0:00

Today, we're coming at you with a little flip mode

0:02

for you. We were going to talk about construction

0:04

prices, but, with a little oversight into

0:06

Greg's schedule, we realized. It

0:09

is better to hit you with some Not

0:11

Your Average Insights. Everybody's favorite

0:13

content pillar. We got three super

0:16

de duper interesting stories, GC.

1:35

Welcome everybody to the Tuesday edition

1:38

of the Not Your Average Investor Show.

1:40

Today, we're coming to hit you with some Not Your

1:42

Average Insights. Everybody's favorite content

1:44

pillar. We got three super

1:47

de duper interesting stories, GC.

1:49

What's number one? We gonna be

1:51

talking a little bit about insurance today. Insurance.

1:53

People love talking about insurance and

1:55

you know what they love? They love good news about insurance. We haven't

1:58

had much in a while. Haven't had much in a while.

2:00

That's what the first article is about. Then

2:03

what are we talking about, GC? We're gonna talk about

2:05

Good cause evictions, which is

2:07

an interesting topic and what's

2:09

going on in other parts of the country

2:11

that are leading to solutions

2:14

for housing affordability. Yeah. Some

2:16

lawmakers out there in the state of New York

2:18

are doing good cause evictions

2:20

going to be some interesting stuff. And last but not

2:22

least, the wall street journal just released

2:25

the 10. Honest

2:27

job markets in the United States. And

2:29

man, I'm burning my fingers when I, when I touched

2:31

it, you see, what do you, what do you, are you going to

2:33

tease something about it? Do you think, do you think maybe

2:35

Jacksonville might be on there? Maybe,

2:38

maybe, maybe. Stay tuned, stay tuned for

2:40

the release, the list a little bit later on

2:42

the show. Release the list, release the

2:44

list. All right. It's let's

2:46

release the show. She seen how

2:48

did the golf tournament went yesterday, right?

2:50

Like before before we talk about anything

2:54

we had the 7th annual

2:56

JWB cares golf tournament

2:58

yesterday Massive turnout beautiful

3:01

day out there. It's awesome. Tell me what do you want

3:03

to share with us? You know, this was

3:05

a special golf tournament for us this year.

3:07

They're, they're all incredibly special, but

3:09

each one has its own unique kind

3:12

of special quality. And for this tournament,

3:14

I think that special quality was, You

3:17

know, seven years ago, we started this charity.

3:19

We started these golf tournaments. We didn't

3:22

know where we were going to land, but we wanted to do

3:24

good in this community. And we've been

3:26

able to do that each and every year. And we've donated,

3:28

this year will be our sixth home that

3:30

we all, you all have. had

3:33

a part in donating because collectively

3:35

we raise over 200, 000. Thank

3:37

you very much. We raise over 200, 000

3:40

each and every year to build a brand

3:42

new construction home and give it to a deserving

3:44

member of the community. We've partnered with

3:46

canines for warriors in the past and have

3:48

donated five of those homes to veterans

3:51

who needed a helping hand with affordable housing this

3:54

year. It was about connecting

3:56

the circle, connecting the dots.

3:58

And we had the opportunity not

4:00

just to have a wonderful golf tournament and raise

4:03

over 200, 000 with all of your help,

4:06

but we're going to be connecting the dots. You're connecting the circle

4:08

because we're going to be gifting a home

4:10

to one of JWB residents

4:13

here in Jacksonville. And

4:15

we couldn't be more proud of that

4:18

opportunity. And it doesn't happen

4:20

without all of you all

4:22

of you who donated, all of you who

4:24

took part in the 50, 50 raffle, all

4:27

of you who are sponsors. We had an incredible

4:29

group of sponsors who made the golf

4:32

tournament possible. And to think

4:34

about how we're not just changing somebody's

4:36

life out there that we may or may not know.

4:38

This is one of our residents. This is

4:41

really, really incredible. So it was a beautiful

4:43

day of golf. Everybody had a blast. But

4:45

I think what, what meant the most to me

4:48

was, you know, just connecting the dots

4:50

here and seeing how we are all

4:52

a part of raising people up in our community

4:55

and no better way to solve the affordable

4:57

housing crisis than help somebody.

4:59

Have their very first home with all of your efforts.

5:01

So thank you very much. It was cool, man. It was cool to see

5:03

the support out there as usual. It's,

5:06

it's cool to see this idea that

5:08

you're doing so, you've been doing so much community

5:10

development for so long. You've been doing so much economic

5:12

development for so long. And now this

5:15

like, congelation of the message

5:17

of like, Plugging people

5:19

into the economic flywheel that

5:21

you've been spinning around. I thought

5:23

it landed really well when a really wise man said it yesterday.

5:26

So, um, you did a great job, really

5:28

good, really good

5:30

vibe out there. Yeah. And let me just bring

5:32

you guys in. We've had some questions about how this

5:35

gifting of the home is actually going to

5:37

work. I'd say it's the first year, of

5:39

course, that we're gifting a home to a resident. And

5:42

we have this incredible partnership with our

5:44

nonprofits here locally. So I thought I'd give you some

5:46

insights. So every resident

5:48

who is a resident of JWB

5:51

at the time of submission which the,

5:53

submission process ends,

5:56

April 30th. So all

5:58

of our residents are eligible. But

6:00

there is a process. And so each

6:02

resident is invited to let us know

6:04

about their financial situation and

6:07

let us know what they do to

6:09

contribute to being a positive member of

6:11

the Jacksonville community. And

6:13

it's a robust application process

6:16

that they take part in. So

6:18

we've had over 260

6:20

entries so far. And

6:22

we knew that we needed to partner with local nonprofits

6:25

here to help us make sure that that

6:27

the, the resident who is receiving the home

6:30

is the right resident for this. So we've

6:32

partnered with five local nonprofits

6:34

and these nonprofits are all reading

6:36

through those submissions. They're

6:38

going to be narrowing down to a

6:41

small number of those submissions. And

6:43

then there will be a board who is hand

6:45

selecting the resident from that very

6:47

small number of submissions. So a,

6:50

a complete community effort to

6:52

bring this together. And you

6:54

know, just knowing that we have over 260

6:56

folks who have put their heart and soul into this,

6:58

and they know that one of them is going

7:00

to walk away with, you know, with this gift of

7:02

a brand new home is incredible. So thank you all

7:04

for all of your support. You're making all of this happen.

7:07

You're a part of all of this good, good stuff.

7:09

And I think it goes well beyond just investing

7:12

when you get to invest with JWB. Indeed,

7:14

man, it feels good to just be a part of it. The little,

7:16

the little role I play, the big role, the community

7:18

plays. It's a great story. And speaking of 260

7:21

residents, we have 60 plus investors.

7:24

Ready for the Tuesday edition of the Not Traverage Investor

7:26

show. I am your host Pablo Gonzalez with

7:28

me as always a man that I affectionately call GC

7:31

because he's got these genius concepts because he knows how

7:33

to generate cash flow. He's a great co host

7:35

and his name is Hello,

7:38

everybody. Great to be with you. And when we kick this thing

7:40

off, we got a little tradition. GC, do you know

7:42

what we call that? The roll call, baby. We

7:44

got the mystery man kicking us off today. Danny Davies. We

7:46

got the ringmaster in the house. Drew Barnhill. Drew

7:49

Barnhill. We got Chris Lee from Fernandina Beach.

7:51

Hi, Chris. We got Jeff Pettijohn is back

7:53

from Missouri. Hi, Jeff. Welcome back. We got our regulars,

7:56

Gary and Rosalyn Reilly from Marietta, California.

7:58

We regard you. We regard you. We got the early

8:00

bird in the house. Mr. Dean Curry, big

8:03

pop on the house. We love it when he calls in big bops. How are

8:05

you, my man? Co founder of the co founder Greg's dad.

8:07

We got Misty and Troy Johnson

8:09

from Denver stars of the show stars of the show,

8:11

top 10 attendees. But

8:14

you are there not like they're working on it this

8:16

year. They're working on it this year. Yeah. They're making it happen. They got the shaman

8:18

in the house. Good

8:20

morning. Good afternoon. We're going to call her

8:23

CSG charity. Saki Graham

8:25

is back. She earned a nickname. I love

8:28

that charity. Great to see you. We got the

8:31

belly gray. Good morning from the serendipitously

8:33

Sullivan mountains of Colorado.

8:36

That's right. That's right at the peak

8:38

level that I can do without tripping up Billy.

8:40

Good work, buddy. We got Tony D's in

8:42

the house. All right. Special day. Anthony

8:45

did. We got the

8:47

wonder kind. Jeffrey

8:49

Wunder. Jeffrey Wunder from New Orleans.

8:51

Not every day Jeffrey shows up. Good to have you.

8:53

There we go. Buddy, we got Pamela Myers in

8:55

the house. All right, Pamela. Nice to see you. I'd love

8:57

to have Pamela Myers back. We got the mama bear in the house.

9:00

Ms. Cody Adams. Ms. Cody Adams. We got Sir

9:02

Jeffrey Bolton. Bolton. I

9:04

love that. Jeff, great to see

9:06

you, buddy. He says, great change in topic since,

9:09

increased property costs, increased

9:11

insurance costs, have erode a little bit of cash

9:13

flow. So it's fun to be here. We got the better Greg

9:15

in the house. Greg Stone. Greg Stone from New

9:17

Jersey. We got the ringmaster. We already

9:19

talked about the ringmaster, but

9:21

his name is still Drew Barnum. All right.

9:24

The Pedro Santorios. Michael Santorio.

9:26

From Northern Virginia. We got Kevin

9:28

O'Brien. All right, Kevin. From Rhode Island.

9:30

Kevin, good to have you back in here. Who else? We

9:32

got any? I know we got some more. We got Richard Hall's AI

9:34

assistant checking in with us. Richard's

9:37

AI assistant. Who else? We

9:39

got Luis Olivares, my friend from Miami.

9:41

Alright, Luis. Nice to see you. Wishing you all,

9:43

I wish I would have known about the golf tournament next year.

9:46

Next year, indeed. Who else? We

9:48

got the amigo. The

9:50

Amigo. The Amigo. You know who the, oh, the

9:53

Amigo. Okay. and Amigo. Bill

9:55

Shield, of course. Maybe it's because I didn't know

9:57

the amigo. Bill Shields

9:59

well, El Amigo is Spanish for the Amigo.

10:02

Thank you. So you know, now that you know, you

10:05

know who else we got in here? We got the first family

10:07

a little bit late, but the patriarch and matriarch. Canon.

10:09

Carolyn Meline, we salute you

10:11

to And Joyce Ley in

10:13

the house. All right. New name. New name. New name. Joy

10:16

Joyce, the show. Welcome to the party, meet you. And

10:18

of course you may have heard of him. The

10:20

MVP, Mr. Lee

10:22

Bishop. Everybody's heard of Mr. Lee Bishop and Laura

10:24

Kby. Alright, Laura, good morning from Miami.

10:27

She's in Miami now. I thought Laura's

10:29

normally in Washington state. Was

10:31

Justin Jaxx had an awesome time with JWB folks?

10:34

All right, Loa. Fantastic. Good to have you. Good to have you.

10:36

GC. Yes, sir. Let's kick this off, man. Let's do it.

10:38

We are, are we

10:41

floating? Is it not floating? All right.

10:44

We've got this new, article from

10:46

floridarealtors. org talking about

10:49

the home insurance crisis nearing

10:51

an end. And basically they're saying that home

10:53

insurance has stabilized right after

10:56

significant rate increases in Florida.

10:58

Home insurance market is showing slight signs

11:00

of slowing down. That's the big thing that they're leading

11:02

with. And what they're saying is that. Even

11:05

though premiums for single family homes have

11:07

risen nearly 24 percent over the last

11:09

18 months, the growth rate has

11:11

now decreased. It was only 2. 6

11:14

percent in the final quarter

11:16

of 2023. There is

11:18

an optimistic outlook happening right

11:20

now in that industry insiders

11:23

credit legislative reforms, which we have covered

11:25

on the show in the past, and this competitive

11:27

pricing from new insurers coming into the market,

11:30

Are really, really going to help. So everybody has

11:32

this like really hopeful outlook, eight

11:35

new insurance companies have been

11:37

approved to operate, potentially

11:39

driving down the rates. Thanks to competition. No

11:42

more citizens monopoly, right? Yeah,

11:44

we, yeah, absolutely. Big deal. And,

11:46

you know, still going to be dependent on

11:49

different factors and whatnot, but it seems

11:52

to be a very optimistic outlook

11:54

of what's going on GC, any

11:56

takeaways that you got from this article? Yeah,

11:59

absolutely. This is, this is the

12:01

one of the first articles where it had really

12:03

solid data showing some of the things that we

12:05

have been feeling and hearing for quite

12:07

a while, right, for, geez,

12:10

when did we have Whitney Ritchie on the show

12:12

last talking about this? Maybe six, nine months

12:14

ago, maybe six. And I know that

12:16

for that long, Whitney and maybe a little bit

12:18

longer, Whitney has been talking to us about how

12:20

there was a stabilizing force happening

12:23

in the insurance market. Yeah. And it

12:25

was going to take some time for

12:27

insurers to come back into the, into

12:29

the marketplace. It was going to take some time

12:31

for those insurers to actually make a profit

12:33

in insurance, which is what we want because

12:35

then more insurance options come to the state.

12:38

But that she felt that it was going in this direction.

12:40

And so that's what we have really been expecting for

12:43

quite a while. So I thought this was some really

12:45

good data. I liked the data from this

12:47

article because it's, you know, of course, We

12:49

like that. So we do like that. But you know,

12:51

you've made a name for yourself of talking

12:53

about data and putting a little

12:56

bit of perspective in there. Do you see? Yeah. How

12:58

much, how much weight does this. article

13:00

carry in your head, right? Like, is

13:02

this a, is this supporting everything

13:04

you already knew? Do you think I

13:07

mean, to me, the big eye opener is eight new

13:09

insurers are coming into the state of Florida. I

13:11

think that is, we talked about this like citizens

13:14

monopoly. Do you want to explain what I just said there?

13:16

Yes, because so citizens

13:18

insurance is the state run insurance company,

13:20

which nobody wants citizens to be

13:22

the insurance provider of choice. It's

13:24

not good for the state because it is. State

13:27

run, but it was created as

13:29

a backdrop in a emergency

13:31

situation. Unfortunately, with

13:34

what has happened in the insurance industry over the last

13:36

few years, insurance companies

13:39

have left the state largely

13:41

due to legislation

13:43

and litigation costs

13:45

that came because Florida

13:47

insurance just got sued at rates that were

13:49

so much higher than any other state

13:52

in the, in the country. And so all

13:54

those costs came along with it on

13:56

the heels of some storm activity as well.

13:58

And that's what drove a lot of insurance companies

14:01

out of the state of Florida. And then

14:03

citizens insurance became the provider

14:05

of insurance at a much higher rate

14:08

than anybody wanted. So what

14:10

the state has been hoping to do and

14:12

what they were able to do through some legislative

14:15

reforms to limit the litigation

14:18

that was happening they have been able to

14:20

do that. That leads to insurance

14:23

companies. You know, coming into

14:25

the state more. So this article

14:27

said eight new insurance companies have been approved

14:30

by the Office of Insurance Regulation to enter

14:32

the state's insurance market. That's huge. We

14:34

were just hearing articles about how many companies,

14:37

insurance companies, were leaving the state for a while

14:39

here. This article also talked

14:41

about the profitability or even, or

14:43

at least the, the limiting of the

14:46

losses. of insurance companies.

14:48

I think that's an important factor. There

14:50

have been some articles that have talked about specific insurance

14:52

companies in the state of Florida that are posting profits

14:55

again, which is wonderful. This

14:57

article says Florida domiciled insurers

14:59

reported making a profit last year for the first

15:02

time since 2016. So

15:04

these foundational things that are starting to

15:06

happen, profitability, more insurance companies

15:09

coming into the state is a great thing.

15:11

What it also talked about is how the

15:14

citizens insurance policies counts

15:16

have gone down. So it was 1.

15:19

4 million in September of 2023.

15:21

Now, well, at the end of Feb, excuse me,

15:23

at the end of February of 2024, it

15:25

was down to 1. 17 million.

15:28

So dropped by over 200, 000

15:30

policies. That means those policies were picked

15:32

up by private insurance companies.

15:35

And so. All of these metrics

15:37

are pointing in a positive direction. What

15:40

does this mean for you as an investor?

15:43

There's hope that not just that

15:45

insurance costs premiums

15:47

have stabilized, but there is hope. And

15:49

they talked about it in this article of those

15:51

costs coming down in future years.

15:54

And that's what the hope is. There

15:57

is a lot behind this idea

15:59

that cash flows and returns

16:02

on investment from net rental income will

16:04

improve in future years.

16:06

Because when you think about interest

16:09

rates coming down in future

16:11

years, when you think about rent

16:13

prices continuing to grow,

16:15

and when you think about home price appreciation,

16:18

it's You know, normalizing.

16:20

We're not talking, you know, 15 20 percent

16:23

home price appreciation like we saw in the past. Just

16:25

normal home price appreciation. If

16:27

you see interest rates go down, if you see

16:30

rent rates continue to go up like

16:32

we are seeing, and you see insurance

16:34

costs come down, the

16:36

assets that you buy today could have

16:38

significantly better cash flow

16:41

one year, two years from now.

16:43

So nobody's really talking about

16:45

that fact, that you could see a significant

16:47

increase in your net rental income from some of these

16:49

other factors. But as I'm

16:51

sitting here in the seat of an investor as my, myself,

16:54

and I'm thinking about over a billion dollars that

16:56

we manage for our clients as well. Like,

16:58

I'm really excited. I feel like we have weathered

17:00

the cash flow storm as much as we possibly

17:04

should have or could have over the last few years

17:06

with interest rates going so much and the, you

17:09

know, going up and insurance costs,

17:11

you know, and property taxes going up so much. I'm

17:14

really excited for the other side of this. And I think you

17:16

all are going to be excited too. So

17:18

you just dropped a whole bunch of like

17:20

perspective to the data. I'm going to summarize

17:23

some right. Number one is

17:25

this idea that I think, I think that the

17:27

key takeaway here is as

17:30

rental property investors, we

17:32

win over time because our

17:34

greatest cost is our mortgage. And

17:36

as long as that continues to happen,

17:39

Rents continue to go up properties to

17:41

continue to go up in value, which feeds

17:43

this flywheel of net

17:45

worth and also monthly cash

17:48

flow that we really, really like is why we invest

17:50

in rental properties. The idea

17:52

that insurance

17:54

rates were quoted or are

17:56

quoted right now at the rate where they are.

17:59

And if these trends

18:01

continue, the idea that insurance

18:03

rates could go down would add a beautiful

18:05

little bump to that cash flow of

18:08

what's going on, right? Beyond

18:10

that, the reason why they could go

18:12

down. We have been in a long period

18:14

of time where Florida

18:17

insurers were leaving the market. Up

18:19

all the way till the point where like we were left

18:22

with very limited options and those

18:24

options were crying about Not

18:26

well not crying complaining, right? You run a business, right? They

18:28

are complaining that they could not be profitable

18:31

now What is happening is insurance

18:33

carriers in florida have become profitable

18:36

Eight new insurers have been approved to enter

18:38

the markets. As we all know,

18:40

competition is good for the consumer.

18:42

It means that people get competitive. There,

18:45

this is why we believe that rates

18:47

have the opportunity to drop. Because

18:49

this is now going to happen. They're making money. They're

18:52

competing with each other that allows us

18:54

to have better options have

18:58

encourages them to innovate And

19:01

to deliver things better as opposed to

19:03

what we know in America to be bad for the economy,

19:05

which is monopolies That's why we have the antitrust legislation

19:08

and all these kinds of things Did I miss anything

19:10

there in that summary those those seem to me like the two big

19:13

takeaways? Yeah, I think you nailed

19:15

it there. I just wanted to add that being

19:18

in Jacksonville is not like

19:20

being in South Florida, like they're being

19:22

in South Florida and being in Jacksonville and

19:24

being in other parts of the state of Florida are almost

19:27

like different countries when it comes to insurance. So

19:29

we're talking about statewide averages here. But

19:32

obviously, our friends in South Florida have a much

19:34

greater risk of hurricanes and major

19:36

storms being

19:39

somewhat inland. As we are

19:41

in Jacksonville, even though we do have a beautiful

19:44

Atlantic coast here and beaches here,

19:46

you know, your turnkey properties largely

19:49

are 20, 30, 40 miles

19:51

inland here. And so we

19:53

certainly are not on the coast.

19:56

We are not susceptible to

19:58

storms at the rate that they are in South Florida

20:00

or in other major cities. You

20:02

know, and so those things lead

20:04

us to having better insurance

20:06

rates just as we are. So if,

20:08

if there's somebody out there and you're interested

20:11

in a JWB property and you go and you sit

20:13

down with my team, we'll actually lay out what

20:15

your insurance costs are, not assuming

20:17

any of these good things happen in the future right

20:19

now. And I think you'd be surprised, especially

20:22

on a new construction home, your premium

20:24

for the year for your insurance is still going

20:26

to be well under a thousand dollars a year. Yep. You

20:28

know, so you just don't see that in other parts

20:31

of the state of Florida. So just even

20:33

if none of this good stuff happens, investing in a place

20:35

like Jacksonville, especially in the neighborhoods, we're

20:37

going to put you in, which are inland neighborhoods

20:40

and how we're sort of naturally protected in the

20:42

Northeast part of the state here. insurance

20:44

is not cost prohibitive

20:47

as it is in other places. So, that's a good, good

20:49

thing to keep in mind. Got it. Yes. Very

20:51

big difference. Florida in itself

20:53

is many different places at once.

20:55

Miami is its own little ecosystem.

20:57

Right. Um, and South Florida

20:59

has a, and, and South

21:01

Florida has a different hurricane risk, a

21:03

different flooding risk, a different sea level rise

21:06

risk than North Florida where we, where,

21:08

where we sit, right? Like, There's

21:10

coastal climates, there are inland climates,

21:12

and then there is tropical versus not

21:14

so tropical, prevailing winds, different

21:16

things that have caused that. you know,

21:18

a direct hit hasn't come to Jacksonville in over a hundred

21:21

years, right? But, but I want to make the connection. Yeah.

21:23

We really, really, really care about

21:25

our friends in South Florida. We care

21:27

about the, the, the hurricanes, not

21:29

just from a humanitarian perspective, but

21:32

when you're thinking about insurance companies

21:34

coming into the state of Florida, if

21:37

South Florida's rates are so high

21:39

and it's cost prohibited for them, and they can't

21:41

make a profit in South Florida, they're not going

21:43

to come in and just serve the Jacksonville market. So

21:46

that's why, you know, perspective,

21:49

it's good to think a little bit more macro than beyond

21:51

just Jacksonville. a

21:54

light storm. Mark, we

21:57

had very light storm activity last

21:59

year in 2023. We hope and pray for the

22:01

same thing in 2024 that would

22:04

speed up and make it more likely to have

22:06

some of these rate decreases come around. But

22:09

you know, if, our friends in South Florida, unfortunately

22:11

do fall victim to a storm, you know,

22:13

that's going to slow down this process of

22:15

hopefully some rate decreases coming our way in Jacksonville.

22:17

Good stuff. Chat seems to like it. A couple

22:19

of things coming from the chat. Number one, The

22:22

green screen thing is probably not going to happen. No, we don't

22:24

like that. There we go. It's a

22:26

little confusing. It's a little confusing for everybody, but

22:28

we try it. We're trying to innovate here on the show. Number two.

22:31

We're hearing some, some really good things. Danny Davis,

22:33

mystery man saying this is probably the greatest moment in the

22:35

last 20 years when investor can say cash

22:37

flows are extremely likely to go up from here. That's

22:39

awesome. Pamela Myers saying this encouraging

22:41

news because her insurance being higher has compressed her

22:43

cash flows including being some negative Pete

22:46

Inc. You name new name. Thank

22:49

you for contributing. Thank you for asking the question. We

22:51

love it. He's asking who are

22:53

the eight insurance companies who have been approved?

22:55

Pete. While you ask that question, while Greg

22:57

was talking, I threw it into chat GPT and

22:59

here's the response to chat. GPT says ovation

23:02

home insurance exchange, manatee

23:04

insurance exchange, maybe, maybe a friend of,

23:06

from Homasasa, maybe out of Homasasa,

23:08

Florida, friend of Merrily Cotterman condo.

23:10

If you know, you know, condo owners, reciprocal

23:12

exchange, orange insurance exchange,

23:15

Orion one 80 select insurance company,

23:17

Orion one 80 insurance company, main

23:19

sale insurance company. Tail

23:21

row insurance company are the a

23:24

companies all I learned from that

23:26

is insurance companies suck at marketing All

23:30

that sounded the same thing I don't think I've ever been such

23:32

an insurance fan in my life, by the way Maybe

23:35

there's an opportunity for for some marketing Anyways,

23:38

those are the companies for whatever it's worth and

23:41

at the end of the day the good thing is Competition,

23:44

breeze, good things for consumers. That's

23:46

going to be good for us investors. It's going to be good for homeowners.

23:48

I think it's going to be good for the state. So good.

23:51

It's good for the soul. Good for the soul. Good

23:53

for the soul. All right, here we go. Anything

23:55

else on that? Not on that. You see what,

23:57

uh, I'm looking through our notes. Okay, cool. That

23:59

sounds good by the way. I just wanted to say

24:01

that kind of like things tend

24:03

to happen on the not your average investor show

24:06

this article at this timing

24:09

feels very appropriate to the update we got

24:11

six, nine months ago, it was this idea of,

24:13

Hey, you know, things are,

24:16

things have changed. Things are still.

24:19

You know, the future has changed. Things are

24:21

still the way that they are, but we're going to start

24:23

to seeing some good news happen in

24:25

some time, right? Like, so it kind of

24:27

like right on time with what we talked about

24:29

when we had our insurance update six

24:32

months, eight months later, competition

24:34

is starting to happen. Tailwinds are showing

24:36

that we haven't gone down yet in price,

24:39

but the increases have slowed down and

24:42

it's likely that we continue to see good things

24:44

happening now that these companies are coming into

24:46

the state. Now we can look forward to that. And think

24:48

about your seat as an investor,

24:50

how this is going to affect you. What a lot of people

24:52

don't see is that six to nine month lead

24:55

time. Like we're able to see through our network

24:57

here. And then when a lot of people aren't able

24:59

to put the connections together for how to make a great

25:01

investment decision with that leading

25:04

knowledge there. True. Think about this

25:06

as insurance costs come down. This is a very

25:08

similar topic to interest rates

25:10

coming down. Eventually, they're going

25:12

to come down. When that happens, think about what

25:14

that does to your cash flow. So take that

25:16

extra step and make good decisions to

25:18

lock up assets right now, which are

25:20

only going to increase in value when some

25:22

of these things do happen over time. Good

26:07

stuff. That being said, if

26:09

you want to work with a partner that

26:11

knows how to, like, talk about this stuff, future

26:13

pace it, understand what your cash flows are going to be, go

26:15

to chat with JWB. com or if you're here,

26:17

just shoot Cody a DM. She's our community manager

26:20

in the chat right now, or shoot her an email to

26:22

Cody at JWBcompanies. com

26:24

if you want that. Mama bear service.

26:27

All right, GC, we've got another, we've got another

26:30

slightly more nuanced, slightly further

26:32

out of our comfort zone article here that we're going

26:34

to talk about, but we thought it was really interesting to bring

26:36

up. And it's this idea that, Oh, we're

26:38

back on green screen again. I'm sorry, folks. Oh goodness.

26:40

I've not changed that setting. New

26:44

York has passed a big housing

26:47

deal and everyone is grumbling

26:49

is what the wall street journal says, but this doesn't

26:51

seem all too bad. What

26:54

it sounds like is that they

26:56

they pass these good cause

26:58

eviction protections. And

27:01

essentially the, if this thing

27:03

is passed, it is that they will

27:05

only allow people to be evicted.

27:08

Causes that have pre approved now

27:10

these causes when I brought him up to you're

27:12

like what other causes are It's like don't

27:14

pay if people aren't paying rent on time if

27:17

people if you know I can

27:19

pull it up, but it's it's five very basic causes

27:21

of like not paying rent on time not

27:23

following the contract Owner

27:26

wanted to occupy their own building repairs

27:29

being needed to be made is very normal causes

27:32

in exchange. What they will also do

27:34

is limit rent increases to

27:36

5 percent plus inflation with

27:38

a 10 percent cap upon lease renewal

27:41

and give tenants a right to to

27:43

lease renewals. And landlords can still

27:45

evict for these like non payment illegal activities

27:48

and significant disturbances. It also

27:50

has, and this to me is the interesting piece, comes

27:53

with development incentives. The deal

27:55

includes tax breaks for developers

27:57

and incentives for those converting office

28:00

spaces into apartments alongside

28:02

with the removal of certain zoning

28:04

restrictions which are aimed to spur

28:07

to the creation of around 200, 000

28:09

new housing units over the

28:11

next decade. What

28:13

do you take away from that? You see, well,

28:16

you know, this just reinforces

28:18

what a challenge we have as

28:20

a country when it comes to housing affordability.

28:23

Because, you know,

28:26

many, many jurisdictions out

28:28

there struggling with affordability and

28:31

Some understand that it's a supply

28:33

and demand issue. It's beyond

28:35

just the demand part of it. It's really the supply

28:37

issue. And there are different parts of the

28:39

country where it's much harder to solve

28:42

the problem. New York being one of those, because

28:44

it's, it's built out. You don't

28:46

have the opportunity to build a whole

28:48

lot of new supply coming into

28:50

the market, which is very different than

28:53

a place like Jacksonville. So I think, you

28:55

know, housing affordability is a much bigger

28:57

problem in New York and it's

28:59

a much harder problem to come up with a solution

29:01

with the solution to because of the lack

29:03

of availability to create

29:05

new supply. So they're coming up with solutions

29:08

to do this and they're coming up with things to do

29:10

that kind of. cater to

29:13

all sides. So I like it

29:15

as a idea for for

29:17

New York. When I stink, when I start

29:19

to think about Jacksonville, it's

29:22

a completely different ball game, right?

29:24

We have a lower cost of living here

29:26

than the national average which

29:28

doesn't mean that we don't need to pay attention

29:31

to housing affordability. It is a

29:33

critical issue and one that I'm

29:35

very passionate about. JWB. Is

29:37

a part of the solution because we care so

29:39

deeply about it, but it's a much

29:41

easier solution to have here, right?

29:44

In Jacksonville, we have so

29:46

much land that can be developed that

29:48

can become housing units. So

29:50

just simple market dynamics

29:52

are leading to the solution for more

29:54

affordability as you're seeing. new

29:58

housing units go up. You're seeing a

30:00

ton of apartment construction going

30:02

up. So we have a lot

30:04

of built in solutions here where we don't

30:07

have to change or create

30:09

legislation in order to kind of accelerate

30:11

it. At the same time, we

30:14

get to create incentives

30:17

Work because they work. We don't

30:19

have to create incentives that have to

30:21

There has to be like a winner and a loser. So

30:24

the incentives that we have to create more affordable

30:26

housing, you're starting to see like, for

30:28

example the city just released a

30:30

program where they dedicated

30:33

an additional 2 million to use

30:35

as down payment assistance that

30:37

many of JWB's residents, many

30:39

of our renters are able to use. They

30:41

can use as a down payment to go and buy

30:43

their first home. So it's just,

30:46

I think what it reinforces is the

30:48

nature and the scale of the problem

30:50

for the economy for the entire

30:53

country. And then

30:55

I think it is a, it highlights how difficult

30:58

the problem is to sell to solve in,

31:00

in New York. And then I think about

31:02

in Jacksonville, I'm empowered. I'm excited

31:04

that it's, it's It is still a big problem, but

31:07

we have paths to be able to solve that problem

31:09

that are much easier with less red

31:11

tape and I think more impact. So

31:14

there you go. When I, when I, when

31:16

I hear what you're saying and I'm like thinking about

31:18

this article, I guess

31:20

in my head I had already segmented

31:23

the idea that New York is New York and, and

31:25

you know, patron Santorius

31:28

is talking about how Montgomery County, Maryland

31:30

has rent stabilization and I'm used to hearing that in

31:32

like Santa Monica, California,

31:34

right? And so like, I guess in my head. I

31:36

already have this like segmented

31:38

piece of there are places

31:41

that have been obnoxiously expensive for a

31:43

really, really long time where this like

31:45

rent stabilization regulations have

31:47

already been Tried

31:49

and putting in place and they're generally

31:51

very, very dense areas with an

31:53

overpopulated land where, where they're

31:55

trying to push you know, real density

31:58

and it's already densified to a certain extent. And

32:00

then there is places like the rest

32:02

of America, which is, which includes

32:04

Jacksonville, where it isn't so much about rent

32:07

controls as much as incentives

32:10

to To start densifying

32:13

some because it really hasn't happened very much

32:15

and on top of that, there is these

32:17

like different levers that developers

32:19

can tap into in order to bring more

32:22

housing stock and bring more of the housing stock,

32:24

quite frankly, that is the most in demand, which

32:26

is generally this workforce

32:28

housing stock that happens in these rapidly

32:31

growing cities, right? So that's the first

32:33

place my place my head goes. It's not

32:35

so much about Mhm. The caps on

32:37

rent increases, because I'm so used to hearing that in

32:40

New York, in Santa Monica, and

32:42

like Pigeon Centauri says in Maryland,

32:44

even though that's new to me, it's more about

32:46

this idea that if

32:49

New York is talking about the affordability

32:52

crisis, then the bankers

32:54

and all the people that, you know, like New

32:56

York is kind of like this, like, Beacon

32:59

of like the financial ecosystem. And

33:01

if the financial ecosystem is like tapped

33:03

into the affordability crisis,

33:05

then those of us that are

33:08

on the side of solving for affordability

33:10

of bringing to market workforce, housing

33:13

of creating fair places

33:15

to live for the workforce, housing

33:18

population, then we are going to be

33:20

on the side of You know, on a

33:22

central need that is coming down. And

33:24

it should be easier. Like they're fighting

33:27

the tough battle in New York because of

33:29

the, it's,

33:31

it's a tough thing to make everybody happy when you don't

33:34

have the opportunity just to build ground up. It's

33:37

a much needle to thread

33:39

there. Here in Jacksonville, but if you know

33:41

that they're coming up with solutions there, it's much

33:43

easier in Jacksonville. Like Jacksonville, right,

33:46

you don't have to worry about rent controls in Jacksonville. I've never

33:48

heard that. I'm pretty tuned in, you know, we're

33:50

not having conversations about rent controls in

33:52

Jacksonville. We're having conversations of how

33:54

do we create incentives for builders

33:57

to go out and build more inventory

33:59

because we have the land there. If

34:01

we were land restricted like

34:03

they are in New York, we might have to have

34:06

conversations that are more difficult and

34:08

maybe rent controls come in there. You know,

34:10

I, I know ultimately what

34:12

we want is housing affordability. There

34:15

are certainly downsides to rent controls,

34:17

right? You know, there's a reason that there

34:19

are many apartment complexes that are in rent

34:21

controlled situations in

34:23

New York and other places of the country that

34:27

give rental property investing a bad

34:29

name. It's because they don't have

34:31

the incentive. to make

34:33

improvements to those properties so

34:35

that they could increase the rents. And if you

34:38

don't increase the rents, you're

34:40

not going to have that level of commitment

34:42

to keeping the living standards, what they should be. So

34:44

there's, there's definitely downsides to rent

34:47

controls, you know, others,

34:49

you know, listen, we all want housing to be more

34:51

affordable now, but my point is you don't have to get

34:53

into that conversation when you're in a market like

34:55

And that

34:57

is, I think, a really important thing

34:59

to keep in mind. as you're making

35:02

investments, not just for today, but for

35:04

10 years, 20 year periods of time,

35:07

you certainly are not on the precipice of

35:09

rent controls where, you know, New

35:11

York, and I didn't even know this, 40 percent

35:13

of New York's 2. 4 million rental

35:15

housing units are rent regulated. 40%.

35:19

That's a lot. So,

35:21

that's just a hidden benefit of being in a market

35:23

like Jacksonville. Michael Santorios puts

35:25

in the Q& A, My first investment properties

35:27

were in Montgomery County, Maryland. I sold

35:30

them because legally I was not able to increase

35:32

rents to keep up with the increases in taxes,

35:34

HOA. and maintenance costs, which

35:36

brings up something that I can't believe you and I hadn't really thought

35:39

of like placing here. But like, if

35:41

this is freaking you out in New York, come invest in Jacksonville.

35:43

Exactly, right? Exactly. You

35:45

don't have to deal with that. I mean, thinking about, let's tie

35:47

into insurance costs. Yeah. What, what

35:50

would happen if you were in a market where

35:52

you could not have rent increases

35:54

go up, or they were regulated, and

35:57

your insurance costs went up significantly.

36:00

That wouldn't be a good thing for you. That's what Michael

36:02

Santorius is talking about here. Or just

36:04

property taxes. Like maybe you didn't have the insurance,

36:07

you know, crisis that we had the last

36:09

few years in Florida. Maybe you just have your

36:11

property values going way up. Well, that's going to increase

36:13

your property taxes. If you're not legally

36:15

allowed to increase the rents, You're going to do

36:17

one of two things. You're just going

36:19

to sell it like Michael did, or

36:22

you're going to hold on to it and you're going to save costs

36:24

elsewhere. You're going to invest less

36:26

in the building, which ultimately leads to

36:29

lower quality of life. So

36:31

there's not a simple solution there. And I don't mean

36:33

to say that rent controls are great or bad

36:35

or whatnot. I try to show both sides, especially

36:37

in a forum like this. But my point

36:40

is investing in a market where you don't

36:42

have to thread the needle there is a

36:44

hidden benefit. Good opportunity

36:46

G. C. to just for you to kind of explain

36:49

how J. W. B. handles property

36:51

management and rent increases given that

36:53

you signed two three year leases. How

36:56

does that stuff kind of work? Well, I think

36:58

it first starts with our relationship

37:00

with the residents. And we want to make sure

37:02

that we're creating a win, not just for

37:04

the investor, but the resident is

37:06

paramount here. And so when we bring a resident

37:09

on board, we're already talking

37:11

to them about how we're trying to find a good fit.

37:14

And we want to work with residents that

37:16

want to stay in our homes for

37:18

a significant period of time. And

37:20

that might be because it might take some time

37:22

for them to build up their credit, save up a down

37:24

payment. They might want to buy their own home. We

37:26

want to help them do that as well. But regardless,

37:29

we don't want transient

37:31

residents. We don't want residents that are here

37:34

one month or

37:36

six months or one year and then move

37:38

because we don't believe that For

37:41

our ideal resident, that's what they want, because

37:43

moving is not fun, right? Not

37:45

being a part of your community is not fun and

37:47

so we want residents that want to be here. So

37:49

we sign longer term leases. We sign two and three

37:51

year leases. And then of course, that is

37:53

a big benefit for our investors as well, because

37:55

it decreases maintenance costs and vacancy costs.

37:58

So to get to your original question, how do we handle

38:00

when we have renewal rates

38:03

or what, how do we set the rent? Well,

38:05

we're blessed to be able to just set

38:07

the rent at the market. We

38:10

don't have to you know, do

38:12

what Michael Santorio has had to deal with with his property

38:15

in Montgomery County. There's not a law that

38:17

says we can rent for this amount or we have

38:19

to restrict it to this amount. market

38:22

rent is affordable in Jacksonville

38:24

in our neighborhoods. And so

38:26

we're able to be able to to

38:28

rent for market rent when it comes up to a lease

38:30

renewal. Well, actually, before we get to the lease renewal,

38:33

let me talk about how we make it in.

38:35

Yeah, how we, so if

38:37

you're a resident, you're going to come on board. We're going to lay

38:39

out, you know, either a two or a three year

38:41

lease. We're going to talk about the rent increases

38:44

that are a part of your standard lease. Those

38:46

go between four to six percent per

38:48

year for your rent increases.

38:51

And then what we're going to do is to incentivize

38:53

you to stay longer. So we're going to incentivize

38:55

you to stay a third year. In that third year,

38:58

what we're going to do is we're going to keep your rent the same.

39:00

There's not going to be a rent increase there. Which

39:03

is a great thing for that resident.

39:05

Helps with affordability, of course. It's a great

39:07

thing for you as an owner too, because it, if

39:10

you have a great resident who takes care of your home and

39:12

you don't have that maintenance and vacancy cost,

39:14

then you're going to win as well. And

39:16

so, now what happens after that

39:19

third year, that resident is asked to renew. Assuming

39:21

we have a great relationship with that resident, that resident

39:23

is asked to renew. If they decide that

39:25

they'd like to renew, their renewal is at

39:27

the current market rent. So,

39:29

they will be below market, let's say in this example,

39:31

for one year, and then they're going to catch up. And

39:34

then, we're going to have what the new market rent

39:36

is for that home, and, you

39:38

know, over 80 percent of our

39:40

residents this year have chosen to

39:42

renew at market rent. So,

39:45

that number, I've never heard any other property management

39:47

company get close to an 80 percent

39:49

renewal rate. Historically we've been

39:51

around 70 percent so our team is just

39:54

doing a great job building that relationship with residents. So,

39:56

long story short, it starts with finding

39:59

the right match, folks that want to be

40:01

in our homes for a long time, and

40:04

being upfront with how lease renewals

40:06

will work. That way our residents

40:09

can build this into their plans

40:11

for their budget, years in advance

40:14

and then they get the opportunity to choose

40:16

to renew with us and that's at market rent and

40:18

we're not beholden to regulations when

40:20

it comes to rent controls. As

40:23

somebody that has been investing in JWB

40:25

rental properties while not owning my own home,

40:27

while still being a renter, I

40:29

love the approach, right, because

40:32

I know that my wife and I, for example.

40:35

When we were renting every year

40:38

three to four months before rent, you

40:40

know, like our contract was up due It

40:42

was always this uncertainty. I was like, is this the year

40:44

that the landlord's gonna screw me? Mm hmm, you know like

40:46

I would I would much rather have like baked

40:49

in knowing how to budget knowing

40:51

what's happening all these kinds of things

40:54

also the idea that

40:56

you are building the relationship proactively

40:59

as a property manager and When

41:01

it's time to renew you're saying hey listen Here

41:04

are what comparable rates are elsewhere.

41:06

This is what you're going to get if you go elsewhere.

41:09

So we're just going to match that because

41:11

you'd still go elsewhere, get the same

41:13

rates that you don't want to get here, if that's what you're arguing,

41:16

but you also have to pay 2, 000 in moving costs

41:18

and like put your family through all that.

41:20

To me, it seems like a really, really good way of doing it.

41:22

I've never been treated that way as a renter, right? Like it's

41:25

always just been like, eh, you got an option to do

41:27

10 percent or 12 percent or 40%, depending on what

41:29

we feel like doing. It's interesting you bring up that timeline

41:31

too, because we go to great lengths to set

41:33

what the renewal rent is going to be

41:36

five, six months in advance. Yep. Which

41:39

is risky on our part, because

41:42

you don't always know what the rental market is going

41:44

to do at that point. But we care so

41:46

much about the resident in that specific situation,

41:49

where we say, Listen, it's worth it for us to

41:51

create stability so they can think about

41:53

this and have five

41:55

or six months in theory to plan for

41:57

it, make a well rounded decision. I think

41:59

that's part of the reason why 80 percent choose to renew.

42:02

with us, you know, purely from an investor

42:04

hat, it would be better for you to wait until the very

42:06

end and then figure out. Yeah.

42:09

Like, but that's not how we

42:11

operate because inherently we

42:13

have to treat our residents with great respect in order for

42:15

this whole thing to work. Yeah. And I think you said purely

42:17

from an investor hat, meaning a short

42:19

term mindset investor,

42:22

that's just trying to maximize dollars as

42:24

an investor. Right. So the other side of the equation is

42:26

this idea that like, Man, if

42:28

I'm thinking about my resident having a

42:30

increase an extra hundred

42:32

bucks a month, let's say I'm going to leave an extra hundred bucks

42:35

a month on the table because it's

42:37

a 10 percent increase, thousand dollars rent, you know,

42:39

like, but instead I'm giving them a

42:41

5 percent increase, right? So it's not even a hundred. So

42:44

anyways, call it that, right? If

42:48

my resident were to leave, I

42:51

know that I'm going to have to paint the walls. I know I'm going to have

42:53

to, you know, lose. Probably about

42:55

a month's rent, right? So like, so this

42:57

idea of like leaving the extra

42:59

cash on the table for the following year,

43:01

because I have a long term lease in place and

43:03

not having to be worried about that, not having to think about

43:05

turn costs, not having to think about those little extra

43:08

maintenance expenses that happen when that happens, not

43:10

thinking about forgetting about,

43:12

you know, not thinking about not having

43:15

the mortgage being paid by my

43:17

tenant, my, my resident in like that

43:19

pay down and stuff like that. And

43:21

it makes so much more sense for me to like sign that 232

43:24

be like happily resident in place

43:26

to three year lease with a three year lease

43:28

them having a break on the third year and

43:30

not having that rent go up like I'm

43:32

just so much happier to give that up for

43:35

that peace of mind knowing that when

43:37

it's time to renew, they're going to get this offer

43:39

of. This is what's going to happen, right?

43:41

And I say all these things because it almost

43:43

feels like we're now just like pitching JWB services,

43:46

but like, this is what you want your

43:48

partner to think about. This is what

43:50

you want the person that's managing

43:52

my rental property to think like,

43:55

right? Not just, don't worry, we

43:57

can squeeze him and then they're either in or they're out.

43:59

And on the next one, we're going to squeeze the next guy.

44:01

You want, you want the team

44:04

that is handling your rental property to

44:06

be very mindful of the fact that like,

44:08

When you are turning a property, when

44:10

your resident is turning, you're

44:13

probably in the most anxious state possible.

44:15

So whether I'm going to go invest in

44:17

rental properties elsewhere, or I'm

44:19

going to try to invest in Jacksonville and think

44:22

about not using JWB, I still want to hold

44:24

people to that standard because at the end of the day, it benefits me

44:26

as an investor. 100%, right?

44:29

Simple things you can ask to

44:31

find out if you have a property manager whose goals

44:33

are aligned, ask them if they're willing

44:35

to sign longer term leases. Yeah. For

44:37

all the reasons that you just described there,

44:39

it's better for the resident, it's better

44:42

for the investor long term. The

44:45

only argument that long

44:47

term leases do not make sense for,

44:49

unfortunately, is the standard

44:52

property management company. When

44:54

I say standard, let me, let me talk about just

44:56

thinking about profitability of that property

44:58

management company. So

45:01

it's hard to find property management

45:03

companies that want to sign longer term leases

45:05

because they make less money and they have to work harder

45:08

that way. So when we're talking about goals being

45:10

aligned, you're hearing about some of these ideas

45:12

and concepts that should be important

45:14

to you if you're thinking about building a portfolio

45:16

of properties and you want a manager to be

45:19

there for you for a full market cycle. They

45:21

need to be thinking this way. They need to be incentivized

45:23

beyond just earning property management

45:26

fees to make this a great

45:28

investment for you. It's hard to do

45:30

though. So, you got, ask

45:32

these questions. How long of a lease are you willing

45:34

to sign? Will you sign two and three year leases?

45:37

How, you know, when, when I talk about how

45:39

excited I am that we're re signing 80 percent

45:41

of leases. Because I fully well know

45:44

that if we sign a smaller

45:46

percentage of lease renewals.

45:49

J. W. B. property management would actually

45:51

make more money, but I don't care about

45:53

that because I know in the long run, the

45:56

majority of our income comes from home

45:58

sales, not tenant placement

46:00

fees. So if there's a property

46:02

management company you're thinking about working with, ask

46:04

them what their lease renewal percentages

46:06

are. They should be super excited.

46:09

Yeah. And if you get anywhere close to 50

46:11

percent. That's a win.

46:14

60%, I haven't heard that anywhere. 70

46:16

and 80%, it's

46:19

not too many. You're gonna, you're just not, you're probably

46:21

not going to see it. Um, and

46:24

whether or not 70, 80, 60, whatever, they

46:26

should be as excited as I am about lease

46:28

renewals and about signing long term leases. They should be pumped about

46:31

knowing their statistics, tracking the statistics,

46:33

and having plans to make that statistic improve.

46:35

Absolutely. Okay, let's move on. By the way, if

46:37

you want a property manager that works for you this

46:39

way, and you want to invest in, whether

46:41

you have a property in Jacksonville, Already,

46:44

or you are looking to acquire a property in Jacksonville,

46:46

chat with JWB. com. You guys take over

46:48

other people's properties, but more than anything, you also

46:51

bring to market. Properties are already ready

46:53

to go for you. So, chat with JWB. com

46:55

or shoot Cody an email. I keep pointing at Cody

46:57

cause she's here, but people don't see that. So you just see my hand

46:59

Cody with a T C O T Y

47:02

at JWB companies. com. GC last

47:04

final article. This one is a doozy,

47:07

my friend. I'm going to, uh,

47:09

you know what? Let's just do the last

47:11

screen with it. Why not? Why not? Cause we

47:13

are weird people. What they don't want space.

47:16

We're in space. Wall street

47:18

journal published an article with

47:20

a headline that is not as interesting as

47:22

what's inside of it, but it says Utah's tech

47:25

hub powers. America's hottest

47:27

job market saying salt Lake city, Utah

47:29

is America's hottest job market. I think we've been hearing

47:31

that for a long time on you, like texting, developing

47:34

their super nice outdoor lifestyle.

47:36

But if you scroll down a little

47:38

bit. And we're in front of it here, scroll

47:41

up and the top 10

47:43

ranking for hottest job markets are Salt

47:46

Lake City, number one, Jacksonville, Florida,

47:48

number two. Right here, baby. Not too bad.

47:50

Followed up by Orlando, number three, Tampa,

47:53

number four, Oklahoma City, number five,

47:55

Miami, number six, Austin, Texas,

47:58

number seven, Nashville, Tennessee, number

48:00

seven, tied as well, Seattle.

48:02

Can you make sure you pronounce it with the local

48:04

jargon on each one, please? And

48:07

Dallas number? Dallas number

48:10

10. gc, when you hear

48:12

that list, what? What are you thinking about? Man?

48:14

Man, there's so many great job

48:16

related stats that Jacksonville

48:19

has that I think are just under the radar.

48:21

Yeah. I mean, some of these stats that have come

48:23

out here lately are just,

48:26

I think. They were very surprising

48:28

for me, and I'm in this every single day. So

48:31

to know that we are ranked by Wall Street Journal as

48:33

the number two hottest job market, I think really matters.

48:35

I think it means something. It's the Wall Street Journal we're talking

48:37

about here. And then to know that

48:39

Jacksonville had the highest

48:42

net growth of corporate relocations

48:45

of any major city in

48:47

the United States in 2022,

48:50

to 2023 was

48:52

incredible. That's the highest amount

48:54

of companies that have come into the city of

48:56

Jacksonville and brought jobs, minus

48:59

the ones that have left, which is a small number. That,

49:01

that margin there. is the highest

49:03

in the country. So, you

49:05

know, I remember like 10, 15 years ago,

49:07

especially as I was evangelizing Jacksonville

49:09

and had to put it on, I didn't put it on the map,

49:12

but I had to talk about it from an investment perspective

49:14

a lot more. Nobody was talking about investing in rental

49:16

properties in Jacksonville 15 years ago. I

49:18

had to go and search for a whole

49:21

lot of data and stats to help

49:23

people see why this was a solid job

49:25

market. Now they just show, like,

49:27

you texted this to me and I feel like I see

49:29

these. You know, once a week now,

49:31

there's almost too many of them to really

49:33

put them in the proper context. Yeah, but Greg, cool,

49:37

but I'm a busy

49:39

New York software salesperson.

49:41

I'm a busy California film

49:43

producer. I'm not trying to get a job

49:45

in Jacksonville. I'm trying to invest in Jacksonville. Why is this important

49:47

to you? It's because jobs

49:50

and income and median income

49:52

rising is what supports this beautiful

49:55

investing model. We have to have a solid

49:57

and diverse job base in

49:59

order to have the job so that residents

50:02

continue to pay those rents. And

50:04

we want to make sure that we have a part in

50:06

raising median incomes. Raising

50:08

median incomes come from more

50:11

and better jobs. And

50:14

when we have median incomes raising,

50:16

Rents can go up, home

50:18

prices can go up, and people

50:20

can afford it, right? What

50:23

the problem is, is where housing affordability

50:26

problems come into place, is that rents

50:29

and home prices have been going up at a rate

50:31

that's faster than median incomes. Over

50:34

the last three years, for sure, because that was

50:36

an anomaly, but we all

50:38

should be really excited about

50:40

Jacksonville's job base, the

50:43

fortune 500 companies that we have

50:46

here in Jacksonville, the type

50:48

of companies that are moving to Jacksonville,

50:50

the amount of jobs and,

50:52

and, and the low unemployment

50:55

rate, because ultimately what this does is it creates

50:57

stability for the economy. to this beautiful

50:59

rental property investing asset class

51:02

that we have. I think about

51:04

if we are being ranked the number two job market in

51:06

the United States, that is going to attract more

51:08

people to move here. More people moving

51:11

here means that the demand

51:13

for housing is going to exceed the supply

51:15

since we're under, you know, under supplied

51:17

right now, which means https: otter.

51:21

ai Adding

51:26

on rental properties what I want to bet the most

51:28

on the biggest upside comes from home price appreciation

51:31

over a long term So this idea that Jacksonville

51:34

is a cash flowing real estate market

51:36

with best in class home price appreciation

51:39

What I'm reading in this thing is that home price appreciation

51:41

good times are going to continue And maybe even

51:43

go up a little higher than I thought Yeah, other

51:45

thing that I think of when I think of this list Salt

51:48

Lake City, Jacksonville, Orlando, Tampa, Oklahoma

51:50

city, Miami, Austin, Texas, Nashville, Seattle,

51:53

Dallas, all of that sounds expensive,

51:55

except for Jacksonville. Thank you.

51:57

Right. That's where I was going to go now. You know, like,

51:59

like I look at those, I look at those job

52:01

markets and I hear, Oh, I get it. Homes

52:04

are too overpriced, blah, blah, blah, blah, blah.

52:06

Whereas in Jacksonville, they are

52:08

not, you can still invest in

52:10

a home right now in Jacksonville,

52:12

Florida for like in the 200,

52:15

000s. Yeah. You know, and that to me does not seem

52:17

very doable in Salt Lake City, Orlando, Tampa,

52:20

Miami, Austin, Texas, Nashville, Seattle, and Dallas.

52:22

I wish, I wish they had put the average

52:25

or the median home price in each of those markets.

52:27

Mm-Hmm. It would make Jacksonville look even that

52:29

much better on that list. Idea piece for a piece of content

52:31

you see, oh, say this list and juxtapose it

52:33

if you only, if you only knew how to use

52:36

PowerPoint, Sounds

52:38

good. I feel like you've done a lot better writing it down

52:40

right now. Nailed

52:43

it. Yeah, sweet. So yeah, so,

52:45

so, so that idea of, you know,

52:47

right now it's like all these markets to

52:49

me. Hot job market means

52:51

upside home price appreciation. Underpriced

52:54

market means I can get in with a smaller

52:56

amount of money and buy more stuff with as much

52:59

upside. I can buy, you know, two for the price

53:01

of one in Jacksonville than

53:03

I can in Miami, for example, for

53:05

sure. Right. Cause the median home price in Miami

53:07

is like a million bucks nowadays. I'm not sure if that's

53:09

accurate, but it's, it's way up there. Pablo curve.

53:11

It's, it's close. It's the public Seattle. It

53:13

is for sure. A hundred percent, you know? So,

53:15

so that to me, that to me, the other thing

53:17

that I think about is, There

53:20

is four cities in Florida, you

53:22

know, so tailwinds of Florida

53:24

things that are happening really, really well in Florida

53:27

and Jacksonville still the one

53:29

underpriced market in Florida that, Oh, by the way, has

53:31

the best weather. And I think the best lifestyle, you

53:34

know? So anyways, all really, really

53:36

good things. This list is pretty impressive

53:38

to be. Number two is blows

53:40

my mind. Yeah. Yeah. Really

53:42

cool. Gerard Wendling has a question.

53:45

Does JWB look at debt

53:48

to rent ratio? Yeah.

53:50

So what Gerard is talking about is just

53:52

an easy way to understand if there's positive

53:54

cashflow in your investments. And

53:57

we do more than just look at the debt to

53:59

rent ratio. We're going

54:01

to look at all of the income

54:03

sources and all of the expenses

54:05

when it comes to a monthly. Pro forma

54:08

for your property. So short

54:10

answer, Gerard is sure we look at debt to rent ratio,

54:13

but we're also looking at the other things that

54:15

are going to come into play, like your insurance

54:17

costs, your you know, your property

54:20

taxes. If there's any HOA fees,

54:22

if there's any other fees that come along with

54:24

just ownership of the property, we're going to lay

54:26

all those things out. I think one thing

54:28

that people have done, especially over the last, listen,

54:31

if we go back Five, 10 years ago,

54:33

people wanted just an easy way to

54:35

just say, okay, well, if it meets this certain

54:37

percentage of debt to

54:39

rent or debt to

54:42

or rent to price ratio, then

54:44

And this is a winner for a market and this

54:46

is a loser for a market. And I think

54:49

we've evolved from that.

54:51

We're getting a lot less questions about that

54:53

because that just doesn't work out

54:55

well. It truthfully was never the best way to look

54:58

at an investment property because what

55:00

it failed to recognize was

55:03

four of the five profit centers.

55:05

It only talked about net

55:08

rental income. So I see us evolving

55:10

as a investor base.

55:13

And so I just think you need to look beyond

55:15

just debt to rent or debt

55:17

to, or, or rent to price ratio.

55:20

You got to look at the full picture and you got to look

55:22

over a full market cycle to make sure that this is

55:25

the right strategy for you. And so

55:27

we do that with all of our new clients

55:29

coming in and with our current clients.

55:32

We have some incredible tools that make this

55:34

really complex, like rental property, five

55:36

profit center investing thing much

55:38

simpler. And so teaser.

55:41

Yeah. And, and we, Paulo and I were talking about

55:43

that, like sharing some of these tools with you all

55:45

to see what it looks like. So if

55:47

you were a JWB client or you're thinking

55:49

about it, you're going to be able to see what,

55:51

what we would talk about with you in that onboarding

55:53

process. So keep an eye out

55:56

for future show where we're unveiling a brand

55:58

new tool that Greg has invented here with the

56:00

data flywheel of JWB and putting everything

56:02

to use in order to understand how

56:04

to. Invest better and make better decisions,

56:07

more clarity, more, more peace of mind.

56:09

Do you see as you're saying this stuff, man? You

56:11

know, I I told I I touched on this briefly

56:14

with you, but as you know Last

56:16

week I had the biggest like speaking opportunity of my

56:18

life. I got to keynote 600 person

56:20

room on a Wednesday morning the

56:23

opening keynote This was for NARPA National Association

56:25

of residential property managers. The opening

56:27

keynote the day prior is David

56:29

Green the host of the bigger pockets podcast

56:32

and because we were like the two big dog

56:34

keynoters We got to have

56:36

like this breakfast with like the NARPUM like

56:38

ultra VIP crowd that has the highest

56:41

designation and you know, we were

56:43

in there with this breakfast and David is talking about,

56:45

he's writing a new book. And he started

56:47

just really, he went into

56:49

this like 12 minute diatribe that I really

56:51

wish I would have filmed with my phone because

56:53

he just started talking about how investors

56:56

these days are investing under for,

56:59

for rental properties and for real estate, they're investing

57:01

in this like old paradigm of,

57:04

you know, really, really low debt, really,

57:07

really like low price, You know, Holmes, because

57:09

a lot of them got in there right after the right after

57:11

the crisis, and really, the game

57:13

has changed. He started talking about this

57:15

idea that we need to look at assets

57:17

that keep up with inflation. And

57:20

if we're not doing that, we're losing like these ideas

57:22

like Bitcoin and these other things. They're not

57:24

guaranteed to keep up with inflation. It's

57:26

just a thesis that it might be able to do it. And

57:28

the stock market may or may not be keeping

57:31

up with inflation either. But rental properties

57:33

are and that's why he started going

57:35

off about these five profit centers.

57:38

And the fact that the name of the game when

57:40

it comes to rental property investing is staying

57:42

in for in it for a long time, just

57:44

not focusing so much on cashflow,

57:47

but focusing on breaking even in cashflow.

57:49

And understanding that your cashflow is going to

57:51

go up over time and you're going to gain

57:53

equity. And you really win when you have home price

57:55

appreciation. I was just like, Whoa, you

57:58

know, like you literally went off about this for 12

58:00

minutes. And I was just like slow clapping in the

58:02

background. And I gave him a standing ovation when

58:05

he finished. But you're right. Like, I feel like this

58:07

message that has been so normal to me and so

58:09

normal to our community of not trapped investors

58:12

is now starting to like permeate into like

58:14

society. And once again, you're

58:16

going to have the receipts to talk about, you've been

58:18

talking about this for four or five years while the

58:20

host of one of the biggest podcasts in the world just figured

58:22

it out. He's writing a book about it. Well, you know, I know,

58:24

I don't know David personally, but I know,

58:26

I know he's, he does a great job with the BiggerPockets

58:29

community. And I think that's a community

58:31

that could really use some evolution when

58:33

we're thinking about how to make great decisions

58:35

on rental property investing. It's a microcosm

58:37

of the old way. of thinking. It

58:39

is, it is the way that it's, it's

58:42

only active. I probably shouldn't say it's only

58:44

active. There's a high preponderance of folks that look

58:46

at the active way as the way to invest in rental

58:48

properties. And that passive is somehow

58:50

like losing some value if

58:53

you, if you let somebody else do it for you.

58:55

And there's a high preponderance of looking at like

58:57

one metric, the 1 percent

59:00

rule for rent to price ratio and anything

59:02

below that. It's just not, but

59:04

like, there's this evolution. And

59:06

I'm so excited when you told me that story about

59:09

how more and more thought leaders

59:11

are getting vocal here because

59:13

this asset class works at

59:16

break even cash flows. And

59:18

when I came out and said that, geez, I don't know,

59:21

probably three, five years ago before I,

59:23

because I knew that this was going to happen and cash

59:25

flows were going to be harder to come by. People

59:28

were just up in arms and

59:30

said that I don't understand if you're not getting

59:32

cash flow, why would you do this investment? So it

59:35

is nice to see that this evolution

59:37

is happening because ultimately

59:39

what empowers people to do is to make much

59:41

better decisions with their money. You

59:44

know, so I'm excited about it, man. Agreed.

59:46

I'm also working on getting him on the show.

59:48

Let me know in the chat if you'd like to have a

59:50

a show with David Green from BiggerPockets so

59:52

that we can tell him that everybody's dying to meet him. And

59:55

oh, Gerard has a clarification. He was talking

59:57

about the debt to rent ratio. He was

59:59

actually asking, do you look at the debt to rent ratio

1:00:02

for the resident? Sorry, 10

1:00:04

minutes later. We can save that, you know, seven to 10 minute

1:00:06

clip that I just gave you, Gerard. So, now

1:00:09

what we're talking about is helping residents.

1:00:11

See what's better for them to take

1:00:13

out a loan to be able to buy the home

1:00:16

or to be able to continue to rent the

1:00:18

home. And Gerard, I'm even more

1:00:20

glad that you asked in this context,

1:00:22

because we do show our residents

1:00:24

and many times owning the home

1:00:26

is the best thing for our residents.

1:00:29

And so we're all about empowering our

1:00:31

residents to take part in this beautiful

1:00:33

thing of home ownership and owning

1:00:35

their primary home right off the bat.

1:00:37

So we do look at the, the

1:00:40

Mortgage costs, right? Their principal interest

1:00:42

taxes and insurance. We look at

1:00:44

what their rents are and we

1:00:46

go a whole lot more beyond that too,

1:00:48

because we facilitate down payment

1:00:51

assistance programs for them. People

1:00:53

are unaware, but you can get up to 75,

1:00:56

000 in Jacksonville right now that can go towards

1:00:58

down payment assistance. Which means

1:01:00

that our resident, we can help that resident

1:01:02

become a homeowner. And take

1:01:04

part in home ownership and all the beautiful things

1:01:06

that come along with it. And they might not

1:01:09

even have to bring a down payment. Even

1:01:11

as home values have exploded to what they are

1:01:13

today. So this, this wonderful

1:01:15

opportunity that we have, we care deeply about helping

1:01:18

our residents become homeowners. And the great

1:01:20

thing is that this will only

1:01:22

increase the rates of return for our clients,

1:01:25

because if we help folks

1:01:27

become homeowners it is great for

1:01:29

that individual. It is great for

1:01:31

generational wealth. It is great for

1:01:34

the communities. It decreases

1:01:37

maintenance costs and vacancy costs

1:01:39

for the owner of the property. That's you.

1:01:41

It decreases crime in the neighborhood.

1:01:43

And it feels good. The average homeowner in

1:01:45

our country has 300, 000 of net

1:01:47

worth. The average renter in our country

1:01:49

has 8, 000 in net worth. So

1:01:52

you're all a part of that as well, whether

1:01:54

or not you, you have thought about it or know

1:01:56

about that. You know, 42 percent

1:01:58

of all homes sold under 300, 000 last

1:02:00

year that are new construction single family

1:02:03

homes, those are JWB homes. So you're

1:02:05

helping first time home buyers take part

1:02:07

in that wealth accumulation for themselves

1:02:09

and their future generations. Do you see we're going a little long

1:02:11

here, but a really pertinent question here

1:02:13

from Kristen Dickerson saying, I have a struggle,

1:02:16

which is good. Of having tremendous

1:02:18

amount of equity and it is just hard

1:02:20

right now to get a HELOC or second mortgage

1:02:22

to pull out that equity to grow in real

1:02:24

estate investing. What do you say to that? Alright, Kristen,

1:02:26

let's jump on the phone. Let's talk about

1:02:28

that because we're experts at

1:02:30

helping folks unlock capital

1:02:32

sources to be able to increase

1:02:35

or start that rental property portfolio

1:02:37

for you. Because especially with

1:02:39

some of the concepts we've talked about here. Buying

1:02:42

before interest rates go down. Buying

1:02:44

potentially before insurance

1:02:46

costs may be going down in future years.

1:02:48

Buying before downtown Jacksonville completely

1:02:51

becomes online, which sees

1:02:53

significant home price appreciation

1:02:56

as well. Those are really important concepts

1:02:58

and one reason why I think right now is a great

1:03:01

time to buy. Also because we have incredible

1:03:03

incentives that come along with buying right now that

1:03:05

we don't always have. So Kristen, I would

1:03:07

absolutely encourage you to I hear

1:03:09

Cody typing right now. Cody's probably

1:03:12

reaching out to or reach out to Cody here in the chat.

1:03:14

And let's get up set up a time to talk because I know there's

1:03:16

a lot we can do with it. Mystery man, Danny Davis said the

1:03:18

same thing. Chris and JWB team may have some ideas

1:03:20

for you regarding banks that can help with a heat lock

1:03:23

and that can do it at rates where it makes sense

1:03:25

for your situation. I know that. Even

1:03:27

when I was buying my own personal residence, I was buying

1:03:29

a duplex in January, and

1:03:31

I was getting quoted certain rates. I was almost

1:03:33

about ready to go until I thought,

1:03:35

oh, you know what? I have access to this, like one guy

1:03:38

that has access to a whole bunch of people. So I finally

1:03:40

brought it to Greg. Greg's like, You know, that rate

1:03:42

sounds a little bit high. Let me hook you up with one

1:03:44

of our preferred lenders and knocked off 0. 8

1:03:46

percent of a point. So there

1:03:49

is real truth in the fact that the JWB

1:03:51

network has access to things and knows things

1:03:53

that other people don't because of all the things

1:03:55

that, you know, like you guys touch. So, Kristen

1:03:57

says, thank you so much. I have six doors and I'm now doing

1:03:59

this full time with a desire to grow. Very

1:04:01

cool. Wonderful. Very cool. All right. And

1:04:03

last but not least, Luis Olivares says, in Miami,

1:04:06

I can increase rent But never as much to

1:04:08

match the HOA insurance and special

1:04:10

assessment increases. The only good part is that the price

1:04:12

of the assets keep going up. Listen,

1:04:14

as somebody that lived in Miami, those

1:04:17

HOA costs are so real. Like I,

1:04:19

you know, my HOA costs here are like

1:04:21

70 bucks a month in Miami. They're like 700,

1:04:24

1200, 1, 800 a month, and

1:04:26

they go up exponentially. So Miami is

1:04:28

this like rapidly increasing

1:04:30

home price appreciation market. But

1:04:33

again, it goes to show What

1:04:36

we were talking about with New York, they're gonna,

1:04:38

you know, New York versus Jacksonville,

1:04:40

Miami versus Jacksonville. Yes.

1:04:43

State of Florida might have increased. insurances

1:04:47

that happen that seem to be going down,

1:04:49

but it doesn't have this like insane

1:04:52

amount of HOA doesn't have this like

1:04:54

insane amount of like rent control

1:04:56

things that also limit things, right? Like Jacksonville

1:04:59

still an affordable market allows

1:05:01

you to Increase rents, have home

1:05:03

price appreciation, and not have to

1:05:05

like slice off the, the

1:05:07

target so closely because it's still largely

1:05:10

affordable. Yeah, and if

1:05:12

you are investing in a place where you're

1:05:14

just relying on price increases

1:05:16

to offset the additional costs that are coming

1:05:18

through HOA, special assessments,

1:05:20

things of that nature, you're speculating. You're

1:05:23

speculating, and that's not the beauty

1:05:25

of rental property investing. You don't have

1:05:28

to speculate. You can have an

1:05:30

asset that pays for itself every single

1:05:32

month without the risk of

1:05:34

a special assessment or an HOA

1:05:36

going bonkers and killing

1:05:38

your cash flow. Because when

1:05:40

we talk about speculating, I mean you're going cash

1:05:42

flow negative in hopes of higher

1:05:45

appreciation down the line. You

1:05:47

can invest in Jacksonville, Louise, and

1:05:49

you can have it to where it pays for itself every single

1:05:51

month. And you still get the upside.

1:05:54

of home price appreciation. So,

1:05:57

yeah, so that's true. And then Denny

1:05:59

also asks, when will the Not Your Average Investor

1:06:01

community get to see some of the new stuff

1:06:03

you're working on since eliminating Thursday in NYA?

1:06:06

Denny, this is not because we eliminated Thursday. This

1:06:08

is because it's not ready for primetime yet. Greg has

1:06:10

been working on this thing for years. still

1:06:12

testing it. I estimate in

1:06:15

the next two to three weeks, it'll be ready. So

1:06:17

keep an ear out, keep an ear out. You got that. And

1:06:19

we're, we're working on our next events

1:06:22

that we're going to have. We're going to make sure we share it with the community

1:06:24

as well. And so there will be

1:06:26

some additional trainings,

1:06:28

webinars, you know, events that we're going to be able to

1:06:30

do. One of is Pablo's

1:06:32

heading out to California this weekend.

1:06:35

Los Angeles. Yeah. Yeah, that's right. So

1:06:37

he's going to be speaking at the Real Success event,

1:06:39

which I'm super excited about. He's got another keynote there. You're

1:06:42

just locking up the keynote. I thought, now that

1:06:44

I'm a real keynote speaker, I don't know if I'm just going to call every

1:06:46

speech a keynote. Before, before I get

1:06:48

like a room of 25 people, I'll be like, you know, there

1:06:50

you go. There you go. There you go.

1:06:53

Let's keep you, keep you humble. Please keep

1:06:55

me humble. Yeah, I definitely

1:06:58

a room full of people that are investing in themselves,

1:07:00

educated, you know, like understanding real estate,

1:07:03

super pumped to like go out there for the first time

1:07:05

solo to represent JWB in

1:07:07

a different state and just tell the

1:07:09

message of the not your average investor show community. And,

1:07:12

and this idea, I think this is going to, I think I'm

1:07:14

going to take it back to like Pablo four

1:07:16

years ago, right. Understanding the five profit centers,

1:07:19

understanding the fact that to

1:07:21

be in real estate for a long time. What you

1:07:23

win is home price appreciation. Show them the Pac

1:07:25

Man that we talk about. And then, you

1:07:27

know, understand that like if this is the way that you make

1:07:29

money, then your criteria and your buying decision

1:07:31

is not go find a property. Luckily,

1:07:34

it's in a market that you live in and then go find

1:07:36

a property manager on Craigslist, but really

1:07:38

just understand what markets have the best teams

1:07:41

that you really, really want to work with. Understand

1:07:43

that, you know, in those markets, which

1:07:45

one of those fit your goals

1:07:47

and your criteria, right? Like if you're looking for growth,

1:07:49

if you're looking for cashflow, what you're looking for,

1:07:52

and then property is third, right?

1:07:54

Like that should be, you know, Kind of the last thing

1:07:56

if you're working with the right team. So pumped to talk about

1:07:58

that. It's gonna be awesome. Yeah, man Speaking

1:08:00

of which we had over 90 people today

1:08:02

on that. Yeah, good show. Thank you guys Community

1:08:05

you are the ones that make this thing valuable

1:08:08

you add in context You

1:08:10

know helping each other out asking for

1:08:12

extra piece of advice testing Greg's perspective

1:08:14

on stuff is really what makes this show tick

1:08:17

so we never take it for granted that you take an hour out

1:08:19

of your day on a Tuesday to hang out with us.

1:08:21

Really, really appreciate you. Next week

1:08:23

we're having the show that we were going to have this

1:08:25

week. A little schedule snafu, but

1:08:28

we're having William, we call him big Willy style

1:08:30

around here. Come in here and give us the 2024

1:08:32

state of construction costs of

1:08:35

where construction is, where it's going, where

1:08:37

it's been permits and timelines

1:08:39

and all that good stuff. Plus these increasing

1:08:41

capabilities that are allowing

1:08:45

JWB to add even more value

1:08:47

to their, to their investors. Ken says, how

1:08:49

can we get to your event in California, Pablo? I

1:08:51

think it's a closed door. Yeah. Yeah. It's

1:08:53

a, it's a, it's a group of people. It's like a fortune

1:08:56

builders type, right? Like it's a group of people that have

1:08:58

invested already and this is their private

1:09:00

event, Ken. So unfortunately, it

1:09:02

is at the LAX Marriott though. Grab

1:09:06

a drink over there. I'm sure I can

1:09:08

swing that. So let me know, Ken, I'm happy

1:09:11

to hang out with you, buddy. Any pieces of advice for

1:09:13

people from here until the next show GC? Don't

1:09:17

be average. See you next week.