Epic Real Estate Investing - Current Events and Economics that Impact Real Estate Investors: Jason Hartman | 1129

Episode Date: March 4, 2021

In today’s episode, Matt is rejoined with Jason Hartman, an investor with several thousand real estate transactions and CEO of The Hartman Media; a company that has produced 15 podcast shows, 11 books, and several newsletters. Stay tuned as these two gentlemen discuss current events in the real estate market and how YOU, as an investor, should act under these circumstances. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's.com.

Here's Matt. Hey there, rock star. Matt Terrio from Epic Real Estate, where we show people how to invest in real estate using more of their mind than their money, more of their head, less bread, using creative real estate investing strategies with an emphasis on retiring early,

bringing to you housing updates and all kinds of other cool stuff. We've been talking about the news lately as well, particularly the current events as they impact, hat us at real estate investors. And I got some more of that for you today. But if this is your first time here, really glad that you found us. If you like what you hear, make sure you hit the subscribe button before you go. And if this is not your first time here, welcome back. And thank you for sharing this with your friends and family. You're the absolute best for doing that.

We are in the middle of our 11th year. And yeah, we just wouldn't be here if it wasn't for you. And so I am eternally grateful for you sharing this. and continuing to share and continuing to listen and continuing to engage, continuing to take what you learn here and implement it out in the real world and share with me your success. It's an amazing experience on this end. I mean, what I started 11 years ago, I had no idea what it would result into this, but I get emails and text messages and private messages and DMs and all this kind of stuff

from you all across the country. And it's a joy. And thank you. And it's my pleasure. and I've got no intention of stopping. By the way, I am in Instagram jail for some reason. So if you're looking for me on Instagram, I ain't there right now.

And I don't know why. They deactivated my account with zero explanation. So I'm going through the protocol to get it reactivated. And it seemed like we had a decent amount of momentum and working in the right direction. But now they've just gone silent on me. And I got nothing. And I got no clue as to why. But anyway, I've got a great guest for you to,

day. He's actually a returning guest, and he's become somewhat of a, I don't know, an indirect mentor maybe. I've been heavily immersed in everything real estate, everything real estate investing when it comes to lead generation, when it comes to conversion strategies, when it comes to exit strategies and how to compound and maximize our ROI. And recently, you know, over the last years, so I've become a little bit more of a student of economics, the microeconomics, the microeconomics, the macroeconomics and how they all impact what we do as investors. And our guest today is way ahead of me on that. In fact, he's a really smart, brilliant guy.

And so I wanted to bring him on and ask him some of my own questions and just kind of let you listen in. But there is a purpose for it. I think there's a bigger something at work right now. I'm not smart enough to know exactly what it is and what's going on. But I certainly know something is going on. on. And I think we're better off if we are at least prepared for some of this stuff, at least aware of it so that we're not surprised at the last minute. So I'm going to talk about some of that stuff. And I'll continue to talk about that because it's just become a big

interest of mine. You know, if you've been engaged at all over at the YouTube channel, and maybe to some degree here as well, but probably more so in the YouTube channel, you know, there's a little bit, the subject matter is broadening. And, you know, and people are kind of confusing it for more of a political slant. And it's not that. I mean, I don't care who you voted for. You shouldn't care who I voted for. But you should care about what's going on in the world and the actions that are being taken and how they impact us as small business owners, how they impact us as real estate investors. So I'm continuing to bring that and I'm just becoming or growing more and more interested in it and becoming more of a student of what's going on in the world.

I don't know if it's an age thing or an experience thing or just a, you know, just a shift in interests. I'm not sure. But it all comes together. It all impacts us as real estate investors and our financial futures. So we're going to talk about that later on as well. All right. So in the news, markets, the NASDAQ got clobbered again as investors pulled out of big tech

and other stocks that boomed during the pandemic, such as Etsy. And today's main event is Fed chair Jerome Powell, who will like, likely address investors growing concerns over inflation at the Wall Street Journal Summit. So we'll stay tuned to that. As if you're listening to this, that might be today or it might have been yesterday, depending on when this gets released. And then if you're listening to me, a month from now, it might be old news. And if you found me five years from now, which happens all the time, which is unbelievable,

it'll be really old news. But anyway, that's what's going on right now. And then the stimulus with Senate negotiations going on, President Biden agreed to lower income caps for the $1,400 direct payments included in the stimulus bill. So the cap for receiving some amount of payment is now $80,000 for individual filers. I think it was 90,000 before. Now it's 80,000. And then COVID, the vaccine floodgates are opening little by little as Johnson and Johnson's single dose shot gets distributed. More stats are expanding eligibility to people of younger ages. And then additionally on the COVID front, Texas governor, Greg Abbott is lifting the state's

mask mandate and allowing business to operate at 100% capacity effective next Wednesday. So that's, yeah, just less than a week away as of right now. And Abbott defended the decision by citing lower hospitalization numbers and the need to get people back to work. Critics said it will kill Texans. And we'll see, you know, God willing, it does not. But, and God willing, it works out. because I think all of us are a little bit overdue and need to get back to some level of

normalcy, right? I mean, people are suffering and people are certainly suffering from the virus, but there's even more people that are suffering from its indirect impact. So I really hope this works out. Fingers are crossed. I'm more on the alignment that I'd like to see the economy open up and then we'll take care of those that are at highest risk inside of the COVID pandemic. But I am also wary that I do not want to regress.

I do not want to take any steps backwards either. So, you know, where I might have been a little bit more bullish six months ago, I was like, come on, all you wimps, let's go ahead and open this up. You know, I've now come to no more and more people that have been impacted by COVID directly. And so my tune is changing a little bit. I understand it's a serious thing. And, but I understand there's other, there are other people indirectly impacted even more of them. So let's be cautious. If the state and if your state opens up restrictions, still be

careful. I mean, I don't think I have to tell you that. But it would, it would suck for us to open up and then have to close down again. So let's do our best not to do that. So as of this last Tuesday, the governor of Texas, he scrapped the state's mask mandate and said that businesses of any kind would be allowed to operate at full capacity beginning March 10th. So the fallout is splitting the Texas business community like Burt Orange versus Maroon and White Barbecue. I'm reading this from someone else's

explanation of it. I'm not quite sure what that reference means. But I'm sure it was funny if some of you got it. But anyway, retailers, including gym operator Lifetime Fitness, grocer Albertsons, and some local restaurants have dropped mask requirements and they plan to return to normal capacity

or both. But others, including Hyatt, Target, Starbucks, and CVS say they're going to keep mask requirements in place. Many health experts argue the moves could lead to a resurgence of the virus. And that's what I'm hoping that doesn't happen. That's the part that's a little bit scary. So I think we should still be a little bit cautious about that. And some business owners say they're worried because the statewide mask mandate gave them cover

when dealing with mask resistant customers. Ah, I get it. But especially hard hit sectors such as gyms and food services are desperate for normal operations to resume. Yeah, we got to eat. We got to pay for the roof over our head. We got to put food in our stomach, keep clothes on our backs, pay the hospital bills, and do all of that for the people that depend on us for support, our family specifically. So, yeah, I get both sides of it.

Let's just try and let's unify. Let's really unify. Forget what the leadership does and forget what the media is doing, trying to divide us. Let's unify and be safe and be smart about it and continue this progress moving forward. But Texas isn't the only one. You know, in the last week, other governors have also said they'll eat. these restrictions, including Mississippi, Iowa, and Montana. I believe, if I'm not mistaken, I think Nebraska was the very first one to do it.

I think Oklahoma is there, and I think Ohio is on the verge. I may be wrong, but I think there is even other states, and I heard somebody told me yesterday, I can't confirm this, but there are 13 states that have significantly reduced their mask mandates, but Texas being the largest of those states has made the news. All righty. Let's see what else. New York Governor Andrew Cuomo. His challenges continue to mount. But regardless, or despite those challenges and the controversy, he plans to remain in office following multiple allegations of sexual harassment. And he says he now understands that he acted in a way that made people feel uncomfortable. And he apologizes for that. But a lot of people ain't hearing it. And then there's the whole assisted living thing he's going to have to deal with right after this as well. So we'll see how that turns out. U.S. infrastructure earned a C-minus grade from the American Society of Civil Engineers. But hey, that's at least a lot better than the D-plus they earned in 2017.

SpaceX, Starship prototype, stuck the landing in its third flight test, but then blew up while sitting on the landing pad a few minutes later. It's all right. Failures is the path to progress in, you know, know, may God be with Elon and his ventures because the boy is trying and he's making progress little by little and he's not given up. So I appreciate that about him. I respect that about him. Facebook is lifting its ban on political advertising today. Wow, just what we need. More political ads, but right in the middle of when there's nothing political going on, right? But I guess we will see. Amazon is in talks with the NFL to air a significant number of Thursday night games

exclusively on Prime Video, per the Wall Street Journal, an Alamo draft house, the movie theater chain, known for its dine-in service, filed for bankruptcy today. See, another casualty. What side are you going to be on, right? That's a lot of people's, you know, might not be dead, might not be their actual lives, but a lot of people's livelihoods are being impacted by this,

and I'm really sad about that. Another thing in the news, there's alarming legislation circulating Congress. and it's got significant support and progressive and aggressive reform like this was actually promised on the campaign trail. So I guess we can't be surprised because it was promised. We knew something like this was coming. It was bold on, there were bold statements on the campaign trail.

And I think a lot of us just kind of dismissed it as, that's never going to happen. But it's gaining support. and I'm specifically referring to the new unrealized capital gains tax. And if passed, this could be the death of investing for a lot of people. And for the younger and upstarted investors,

well, investing for them could essentially be dead. And I'm not being dramatic there. This is serious. I'm going to break down what we know so far. You know, while all eyes are currently on COVID-19 relief, it's on health care and immigration and infrastructure

and climate change and clean energy, there's a very dangerous idea of the new administration that's really kind of flying under the radar. And I'm speaking of the proposal to tax unrealized capital gains. And this could really change everything for us. So here's how. You know, currently taxpayers are taxed on realized capital gains, meaning when you liquidate an investment,

you are taxed on that profit. So an investment while you hold it, obviously, can fluctuate. weight and value and go up and go down. But not until you sell it, do you have to pay taxes on your gains? Or do you get any sort of right off on your losses? So that actually has to be liquidated before that can happen. Yet, that is all on the verge of changing per a new proposal championed by the chair

of the Senate Finance Committee, Ron Wyden of Oregon. So this is like the guy, the chairman of the Finance Committee or the Senate Finance committee. And then that raised a lot of eyebrows because it's a pretty bold proposal. And then eyebrows were further raised by some senators and Wall Street investors when the new U.S. Treasury Secretary Janet Yellen, you know, during her confirmation hearing, expressed support for the proposal in the interest of boosting government revenues. So those things, those have already happened, right? This proposal has hit the, has been, this proposal has been proposed, is what I was trying to say. And then, but by someone a very significant importance when it comes to something like

this and then backed by someone even more important, the U.S. Treasury Secretary. So that's already happened. But, and here's what else we know. Under this proposal, taxpayers, now this is over a certain income level or with qualifying assets exceeding a threshold. And even if you don't meet that income level or have those assets, that's going to be significant. I'll talk about that in a sec. But those people would be expected to pay taxes on increases in the on paper value of their assets. So even if the capital gain was unrealized. So if they didn't liquid, it didn't sell, it just, your stock just rose this year. And the stock is still, all your money is still in the stock market.

You still have to pay taxes on that. You know, if you bought a thousand bucks worth of stock and it increased to $1,500 in that year. And if you just left it there, you didn't touch it. It's not like you took out that profit and put in your pocket. It doesn't matter. You still have to pay tax on that $500 of profit. And that presents all kinds of problems for investors, not to mention it would step all over the appeal and the benefits of investing.

There could be no need for this podcast anymore. If not, I mean, it could essentially just kill the endeavor of investing altogether for those people like you and I, just looking to get ahead and stay ahead in life. So here's what I mean. This half-baked unrealized capital gains tax proposal, and it is half baked. It's not clearly thought through,

but it's real, it's there. It would unfairly burden the younger and upstart investors who typically start their investing careers cash poor. You see, any profits from their investing efforts could generate a significant tax bill without the corresponding cash to pay for it. Thus, leaving investors really with just two options. One, they don't make a profit,

which would be, I mean, why invests, right? That would be pointless if you're going to invests and you don't want to make a profit. Or two, you got to liquidate your assets prematurely to pay that tax, both of which would remove basically all of the incentive to invest. And I know this is proposed just for wealthy investors at this point, over a certain income level and with assets exceeding a certain threshold. But still, you know, even if you're in support of the ignorant tax,

the rich movement, which I had imagined anyone listening to this show would not be. But even if you were, this proposal is going to be far reaching and it's going to cross class lines. It's not just going to impact the rich. This could be just getting a foot in the door and slowly inch it up just like they've done with everything else. But this could include, but wouldn't be limited to creating just a huge hurdle while

crushing ambitions for taxpayers to hit a certain level of wealth. Meaning so, although you might not be impacted by it initially, because you don't have that certain income level or you don't have the qualifying. assets for this to impact you. It definitely puts a ceiling on how far you can go before it does. You got that? So anyone aspiring to be wealthy, you know, you would basically be incentivized to not get too wealthy.

Further, annually liquidating assets to pay your tax bill, that would serve essentially as kryptonite to compound interest. In compound interest, this is the eighth wonder of the world financial planners will refer to it as. It's the very cornerstone that taxpayers rely on for retirement with that traditional plan, that 40-year plan that that takes a lot of discipline and you got to save, work, work, work, save, save, sacrifice, sacrifice. And that's a 40-year plan for most people, but this would essentially double that plan to an 80-year plan just to get the same result, at least. and as I've mentioned here several times, you know, already most people just don't make enough to save enough for that plan to work. That's why we're interested in real estate in the first place.

Because you just don't make enough money to save enough for that traditional financial planner style thing, that Dave Ramsey style thing for it to work. But under this new proposal, I mean, most people, there are not most people, nobody, is going to be able to live long enough for it to work either. Even if you do make enough money, you're not going to live a long enough for it. for this compound interest or working your favor. But the naysayer or the critic or to the devil's advocate may say something to like, yes, but I'm saving all of my money in a 401k. Well, I wouldn't get too comfortable with that little vehicle either. That tax-divered investment account, the administration's got plans for that as well.

And perhaps we'll talk about that at a later date and I'm sure I will. But they're coming after that as well. They're coming after the 1031 exchange. they're coming after everything. Another issue for this unrealized tax or this unrealized capital gains tax proposal would be the complexity evaluating non-liquid assets. You know, for stocks and cryptocurrencies, it would be fairly easy to calculate those gains. You can see that on paper.

But what we don't know is how this unrealized capital gains tax would work for other types of assets, you know, like artwork or jewelry, collectibles, precious metals, how's it going to impact your gold and your silver? And of course, your real estate. So for this to really work, I mean, annual appraisals would most definitely be required, right? And I would just think the administrative burden of ensuring accurate valuation of a diverse array of assets like this and the opportunities it presents for gaming the system that may, and hopefully they realize this before passing the proposal, would outweigh the tax revenue raised. That's logical, rational, practical thinking, but perhaps in this instance under this new world that we live in, perhaps it's wishful

thinking as well. Another issue for the proposal. And this is the big one. Yet it also falls into the unknown category. We don't know how this is going to work. And I'm speaking of how capital losses would be handled. So if that $1,000 investment that I mentioned earlier, if that fell to $500 in value, meaning it lost half of its value, the investor loses money. You know, any fair tax system would give the investor the ability to offset those losses, right, or to offset their gains, is what I meant. They can take those losses and offset their gains. And that's already the case elsewhere in the current tax code. But really to create an equitable relationship between investors and this proposal,

I mean, shouldn't an unrealized capital loss result in a refund? Yeah, it should. But I wouldn't count on the government cutting a check every year for your losing investments. Otherwise, it's not even investing, really, right? I mean, if you know you're going to get a refund when you lose investments, that's just going to increase the amount of risk you're willing to take because now there's no downside. But that ain't going to happen, right? I mean, essentially the translation is, you know, you take all that risk every year.

And if you lose, you lose. But with that risk, if you win, you know, you lose. You're going to share those profits with the person every single year, whether you took those profits off the table or not. So this doesn't seem like a practical plan. I don't see it happening, nor does it seem like a good idea to punish the administration's powerful Wall Street support by taxing their unrealized gains.

I mean, your biggest supporters financially, this would impact them significantly. So I can't see this happening. But second-guessing Janet Yellen's moves to support the economy, that could be a mistake. You know, she's acknowledged that the country's debt is rising, but she said that the benefit, benefits of spending more on COVID-19 relief far outweigh the risks of a higher debt burden.

So they're willing to continue to push this stimulus further and further and further to support the country, which, you know, to some degree I appreciate, but I think they could minimize that just by opening up the economy. We've already talked about this in this episode. I know I understand the cons of that as well. But they're going to have to pay for this somehow. And that's really just kind of an easy conclusion for her to make that the stimulus is more important than the risk of the higher debt. Because, you know, when you can turn to investors big and small to foot the bill, who cares? Doesn't impact her, right? But anyway, most predict that any sort of aggressive tax reform like this, it's probably not going to be a point of business for the administration until 2022.

So I see it a little bit, I mean, I see it further down the road, but it's better to be aware of it right now than it is. is to be surprised by somewhere in the future. But if passed, I don't know, start thinking about how this is going to impact your investing activities. We could at least prepare for it. We can prepare for the worst case scenario, which I've already started doing. And I think I mentioned, I mentioned that last week. I don't know if I mentioned that last week.

I think I played the YouTube video of how I'm diversifying. If not, it's on the YouTube channel of how to diversify better than Warren Buffett and Mark Cuban, because they don't really believe in diversification. But I'm looking at, I mean, real estate is still the cornerstone of my portfolio. I started buying more and more putting some more money in stocks. I've got some money that I kind of take off the table and just kind of have a small cash reserve. I've been investing in cryptocurrencies. I started that a few years ago with just some discretionary incomes, the amount of income that I wasn't afraid to lose.

I was just kind of treating it like a weekend at Vegas. That's grown to a decent amount. and I've been a little bit more aggressive with that as of late in the last six months. Booze, bullets, permameman, Mitch Stevens. You know, he's preparing all out for Armageddon. So he thinks if that happens, then that's going to be a good form of currency. Everyone's going to want to get drunk and everyone's going to want to be able to protect themselves. So I thought there was some logic to that.

So I got some of that. And then got a little bit of gold, a little bit of silver, just in case. So I'm preparing for what could happen. You might want to double down. on your activity and make as much as you possibly can right now, restructure and reorganizing some of my portfolio, because the murmurs, which is probably more realistic than this capital gains tax,

is the death of the 1031 exchange. So I've got a couple properties that got a significant amount of profit or appreciation built into them that I'm going to move over to and upgrade those properties. into some nicer, better performing properties. So those are some of the things that I'm doing. I don't know how much else there is we could do. But I don't see it happening, but it could, right?

Just the fact that the governor brought it to or that senator from Oregon brought it to as an official proposal. And Janet Yellen is giving it a thumbs up. At the very least, it's plausible. All right. At the very least, it's plausible. But anyway, Um, you know, we're not done.

Just getting started with today's episode. Uh, I've got, like I said, I've got a great guest for you today. And we will, uh, go ahead and meet him in just a second. But first, your portfolio has seen better days. But this two shall pass. And the best for you is yet to come. Together, we'll get you there faster. We're cash flow savvy.

And we'd like to share some information with you that will show you how you can take control of your financial future and accelerate its arrival. Go to cashflow savvy.com. More building, less waiting. Cashflow savvy.com. Okay, so please, without further ado, please help me welcome back to the show. The man, the original man with the longest running

real estate investing podcast on iTunes, the one that I'm only, I'm second only to him. and that is my good friend, Mr. Jason Hartman. Jason, welcome back to the Epic Real Estate Investing Show. Hey, Matt, it's great to be here. Yeah, glad to have you back. We've been a couple years, really. I mean, we've seen each other several times in between now and then,

but haven't been able to share your wisdom with the Epic family for a while. We've got to do this more often because it is epic. We do. And I've been giving you a lot of credit lately. You've turned me on to some new ideas and with regard to inflation and refinancing and the use of debt and aligning yourself with the Fed because we don't want to fight the Fed and all this kind of stuff that you talk about that I find so interesting that I don't know, maybe it puts Mercedes to sleep, right? She doesn't want to do the numbers and the economics. And I'm like, no, no, no,

this is the best part you've got to listen. So we compliment each other that way. And I want to talk about that. But before we do, share with me. Well, how did the last year go for you? Last year was good. The market is incredible right now. And just from our perspective, And I think you'll agree with me, Matt. You know, most people consider a good market, quote unquote, good to be a seller's market, right? And then that's what's called a good real estate market, right? And then a bad market when things aren't selling is also considered a buyer's market, right? So we are definitely in an extremely strong seller's market, probably the strongest I've ever seen in my career.

and my career started when I was 19 years old going to college part-time and selling real estate. So I've seen quite a few cycles now, and this market is absolutely on fire. I mean, the inventory rates are so low. I just read an article, I think it was a Bloomberg article the other day, that likened the housing shortage to Soviet-era shortages with empty shelves in stores, right? And I think you probably feel that it's that way too. Now, nothing will last forever. There will someday be a correction. However, I will just go out and say this on a limb right now.

I think a lot of people are predicting this correction to be much sooner than it will actually be. Because there are many factors that put the wind at our back. And by the way, this is the other point I want to make, and this is the one I think you'll agree with, by the way. There's a buyer's market, a seller's market, and a broker's market. And since, you know, I'm basically a broker, part of your business is brokerage. And, you know, we like a market, at least I like a market as a middle man, right? I like a market that's sort of even keel. I find a market like this to be very hard to operate in.

A lot of clients are very disappointed because they're making, they're experiencing multiple offers, competing with properties, price is going up quickly, they've got to keep adjusting their expectations, they can't find what they want. You know, it's really hard to source inventory. This is not my favorite market at all. So when you said, how are things going? Okay, last year was good, but it would have been dramatically better if we would have more inventory. So the inventory shortages are constraint. It's the bottleneck. Yeah, I was just looking at this chart from the National Association of Realtors and Census and what's the FRB at St. Louis stand for? The Fed.

Oh, the Federal Reserve in St. Louis. Yeah, yeah. Or bank. And so they're showing the inventory levels. And they are at all time low since they were keeping this chart in 91. And the turnover is almost zero. Yeah. Like, it's almost zero.

It's pretty amazing. You know, and back in March, April, May, as we went into the lockdown, downs, I was actually predicting, okay, here it comes. This is there, here's the comes the crash, right? And it just didn't happen. What are some of the things in play that caused it to actually thrive? Well, the first one is obviously low interest rates. And, you know, a lot of people who predicted the crash, you know, and now admit that they

were wrong, say, well, you know, I didn't know that the government would stimulate the Federal Reserve would stimulate so much and other central banks and governments around the world did the same thing But and of course, you know, whenever you have central banks and government, you can never predict that exactly Because it's it's an it's an exogenous force, right? We don't know what they're going to do But it's not hard to predict that they will come in with the the money blazing and the money printing right they'll turn on the printing press to solve every problem because that's always their solution. You know, whenever we see the G7 or the G20, the big industrialized countries meeting at, you know, in Davos, Switzerland or, you know, now on Zoom or wherever they meet to figure out how they're going to press everybody.

But whenever they're meeting, all they really do, all they really have, they call it sophisticated names, They bury a mountain of BS. But at the end of the day, all they're doing is creating fake money out of thin air. That's all they do. Right? There's really no other thing. They might do it through increasing the money supply, the credit supply, by buying assets on the open market. They do all kinds of things.

But the essence of it is create fake money out of thin air. And there are only two things. that give anything value in the world, whether it be a loved one, or it be a diamond, or it be the dollar bills in your wallet, and that is scarcity and utility. Okay? And if money is abundant or currency, I should say, that's the proper word. It's not money. It's currency. Okay.

If currency supply increases, then the utility of it goes down because it has less value, right? So they are they are taxing us all through the hidden tax called inflation. And since you brought that up, and I've got like five or six things I want to talk about, but let's just stay on topic now with that. I've learned a lot about inflation. I got a good, strong understanding, I think, of how it works. And from a general perspective, I know there's a lot of you can go down deep rabbit holes and it can become very complicated.

And a lot of that is great thanks to you. I appreciate you. But it depends on who you listen to, who your information source is. Some people say, oh, my God, all the stimulus that's happened, it's going to be a huge inflationary market. And we hear the word like hyperinflation come up. And then the other side is like, nope, not going to happen. Actually, we might be moving into a deflationary status.

How do you know? Well, look, the study of economics, you know, they say that the study of economics was created to make astrology look respectable. Okay? And so it is very hard, I mean, to be fair to economists, right? And I consider myself an economist, right? An uneducated one. I don't have a degree or anything, but you don't need a degree to be an economist. That's one area.

You don't need any specific qualification. But, you know, it's very hard to predict the movements of all of these decision makers in the world, right? We've got seven and a half billion or so people, and they're all making decisions as well as the institutions of which they all are members of control, right? And it's very hard to predict all of their actions, right? If you knew, then you could easily make predictions. But the one area where it gets really hard to predict is intervention from these extraneous forces like governments and central banks. And so it is a pretty tough thing. So I think that it's very hard to try and predict what's going to happen on a micro level.

That is really difficult if you ask me. So when you get the emails that maybe meant you and I are probably subscribed, oh, I know I'm subscribed to them. You probably are too because, you know, we're. in the business, right? But probably a lot of your listeners are also subscribing to a lot of different email lists and they get these newsletters and there's a lot of, you know, FUD, fear, uncertainty, right? And they're talking about how the world's going to come to an end on, you know, March 12th because this is going on at, you know, some big meeting, right? And it never happens. They're always wrong, right? This never happens. But the big macro trends,

If you look at things on a macro scale over a kind of a mega trend look, right? What's going to happen in five years? What's going to happen in 10 years? I think I can tell you what's going to happen now. I can't tell you what's going to happen next week. That's really tough. Okay. But, you know, and the way we should all treat this as investors is we're not investing

with our lunch money. We're not investing with money we need to live on. We're investing with the capital we have that is excess capital, right? It's not living expense. It's growth-oriented money. And so we shouldn't be looking at these kind of day-trader view of the world, right? And I'm not saying, you know, certainly traders who are deep experts, they can make money at what they do. But those are people that have spent a lifetime doing this stuff.

And it's, you know, for the rest of us, the easy thing is to just look at big megatrends, things that are very likely to happen. And I think those are pretty safe bets. Got it. So since you said that in five years, what do you think are some of those megatrends that will come to fruition? Well, I certainly think we will have continued inflation. And there are three basic economic maladies, inflation, deflation, and stagnation.

Okay, those are those are kind of the three I mean there are more but those are the three I sort of put together and The you know the likelihood is because we have we have created all this new fake money out of thin air We will we will have less scarcity and the classic Either cause or definition depending on how you want to say it of inflation is a large supply of dollars or currency units yen dollar euro doesn't matter you know, Mexican peso, Brazilian Riel, anything, chasing a limited supply of goods and services. That's going to cause the price to go up because in a free market, when you have everybody beating a path to your door and you can't keep up with the demand, naturally you raise the price until the demand falls off, which, by the way, is an interesting little aside for real estate investors,

since we're both real estate investors and your listeners certainly are, you know, I think it's a mistake. when you hear these investors say that you know they have a portfolio of 30 properties and they have zero vacancy rate well take a close look at yourself you might be the loser in that equation because you're not charging enough you're not raising your rents enough you know you should have a healthy vacancy rate an optimum vacancy rate would be six to eight percent you know because that means you're pushing your rents up like you should as a landlord your expenses increase

You should raise your rents and you should do it just because you can. You know, that's how you win the landlord of the year award from me. You won't win it from your tenant, but you'll win it from me. Okay. And so, you know, you've got to raise the price until the demand falls off. That's the way markets work. Right? So do that with your rents too. Perfect.

Okay, so we're expecting the inflation over the next five years at you are. And I can't see how it's. and I can't see how it could go any other way based on what I know and what I've seen. And by the way, we've already had that. You know, people say, and they're so, this is such a misnomer when you hear people say, well, they printed all this money during the Great Recession, you know, 2007, 2008, etc. Right. Right. You know, with all those big bailouts we had that make today's bailouts look like nothing, right?

But back then, you know, they were, they seemed huge compared to today. They look like chicken feet. And you'll hear people say these off, you know, these sort of glib remarks. Economists will say this, well, we haven't had any inflation. After we printed all that, no, we have. We have had tons of inflation. Yes, it hasn't been as high as maybe some of us would have thought, and I'll agree with that. But I don't agree that we haven't had any.

We've had very significant inflation. Just look at the cost of health care, education. look at how the cost of the non-measured parts of inflation, like self-service everything. I mean, you know, back in the old days, Matt, people used to do all these things for us. Now everything is self-service, not only pumping your own gas, waiting on yourself at a restaurant. I mean, you know, all these cool, trendy, even expensive restaurants, you go stand in line to order your food, and then they give you a number and you pick it up. And it's like, how was that meal $45?

I didn't even have a waiter, but they still expect you to leave a tip. Right? And that's inflation. It's unmaasured. You used to have a travel agent to figure out your travel plans. Now you do it yourself, right? And so everything is self-service nowadays, and that's hidden inflation too. Got it.

So what are you doing if this is your belief for the next five years? What are you doing to prepare for that? And I've heard you say this expression before, and I wonder if this fits in or not, but when you say, don't fight the Fed. Right. Yeah.

And that's not my expression. That's an old one. Don't never fight the Fed. Okay, because the Fed is too powerful. Governments and central banks are the two most powerful entities the human race has ever known. And if anybody,

listening thinks they are going to outdo them or fight them, boy, that's just not a good bet. What we need to do as investors is align our interest with these two most powerful forces the human race has ever known and follow their business plan. And their business plan is very intentionally inflation. They want inflation. They try to create inflation, and inflation benefits them. So why wouldn't we just want to ride on their coattails? You know, look, philosophically, as an Austrian economist myself, and you probably agree from

what I know of you, you know, you probably disagree with what they do, and I disagree with what they do, but so what? They don't care what I think. They don't care what you think. They're just going to do what they want. They're incredibly powerful. And so what we have to do is align our interests with them. And there are many ways we can do this, not the least of which is to do.

to go into debt. I know. Everybody's now ready to push pause and skip to the next episode. Yeah, not so much here, though. I think I've conditioned them pretty good over the last decade, but elaborate on that. Yeah, so, you know, I kind of jokingly say debt is my favorite four-letter word, okay? And when debt is what I call good debt, when it is high quality, low, cost, artificially cheap, investment-grade debt attached to assets that everybody needs. And it's fixed for three decades. Think about it. When someone buys a rental property from us today, right?

Either you or me, right? We're in the same business a bit, not completely, but a little bit. There's some overlap. And they buy a rental property. They will not make the last payment on that mortgage, or really I should say their tenants won't make the last payment on that mortgage because we outsource the debt obligation to the tenant we don't pay our own debts okay we delegate and and debt is the greatest thing to delegate right you know you might delegate your house cleaning

and your gardening but delegate your debt for sure okay and that's really good so we we delegate that responsibility to our tenants and we even ask them to pay us a little extra every month and we call that positive cash flow and then we ask the government to give us huge tax benefits and so it's a it's a wonderful asset class but um the last payment on that mortgage won't be due until two thousand and fifty one at the time of this recording that's incredible i mean think of all the things that will change over the next three decades they are absolutely staggering and um the not only the amount of currency that has been created through the great recession uh you know 12 13 years ago and now that

during the Plandemic over the last year, you know, and I'm being a little snarky with my word choice there. It was not a mistake, by the way, folks. So enjoy. I got that on here to talk about anyway. Yeah, I got that on here, sure. Hopefully they won't can me. But, you know, this money like a chicken must come home to roost. It has to. It can't do anything else. Okay? It has to come home to roost, and it has to create inflation. But in addition to this, in addition to all this new currency creation, we have something called unfunded entitlements or unfunded mandates over the next 10 to 15 years that are beyond staggering. I've had the economist and professor Lawrence Cutlakov on my show several times, and he's talked about this. And many call it the $60 trillion time,

bomb, but he says it's actually about $220 trillion with a T, trillion dollars. Now, just, you know, I always say on my show, on my podcast, I always talk about this concept. You know, my listeners have dubbed it the Jason Hartman question. And it's, the question is, compared to what? Compared to what? Because we really don't know anything unless we compare it to something else we already understand. So when we talk about $220 trillion, we have to. we have to compare it to something.

So if we just look at the GDP of the country, it's around $20 trillion here. In other words, all of the goods and services that, you know, 328 million people in the U.S., now they're not all adults and they're not all in the workforce, I get that. But, you know, all of these people create and consume about $20 trillion a year, right?

That's the GDP, the gross domestic product of the country right around there. And the gross domestic product of the planet of the entire human race is somewhere, you know, don't quote me, it's right around here. It's good enough for government work, as they say. It's about $100 trillion a year. Okay? So over the next 10 to 15 years, the unfunded entitlements and mandates that the obligations the government has already promised without any new promises, which they make every election season, okay, are staggering. How are we ever going to pay for that?

I say that the way they will pay for it is through inflation. It's really the only way. And that kind of leads me to something that I have written down here, and I don't know if it didn't know if it was going to fit in or not, but it kind of maybe might be the perfect bridge right there, is you talk about the promises that we make that will never be able to repay. and let me back up. So right now I'm doing,

I'm focused a lot on my YouTube channel and kind of work in that algorithm. It's become like a little game for me to figure out how to beat YouTube or how to. Hey, please work on mine too. And it's a lot of art, but it's a lot of science as well.

But part of that is like just going to see what people are attracted to for the moment, right? What are they watching? What are you listening to? Sure. And there's a lot of, content out there on the Great Reset. Right.

And the great scam. The great scam. And I've watched a few, but a lot of those videos are really long. They're very detailed. But then a lot of them have like this real creepy conspiracy in the dark type feel to it as well. And I'm not sure what to really believe or not. What is the Great Reset? And what are your thoughts on it?

Well, you know, I'm not an expert on the Great Reset. But I am sure. thing, do you think? Yeah. Well, yeah, I think, yeah, it's a real thing because at last year's World Economic Forum, Klaus Schwab, who is the person founder of the Davos World Economic Forum, and he's written a couple of books. I just finished one, so I guess I'm becoming a little more of an expert. And it was super boring, so I would not recommend his book because it was lame. It was a lot of talk and not much said, frankly. But, you know, no matter what I think we can all agree that Klaus Schwab is not looking out for us okay he's looking out for Klaus Schwab and the elites of the world and you know we may be rich and successful but we're not the super mega elite okay those are the people that run the planet right okay and I'm not I'm not in that club sadly so you know they're looking out for themselves and what they want

is they of course want to gain more wealth. I mean, they're already, you know, multi-billionaires many times over, maybe even richer than that when you talk about families like the Rothschilds who are the banking family that started in the, I believe, the 1600s in Italy and have, you know, have basically run multiple central banks around the world, right? So they're not looking out for our interest. Okay, George Soros is not looking out for our interest. These people want more power, they want more control, and they have these really dystopian ideas about overpopulation and the environment and vaccines and all kinds of stuff that they're not in our interest.

I mean, look, Bill Gates wears a nice sweater. He looks like a teddy bear. He seems like a trustworthy old grandpa, but he's not looking out for us. Okay. So the great reset, I mean, is that something that we should be concerned with in our lifetime? Do you think? I think so, but I don't know that there's anything much we can do about it. Got it.

But we should talk about it and make other people aware. That's one thing we can do. Yeah. And so there's no way to, I mean, obviously there's nothing we can do whether it happens or not, but is there anything we can do to protect ourselves from it, do you think? Well, you know, I have another podcast besides my creating wealth show called, the holistic survival show where I do entertain a few of these theories in a little more depth, okay?

Okay. But, you know, we could go down that rabbit hole and it would take a long time. All right. So I'm not, you know, I don't know. I can't say I really thought about it, but, you know, at the end of the day, all we can really do is take care of ourselves and our families directly and, you know, spread the word and just, you know, you know, provide the narrative and the conversation and be the opening. And, you know, when you, when you got an idiot on social media, sometimes you have to straighten them out.

All right. Which is, which is not a productive activity most of the time. No, it never works. Hasn't worked for me. Yeah, no, it never. I think this whole line of communication that we've got in as a society on little, you know, 140 character bytes. It does nothing, but divide us even further. Oh, of course. And worse and worse and worse. It's pretty sad. I mean, and the censorship.

I mean, you know, people used to argue before the, I don't even want to call it, the E-L-E-C-T-I-O-N, you know, if I say the name, we might get censored. But they used to argue about, oh, or the tech companies, you know, controlling speech, right? Well, now there's no doubt. I mean, look, nobody can doubt it. Now they took the president of the United States and kicked them off. Okay. That's insane. Yeah. So perfect. Where do we go from here? I never get to talk. I don't get to talk to as much as I want to. So I'm like trying to scratch everything off my to-do list that Jason Hartman is here. But so let's let's bring it back down to the ground level. The pandemic or the planemic, as you say. Yeah. But COVID-1984. George was all right. Very good. So this last year conducting business, what were some of the,

changes that you made to your business that you might actually keep around for a while? Well, I think like your company, we've been a virtual company since 2012. So it wasn't a big adjustment for us, but I did realize in mid to late February what was going to happen. And I think I was the first one to talk about a few megatrends that I saw. And I really kind of saw them after looking at what was going on in Wuhan and then looking at what happened in Italy. And, you know, having been to China, having been to Italy many times, you know, I realize something. And I think I was the first person to really predict that there would be a mass migration to suburbia. And actually, eight years ago, I predicted that for a different reason.

And just know that when I say that, I'm single and I spent most of my life living in suburban Orange County. And I always thought suburbia, was kind of oppressive and it wasn't very fun and I never loved suburbia I always wanted to but my career just started there and that's the way it evolved and it would cost me too much money but I was you know had visions of you know I want to go live in New York City for six months or something or live in a city I thought that be fun and you know more social and and that kind of stuff and I never did it and eight years ago I predicted well really nine years ago now I predicted the rise of suburbia because of autonomous vehicles, because of the self-driving car,

because, you know, people could enjoy all the benefits of the city without having to drive to it. And that's been slower developing than I think most of us thought it would be. A lot of us thought it would be here in 2016. It only partially got here with mostly Tesla and then Hyundai leading the charge. But it will happen. We will have self-driving cars. And that really changes the game for real estate investors. You know, of course you know this.

I'm not telling you anything you don't know, but maybe some of your listeners haven't thought of it this way, right? The three primary value drivers for real estate since the beginning of time have been location, location, and location. And even if you were living in a cave, okay, in prehistoric times, the location mattered. You know, did you have a cave that was close to water and food supplies? Did you have a cave that was defensible against, you know, other tribes or animals, right?

That was important. The location of that cave really, really mattered. And the location of real estate in modern times has always been centered around cities, right? And ports, especially on waterways, right? And that's changed. That game has completely changed. And it's been changing since 2012 for sure. but it radically changed with the pandemic.

And it just has completely shifted. And we've seen that in the last year. You know, we've seen this migration out of cities. We are seeing city failures that are now becoming pronounced in New York, San Francisco, L.A., places like this, that we're already in trouble, but this has only accelerated their troubles. And so that is directing your investment focus in other places? Not really because I think both of us, our focus was already on these suburban markets. These is what I call linear markets, right, where you have good cash flow. But what it did for us, it didn't change our focus.

I mean, I don't think it changed yours. I didn't change mine because these were the same markets we were already recommending. Yeah, same for you, right? But what it did is it brought a lot more money into our markets. Yeah, totally. Okay. So there's this tidal wave. I call it the suburban tsunami, okay?

This tidal wave of money that is chasing properties that's moving out of New York City, out of L.A., out of San Francisco, out of Seattle, and even out of, you know, other cities that aren't even as big as those to these suburban markets that really just makes sense from an investment perspective. So all of your clients, all of my clients. clients, they've benefited from this. And our own portfolios have benefited too. So that's been great. 100%.

You know, we've taken, and I would never even have assessed this, because typically every time I buy something, I have no intentions of selling it. Like, I'm just holding it. But I'm using this, the leveraging this low supply, this low inventory that we have, to go ahead and, you know, let's capitalize on some of these challenged and problem properties that are kind of a pain in my butt. Let's get rid of those and maybe upgrade. Yeah.

And good idea. I'm moving my portfolio around a little bit because, you know, one of the mistakes, I freely admit that I made in the early days, way back in 2004 or so, I developed something I call the 10 commandments of successful investing. And, you know, there are 10 of them. There's now 23, actually, but we started with 10. And so my 2310 commandments, you know, one of them is thou shalt diversify. Okay.

And I made the mistake of over diversifying. At one time, I owned properties in 11 states and 17 cities. That was a mistake. And I freely admit that was a mistake I made. I went to the All You Eat buffet and my eyes were bigger than my stomach. And I should have just been in three to five markets. So I'm trying to consolidate my portfolio. I'm doing some 1031 exchanges.

There's been some talk that our socialist president, Joe Biden, will take away the 1031. tax deferred exchange, which I think would be terrible. I hope he doesn't, he isn't able to do that. But he has said that he wants to get rid of that wonderful tax benefit for real estate investors. And so I want to do my 1031 exchanges consolidate my portfolio before, you know, the threat of that.

Yeah. Yep. Yep. And so, I mean, we're out of the same mindset there. But I'm even looking just from a property management status. Like, I have to keep on fixing this one property. or else I just can't find a good tenant for this property for some reason. It's cursed or whatever.

And it's been interesting to see, like, in a very short period of time, in places that aren't really known for appreciation, how much the value has appreciated. Right. Yes. I've been blown away. I've been blown away. Me too. It's incredible.

I mean, housing prices have been soaring, yet you still have the naysayers out there who say it's a bubble. But, Matt, you know from my presentation at the master's, group were both members of, that people are looking at that incorrectly. And it's just so sad that they don't understand how it really works. So a couple of examples on that. And, you know, I think we're going to do a webinar together where we go into some of this in more detail. But, you know, just for something to think about, we don't have time to go into it in detail now.

But just understand if you've got listeners who are into precious metals, housing priced in gold or silver is cheaper. Okay, housing priced on the way most people buy a house based on the mortgage payment, not the price of the house. When you adjust for inflation and interest rates, houses are cheaper than they were 14 years ago. Okay. Housing priced in Bitcoin is incredibly inexpensive. Okay. Now, Bitcoin, I think, is highly volatile and I think you should be very careful with it.

But, you know, it's the shiny object of the moment. Well, maybe not the last few days because it's gone down. So it has big- Well, it's back up today. So what do you know? You know, yeah. See, I'm not a micro guy. You're right, though. That's right. Because yesterday was a sad story.

Today is it's a good story. Yeah, you know, it could really, you know, if you're susceptible to moodyness, do not be involved in Bitcoin or the stock market because, you know, it's a pendulum that swings radically. Let me interrupt you really quickly, though. Can you kind of elaborate of what you mean housing, say, we'll say gold, so we're not talking about Bitcoin. Housing priced in gold is cheap. What is that? Yeah. Yeah, so, you know, most people just look at housing priced in dollars, but the dollar, like Bitcoin, is a fluctuating item, right?

You know, its value goes up and down. And you can, most people compare it to a basket of other currencies, but the problem with that is that all the other currencies are also fiat money. And fiat, by the way, you know, you hear that a lot nowadays because of the crypto world. So now everybody uses it. But, you know, 17 years ago, when I used to say fiat money, nobody knew what? I was talking about. So Fiat, the word Fiat is not about a car. Okay. It just means, Fiat just means by authority, by decree, right? So by the authority of the government, you know, the dollar has value because they create what they call legal tender laws that mean the dollar in the U.S.

is the currency for all debts, public and private. Look on your dollar. It says it right there. Okay. And if you are selling something, you are legally required to accept dollars. You can't say I will only accept gold or I will only accept Bitcoin. If you're a merchant, you have to accept dollars because these are the legal tender laws. I didn't know. Okay. Yeah. So it's a requirement. So yeah. Yeah. If you open up a store that says you're not going to accept dollars and you're only going to accept, you know, monopoly money or Bitcoin or something else, you know, I suppose the feds could show up at your door with their, you know, with their guns and their bulletproof vest and they could arrest you

like they've done with other people who are selling like unpasteurized milk, okay? You know, it's, it's a relationship between the dollar and gold, whether they're connected or not. There's still a relationship there. So I'm still like, I don't know, I'm not getting how housing priced in gold is cheap. Well, you know, a lot of people like to use gold. And I'm not a gold bug, by the way. Let me just put that out there. I'm just talking about it because it is a measuring stick. You know, there are many measuring sticks, right? You can measure things in gold. You can measure them in oil or soybeans or silver or cryptocurrencies or dollars or you can compare the dollar to the euro or the yen or the Brazilian real or the Mexican pay so you can do all of this stuff right and so there are

many measuring sticks and the only way we really know what something is worth is by what someone pays for it at a given snapshot in time you know a lot of people in real estate they talk about appraisals okay well the the only real appraisal is when there's a meeting of the minds of a buyer and seller and money transacts now that money those dollars are instantly convertible at that time, that snapshot for something else, like gold or silver or cryptocurrency or oil or whatever else, right? So that's when you know what it's worth. Okay.

But houses, you know, if you look around like, I mean, we're on a video call right now, even though your listeners may not be seeing that. But if you look behind me, right, this is my house, right? And there's a ceiling and walls. And, you know, those are made of things that have intrinsic value, Matt. They, everybody in the world needs these commodities. They need concrete. They need lumber.

They need petroleum products. You know, there's the insulation in the walls, right? All of these are the copper wire running through the walls. All of those are commodities traded globally. They have intrinsic value. A paper piece of currency only has intrinsic value through law and belief, through Fiat. By decree, by authority, right? Following you.

Okay. So you could measure the price of the house and gold. and that is a different amount that will tell you if there's inflation or deflation compared to dollars, right? Super. So you mentioned that we're going to do a little workshop, a little online training next week on Wednesday and about how you've kind of shifted and how you're investing in the planemic. And so I'm interested in that is I'm interested in everything that you say and that we've been talking about and I would love to go deeper, but we've set aside some time to actually do that.

And I know there's with your explanations and your whole, I guess, ideas around creating wealth and everything, there's a lot of visuals for us to look at. So I want to make sure that we make those visuals available. So we're going to meet next Wednesday. That's at 3 p.m. Pacific, 6 p.m. Eastern. And if you'd like to join us, you certainly can. You can go to Wednesday webclass.com, Wednesday webclass.com. And you can save yourself a seat there. We've been running a few of these and sequential Wednesdays. And they've been really popular and really informative and a lot of different subjects and topics. And if you really want to start thinking about your wealth creation and your future on a different level, like how the wealthiest people actually think about it,

not just flipping a house and putting some money in your pocket, but actually to make some long-lasting wealth and create some legacy for you and your family. I really encourage you to be here next Wednesday because Jason has really opened my mind up to a lot of different types of things, and he has a knack for taking these complex ideas and breaking them down and making them simple and easier to understand. So I think you'll be doing yourself a great favor, not just for your present, but your future. Jason, what can they expect to learn? What do you plan to share? Well, I think what we're going to do is a little bit of a blend of some of my thoughts about,

you know, real value about inflation, about the hidden inflation tax. We'll talk about the mass migration to suburban markets and some of these different things that people need to be doing to adapt their thinking and their portfolios and their money to the times in which we live. And, you know, I know I like to be kind of snarky about some of this stuff because, I mean, look, the, the, the, the, the, some people call it the surveisa sickness, right, to get around the algorithm. I don't know if they figured out that one yet. And I like to be a little snarky about it because I do, I do think it's overplayed, but it's, but it's still real. There's no question it's real.

I mean, I've had friends that have had it and they suffered. Okay. It's, it's no fun. Um, so it's a real thing. But who knows how significant. it is, right? There's a lot of other real things in the world, too, that hurt us and make us sick, too, right? I mean, you know, I think the number two cause of death in the country is medical mistakes. Okay, like going to the hospital is a dangerous experience, right? You know, so there are a lot of

things, but this one is sort of the perfect thing that has allowed governments to gain a lot of extra control. It's allowed them to move a lot of money around and make certain people much more wealthy than others and it's so we allowed them to impoverish a lot of people while making the elites richer and richer and we know that because the stats are in you know the elites the the multi-billionaires are about 30% richer than they were a year ago it's absolutely staggering so that's a huge stat yeah so what i want to help people do on wednesday matt is i want to help them get in on this game that's really what I'm here to do, okay? You know, I could have retired easily 15 years ago, maybe six, well, it's now 16 years ago, okay?

I don't have to work. I haven't had to work in a long time. But, you know, I view this as a mission. Like, I really, I mean, listen, I like business, you know, I like extra spending money as much as the next guy, but I don't need to be doing this. Okay. You know, I really view this as a mission. And I think the middle class, sadly, is disappearing. It's been under attack for a long, long time.

And I like living in a country with a big middle class where it's stable, where people are not rioting in the streets. I think that really gives us all a lot of security. Whereas you look at other countries around the world that don't have a middle class or a very small one, those countries that have massive crime problems, they're just not good places to live. So that's what I hope to help people with. You know, maybe I know you got to wrap it up here, but I'll leave you with one thought. I have a couple favorite economists, okay? And I study economics, and this is really my hobby. One of them is a guy named Joseph Schumpeter,

and he coined the phrase, or at least popularized the phrase, creative destruction. And we'll definitely talk a lot about that on Wednesday, because it's very important because creative destruction has been accelerated in these times that we're living in today, right? But my second favorite economist is an economist named Rich. Cantillion. And he postulated this idea called the Cantillion effect, or other people have coined it that way, dubbed it, right, after his death a couple hundred, 250 years ago.

And what that basically says is that whenever the government creates new money or a central bank creates new money, the people closest to the money benefit the most. And that's exactly what's happening now. It's happened for a long time. The billionaires got the richest as the money spigots turned on because they were their first when the faucet was turned on, they were there first with their cup to get the most of it. And by the time that money trickles through the system, the little guy gets it. But by then, a lot of that money has been in the system, so they have to pay inflated prices for products and assets and services. Whereas the people that got there first got all those assets cheaper because they got the money first, right?

And so what I want to help people do when we do our web class is I want to help them become cantillionaires, okay, where they can get in on the same thing the big guys got in on, right? They're not going to get billions, okay? But whatever level they're at, they can play in this game, maybe to a small degree, maybe to a larger degree. I know you've got listeners and I've got listeners and we've got clients that are all over the board. Some of them just buying their first property.

Some of them getting 50 properties, right? We both got those kind of clients in our network. And whatever level you're at, you know, you can participate in this cantillion effect. And it's going to help you. It's going to help raise you up to some degree or another. That's great. I'm looking forward to it. I can't wait.

So if you'd like to join us, And based on that, I can imagine that you would because I would like to be a cantillionaire. That just sounds like a lot of fun. You're already a cantillionaire. I didn't even know it. But good. Go to Wednesdaywebclass.com. Wednesday, webclass.com.

It's at 3 p.m. next Wednesday. That's 3 p.m. Pacific Standard Time, 6 p.m. Eastern. All right, Jason. Well, get your stuff ready. I can't wait to see the show and learn more from you. like I have been. So thank you for being here and I'll see you Wednesday. All right. My pleasure. I just want to wish everyone happy investing and we'll see you on Wednesday. All righty. If you found this episode valuable, who else do you know that might as well?

There's a good chance you do know someone else who would and when their name comes to mind. Please share it with them and then ask them to click the subscribe button when they get here. I'm going to take great care of them. And don't forget to tell them about Wednesday webclass.com. Our next one is going to feature Mr. Jason Hartman. And if you like numbers and stats and you like a high level thinking in the world of economics and how it impacts us as real estate investors, how it impacts us as small business owners, how it impacts us as citizens of the United States, please join us over there. You can register at Wednesdaywebclass.com.

We'll see you next Wednesday for that, right? And then I promise, regardless of where I cross paths. with you next or with your referrals or your friends and your family next. I'm going to take great care of you, take great care of them. All righty, that's it for today. 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. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home board, we got the cash flow. This podcast is a part of the C-suite radio network For more top business podcasts, visit c-sweetradio.com.