Chit Chat Stocks - President and Co-founder of Coast Group of Companies Shawn Hoban

Episode Date: December 4, 2018

Hosts Brett Schafer and Ryan Henderson discuss Microsoft stealing the throne (0:49), and address the stock on their radar (2:30). We also have an interview with Co-founder and President of Coast Group of Companies (4:35) and discuss how he built his company from the ground up to $5 billion in assets. After the interview we play a little "Ain't calling you a truther" (35:00) and guess which article headlines are real or fake.  --- Support this podcast: https://anchor.fm/chit-chat-money/support Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to Chit Chat Money presented by Market Brothers Media. It is Tuesday, December 4th. This is now our 10th episode. We have an interview with president and co-founder of Coast Group of Companies, Sean Hoban. Yeah, we talk a lot about how he started his business from the ground up and built it into a company that manages 5 billion in assets. We learned a lot from him and we think that you will too. Yeah, it's a great interview. After the interview, we also play a little Ain't Calling You A Trutha. Let's get the show going. Well, it was a bit of a dry week in finance, but we do have one headline, and we also got a stock on our radar. Yeah, so? The headline is Microsoft, the new king.

All hail the king. Most valuable company for about five minutes. Totally. Really important for investors to know that. It's definitely like the most – that's what you should be paying attention to. Their market cap was a little higher than Apple's for like five minutes this week. That is super relevant and it's big news. Yeah.

But in reality, so it wasn't really that Microsoft caught up with Apple. They've just kind of steadily grown all year. But Apple, after their kind of – not really fiasco, but kind of – we thought it was kind of a fake fiasco, people freaking out about their unit sales. They've dropped like $100 billion. What do you think? What one are you taking as a buy right now? If I was going for a buy, I would go Apple. Purely based off price to earnings, I think Microsoft is somewhere around $40 right now.

$40, maybe $35, still high. That's high because I think they're innovating at about the same rate. I think they both have good products, but I would still take Apple because Apple has a PE of, what, 14? Maybe went up a little bit, but – Yeah, I'm taking Apple. Yeah, I agree as well. Probably the same reasons. People are getting on Apple like they're kind of scared that the iPhone is losing popularity and people aren't buying as many new phones.

But I still think they're trying to diversify the business and they've got to – they're going to come out with a new product at some point. They've had the watch. That's been OK. It hasn't been really a growth driver. yeah but i think they'll come out with something soon microsoft is more diversified they got the gaming office and cloud business the cloud business has kind of been the reason that they've gone up this much yeah um what yeah but you also have another stock on your radar though what is it yeah so this is kind of like maybe people wouldn't be too excited about but i think target

yeah that caught me off guard target is i'm really liking what they're doing right now Not strictly like they are going to be the new best player, but right now their P.E. ratio is 11. They have a 3.5% yield, and their growing earnings per share, I think their trailing EPS growth was 20%. And in the last earnings report about 10, 15 days ago, their stock dropped because their operating margin was down a little bit for just some weird inventory reasons. And I think the stock is a great buy right now. People, I think, kind of threw them to the wayside. They thought, oh, they're just going to be all the part of the retail that Amazon just dominates. I think we may have hit peak Amazon.

I could be wrong, but I think we might have hit peak Amazon. That's a hot take. On their market share. I outlined this more. I wrote a big article about it on the website, marketbrothersmedia.com. So you can see the more, the reasons why I think Amazon has hit peak market share. But Target, they are developing, even though it's been a little slow, they're developing their online sales. Digital sales grew 50% year over year.

Okay. And they're starting their grocery pickup service. This thing doesn't need to just grow revenues super fast. I think they're only growing revenues in the high single digits. But the valuation is so low. I think this thing is going to outperform Amazon for the next couple of years. That is a hot take. But my only concern there is I never see people shopping online at Target.

I could be wrong. Yeah, because anecdotal evidence always means you should invest that way, right? Yeah, that's true. But you said they're growing digital sales 50% year to year. it's still a small part of their business but that's because they said like you know all companies say this that they're kind of in a transformational period but they are building out the logistics network to make this work um yeah they seem to be quite late to the party amazon's been doing this for 20 years and they kind of let them take over the whole industry

but to me i think they're finally picking their feet up okay so targets your bullish take now we are going to move into an exciting interview with sean hoban all right we are welcomed by sean hoban co-founder of coast group of companies to the show this is our fourth interview and our third sean yeah third sean's the charm i guess yeah yeah welcome on uh all right i kind of want to start by asking uh what's with the name and who came up with it uh you're talking about the coast name yeah yeah well you know tom and i uh started this business um in about 1987 uh and and uh you know we were young guys uh fresh out of college and hadn't had a whole lot of experience and uh you know probably in hindsight we we may have uh been a little more

creative but back in the time you know we didn't really have any aspirations for what the business was going to be um it was more about just just you know trying to make enough money to buy groceries and yeah and then feed our family so uh you know i think we we we tried to select something that we thought was you know broad enough that it would uh that we could grow into it so you know we we started the business in everett we didn't want to call it anything that was just limited to everett so we picked something kind of you know uh that would that would be able to grow into it so that's where coast came from it was uh you know we didn't go to any certainly didn't go to any pr marketing firms to consult on what we should do it was probably just decided one day

when we had to put something on our letterhead well you don't need to because we came up with a few i'll rattle some off all right uh coast enterprises uh coastal associates of real estate property of the greater northwest region yeah coast guard coast guard yeah uh coast coast equity brothers you know because the whole brothers thing yeah coast group squared yeah all right we got plenty of them yeah real estate for reals i mean yeah pick one now but just think of them and yeah all right a little more of a serious question what exactly does coast group do yeah uh it's funny because you were talking about the name there a little bit you know So there's about, within our organization, there's probably 40 different entities, different corporations, LLCs that we operate.

Most of those would be, you know, entities that own real estate, a single asset piece of real estate. But there's a number of operating companies in there, too. So, you know, kind of going back to our roots, we started in the property management business. So Tom and I, you know, came out of college. Some point here, I'll kind of tell you the story and how we got started in the business. But basically, you know, it didn't come from money. Our mom was a schoolteacher and our dad was, you know, a salesman. And in real estate, usually if you want to get in the game, you got to have some capital to do it.

We didn't really have that. So we figured the best way to get in the game and to really learn was to get into property management, which was really, you know, the operations side of real estate. And with literally with a pickup truck and a plunger and, you know, back then we didn't even have computers. So it was, you know, ledger cards and those kinds of things. We were able to get, you know, get convinced a few local folks to hire us to manage their properties. So that's the beginning. We literally started with a 29-unit apartment building in downtown Everett. Today, that portfolio is about 700, 800 different properties.

It's spread out all over Washington, Oregon, and Idaho. We've got offices in Bellevue, Portland, Spokane, Boise, and looking to venture into markets like Salt Lake City and Denver and others. Nice. So you guys are still growing then? You guys are still trying to keep expanding? That's cool. Yeah, no question. We're growing organically, so we're just out there competing and procuring contracts. We also have done a number of acquisitions along the way and have bought some other property management firms who are strategic alliances for us. um so that's the property management business we've got a general contracting business called cpm um and it uh it does a lot of tenant improvement uh construction type activity we don't do ground-up construction but imagine you've got an office building and you're changing it out from a you know dental clinic to uh to a cpa's office and you've got to you know move the

walls and and change it out so we we've got a business that does that we've got another business It's a relative startup called Coast Workplace Solutions, and that business does facility management on a national scale. So the best way I can describe that is we've got clients like Starbucks, and we've got 500 stores in the southwest with Starbucks. And Starbucks wants their managers worried about selling coffee, not about whether the roof's leaking or the toilet's leaking or the parking lot needs to be cleaned up. And so we are kind of a one-stop shop for all of those vendor services. That's cool. So you work with your brother. Now, personally, I would get a little frustrated after a while.

How has that been for you? Do you think it's helped or has it ever been frustrating at times? Yeah, yeah, great question. You know, I think the older we get, the more we appreciate the relationship that we have. We see so many other, you know, partnerships, family partnerships and family companies, and it's rare that they are, you know, as successful and amicable as our relationship is. Tom and I have, you know, we've been best friends and brothers our whole lives, you know, everything from sharing our bunk beds together when we were kids to, you know, being in business today and raised our families together and still are really, it'd be impossible almost to unwind us. he's kind of the outside guy and I'm the inside guy and I think that was important that early on in our uh in our businesses we realized sort of what our strengths were and we we we allowed each

other to kind of go that direction fortunately we kind of complemented each other he kind of goes out and you know develops relationships and opportunities and then he'll come home and throw those on the kitchen table and I got to figure out how to make a meal out of it and uh Those are our expertises. It's really been a fun time. Frankly, we've had a lot of success in business, but I would say the thing that I'm most successful about is that I've been able to do it with my brother and have that kind of a relationship that has endured through all the trials and challenges that you have in business. Yeah, that sounds great. Have you ever dealt with tenants directly? I know that now that you guys have grown a lot, you might not work with people personally, but did you have any funny tenant stories from when you started up? yeah it's a great question yeah you know we did when we started out we did everything it was literally a pickup truck and a plunger and and we collected rents and we rented apartments and we you know cleaned apartments and mowed the lawns and all that stuff so yeah we have a lot of

memories and history of that direct relationship with the tenants and you know at the end of the day that our business wouldn't survive without those tenants so they're the most important part of our uh of our business they're our customers and and we rely but there have been some interesting you know and kind of fun and in some cases kind of scary uh moments along the way i i recall one time we got hired to manage an apartment building in in marysville and i went out uh there the first day and the owner hadn't been there for a couple years he had somebody else managing it and uh he just fired those guys brought us in and went in there with the key and i opened up the door and And there was a calf that had been sacrificed in the big room of the unit.

So that took us a couple of weeks to get that thing cleaned up. But, you know, by and large, your residents are great people. And a big piece of what we do is about, you know, certainly we're in business to make money, but we're also there to impact lives. And we recognize that for many families, their home, their apartment community is, you know, is critical to the success of their family. So, you know, we put a lot of energy and effort and resources into building these communities so that families can, you know, have a safe and affordable place to go home at the end of the night and have dinner together and all the great things that happen when families enjoy each other's time. So that's important to us. You know, there's lots and lots of great success stories about people who have kind of come and gone through our housing units and that. But, you know, lots of crazy stories, too, by and large.

You know, you remember. Go ahead. Like a sacrificial calf. Like a sacrificial calf, yeah, yeah, yeah. Yeah, okay. So you have been doing this for a really long time, it sounds like, since 87, is that what you said? Yeah, we started. So Tom actually got started about six months ahead of me.

He had started in 87, and then I just – right as soon as I got out of college, he – kind of a crazy story, but he – I was out here visiting for a week, and the first weekend I was here, Tom broke his back. And so I went into the hospital that week and checked on him, but I also went into his office. He had like four clients and five or six employees, and I just started calling his clients and employees and said, Tom's been in an accident. I have his brother, Sean. I don't know if he's ever going to walk again, but if you need anything this week, you know, just let me know. And sometime between Monday and Friday, we decided I was going to go back and pack my stuff up. I was planning on staying in Chicago and come out and take half of this company that was, you know, grossing a couple thousand bucks a month, and off we went. So that's kind of the, you know, the story.

It wasn't necessarily by design that we got into this business together, but, you know, I think that also reflects sort of that relationship the brothers had, right? He was down, he needed help, and that's what a brother does. You jump in and you take care of each other. So, yeah, it was a risky thing to do, I'm sure, at that age. But when you're young, you don't have a lot at risk. So you can take those kinds of risks, and hopefully they'll pay off. So I was going to save this question until towards the end. But so it sounds like you were – I read somewhere that you graduated Notre Dame in 88.

Is that right? That's right. Yep, yep. So in 1988, there was also the Catholics versus convicts, Notre Dame versus Miami football game. Were you present for that? So that is – it's a fun story. um so that uh the the 30 for 30 show and the shirt uh was in the fall of 1988 um and i had graduated in the spring um so i was but i was in chicago at the time uh of all that so i do

uh i do remember i asked i was at that game uh live at that game and uh but the but i knew every one of those guys that that they talk about in that show uh were all guys that i knew they talk about the dorm that that happened i don't remember the part he talks about the line to get into the dorm to buy the t-shirts was longer than the line at the bookstore yeah yeah i remember yeah yeah and that and that was the dorm i lived in and and uh the basketball player guy the guy who was the varsity basketball player was a good friend of mine still a great friend of mine joe frederick uh and then the other guy uh um pat walsh who is really the featured guy in the story i used to play a lot of basketball against him and and yeah so that's just a you know those were epic uh

rivalries back then notre dame and miami we we loved playing each other we loved hating each other we loved uh you know uh fighting it out on the on the football field kind of the glory days of lou holtz and and uh in notre dame for sure did you did you did you have did you buy a shirt oh yeah i sure sure i have plenty of those shirts you still got them around I've got one. Yeah, I've got an old Catholics vs. Convicts one, and then I've got a handful of other ones that, you know, that was a big time when, you know,

they first started kind of screen printing T-shirts and all that stuff. So that was a big deal that, you know, you kind of collected all these shirts from all the games. So, yes, I do have a Catholics vs. Convicts T-shirt. It's probably got a heck of a lot of holes in it now. Yeah, that's, you know, great memento. All right, back to a more serious question. we uh most of the time on the show we talk about like really the not necessarily the real estate

market but more companies and businesses and the financial stock market and we've been tracking zillow and airbnb so we're kind of curious how maybe technology like that plays into your business does it affect it i mean how does how does that play into what you do yeah yeah it's great great question you know so our business is mostly around apartment buildings um you know multi-family uh residential assets we do have some commercial assets but but it's mostly around apartments and and so you know at the end of the day what we do is we rent space to people to live in and and to a large degree that's the same business that airbnb and zillow are in as well Yeah. But but, you know, technology can't solve a lot of things that you face in real estate.

At the end of the day, real estate is still, you know, kind of a living, growing organism. The mechanical systems of these buildings, the people that are in them are not technology can't solve. So there's a human side of what we do that I don't think will ever be necessarily threatened by or be displaced by real estate. Having said that, technology is a great thing to leverage to be more efficient. And when you look at things like Airbnb and you look at things like Zillow, we're adopting a lot of those tools to be more effective in our business. So Zillow, for example, we're leveraging that platform to market and lease apartment buildings. You're seeing a lot of apartment communities, particularly kind of urban high-rise type assets where they are designating a certain portion of the units in the complex to short-term rentals. And so you're seeing that kind of product being marketed out on the Airbnbs of the world and those kinds of things.

So, you know, and I think as you look at the demographics of the population, particularly kind of that millennial age group, you're getting, you know, they're much more migratory and, you know, probably going to be moving around a lot. And so things like, you know, having flexibility in your marketing or in your leasing terms are going to be important to them. And so, you know, tools like Zillow and Airbnb give you great, you know, leverage and resource to meet that need. Yeah, that makes sense. So following up on, like, how you guys use these tools, can you describe the process from start to finish on how you, like, search for, say, another building and then complete the transaction for purchasing it? Yeah, yeah. Well, it's a highly competitive marketplace today, and I guess I would start with saying that the market does cycle.

So today, everybody wants to own real estate, and in particular, multifamily apartment assets are a favorable asset class, and so there's a lot of competition for these properties today. The result of that is that if you're a seller, you know you've got a lot of buyers, and so you want to take your property out and get the highest value and get those buyers all competing for it. So typically today an asset will be marketed through a broker. And so a critical part of what we do is developing the relationships with those brokers so that we get a crack at those deals when they come to market. And so a lot of time and energy goes into cultivating those relationships

and then positioning ourselves so that if there's a seller who has a number of offers in front of them, one of the things the seller's concerned about is getting the highest price they can. But just as important for many of them, if not more important, is this certainty to close. They want to know that if they go into contract with somebody that that buyer is going to close at the terms and the price and all that that they've agreed to. And so we believe we have sort of a, you know, I guess competitive advantage in the marketplace there because we consistently, you know, close with our sellers on our deals, you know, at the price and terms that we negotiate up front. And so when we're standing in there in a room against another buyer with the same price and terms, hopefully we'll get the bid on those deals because that seller knows we're going to be the guys that are going to close that.

So that, you know, that's kind of the front end of the deal. And then, you know, once you get a deal under contract, then, you know, there's the whole financing side and the capital raising side and all those things that kind of come into play in our, the way we conduct our business. We've got, you know, deep relationships with our financing sources, particularly on the debt side, who know us very well and able to move quickly to a close so we can typically get our debt financing arranged within just a couple of, two, three weeks. and then have, again, long-term deep relationships with our investors who are nimble enough to move quick when we get on a deal and can bring the capital to the table on the equity side to allow us to close the transaction as well alongside with our own capital. Wow. Now, a lot of what you see in the media is that home prices are rising and rising and especially in the seattle and the northwest area are you guys do you guys still find yourself

trying to acquire buildings right now or are you kind of holding companies right or holding buildings what are you guys doing yeah i think you know i think there's a school of thought i think what you're saying there's kind of a school of thought that you know this may be the top of the market and why would you want to buy when prices are you know overinflated yeah um you know it's interesting you know it's interesting i think i think we've been in this business long enough to know that things do cycle uh we've been through you know four or five of those in the 30 years we've been in business um and and i think you know i think um you know it you you could make a very strong argument that we are sort of in the you know the the the top of the market or maybe

even have crested here recently and they're softening up a little bit um our strategy is not necessarily to time the market uh when we invest in in real estate we usually look at holding them for kind of a five or excuse me a seven to ten year hold um so in that window you know we're going to see good markets we're going to see bad markets and then we're making you know multiple consistent investments over you know over decades so that portfolio today that that that we own is probably you know 30 40 different assets um and we're not trying to time the market with So, yes, there are times when, you know, we probably are making better buys because the market is soft. And certainly some of those assets that we bought after the crash, you know, in 2009, 2010, that are just now maturing, those assets have been, you know, super good investments for us.

And maybe the ones we're making today, if we look back, you know, five, ten years from now, you know, they may not have produced those same kind of returns. But it's kind of like dollar-cost averaging investing in the stock market. You can't necessarily predict what the market's going to do. And as long as you're making valid and thorough and astute underwriting assumptions in your acquisitions, You should be able to weather the storm on those cycles if you're not over-leveraging the asset and taking too much risk. And that way timing doesn't really matter as much. Yes. So you mentioned the crash of 2008.

And we were wondering since you guys – the real estate market was the focal point of that and it got hit really hard. What was your company's experience with that and did you guys learn anything from it? oh boy did we learn uh from that yeah it was uh yeah those were hard days um what was unique about that crash and we've been through a you know number of cycles even before that um is how deep it went um usually those cycles before that you know you'd see there there were real estate investors who got hurt and got you know had to go through bankruptcy and that kind of stuff in those prior cycles um but they were usually the ones that were you know taking a ton of risk and high leverage and those kinds of things so one little blip on the you know on the market um impacted

this one uh oh eight oh nine um you know that one just it cut so deep that even even risk averse sort of you know uh you know low leverage type of investors uh were impacted uh heavily the unique thing about it in our space was that um uh it was really a a crisis of credit uh of debt um and it wasn't necessarily particularly in the in the multi-family world it wasn't necessarily a demand problem what what happened if you if you read about it um you guys who may not have experienced it firsthand uh really what happened it was a it was a housing crisis uh primarily around the single family uh you know residential market uh that all drives sort of that free credit that was that was fueling that um uh that demand all dried up and so so so those people couldn't afford to

buy houses or those who had had uh over leveraged themselves to buy a house lost the house excuse me and um what that meant for us in the apartment world is frankly a lot of those people had to move out of a house and move into an apartment so there was actually a spike in demand for our product um uh during that during that cycle excuse me that's yeah that's kind of what we we assume that more people more people started to lean towards renting instead of buying since they were you couldn't get those ridiculous loans that you were able to get prior to the crisis now when you guys look for like a building that you want to buy what are you looking for exactly like is it the area is it you know what is it that you go through what process do you

go through to find a building yeah you know the old adage in real estate is location location location and i think that that you know that rings true with us as well yeah but everybody's got a strategy right um our strategy is is typically to look in suburban markets so what you see in the in the core of downtown seattle and even bellevue is those markets cycle up and down pretty you know pretty highs and lows when when when the market moves um and there's a lot of risk that's associated with that we like being in the suburbs because the metro market will will rise and fall with job creation and economic cycles like we're seeing in Seattle right now. But when the market softens, those people don't necessarily move away.

So take an Amazon employee today, right? Amazon's been hiring like crazy, so we've been renting, filling up all kinds of apartments. But as soon as Amazon starts laying off or slowing down, those employers are probably going to move somewhere else. They're going to go to HQ, too, somewhere in, you know, in Virginia or New York or whatever. But if you rent if you rent an apartment in in Arlington or in Puyallup and, you know, Amazon starts laying people off, you're probably not going to move. You're probably not working for Amazon or or or someone like that. You're probably, you know, have more of a working class, you know, blue collar job, maybe, you know, something in the finance or, you know, insurance type worlds, those kinds of things.

And so those what we find is that those properties are more stable. We don't go through the peaks and the valleys. And then there's not as much competition for them. Everybody wants to, you know, own the big, sexy high-rise downtown Seattle, and they kind of look past the little old garden-style apartment building, you know, out in the suburbs. So we would, you know, you could kind of call us the, you know, suburban, you know, quality assets in the suburban markets that, you know, are looking for long-term holds and nice, you know, nice stable returns. Got it.

So that would kind of – we're running a little low on time here, but I wanted to ask what is one of your – if you have one, do you have a favorite property that you've ever bought? You're like, all right, this is the one. I love this one. Or you got it at a great deal. Do you have one spot that you really liked? Yeah, I've got a lot of those. I don't know that there's an asset in our portfolio that we don't like right now. I mean, there's certain ones that we like that we think will perform better than others.

We've got we've got an asset up in Bellingham that two hundred and twelve unit property up in Bellingham in kind of one of the newer neighborhoods developed up there. And we've owned that asset for six, eight years. Probably it just performs like a champ. We like Bellingham a lot. It's a very stable market. It's actually a much more diverse job story up there than you would think. There's heavy influence from Canada coming down there. There's a lot of retired folks in that space, so very, very strong, stable asset there.

We've got a property in Stanwood that was really just a great buy. We ended up – we bought an existing property, and then we bought an empty goat farm next to it, and we're able to develop another 100 units on that vacant land that really took us from about a 100-unit property to a 200-unit property, and that scale has really enhanced the performance of that asset. We had a deal in downtown Seattle. I shouldn't say downtown. It was in Ballard that we bought at the bottom of the crash.

It was an apartment building that someone was trying to convert into condominiums, so they had really tricked it out with granite countertops and stainless steel appliances and all that, But they lost it back to the bank, and we ended up buying it from the bank, turned it back into apartment product, just regular rental product, stabilized the asset, and sold that here about a year or so ago and did really, really well on that asset. So there's a number of them like that. Every one's got a different story. There's different reasons why you, you know, some of it's just a pure financial leverage model. Some of it's, you know, development opportunities.

Some of it you're catching, you know, a rise in the local market, the neighborhood, you know, those kinds of things. And so that's really the expertise of the business that hopefully we've built that over the years to be able to identify those opportunities. Yeah, that's good. That's kind of it, all of our questions for the actual real estate in your company. One last sign-off question. Notre Dame's done pretty well. Are you going to the playoffs? yeah uh well you know we're all just playing for the chance to get uh get our butts kicked by

alabama i think at this stage they they look like a formidable foe uh and we'll see if uh if we go i am uh i'm not gonna go to the playoff game it looks like we're gonna probably end up playing in um in miami and likely against clemson um uh so i don't think i'm gonna go that far but if they go to the national championship i'll i'll be there for sure for that one regardless i went back in 2012 when we played and got embarrassed by by alabama but uh one of these one of these years we're gonna win it and uh i'd kick myself if i wasn't there yeah that'd be awesome all right well thank you for coming on um it was great to have you yeah thanks for doing this sean okay guys thanks a lot see you later that was our interview with sean hoven we want to thank him again for

coming on now we got one last segment which is are you calling me a liar i ain't calling you a truther all right so how does this go yeah so we've done this one before but if you didn't listen to that episode which you know so many people did but uh basically i found some articles online that i think are pretty ridiculous and i also came up with some fake ones and ryan's gonna try to guess if these are real or fake and then we're gonna see how he does so i'm seeing if he's a liar or a trutha yeah all right first one first one we got going uh floyd mayweather and dj khalid uh were fined by the sec for pumping up fraudulent ipos now uh i actually heard about this so i am gonna call you a trutha okay give you a little free pass there but if i didn't if

i hadn't heard about it i would think that's ridiculous and i'd probably say no okay um yeah What exactly happened? Yeah, so Floyd and DJ Khaled, they kind of just pumped up this crypto thing and they got paid to do it. But they didn't tell people that they were paid to do it. Turns out, like most ICOs, they were all – it went to zero. Everyone lost their money. And like Floyd and DJ Khaled got paid like $300,000 each to do this. And then they got fined like $750,000 I think, somewhere around there.

Yikes. To me, that just makes sense. I totally see that happening. You know, for Floyd being the highest paid athlete of all time, it sounds like he's trying to find a lot of ways to make money still. He might go broke. And DJ Khaled, he might have took that, you know, it's kind of a major crypto key, right? Another one. Yeah, another fraudulent SEO.

Next one. Next one. A security lapse at 1877 Cars for Kids. Throwback, remember those? Their database exposes thousands of donation records. Oh, gosh. I'm going to go Trutha. I'm calling you a Trutha.

Yeah, that's real. Yeah, I don't think you're creative enough to come up with that. Okay, yeah. I just thought this one was so funny. Those commercials were probably one of my favorites of all time. You should go look them up if you haven't. Yeah, so they exposed some, I guess, some data, which, you know, every company does this these days. But, yeah, they kind of, you know, dropped the ball.

Donations on cars for kids. I know, because kids definitely need cars. Yeah, there you go. um all right next one yeah next next one this company is selling from sweden is selling three wait stop i'll stop you there i'm gonna call you a liar on this one okay let me say it first let me say it first all right swedish company is selling bottles of swedish air and people are buying it that's not real i don't think that's real it's not that is not real but there is a canadian company selling canadian air so there is there is a company selling canadian

air in a can air in a can yeah they're buying it people are buying it for 20 dollars so why i don't know that okay next one yeah our favorite guy kevin o'leary um mr wonderful we talked about him a couple times before real bearish on apple now he says if you want to get rich you got to start working 25 hours a day seven days a week oh uh that does sound like an o'leary quote i'm gonna go truther calling you a truth you're doing well you'd be right looks like our guy kevin broke the space-time continuum yeah yeah so you know anyone out there not working 25 hours a day i mean step up your game come on guys yeah come on okay last one last one here we go i'm gonna get you with this one a cow in australia cow in australia has been found out to be the biggest cow in the world

I saw that. I saw that truth. Okay, I'm calling you a truther. Yeah, well, turns out all the articles were fake. But the articles are real, so you are telling the truth. No, because the articles said that they're real, but turns out it was just a fake picture. Like, those cows around it were actually tiny cows, and that was just a regular-sized cow. So, kind of a trick there, you know. So, four for five.

Yeah, you did pretty well. I'll take that. Prove it last time, I think you only got two or three, so. Yeah. All right. Well, that is going to do it. That's going to wrap up our show. And as always, we want to remind our listeners that we are not financial advisors. Anything we say or discuss here on Chit Chat Money should not be formal advice or recommendation. If you like the podcast and you are interested in more of our content, follow us on Twitter, at ChitChatMoney. You can also check out our strongly opinionated articles on MarketBrothersMedia.com. Thank you for listening to this episode.

We'll see you back here next week. Smarter.