

You go, you can go to JCPenney and Ross.

That's it.

And then once the card is done, then the card is done for the month.

That's it. That's it. It'll let you know too.

Yeah, I know. But God, it's crazy that people think that way. It's like, whoa. If you don't pay for it, I mean, what? Yeah. Do you, do you think they're actually like putting anything towards the schools or whatever they promised the money was supposed to go to? It's not, it's not going there.

No, it's not.

California is especially— Yeah.

What happened to the lottery? The lottery was gonna take care of all the schools forever. Worse. What happened to that?

We're like the worst in the nation right now.

Yeah. What happened to that? I know. Jesus. Oh, we've got more money coming in. That means we can spend more on this junk.

Yeah.

Okay. Anyway, I'm off topic. No, no, you're good.

Last thing, I think Gavin Newsom was also trying to get rid of like the, the state controller or whoever the guy is that's in charge of auditing all this stuff. He's like trying to basically get rid of that position. Ah, if you don't see what they're doing, folks, there's nothing we can do to help. Um, so also we've got pattern books, uh, pre-approved architecture designs for ADUs and small multifamily to fast-track permits.

Hmm.

I guess that's good.

I, I know that some parts of LA that is actually happening, and in San Diego as well, probably in Orange County, but I'm not positive. But that's a great idea.

Yeah.

That is awesome.

It's already approved.

Yeah, this is approved. Like, where do you want it? Okay, we approve it on that lot.

Right.

Let's go.

Yeah.

Start building.

Yeah, you should.

How difficult is that?

It doesn't have to be that difficult. Texas has like the most relaxed permitting rules, and I've seen guys on YouTube get a house up in like 2 or 3 months.

Wow.

Yeah, from dirt all the way up.

Wow.

I know. So we could have that if we wanted, but people got to get paid. Um, okay, so why does zoning reform matter even if you're not a developer? I guess it could affect your property values and neighborhood inventory.

Yeah, I don't know. I mean, it could make your property values go up. Yeah. You know?

Yeah, absolutely.

Okay. So, you know, I'm not talking about putting a single-wide mobile home in a single-family neighborhood. Okay, it's got to conform.

Yeah.

And I think that's what the law basically is saying.

It's conforming, but Not asking for anything crazy.

No, nothing at all.

Just, you know, just a little bit of help on it.

Like, yeah, no, you know, approve this duplex, triplex, fourplex plan. And, you know, this is the basic plan. The outside of it can conform to the rest of the neighborhood. If it's a Spanish-style neighborhood, then you put a Spanish roof on there and stuff.

Not hard.

Stucco on the outside. You know, if it's, you know, a different type of neighborhood, you use those materials on the outside so that it all looks the same. Simple. I think it's great.

It's really simple.

Um, the next section we have is Section 8 Home Program and Landlord Relief. I did not expect to see that. Um, so the bill streamlines inspection requirements for landlords participating in Section 8 Housing Voucher Program, meaning a single passed inspection can satisfy multiple federal program requirements.

I just went through this. Section 8 HUD in Orange County does an inspection every year, you know, and, and that's fine. I don't have a problem with any of that stuff.

Right.

In fact, my tenant calls me. She's so good. She calls me, she goes, Joe, my inspection is, uh, Tuesday. I go, okay, is there anything that's not working? No, everything's working. And she goes, I'll take care of it for you. Don't worry about it. So she handles the whole thing for me and takes care of it. You know, she's got the— she gives me the heads up if there's something wrong. She knows what they're looking for because she does the inspection. And you know, the inspections in the past have been physical inspections.

Yeah.

My last inspection that I did before this young lady moved in was literally FaceTime.

Wow.

Yeah, it was literally FaceTime. And I go, Is that how you're going to do it? Yeah. Okay, Joe, uh, show me the stove. Okay, turn it on. Oh yeah, I see it goes on. Okay, turn the faucet on. Okay, what else do you want to see? Uh, yeah, go get a slider and open it up. Does it lock? Yeah, it locks. Oh my God, that's it. That was the inspection, which honestly, yeah, I appreciate it. Yeah, it's not bad. No, instead of having somebody there, you know, it's like with their clipboard. Yeah, yeah.

Lifting stuff.

Yeah, it's like, oh geez, look, I got him on this one. Yeah. Oh, go look, I got him on this. And then they get you, they give you the violation, then they give you 2 weeks to correct it. You know, it's like, really? That's it? The 2 weeks? You know.

Wow. That's gonna all get replaced by AI, I'm sure. Oh yeah, just be an app and then you—

Yeah, true, true.

Checks it off.

Yeah, that's one less job. That's one less government job.

Um, the Home Investment Partnerships Program is reformed to allow funds to be used for workforce housing and infrastructure improvements, specifically for new housing developments. I don't know much about that. Uh, we also have the RESIDE Act provision, helping local governments convert abandoned or vacant properties into attainable housing. Funds may be used for construction, rehabilitation, demolition, or health hazard remediation. Don't know anything about that. We also have Opportunity Zone plus HUD grant coupling, new investives linking federal housing grants with Opportunity Zone investments. I don't know.

Yeah. The senator from Texas was the original one that started the Opportunity Zones during President Trump's first administration. A good thing, you know, it's for investors to go in and put money in there. And then if they hold on to the property for 10 years, they pay zero in taxes and capital gains. Yeah.

That's nice.

So it went into, you know, I don't want to say bad areas, but it went into areas that, you know, needed improvement, needed new housing, needed whatever. And it's worked out really well.

I think that's a great idea.

Yeah, so I'm glad that's there, and they've— looks like they're expanding it, which is good.

Yeah, well, it's kind of smart. This is where government can actually use private investors to move the needle in places, because the government's not going to rebuild these places. We know that all that money gets spent on bullcrap. Yeah, so what they need to do is—

You mean it costs $650,000 for a homeless apartment in LA, right? Like, hello.

That'll house like 10 people.

Yeah. Where, where did we get this number? Yeah. $650,000. Mm-hmm. Like, I think there's mobile homes in LA for like $100,000.

Right.

Why didn't we just put 'em in a mobile home? Oh yeah. Why do we have to build something and it, and then it costs literally $650,000 per unit?

Oh, I know.

Like, where does, where does this stuff make sense?

It doesn't. There's no checks and balances. The money just gets spent.

No, I don't wanna give my property taxes anymore. Endless piggy bank.

No. Oh yes, we're done. We're done with it. I mean, there's just so much fraud. But, uh, let's talk about what homeowners need to know. So we're obviously gonna have more housing supply if this theoretically works out good, um, which could mean pressure on prices downward, downward in markets. I think that's what they're trying to do, just because there's going to be more inventory. So then the missing middle reforms could increase your property's development potential. I mean, there's already a lot of people putting in ADUs on every single frigging plot of land now. I don't know if that's moving the needle at all. I don't know if it's—

I don't think so.

A good move, maybe. I mean, you bring it up all the time and you're gonna spend like $200 grand, and then if you rent that out for, you know, $1,200, how long is it gonna take you to make your return. I don't, I don't know. I don't know if it makes sense.

Yeah, it doesn't make sense.

But I don't know, some people— maybe if you get the house for super cheap and then you build an ADU on there, and I don't know, I don't know, it could be something. Um, the institutional investor ban means less competition from corporations. Yeah, I don't think so.

I don't think so either.

But yeah, they're— yeah, they're, they're They're going to be just fine. So what happens if rates fall and this bill passes, which it did? So now if rates fall, is there going to be a surge in buyer activity?

Yeah, I hope so. Yeah, rates are going to go down to 3%. Yeah, right. Yeah. Yeah, they were hovering at the high 5 during Christmas. And because we have a little conflict going on with an oil nation, now they're up to like 6.25.

Oh gosh.

Yeah. And you know my prediction for this year?

Supposed to get to 5.

We're gonna end up at 5.

Oh, 5 flat. 5. Okay.

Yeah. But then they throw this war in here.

Well, apparently he got good word from Jared Kushner that That's what he said. Yeah. He's like, well, Jared told me, uh, that they were gonna attack us, so I had to do it. He's like, I didn't go off of any, uh, intel by any— in like, and, and, you know, that's just Jared. Jared knew. So, uh, we don't know what's going on there. It's kind of sort of a wild card situation. But, um, so yeah, that's pretty much it. I mean, there's probably— it was 130 pages.

Yeah.

You know, and they're cool. Yeah, it's normally like a lot more.

Oh yeah. Okay. Yeah, because they gotta— I guess there's little pet projects in there as well. Yeah. Yeah. No, so it's like they add things, you know, it's like, hey, let's say you want my vote, let's add this in there, you know. So yeah, 130 pages is really not that bad.

I guess that is doable. Everyone could have read it. And yeah, and I'm sure they're putting it into ChatGPT.

They read it, you know, it's like, here, chat, give me the highlights, give me the good stuff.

What's weird about any of this stuff? So yeah, it's kind of, kind of interesting. But, uh, yeah, that's, uh, that's pretty much it.

Okay, all right, sounds good.

So thank you guys for joining us. We are going to be next Monday at Hangar 24.

Next Monday?

No, is it? It's 2 Mondays. Two Mondays.

Two Mondays from now. Okay. Two Mondays. Okay. Two Mondays.

So two Mondays from now, Hangar 24. Yes. We got we got a cost segregation. Cost segregation.

Yes. Did you fix it? I think I. Hangar 24. Oh see March 23rd. Is that correct? Yeah. Oh but that's two. That's next. No that's not next Monday. That's the week after. Okay okay okay. Yeah that's correct. Right. But did you change the address? Yeah. Oh, okay, good. Yeah, it's all updated now. Okay. Hangar 24, Irvine. Irvine. Yep. We'll see you there at 6 o'clock. Yep. Fun had by all. We're back out in the sun. Yeah. Got the birds chirping, the kids crying. Yeah, everything you love.

Everything you love at a real estate meetup.

Yeah, everything. Yeah.

Very good. Cool. Thank you guys for joining us, and we will be back here next week.

If you want some more advice on real estate investing, reach out to us one-on-one.