July 2021 Monthly Market Update

What’s up everybody. This is the July, 2021 monthly market update. You can check out past monthly updates by going to simple passive cashflow.com/investor letter. Let’s get to it.

The freebie this month is we’re giving away the remote rental e-course light for anybody who goes and emailsLane@civilpassivecashflow.com.

In the subject line and we’ll get you access to that about by remote rentals. Great for non-accredited investors and great starting education for accredited investors. You haven’t checked out our Facebook group, all the YouTube channel and the podcasts. Check it out, Google my name or simple passive cashflow show.

You’ll find it. And those you guys who are starting to jump on live, if you guys want. Any questions, please do so feel free to interrupt as I go along and I hear we get going. So a few teaching points for this month. We had a pass couple of podcasts about Bitcoin and crypto investing in general. And, I think.

Think about crypto, there’s three ways of investing the first and probably the most conservative is just the staking and just investing in something like block five, where you’re just getting a straight return by lending your money out or staking it on a platform, which is a little more risky too.

Second way is investing in, the blue-chip cryptos area, more block fi or not block five, but Bitcoin. And then of course the, one that I think a lot of people gets a lot of tension is the investing in alt coins, which are your asymmetric return type of deal where it’s a high risk, high return type of environment.

But, not really differentiating between any of those three particular strategies with very risk levels. We in this discussion, there was this table that came. With the guest and different levels of investment based on your net worth here. I think crypto is here to stay and I think it’s going to eventually replace or become just as big as gold right now.

It’s about a 10th of the gold market. I’m in like the one, the 5% range, one or two here, this kind of scenario, choice out of my net worth. I’m not in anywhere near that. At this point, I’m too busy, doing real estate, but where my head’s at, I’m down here, but I would be concerned if you guys were up here.

A lot of people in our group, we’re probably less than five. Some of them were crazy. Crypto folks are around the 10%. Or less a range and the debate here, right? You can also get cash flow and value add in one, you don’t need to get two cats here. If you go into deals that are stabilized with value you can do both, but it couldn’t be turnkey rentals and it’s not going to be those bird properties that all the kids are doing, which to me is not a very good risk adjusted return because you’re just investing with a bunch of lower wrong contractors who at some point is going to steal your money.

I implore everybody that listened to simple passive cashflow. A lot of us are more accredited investors to invest more like a credit investor as a passive. Marker and start investing and start to look at your taxes for a lot of you guys are making over a hundred, several hundred thousand dollars adjusted gross income taxes is your big thing.

If you’re some guy making 40, 50, $150,000 a year or less taxes, isn’t a big deal. But it really starts to come into play. When you’re single making over 150,000 or married fell jointly making over three $30,000 a year. All the big shots. They figure out how to pay less taxes legally. Here’s their kind of their tax rates.

Someone said in the Facebook group that for Ilan is to get a new accountant because he’s paying 3.2, 7%. It looks like we got our first question here. Other ways you can defer capital gains for real estate books besides 10 30, 1 exchange as an opportunity for you. I’m not a, I’m not a huge fan of either of these opportunity funds or this, you can Google all about it.

But the thing about the opportunity fund is you’re investing in crappy areas. Why the heck would you want to invest in crappy the hours that the government has deemed that opportunity fund, where they want to help funnel money in because the aerial sucks. That’s just not the way I want to invest. I want to invest in good solid stable areas.

Whether there might be a problem with the management of the property or the property or the management is distress, not any particular issue with the property and especially not an issue with the area, which is what the opportunity zone is all about. For some time it’s time, you can find an opportunity zone with a Starbucks in it.

That’s an outlier of the map, but not a big fan of the light. And then 10 31 exchanges again. I don’t know why anybody really does. 10 31 exchanges that 31 exchanges, you got this timeline, you got to have 45 days identify all your properties. If you’re buying like lukewarm crappy deals, then yeah.

You can go into whatever you want. But if not, you’re a distressed buyer. And when we’re selling our apartments, we love when we have a 10 31 buyer, because we know that they’re distressed and they’re typically unsophisticated, most 10 31 exchange. People just have a lot of money and they don’t really understand how taxes work.

How do you defer capital gains or how I do it? I go into a lot of syndication deals that do cost segregations. Not all of them will do it, but if you go into. Does it have, I’m like, oh, I do. You’re gonna kick up these, you’re gonna pick up several hundred thousand dollars, a passive activity losses, and you’re going to be able to hold them and Curt, and they’re going to be suspended, passive losses to a, you use them to offset ordinary income.

I probably should stop and say that I’m not a CPA, blah, blah, blah, blah, blah. But look, I don’t pay too much taxes. You can go to simple passive cashflow.com/. And I put up my tax returns there and you can check out how much taxes I’ve been paying these last several years and in 2019 and pay anything drove up my adjusted gross income down to 25 grand.

And part of that is by driving, by creating more passive income and simple ordinary income. So I could use my passive losses to offset that, if you have. The hard part is transitioning from the traditional way of investing, not only 401ks mutual funds, but traditional way of real estate investing and into the more passive tax advantage way that we like to teach our folks.

And so the transition is a hard part and that’s really where the family office, a Honda mastermind comes into play. That’s where we source the best practices to do this. But in a nutshell, What you’re trying to do is you’re trying to build up enough passive activity losses. So you, when you do sell your property and you can offset that, pull down your suspended, passive losses and offset those gains right in that lunch transaction.

Case in point, I did this back in 2017, when I sold off, I believe seven of my rentals and I had a $200,000 capital gain day. Which would have sucked, right? That’s a capital gain and also had to pay back the depreciation capture on that because I had owned those properties for several years, depreciating the properties over that time.

But I had been going into syndication deals prior, and I had built up $700,000 of passive activity losses, which are used to offset it one for one. So if you look at again, go back to that website, simple passive cash.com/. You can actually see where there’s a little emoji that says thumbs down at the 10 31 exchanges.

Exactly. Because of this, being able to use passive to be losses in this fashion. And the reason I don’t like 10 30, 1 exchanges, you’re a distress seller. Everybody knows you’re a sucker because it through one of these things and you’re going to get abused. And a lot of times you’re going to be abused on the buying end when you’re exchanging the property.

Everybody knows you need to buy. If not, you’re going to pay the government Volvo taxes. So you’re usually going to pay 10% over market price. If you don’t think you are, you’re probably the doesn’t, isn’t aware of this. And then, sophisticated investors, they don’t want to put all their eggs in one basket.

And this is what’s very typical. You see these people running around with large capital gains in, a hundred thousand dollars to a couple of million dollars of capital gain. Likely they have a huge chunk of their net worth. I’m a big advocate that you don’t want to have any more than five or 10% of your net worth of any one deal because things happen and it’s good to be diversify.

Another, you want to spread your eggs all over, all around and not be too leveraged. Thing right there. Thanks Bruce. So they can close up that. 10 31 exchange thing. not a huge fan of it at all. Why do I like real estate? If you cut the news recently, the Chinese ban Bitcoin mining.

All of these like Bitcoin mining machines, they get bricked and they’re not worth anything who knows. They’ll head off to it’ll go somewhere else. I am sure. But my rules of investing is invest in stuff where you have enough income to pay for all the expenses for a positive cashflow with leverage, right?

None of this, oh, I bought a property cash employer, California net cashflow. No, you’re not, but you are technically, but your net worth isn’t going up by anything because it’s not a good cash flowing investment. And then we like real estate because we’re able to leverage into favorable debt terms. And it’s a hard, real.

Oh gold. And technically crypto is a hard asset, but it doesn’t produce cashflow. Kemeny leverage it that well. And that’s why we keep coming back to real estate question here or up comment.

I thought passive activity losses can only offset passive income. I didn’t realize you can use that against capital. So again, I’m not a CPA guy here, if you’ve held on to that property for a while, it’s considered passive income. That’s the distinction. That’s where you need to have that educated conversation with your CPA license.

It’s doing things really conservatively and it doesn’t do real estate. And Mike puts you in a category of house, flipping a burry. And this is why another reason why you shouldn’t be doing this burning stuff, you’re doing this activity, right? You want to be going with the attention of being a passive investor, buying coal at that point.

Now you can create that capital gain and turn it, and it being a passive thing. Now some CPAs would probably argue. But it’s your job as an investor to steer the ship with this stuff and justify why it is a long-term capital gain. And that’s being able to use passive activity losses to offset it.

If you’re doing real estate professional status, so taxes, which a lot of us in our mastermind do. It’s all a mood point. It all turns, it doesn’t matter if it’s a cat if it’s an active, ordinary income, short term, passive or short-term capital gain, long-term, it doesn’t matter right now you’ve created the situation where you can use the passive losses to offset, whatever it becomes.

A free-for-all that’s a little bit more of an advanced strategy, but, I think this comment here was just talking about. If I have a capital gain in a real estate property, yes, you should be able to offset it with passive income, but Hey, I’m not a CP, a embassy engineer that I was able to quit my day job doing this stuff, and I’m able to use the right experts to do my taxes for me.

That’s really all their job is just to do the forms and paper work for you. It’s I think it’s the investor stopped to empower themselves with the information. To be able to guide the ship on this, or at least be the architect of your financial future and your taxes. Let’s get into the news here.

Shopping center, business reports at HSBC sells 90 other branches and is exiting the retail banking sector. Maybe not big news, but some you guys bank here looks like the citizens bank will be picking them. On the east coast and Catholic bank will be picking them up on the west coast. But just another example that banks, they market themselves as big institutions, but they come and go just like anything else.

This is a report from Zumper reporting that rent creases are on the rise. If you haven’t noticed. I think the last couple of months we’ve been reporting on it, but it’s been consistent since about the turn of the new year, January. And some of these they’re even reporting three, four or 5% or higher, just that this one report I’m reading more into the article, two bedrooms, apartments rose 4.8% year over year with a 3% increase in one bedroom.

Bay area rents have flattened with San Francisco, Oakland and San Jose. One bedrooms are all gaining compared to April. National rents are accelerating. Driven by growth in cities like New York. And I think this is the bounce back of the big urban areas which actually got hugely flatten, independent gear because of the people wanted to move away from the highly dense areas.

Milwaukee grew a lot 8.9% year over year, but cooled off a drop 5.2% month over month. And that’s just of. To be expected when you have those big fluctuation. Think of it. Like the volatility of like alter altcoins pops up and then it dives down Glendale, Arizona, and one of the top growing nutshell area with 15.7% year over year increase and Phoenix within 9.1% jump.

Question here. Austin is like Boise. I’m not a huge fan of them. I think Austin has really overheated it. Doesn’t cashflow there, so I’m not interested, but I’m sure rent increases are up there too. Maybe I might be able to pick it up here. Oh yeah. Austin. Number four here, Austin in Baltimore made 5.1% month over month gains, but Austin remains down by 0.8% year over year.

There’s your answer to your question, Giles. Thanks for sitting. But the top five, for those of you guys catching this up in the podcast form, which gets released once a month we’re not able to check out the the PowerPoint presentation on the YouTube channel. Number one, Irving, Texas rose 5.4% and like many DFW suburbs it’s up year over year, as well as 9.3%.

San Francisco. Madison was Constable rules, 5.3% in June, but our year over year trending in different directions. The Moines, Iowa and Reena that are rose by 5.2% in June making the second month in a row that Moines has finished in the top 10. I’m actually trying to sell one of my properties in the Iowa.

And the price that we’re getting is a lot higher than what we had for offers two or three months ago. Things are, everybody knows it right now. It’s not, it’s no secret that things are definitely turning around Plano, Texas to Troy, Michigan, and Chandler, Arizona rolls by 5% in June, which Chandler being a Walker eight point 18.4% year over year.


What’s on the downward slide. So here’s the top five of the downward is Spokane Washington, one bedroom rent slipped by 5.2% compared to me, but are up 13.6% year over year. That’s a little misleading, right? It went down 55.2% in just in one month. But overall, I mean it’s up year over year.

You as an investor need to take everything with the greatest. Richmond, Virginia dropped 5.1% in June, but it’s essentially flat year to year Durham, North Carolina, New York, Newark, New Jersey rents tumbled by 5% in may. Milwaukee experienced a wrench up a 4.5% in June, despite the year over year gain of 5% and Boise, Idaho has been one of the highest.

Markets in this pandemic because people are, moving out of LA or whatever the thesis may be. It doesn’t really matter. It’s just, Boise’s on fire, but Ritzville 3.9% in June. And that’s just, I think is, if it went up a whole boatload that it has to resettle and settle out. But I think one thing I caution everybody with Boise.

It’s this very small market. It’s a small tertiary, right? One, a little impact there. We’ll make the numbers jump quite a bit. . I’m not quite sold on the market. It doesn’t cashflow too. So I’m not too interested in Boise. A leader’s for annual rent growth include Riverside, San Bernardino, Phoenix, Sacramento, and Las Vegas.

This from the same metric, but at different new source real page. But you were going to go through some of these , top rent increases charts, and you’re going to see the same leaders of some of the ways they measure. Data’s a little bit different. I would think, just take everything relative to ranking, but the top ones are Riverside center, Bernardino, 13.5%, Phoenix, Arizona, 11.4% Sacramento, 10.4%, Las Vegas, 10.3% Tampa.

Memphis Atlanta, Jacksonville Greensborough, salt lake city, rather than at the top 10

same data or same metric here. Top right increases for me 2021. This coming from realtor.com again, Riverside center being in Dino, Ontario, California, 19.2% Memphis at 17% Tampa at 16.9%. Phoenix Mesa SKUs, the Arizona 16.8% sacramental 15.8%. And then Richmond, Virginia, Atlanta, Las Vegas, Cincinnati, and sending San Bernandino goats too.

San Diego Tara the top 10 according to realtor.com. Moving away from apartments, talking a little bit about office. Commercial property, executive reports that rising sublease rates boost office vacancy. What’s happening here are the bigger players are taking over space on the smaller folks.

Take like a JP Morgan or Experian, they’re eating up the available space, left over by people who just jumped ship, dropped their lease. But on the contrary, like wash street is a big Black rock , one of the big players that you may or may not want to follow as the smart money they’re agreeing to sell their office portfolio off and shifting more towards the multi-family sector.

And this is a , 760 $6 million office portfolio. And wall street says it plans to use the net proceeds from the sale to fund the expansion of its multifamily portfolio through acquisitions in the Southeast markets to reduce its leverage by repaying outstanding debt. With office to Southeast apartments, and this is what we’ve warned everybody is, do the whole bed, demic, multifamily apartments was a safe Haven.

It showed a lot of strength and, This is what the smart money is doing. They’re finding sanctuary and , I think it’s a good sign if you’re an apartment fester, but bad news is, people are not dummies or the big smart money or not. You’re going to have increasing more competition.

Similarly Blackstone, another big player, they’re betting $6 billion on shifting the path to suburban home. What they’re doing is they’re buying 17,000 homes and getting into single family home rental market. So they bought out home partners of America, a rental company that owns over 17,000 homes.

According. To this report by Blueboard this what, so basically here’s how I read it. Big hedge fund company, institutional money coming in, they’re wanting a piece of the single family rental market. Some people will say now let’s even harder for people to buy houses and they’re right, I don’t think everybody should be a homeowner.

At least by debt service coverage ratios. I don’t think they should, but this is institution bef it’s hard for an institution to get into this space because you got the whole issue with property management, which is a huge pain in the butt. If you guys own turn key around. As you guys know what that’s all about, , these large companies did this back in shortly, right after the recession.

And they struggled a lot because they weren’t able to work with some of the more hairy properties, but they’re up to it again. These big decisions are made by the guys in the suit, in the ivory tower and from their perspective, it looks like a good deal. But the problem is the implementation, right?

I’m sure there’ll be fine. It’s not like the guys with the suits are the ones doing the hard work anyway. Oh, Adam releases this this cool chart where it tracks the activity of loans, which kind of mimics what’s going on with like overall transactions and real estate. The main takeaway here is.

This breaks down the, he locks the refinances and purchases loans. The Healogics have remained about the same. The purchases are steadily increasing all the way back from 2010, but what’s been really hot is this green bar here, which is representing the refinances, which really started to take off in the end of 2020.

A lot of people, and this is obvious, right? And we’ll, if you think about it, it’s obvious because it’s not obvious to the average person who doesn’t listen to the podcast or this monthly market update that I do every single month, but as people are having their property values rise because of the overall everywhere is hot due to low supply, in my opinion, and not really due to more to match, just cause it’s due to little supply and all this fake money pumped into the system.

People have all this home equity. Then what they’re doing is they’re refinancing their home. They get at the money multi-housing news reports at Fannie Mac, Freddie Mac extends the multi-family for parents program. One last time. They’re looking like it’s going to be up in September 30th. This could always be extended, but I have a gut feeling that this is the final straw at this. Maybe one more. And then the Supreme court keeps the addiction ban in place.

I don’t know. This is just by understanding the whole thing. It doesn’t really matter what really happened. But the whole point is that the eviction moratorium is ending. And it looks like it’s probably going to be the summertime. The band was in place until July 31st, but they kept pushing it back.

And now, the question I read, all the regular people ask on the street is how the heck is the CDC mandating that people can’t get evicted? The heck? Does the freaking center for disease control have jurisdiction over it? We’re not a political show. We just tell you the facts and let’s spend our time and energy and stuff that actually matters, which all right, how’s this going to play out?

People aren’t going to have that protection of this law place. And one could say that there could be some foreclosures coming up. As you put yourself in the shoes of somebody who went in forbearance the middle of last year, as you lost your job, which you have to remember is your. Debt payments are still adding up.

Say your mortgage is a thousand dollars a month. It’s not like you just keep you pay your next month. A thousand dollars. This stuff has been accumulating on you to the point where you might have 6,000, $12,000 of mortgage payments built up. I don’t know what American family has that much money to flop down if they’re in forbearance.

No one could assume that, there’s going to be a glut of. Foreclosures coming through. And here’s where I differ. I think this is where people use it to sell attention and get people to click on like their Twitter feeds and their YouTube channels. Ken Makarov did this, he put all these YouTube videos that the world was ending and then the world did it and can not grow. I was investing in 2015 to 2019. Very much. He lost out on one huge bull run in that period. Now there’s a lot of foreclosures that could, they’re saying potentially could come in and crush the market, is what they say. I personally don’t think it’s going to impact things very much. I think that’s there are a lot of people that are going to go through foreclosure, but I just have a feeling that it’s not going to rock the boat for much, but that’s just my feeling. That’s and I don’t care because this is why I don’t do residential real estate.

. Where the prices are primarily dictated by , how your property performs in terms of net operating income

Arbor releases this breakdown of well who owns single-family home. 70% of the single-family of home stock out there and of two to four units are owned by unsophisticated mom and pop investors or the individuals. Whereas the multi-family apartments, only 10% are owned by mom and pop investors.

And this is why I keep telling people they need to swim upstream because you got to get away from the amateur investor, doing it on the wrong as they work their day job on the side. That’s cool. That’s how I started. And I think that’s what you still have to do when your net worth is under half a million or get out of credit investor.

But I think the point is try to get out of this space. Cause here , it just all kinds of stuff going on in this world where just you have amateurs buying properties. And especially in the last year where they see the stock market dropped due to the pandemic. And now it’s again, amateur hour, people coming into the space of Blackstone or BlackRock, as you mentioned, bought 17,000 homes with $6 billion worth of assets.

But still it’s a drop in the bucket. Only 10% is owned by the institutional managers, or I assume others what that’s captured by. Whereas the institutional managers still own 10%, but hell piece LLCs, I would call these more sophisticated operators and syndications are this lighter green where.

I was called that 60% of that multifamily apartment is owned in that structure. Or again, only 10% is by your amateur hour. Pop on upon fester high end homes sales out for this is a graph done by real red. I think this is obvious, right? Like in the pandemic. Unfortunately, if you are a white collar worker able to work all your life, didn’t really change. Your inconvenience because you aren’t able to go to the football games, basketball games, and travel on your qualifications.

Go to Disneyland. So you got some spending money. What do you do? You improve the house or you go buy a bigger house or you go buy a cool luxury vehicle. That’s why I think that’s why cars are expensive these days and there’s some limitation on the current parts and computer chips supposedly, but I think a lot of people on the upper end maybe call it the top 10% of the United States.

You did pretty well. You got a lot of money, you got all this stimulus money and you didn’t even need it. But probably more importantly, as we kind of work with clients, it’s not really how much you make. It’s how much you spent is the bigger KPI is what I see when I work with people. The fact that you’re stuck at home for a year, not able to go on vacations or blow your money and fun stuff.

You got a lot of money. This kind of makes sense. Unfortunately with the pandemic, like the poor got four and that’s what’s happening with this inflation. If you’re sitting on your cash, you’re going to be a loser with all the inflation. The mid price homes stayed the same, but the affordable homes went up in terms of demand here, little sad.

And then overall, this is just show up days on market, which is an indicator of demand. I’ll be very Frank with everybody. When your friend tells you that they’re buying a home in this market, it’s a freaking sellers market guys. These on market was less than 60 days back in 2013.

And now it’s down to 26 days on high-end properties and 20 days of more affordable housing. It’s a sellers market in any sense of the word. If your friend is buying a house to live in now, an angel loses their weeks and lane cries to sleep. After another person falls victim to the narrative of buy a house that you could make the lenders and real estate agents rich out there, and you tie up your cashflow so you can not invest it, and you’ll be a victim to working for it.

Of you can sense the sarcasm here, but if you want to turn the tide, join our family office, Ohana mastermind, where you get to meet up with other accredited investors. So it’s 45 people. We got about 30, 75 people on there. Now we do by date, these in conference calls, it is a geek squad of financial fanatics in this group where we work through learning syndication deals, what to look for, who to stay away from.

It’s a closed private. And we worked through the tax. Eagle, but I think the most important thing are the soft topics that we go over. As a group, as you start to build relationships with other pure passive accredited investors,

That wraps up the monthly I’m going to be going into what I’ve been up to personally. And if you guys have any live questions, you guys want to type it into the chat. We’ll we’ll try and answer at the end there, but something I’ve been up to the last few weeks, I’ve been a new father and there she is.

She wakes up every three hours. She wants to eat and I changed her diaper. Unfortunately I’m not able to run away and say that I have to go to the office tomorrow because I worked for him. I have to wake up. It really sucks for some of you fathers, mothers out there, and you can probably sympathize.

And half of our investors are older. The age of 40, the rest are the, the young bloods, making big salaries for my only advice from you guys, standing here in the middle, looking at both sides is enjoy your life. Your life doesn’t end until you have a kid. Or maybe starts, or we look at it, but your life severely changes good or bad or worse, depending on which side you’re at, but that’s it.

we got her some credit cards, I added her on a few cards to be an authorized user, she can start building her credit. Not that she really needs it in my opinion, but she can start trade lighting and making me some money.

I’ve found ways to give contribution back to the community and here the new content created this month. We had George Newbury, we went through a lot of investors also invested George and the HPE servicing fund which I still do they have audited financials because they have a reggae plus offerings.

And I sat down with George and he went through it because I’ve always wondered okay, you got this like huge document. What the heck is all this stuff? Let’s can you show me what are they? Things are actually important to be on the lookout for. We went through that that was released late June.

We have a couple of videos in the rich uncle channel, which is more geared towards the younger folks. I’ll try and make it shorter, a little more snappy. Because there’s a whole bunch of bad financial advice out there. And I think a lot of folks that come to our community, we’ve drunken that thing for a decade or two, at least.

And it just misled us a little bit. One podcast was syndication tips for LPs. There’s a whole boatload of those LP tips in the syndication eCourse. I highly suggest everybody go buy the thing. It’s a few hundred bucks. But I don’t think you’re going to find anything better out there for, being a good passive investor.

You should find something better. Let me know. I’ll refund you. I’m that confident? The thing that I can guarantee you can’t find anything better in a church of course, or book, hold on. We had the cryptocurrency issues and then. I did , this big video, I was looking for like timeshares, cause I was like, I have a daughter and she’ll probably like Disney.

I started to do the worm thing. I stayed up really late one night and I started to look at like, how are these timeshares work? And my conclusion is don’t buy a time. Share if you really want to, you can buy it aftermarket off some sucker who paid full price. There’s a lot of aftermarket websites that you can do that where it’s totally legit , friends, don’t let friends buy timeshares or buy houses in seller markets like today.

And for those of you guys who like all the soft topics building your legacy family trusts, I would suggest going back to the May 25th podcast. Or I talk about the credit status and what’s on beyond, after you have a few million dollars net worth. Yeah. Giles, they’re selling two trade lines every month now.

Amen. There’s nothing crude, like chain lines are like, you put your authorized users on your credit cards, through a broker and you can make a few hundred bucks easily to get that. It’s a lot easier than a turnkey rental. You don’t need any money. Now, when I need money down, you just need to have a credit card.

That’s a couple of years old. There’s a little risk there. They can cancel your cards. Like I’ll chase it, all my cards. But I think it’s worth the risks, especially if you are a lot of credit cards, like how I do some other significance thing here. So we close El Cortez apartments in Phoenix, Arizona.

That was cool. But the opposite of certainty in your life is uncertainties. So what are the things I’m worried about? The rent increases are going up, that’s a no brainer, and that’s, that’ll probably continue to happen, but at what point will it stop? And what will the demand look like in the next one to three years?

I think for the next several months, maybe even a year, I think there is nothing that I think this is really going to derail. In that short amount of time, but what’s going to happen a year or three years now. And I think this is where you’re needing to have a prudent strategy where you go into things that cashflow so that when things do get tough, you cashflow and you bought onto the asset.

Other things that have been uncertainty from like building or finally getting building on the chase Creek apartments that we started last year. We have we have a opening date, like 20, 21, the website’s up several of the buildings are up here. Some pictures of it. Here’s the area on the left side.

You’re starting to really see it come together. And lastly, a loving connection, some stuck here at home, going prays a little bit less. But I’m really looking forward to when all you guys get to come to Hawaii, Martin Luther king weekend, January, 2022, where we get to do the Hooli five to the fifth big event that we’ve done as a group, a full members are going to get are already to this.

We don’t know how many not full members will be allowed to come. I got to figure that all out, but I have five months. To get it all lined up, get it ready for you guys. But if you guys have been to pass a simple passive cash flow events in the past, I don’t like a lot of people. I think it’s stupid when you get the stage, backlighting all this nonsense.

I want to put the emphasis on the connections with you guys. you guys are. The draw and attraction, right? As opposed to some, another brew on the stage, sell you something that type of nonsense that we see a lot, something that I bought. If you notice the camera is super sharp. Because I bought this 4k camera.

That was kinda my doodad purchase of the month. We’ve got a lot of questions on the Facebook channel join up there. And this is like kind of chatter that happens at the mastermind level or at the family office group where we meet every couple of weeks, it’s not simply

what are the profits? These days? It’s more of a soft subject around Ooh, have you invested with in the past? And a lot of this is just going to come from building organic relationships with one. I have never seen anybody who willing to say, Hey, you and I just met up. You’re cool.

We shared a beer. Let me just give you my whole spreadsheet of boy. And that’s it for the last 10 years that just doesn’t happen. I think people hold it a little bit more closely to the chest. Of course they don’t want to talk bad to anybody if they don’t know you, especially it’s just not good for them, but any questions before we wrap up.

One question here about distributions. , we’re getting paid. I don’t think that there’s a apartment deal that’s not hitting distributions so that is close to the quarter, actually. It was a week ago. It’s July.

Usually takes us about a couple of weeks, at least. To get all the rents to come in and then wrap up the books and then decide. Yeah, I do want to send out this much that much. And that’s how the madness happens for distribution checks. . But if nobody has any other questions, . If you haven’t yet connected with me, please do so if you’re thinking about laying it simple, passive cash flow.com. Want everybody to knock out their onboarding call with join our community lately.

We’ll see you guys next time.