Epic Real Estate Investing - 16 Disruptive Business Trends for 2022 - Joel Block | 1174

Episode Date: January 13, 2022

In today's show, Matt is joined with the longtime friend of the show, Mr. Joel Block to talk about 16 disruptive business trends for 2022. But before that, you will learn how to leverage debt in real estate, because leverage is what makes real estate investing such a lucrative business! And you're ready? Let's go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. On today's show, we're going to sit down with a longtime friend of the show, Mr. Joel Block, and talk about 16 disruptive business trends for 2022. But first, let's take a look at how to leverage debt in real estate. Because leverage, it's what makes real estate the magic investment that it is. And every real estate investor, or every person that wants to be rich, for that matter, should know how to explain and do. You ready?

Let's go. Welcome to the all-new, Epic Real Estate Investing Show, the longest running real estate investing podcast on the interwebs, your source for housing market updates, creative investing strategies, and everything else you need to retire early. Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, EpicR-E-I.TV. If you want to make money in real estate, sit,

tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to rei-aise.com. Here's Matt. Leverage in many contexts has a negative connotation, but it is the very thing that has real estate standing on top of the mountain, having created more wealth for more people than anything else on the planet. You see, leverage is available to the average person in real estate, unlike any other asset class. At the very least, you can cut your journey to financial freedom in half. And that's a very conservative statement at that. So I'm going to go into what does it mean to leverage real estate. And then I'm going to go into two specific benefits. And the second one, nobody talks about. So first, what does it mean to leverage real estate?

Well, in most scenarios, it means to borrow money to make the purchase. And traditionally, someone would walk into a bank. They'll apply for a loan. The bank will give them the approval. then they can go out and they can shop for the real estate. And that buyer, they might put 20, 25% down. Then the bank will fund the rest. And now that buyer owns the real estate. Although there is debt on it, they are the official owner. That's how you leverage debt to buy real estate.

Now, there's two specific benefits to using leverage in real estate. And the first one, most people commonly know. When you're using leverage, it increases your ROI. And I'm talking about your return on investment. And this is how most people see it. So let's say I've got this house. We'll just say it's worth $100,000 and you're going to put $25,000 down and you're going to leverage the rest, meaning the bank is going to bring in the difference.

They're going to bring in $75,000. You now are the owner of the house and you get to experience all the benefits of owning a house. And one of the biggest benefits is the appreciation of real estate. And on average, real estate appreciates about 3% a year. So after one year, the appreciation on this property, 3% of the $100,000 is going to give us $3,000. That's how much we made on the appreciation. But what's our return on investment? Because it's not 3%, because we didn't invest $100,000.

We invested $25,000. So we take the $3,000, we divide it by the $25,000 that we put into it, and our return on investment was actually 12%. This is what leverage does for us. This is what we call our appreciation profit center. And this is what I call my ROI matrix. So up here is the appreciation. And this is the thing that most people think about when they buy real estate. How much is it going to appreciate? Will it be worth more when I sell it than it is when I buy it? And you'll know this, this is what they're thinking about because you'll hear questions like, is this a good time to be in real estate? And what they're thinking about is it a low time to buy so they can eventually sell for hire.

Now, the return on investment doesn't end with appreciation. There's four, three other profit centers for real estate. And the second one, the more sophisticated investor will think about is our cash flow profit center. So for the sake of ease, just for this example, for efficiency, let's say this property cash flows $250 a month. Annually, we've multiplied that by 12. That gives us $3,000 a year of positive cash flow. So we'll now look up into the cash flow quadrant up here, this upper right-hand area, and there's another $3,000 we made. So what's our ROI now?

But we're going to take this number, the annual cash flow number, and we're going to divide it by how much we invested into the property. We didn't invest the $100,000, right? We invested the $25,000. So we'll divide this by the $25,000. And we have an additional 12% return on. investment. But we're not done. We've got two more profit centers. We've got the depreciation and we've got the amortization. And most people don't even count these as profit centers.

They're oblivious to them because this we can kind of feel and see when we go to sell the property. This we feel each and every month because it comes flowing into our mailbox. But these two, we don't feel. The depreciation are the tax benefits from the real estate. So this isn't necessarily money coming into us, but it's money that doesn't leave us. It's money that we don't have to send to Uncle Sam. So the tax code works like this. The IRS will give you a tax deduction based on the natural wear and tear of the property. And they will allow you to depreciate the structure. They won't allow you to depreciate the land that the structure sits on. They'll allow you to depreciate the structure. And so their formula is to take 80% of this. So you're going to have $80,000

that you can depreciate. And they allow you to. allow you to depreciate that over a 27 and a half year period where they came up with a 27 half years. I don't know. That's what the code says. So what we do is we divide this by the 27 and a half years. And what that gives us is $2,9009. That's our deduction. Now we have to multiply it by the tax bracket that we're in. Let's just say we're in a 33% tax bracket. So that gives us $960. That's an actual return on our investment. And what was our investment?

That's right. $25,000. So we'll divide that by the $25,000. And that gives us another 4% return. Now, the last profit center, which is actually my favorite, because if the cash flow is what's going to set you free from that rat race and allow you to live your life on passive income,

this is going to give you your livelihood, the amortization, this is what's going to build your wealth. This is the actual paying down of the debt that you borrowed from the bank. And who's paying it down? It's not you. It's your tenant that's paying you your monthly rent, right? And the way that a 30-year amortized loan is calculated, you pay most of the interest up front and most of the principle at the back end.

So it's going to be really minimal the very first year. I'd say maybe $1,000 is as much as you'd pay down from the debt. but it's a real return. And so what we're going to do now is, once again, divided by how much we put into the deal. That's right. $25,000, right? And that gives us about another 4% return or so. So by using leverage to buy your real estate, what you've done here is you've created a 12 plus 12 plus 4 plus 4,

a 32% return on your investment in just the first. first year. So how did your stocks do? How did your 401k do? Did you get 32% last year in your stocks? Probably not because you can't leverage those. You can leverage the real estate though. Now, the second benefit of using leverage that nobody talks about is you haven't used all of your money. It frees up more of your money so you can buy more, only compounding the benefit that you're getting by using leverage in the first place. Now, before I get to the bonus benefit, I didn't share this with you at front, but I'm going to share you with you. a bonus benefit that almost no one ever even talks about. Leverage doesn't just end with

leveraging other people's money. You can leverage other people's time, other people's credit, other people's resources, other people's experience, other people's expertise, all of which can not only increase your return on investment, but preserve your most valuable asset of all. We'll be back with more right after this. Boarding for flight 246 to Toronto is delayed 50 minutes What? Sounds like Ojo time. Play Ojo? Great idea.

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call 186653300 or visitcomex Ontario.ca. Remember that person that gave up on their real estate investing dreams? Neither do I. Let's keep going. Back to the show. Our guest today, hedge fund manager, venture capitalist and CPA returns to the show, longtime favorite friend of the show to share his annual business trends report. So please help me welcome to the show, Mr. Joel Block.

Joel, welcome back to the show. There we go. Hey, good to see you, Matt. Likewise. You're looking good. Losing some weight? Well, not since last time. Not the last time.

Okay. Well, it's been maybe since last year. It's showing good on you. So anyway, perfect. So you got your new report out. And so I want to talk about this as real estate investors, we are business owners. And a lot of these trends can apply to us, whether it's directly or indirectly. So I want to dive into those.

And we probably won't get to all of them, but we'll certainly give everyone the opportunity to download the whole report and get it. a copy for themselves. But let me just ask you real quick, Joel. What inspires you to create this report every year? We know each other a long time. I spent my career in the venture capital and the hedge fund businesses. And what that means is I look forward in time. I look for deals that I can get involved with, whether they're real estate deals, whether they're companies, with their films, whatever it is, I look for deals that are likely to be successful. So I'm always looking forward in time. I've kind of got a knack for this sort of thing. And it's sort of what people ask me a lot

of questions about. A couple years ago, we started putting together what we thought were the significant trends. I mean, you got to remember that every one of us, whether we're investing in real estate or otherwise, we look forward in time, we assess the situation, we calculate the odds, and we place our bets. And you may or may not know this, but I came from the world of professional gambling. I used to be a card player. And by the way, at Las Vegas, where you live, calls experts in games of skill, advantage players. And I was always referred to you. I was nicknamed by Las Vegas an advantage player. And so this is, so this trend report really is about helping other people to be advantage players to get the advantage and make advantage plays. And that's really where this

all comes from. Got it. So you kind of said that you make calculated risks. You're a gambler, right? Well, I'm not a gambler, but I take out calculated risk. Former gambler that takes calculated risks. Got it. So what type of calculations are made and what type of research goes into developing your predictions. First of all, one of the most important things is that I've got some very good friends. I've been in the Wall Street business for a long time. People who are on the inside track tend to know things other people don't know. So I factor in some of the hearsay from people who I know and trust. I also take the environmental situation, what things are happening in the environment, the economics, the inflation that we're dealing with right now,

the way that the government is dealing with the debt and some of their problems. I look at those kinds of things. I look at the political circumstances. I look at all these things. These things are all, to me, they're all capital. We all think of capital is money. But to me, capital is any tool that you use to move your business forward. So it could be financial capital. There could be economic capital. There could be political capital, social capital. And I look at these different kinds of capital. And I think to myself, which of these are likely to have the big impact on this? And I ask two questions predominantly all the time. One is when somebody gives me a fact, I think to myself or say out loud, sweat. So what's the impact of that? And I think about the impact. So for example, if somebody said there's going to be

inflation, so what's the impact of that? Well, that means that prices are going higher. I mean, there's a whole chain of things and we go through this whole path. And as we go through this path, we kind of figure out where we're going to be. The second question, after you've asked the impact, is who wins and who loses. So if there's inflation and if there's price, increases and if these different things happen, who would be the winners and who would be the losers? And so we sort of take a very methodical approach about thinking about the future. And we encourage companies to do that. We encourage real estate investors to do that. We encourage all sorts of people to do that. And it's a lot easier to look at the future and do that.

And that's what advantage players do. Advantage players look at the future. They're smart about it. And they have a way of looking at it that other people just don't. Got it. So you've got 16 real trends that you're looking at. here. And we'll give everyone the opportunity to go ahead and download the full report for themselves. But I just kind of picked out three that I thought were really interesting. And I thought I could just kind of touch on those. And then you could go ahead and elaborate. Okay. So this is something really interesting. And I pulled this out because I see this somewhat in social media comments all the time when we're talking about a real estate bubble or a housing bubble. And

that all expression, inevitably always shows up. What goes up, must come down. And I don't know if this is exactly what you're referring to real estate, but I was always thinking like, no, I actually doesn't. And I noticed this is trend number five. What goes up does not always come down. So what do you mean by that? Well, listen, we're dealing with significant inflation. The government has failed to really acknowledge the damage or the level of the inflation that we're dealing with right now. The Fed is just barely starting to acknowledge it. They acknowledge it a couple weeks ago with basically stopping their stimulus program and also Also, they acknowledge it because they're going to increase the rates slowly over time.

They don't want to do it a lot because they don't want to shock the economy. But what that means is, number one, is there's been this whole thing that inflation has been temporary. It's a transitory effect. Well, transitory, I never believed it was transitory. Maybe at first, we all kind of thought there was a little ripple. But there's this blame on the supply chain. There's blaming all this other stuff. But when people can't get labor and there's all these, 20 different things have changed in our economy all at one,

It's possible that some of the prices are going to go back down when shipping prices come down. Shipping will come back and certain other kinds of supply chain issues. But what doesn't come back down, and we're not talking about real estate, Matt, although everything affects real estate. We'll get the real estate second. But what doesn't come back down is labor. When you offer somebody $20 to make a hamburger in and out or whatever the hamburger plate, you can't go back to them in six months and say, okay, look, the inflation's over now,

so we're going to bring you back down to $10 or something. other rate. Inflation that affects labor never, ever correct itself. So the price basis that a lot of companies are dealing with is distorted permanently. It is just completely out of whack now. And that's just something we're going to have to get used to when we're going to have to deal with. So inflation affects certain kinds of prices. And even if certain things come back down, there are prices like labor that will not come back down. So what's the impact on real estate? Let's think through that for a second. Well, some people might have a little bit more money to pay a little bit better rent for their apartments and other things.

Some of the workforce may be a little bit better. I don't think that a $4 or $5 increase makes all that much difference, but maybe it does for some people. But for landlords, and here's really there's some good news, is that real estate prices are going to start training upward because when there's inflation, people don't want to leave wealthier people, don't want to leave their cash sitting in cash. They want to put it into assets, assets that increase in value with inflation. As rents go higher, real estate prices go higher, unless those things are financed by debt, and then you might have because debt prices might go higher, although the interest rates that the Fed is contemplating going up are the short-term rates, not the long-term rates.

Real estate prices still should go a little bit up, and that could be good for all of us real estate investors. For sure. And I actually see them going up pretty much indefinitely at this point. I mean, kind of the interest rate is, I think, is what could really impact the housing price. But when it comes down to it, just the very basics of economics, supply and demand, we got more people than we got houses. We got more people coming and more are coming. So, listen, we have to look at the housing market.

We have to look at the multifamily market and the industrial and commercial markets. I mean, all three have different behaviors. But certainly the housing market, the single family housing market, very, very strong going forward. unless interest rates go higher because those prices are largely a function of the payment that people are going to make. And if interest rates start going higher, that could bring things down a little bit. Right. It might bring the overall price of the property down, but essentially the payment's going to be the same. Exactly.

Right. Super. Trend number 13. Buzzword of the year, democratization. So what does that mean? Well, I don't know how it's been for January 6th, right? Hey, look, coincidentally, when you talk about that, the democracy of the United States, the whole thing, I'm not so much talking. This is not a political phrase.

Right. This is really a democratization is kind of a theory. It's kind of a concept that people are going to have more access, open, broader access, and everybody's going to be able to do things. The Internet has democratized access to information. It's sort of a buzzword. It's been thrown around for a long time. Crowdfunding is access to capital markets better. It's going to make access to deals better for all kinds of people.

These promises tend to be a little hollow. And I'm not such a cynical person. I'm really a rather optimistic person, but I just want to be realistic in some of these things. When you talk about certain types of technologies democratizing things, there's always a hidden agenda. And I just want to caution readers who are looking at the world to understand what the hidden agenda is,

because if you understand the hidden agenda, then you're going to make better decisions. As you're starting to make your calculations, like we make a lot of calculations, you're going to probably be more accurate. So here's the bottom line, is that Matt, you and I talk a lot about cryptocurrency, and I imagine we'll be talking about that here momentarily. But everybody says that cryptocurrency is going to democratize finance

and decentralized finance is going to democratize things and give more people more access. If you think back to what happened in the 1990s, when the Internet first came on, one of the first industries that blew up were the travel agents. They were the people who they used to get paid 10% for making an airline reservation or whatever they'd call the airline for you, they'd take care of it because it was, that's how it was back in the 90s and before.

Well, as soon as the internet came on and everything became self-service, we were democratizing things. And so we immediately blew up the travel agents and we thought, well, no more need for these intermediaries. Well, that in fact is not true. What was true is that companies like Orbits and Expedia, they became the intermediaries. They became the travel agents who then demanded fees for connections to the airlines and the different places. So they actually insert themselves. So I like to think of democratization. It's not about disintermediation getting rid of the middleman. It's really more about reintermediation, blowing up one middleman and reinserting another middleman instead. And when you think about it like that, that's a totally different way of

positioning this situation. But democratization, it's aspirational. It's a terrific goal. It doesn't tend to work exactly how people say because you're not really giving the reins to the people. You're really giving the reins to some other company who's got a hidden agenda of inserting themselves as the new replacement intermediary. And that by itself is pretty significant. So if you pay attention and you understand the hidden agenda, you're not likely to be fooled by it when you hear it. Right. So maybe touched on it. So what's the impact of democratization for things that aren't democratized yet? Or what do you see happening that? Well, what I'm saying is that it's sort of a shroud for it gets people to let their guard down so that we can pass new ideas on people that would

otherwise probably push back. So if there's an idea that somebody wants, like let's say cryptocurrency, well, hey, it's a great idea. I personally am very bullish on it, as I know you are, but let's say people who are not well understanding of it. There are other people who would say, he, listen, it democratizes access to finance and it's going to be a really good thing. And so people lift our guard down and say, okay, maybe it's a good thing. I just want people to know that, although that I believe is a good thing, we are not going to eliminate intermediaries. We're just going to shuffle the deck and get different intermediaries in this process. So it's sort of a way that people, it's sort of a manipulative phrase, and then it gets people to behave in the way that

some people would like to see us behave and so they can get their way. Got it. Okay, so we're talking to Mr. Joel blocked today and his annual report, he comes here once a year to share his insights and predictions for the coming year as they pertain to business. And if you have any questions, go ahead and use the chat box and Joel hang out to answer those questions. I got one more trend that we're going to cover. And then we'll give you direction if you want to download this full report to view all 16 of them. You'll have the opportunity to do that. All righty. So number one, it was the number one trend. And we kind of alluded to it already. Cryptocurrency is the future of money. Now, I've been dollar cost averaging on very small increments since 2017. I mean,

like, I started at just $25 a week into various opportunities inside of cryptocurrency. And here we are just, what, four years later, and my cryptocurrency portfolio now, its value now exceeds my real estate portfolio. And I really didn't do anything, right, other than just go ahead and make those little incremental investments. And I'm really shocked. I mean, I thought I was going to to do that, but now that it's reality, I'm like blown away and I'm like, I have to pinch myself sometimes. But it hasn't really become money yet, right? It's kind of speculative investments on a new technology that's going to potentially, the blockchain specifically replacing the internet and decentralizing or democratizing the internet. And we have these cryptocurrencies that we're

going to use to pass value back and forth. But I'm curious as to what your thoughts are of why you think it is the future of money. Well, I think you have to separate what cryptocurrency is from the machinery that makes cryptocurrency run. Most people think of cryptocurrency as Bitcoin. That's just one of 16,000 different Bitcoin, different cryptocurrencies that are out there. And each cryptocurrency is actually a little software tool that accomplishes a certain goal. I mean, there's a certain reason that each of these things are developed. They have a little business plan behind each one. It's not like stamp collecting or coin collecting where you're just speculating on some coin that's going to go higher. That's not what this is. I mean, these really are, they're software tools. And these software tools are designed to

execute certain kinds of contracts. They're designed to facilitate commerce and someone to lock down artwork and manage intangibles. There are all kinds of different reasons that people are developing these different cryptocurrencies and these tokens or these coins. So let's separate the investment, the speculative investment in the coins, which you and I are both doing, from the machinery that makes them run. If you ever moved money to someone, like in the old days you'd send somebody a check. It would take a couple weeks from one bank

to clear a check to another bank. And if you ever saw that movie, catch me if you can. The fact that it took two weeks is the way that the guy exploited the system and was able to write all these bad checks and nobody could ever catch them because it took so long.

And then it got faster. Now they clear checks in a day or two. Believe it or not, it still takes a day or two and they're still doing it manually overnight. If you want to send money by wire, You go to the bank, it's a very big deal, that I've got to check my account, see if the money came in. I mean, it's still, it's not that smooth.

Things like Venmo and PayPal make it faster. They move the money back and forth, but there's an intermediary in between. The cryptocurrency machinery makes it possible in that for you to send money to me or me to send money to you instantaneously, almost frictionless, for pennies, if not even less. And so a lot of the need for the intermediaries that we have

are evaporating. The intermediaries in the finance world are getting ready to get blown up, just like the travel agents got blown up in the 90s. Now, you can imagine that there are a lot of companies who are very upset about this. The credit card companies, the Wall Street banks, the mortgage companies, the financial advisors, all these companies are pretty upset about this, and they're terribly nervous about what's about to happen. And so the SEC, who is chaired by a former golden guy, a Wall Street guy, has been dragging its feet on determining whether we have cryptocurrencies, are they the same? Are they commodities like potatoes? Are they securities like stocks? We don't know. We haven't been given guidance. There's 35 bills in the United States Congress,

right? This is that are just sitting idle because the government's not acting on them. We need guidance. In order for this to happen. Now, when the internet came on 30 years ago, we were the leading country in the world that took the bull by the horns and we made the thing happen and look at what happens. The five biggest companies on the planet are United States companies and they have trillions and trillions of dollars of market cap, we're not doing the same thing in the crypto markets. Other countries are doing a better job of this.

So what's likely to happen? My prediction in the report is that in 15 years, the United States, is absolutely going to be on a cryptocurrency backbone. It won't be Bitcoin, there'll be some other coin, but we're going to be absolutely on some type of a platform

that is digital in some capacity. And that may not have involuntarily. That may happen because we get forced into it by our trading partners who were so much further ahead than us and we spent all of our time playing catch up. So I hope the United States catches on. I really hope that these regulators start making some rules. And for the people like on Wall Street, the Wall Street banks, the credit card companies, the way they're trying to protect themselves because they're so terribly nervous of what's about to happen because they see the

writing on the wall. I mean, this isn't some kind of a shell game. I mean, this is a real. What they're doing is they're making giant investments in the machinery that makes all of this stuff work. And when you just look at the behavior of the players, this is real. So a lot of regular citizens who don't have access to the intel probably don't really understand what's going on. They don't really know if it's real. They don't know if it's going to become something if it's just a lucky speculation and you made a lot of money and that's it.

But I'm here to tell you that this is real. It's not going away. This is not financial advice about speculating into certain coins. But the machinery that runs cryptocurrency, it's doing trillions and trillions of transactions every day because these coins move back and forth. It's enormously more efficient than our stock markets. It's just better. It's application of great technology to our financial system.

And although the government's terrified of it, and they're paralyzed with fear, it's real and it didn't go in away anytime soon. Two applications for what I've been able to use it recently. in real world applications is we were doing a rehab here in Vegas and our contractor needed his second disbursement of the rehab funds and I said it's going to take me a minute I got to go down to the bank and I got to take a check

and then I got to take it over my business account and so I can take the business account then I can wire it to you. And it was, I said, or if you have a crypto wallet, I could get it to you today. He says he actually did. So within seconds,

I was able to give him his funds just like that rather than taking this 48, 72-hour process and me able to get up and actually leave the house. Yeah. So that was, I was like, oh, my God. And I went to the bank on another occasion, and they have no clue. At least the tellers that are working there have no clue.

They're like, what are you talking about? I was like, you guys are done. You guys are done unless you guys get this figured out. And the second thing that I've been able to do, because my crypto portfolio has grown to such a nice size, is now I can actually borrow from it. And I can borrow from it, and I've done that to pay the down payment.

on two different house purchases. And it's instant. I just say I would like to borrow and I give it to me. There's no credit check. There's no intermediate intermediary that I have to talk to and or no applications to fill out. I mean, it was a wire transfer that literally was in my bank account probably within two hours. Yeah.

Young people are demanding these kinds of changes. Young people don't really see themselves getting loans from banks anymore. They don't really see themselves going into banks. There's nothing really that banks do or offer that young people believe is going to be helpful to them. There's so much cynicism in our society, largely created by politicians who probably deserve it, fortified by media, who just keep making these stories worse and worse and worse. So young people are very fed up with this, and they're saying, well, we need a better and different way to do it. We need a more fair way to do it. And they really believe in some of these

technology tools where computers are the referees instead of people who have a hidden agenda. So older people may have a harder time understanding this, but once you've tried how this works and you see how smooth it is, you'll recognize that there's no going back. Right, right. Kind of like what goes up. It doesn't always come down, right? There's no going back. There's no going back.

So let's kind of wrap this up. I'll throw you on the hot seat a little bit. And to make this practical and actionable for real estate investors, what are three things out of all 16 of your trends? What are kind of three things that real estate investors can do or at least focus? on to benefit from this year's trends. Number one, I think people have to pay really close attention to the inflation and the economy. I mean, the economy is changing.

We've had a steadily escalating market for years. And many real estate investors don't even remember anything else. They don't know what a cycle is. They don't know what the up and the down is. We're about to go into something that's a little different than where we've been for the last 15 years. I mean, it's there are 13 years. It's about to change and people need to be aware of that. That's probably the first one.

The second one is sort of residual from 2020 and 2021. A lot of companies went broke. A lot of companies lost their real estate space. A lot of companies had a lot of problems. And that opened the door for other people to go in and buy those companies. That door is still open. There are still companies that are losing their leases, but they're losing them for different reasons. Number one, the Omicron thing, I mean, people were back to 2020 where there's shutdowns and cancellations and all sorts of problems are starting to happen.

So there's going to be some financial distress that's going to come from that. There are going to be people who are going to be in a hardship. But there's another area of hardship that bankruptcy attorneys and other people are talking about. And that is the supply chain is making it difficult for businesses to get product to sell. And if you don't have product to sell, you can't generate revenue. So there are companies that really are suffering from some of these short pandemic related issues. And you need to pay attention to some of these companies because they're going to be losing leases. they're going to be losing buildings, and they're going to be having some problems that

savvy real estate investors can take advantage of. So there are some real opportunistic situations that are on the horizon that people can jump into. For sure. The third thing comes back to the fintech or the cryptocurrency, the virtual technologies that are going to be powering our finance system going forward. Be on the lookout, probably not this year, but sometimes soon for these, they were originally called ICOs or initial coin offerings. The government hasn't given a lot of guidance on how these things are going to be done, but the tokenization of real estate, in other words, if you're syndicating, which people know me as a syndicator, that's where my background is. They know me as a fund manager and teaching other

people how to set up funds and do this sort of thing. If people are really thinking about this, one of the things we're going to see in the future is that private placements are going to, the process of private placements, the mechanics are going to be a little different where you'll still have the disclosures prepared by the attorneys, but instead of getting shares of stock, people will probably get their interest represented by tokens. And they'll be able to buy and sell those tokens, move those tokens, secure their tokens, and hold them in certain kinds of wallets in different places. So that's something that's on the horizon that doesn't exist exactly yet.

Right. But be on the lookout for it. Yeah, for sure. Okay, so those are great. One, pay attention to inflation. And essentially, by just owning real estate, you are probably as hedged as you can be by holding real estate against inflation. Two, look for problems.

We're all problem solvers as real estate investors. We're looking for financial distress, personal distress, and the properties themselves that are in distress. And because of what COVID continues to cause and the supply chain issues, there's going to be more and more problems. And it might be for an actual business. It might be for the properties that that business owns.

But remember, all businesses are owned by people. And those people, they live in houses too. So keep your eyes open for the problems, as always. You follow the problems and the profit will follow. And then the number three, the tokenization of real estate. And this is something I'm really interested in right now in doing a lot of research. And we'll be talking about it much more this year on this channel. So really appreciate you, Joe.

If they wanted to get a copy, what are the instructions on how to do that? If they take out their phone and they just opened the texting app and they type in the number 72,000, 7 and 3 zeros, and then they put in the word trend, the system will take them right to that. I would also tell your real estate people to do the same thing. in the texting app, put the number 72,000, and then put in the word asset. The word asset will send them a series of videos, all about syndication, funds, raising capital, and kind of understanding the things that we're involved in and what we do. And then they become part of our world, and then they continue to get some of our feedback and some of our material. Perfect. So text the

word trend to 72,000 to get a copy of the report, and then text the word asset to get some education and information about what Joel does text the word asset to 72,000 as well. Thanks for sitting tight while we pay our light bill. We'll be back right after this. At Desjardin, we speak business. We speak startup funding and comprehensive game plans. We've mastered made-to-measure growth and expansion advice, and we can talk your ear off about transferring your business when the time comes. Because at Desjardin business, we speak the same language you do, business. So join the more than 400,000 Canadian entrepreneurs who already count on us and contact Desjardin today. We'd love to talk, business. And that wraps up the epic

show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know who the whole world, we got to cash flow. Canada can be a global leader in reducing the harm caused by smoking, but it requires actionable steps. Now is the time to modernize Canadian laws so that adult smokers have information

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