0:00 that's why the Adu is a big Play It's single family they're not rezoning it they just letting you add more units so IM when you get separate tax any number you get one house it turned into three and a single family become a demand [Music] yeah so thatch what do you think about big corporations that are buying up all this real estate and homes and then making them like rentals yes big p a big conversation right now going on like back Black Rock and everybody imitation homes what does that mean for like regular people what does it mean for the market well first of all what's happening is that Warren Buffett started that whole thing and you got remember two three years ago he says if I was into real estate buy a single family
0:50 home right I'll buy every one of them scary right and a couple thing happened Co happened and when Co happened everybody wanted to actually startop working at home and they were more space and so home became more more valuable this is what G don't talk you know Grant don't talk about home become more valuable because everybody after covid they all want they realiz home space family you know help people dying it's is is a thing home now are very demanding single family home are very demanding how do you know if it's wrong why would HED fund buy it g M yeah right yeah okay but he's selling syndication MH right and so now that's how I got demanding and so um
1:42 now uh all these head funds and all these um big company that are in Tech and business and the stocks they want them because they know that these produces more revenue for them than a lot of stuff they invest in so they want to own as rentals and they are also building new development all across America and they instead of selling the new construction they renting the new construction oh yeah there's full communities that are rental communities just crazy yeah right Donna Bren been doing that forever over here in Southern California right he's the billionaire he built all those department down there you know what I mean uh in southern Califor Newport Beach all up and down Southern Cal and he been doing that forever so now the HED fund to get into and they're like we want to own them now right they're doing two things they are creating more housing for rent mhm right
2:32 and they also buy in right and then later on basically when they ever a sale right they got a sale but right now what they want to do they want to take advantage of this opportunity of this whole timing where Co hit um you know uh the uh the opportunity a single family that's why a lot of them now are buying now you know what Al They buying they're also buying the distress apartment building now all the HED funds they doing BR stuff now because what happened a lot of commercial yeah they commercial loans only good for like sometimes seven maybe 10 year Max and they have to refinance every s years the problem is the market went down on rent so the M of the building is worth less than what it should be sold for they building worth 50 mil B on rent is only worth 40 mil so they can't get a loan on they can't get
3:22 a loan cuz the death ratio upside down like liquidate so the the bank the bank said look I renew this but you got to dump in another 5 more million I see and then like man no investor want to put more money cuz it's a sinking ship yeah so private Equity buy it all private Equity go in and go look says you the say you own this m uh send you to the bank for this let me buy it right what are you ow it they owe 35 mil I cash you 35 mil but the building is worth 50 mil based on cuz you can't build another building like that for 50 mil but it's based on rent so now Black Rock and everybody out there buying all the upside down distress apartment building all across America and they keep as rental property wow so so are they just holding until it turns around and then they they oh they want to they want to keep in their portfolio as part of their investment now wow yeah they know it's a good investment but if you take a look at it if you take a look at what all the headphone own rental I hear this from other people and I read it it's less
4:13 than 10% and the rest of it is owned by Regular People wow well cuz I'm still thinking that the single the work that it takes to buy one single family home is a lot for these uh funds to get into cuzz they can still use the same team to do multi units that's right so it thises it it it's a point where like I'm imagining why would you deploy a million doll team to buy lemonade stands cuz it's not worth it for them unless they can buy portfolio yeah they might just buy the whole neighborhood they and they know that the demand for residential is good that's why they banking the money and they parking it there oh they want the appreciation and all the write off you see what I mean and they banking on the markets going up which it is single family it's it's a single family home is what I hear from a lot of my people and
5:03 my mental saw is a new thing coming it's going to Skyrocket it's going to Skyrocket that's why the Adu is a big Play It's single family they're not rezoning it they just letting you add more units so M when you get separate tax any number you get one house it turned into three and a single family become a demand yeah I have a question about um real estate and 30 plus years when all the boomers are gone yeah like population wise right if um a lot of boomers are what or like just in general like we're we have a housing shortage but if the population is also dipping too then how is the value of the home still staying up and I'm only saying this because I'm looking at Japan and their population dipped
5:54 they keep building but then everything their real estate market is just crap what ever happen in America I know that's a good question all right um what I hear from lot people it won't because um the population here and then the problem over in Japan you know they're not having kids the the busiest people they're too busy working yeah and no immigration yeah and um and um the moment you have kids they say you know they off the government you know what I mean with kids so a lot of the female don't want it the female want that Independence over there too in Japan yeah right and us is different you know they say and uh they feel that the population still grow and you got a lot of ████ you know our people off coming in here a lot of them coming into the United States you know uh so um but yeah not sure but I think the population continue to grow I mean that you think
6:45 about right now we're almost we about 5 million home short right now wow 5 million short wow so you think about it they can't build enough to keep up with the and the population is growing by like they say annually like 2 or 3 million a year so we're already short and we got massive people coming in from everywhere and population grow from kids so we're behind already so you know we might not even catch up and especially these if these Builders are planning on build to keep yeah and land's running out in the US you know so but yeah I don't think it would be like Japan okay yeah what do you think about instead of like building a Adu like buying a fixer what do you think about buying just the empty plot of land like if there was an empty plot
7:35 of land just building the whole thing from scratch is that also good too yeah you just got to have a little more you just got to have a little more steel steel balls you know what I mean right get the right contractor the right you know like if you was going to build something let's say you had a property here I know how it worked down here I can tell you the architect like for you I can tell you here's a good architect can help you here's a good G contract can help for you right go talk to this bank right here and then you have a team put together yeah the key with building new construction or even doing bur you just got to have a a team lined up with you they have experience and they got integrity and they're responsible they're you know I mean all that you know what I mean they're reasonable responsible the the hardest thing out in this business is to find relationship with people to do good work yeah that's the hardest thing yeah cuz any one of those steps can ruin it for you like if if if they can't underwrite it you don't get access to the money if they ████ if
8:27 they suck at the permitting process you might the contractor might be dumb and then like do something wrong and then has to rebuild there's just so many steps of like that's why when we ask where do you find these people and it's all through referrals all through referrals so like I try to be a referral like a lot of my student in California they already done it with a whole bunch of people so now I can go Eric uh let me get that Builder bro that let me help let me get that builder for this friend of mine over here he need to do this and hey uh uh said you're architect you do yourself with a lot of people on my team can you do this for this person so now a lot of my springing Bo student are using the same people in California so they help each other yeah I think you charge too little for that Network yes I do bro some people would just pay not only that for the education but more just for the
9:17 network the network yeah yeah yeah yeah how do you feel about a bunch of like you you you see a lot of people on YouTube talking about this real estate crash that's coming you know what I'm talking about like I feel like for a couple I don't want to call it a crash I want to call it a correction it's if you look at the real estate market now this is my fourth cycle and the real estate market go up and down every 7 to 10 year up it correct itself then after about two year two and a half year and it go again right now we're in the correction cycle so in the next year or so you're going to start seeing after the election especially you're going to start seeing the run again and if it repeat itself again anything you buy now when it hit the top you double up again so this is the correction cycle it's correcting
10:08 right now this is in your opinion a great time for people to buy yeah when rates are high when rates are high you buy then you refile when they drop the rates you got it bro and then the house prices are high when the rates go you got it you got it you got it yeah I did I did actually I never have money when the rates are high want to be opposite from the cycle off camera I just bought a house off camera can you look at it and tell me why it's not a good deal it's too late bro you ████ up too late [Music]
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