Epic Real Estate Investing - How to Get Rich Investing During Inflationary Times and In the Metaverse | 1172

Episode Date: December 23, 2021

In today’s show, Matt is joined with Casey Brown, a CEO of 3000 Capital who will provide the answers as to why virtual real estate transactions have ballooned over recent months! And we are not talking about virtual wholesaling, instead, we are talking about investing as in Metaverse! However, before we tune into this conversation, Matt is opening the show with his good friend, Jason Hartman, as they discuss the accelerating inflation numbers and how to get rich investing during inflationary times.   BUT THAT’S NOT ALL! You will hear the latest in the news and crypto updates that bring us together and set modern ideas on creating wealth!    Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. In today's show, I interview Casey Brown, CEO of 3,000 Capital. He will provide the answers as to why virtual real estate transactions have ballooned over recent months as investors are trying to get ahead of the curve in this new frontier real estate. And we're not talking about virtual wholesaling. We're talking about investing in virtual real estate, like in the Metaverse. But before we get there, I'm kicking off the show with my good friend Jason Hartman as we discussed the accelerating inflation numbers.

and what there is to do about it, specifically how do you get rich investing in inflationary times? 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, Epicore.com.

EpicRei.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-Ase.com. Here's Matt. All righty, so we're discussing inflation, and it's a word that's been tough to escape this year, right? The recent reports have us just shy of a 40-year high. And I've been talking about it here for a while now and giving it real attention, I would say, in the last 24 months.

And it's actually accelerating faster than I thought it would. I was always very aggressive and, I guess, bullish on inflation and having it really appreciate. But I hadn't anticipated moving this fast. And so I guess the big question is, how do you save yourself during these times? What do you need to watch out for? what do you need to be thinking about, how can you actually thrive in an economic environment like this? And so what I did is I invited my really good friend back to the show

to discuss these very questions. So please help me welcome Mr. Jason Hartman to the show. Matt, how you doing? Yeah, just in the nick of time, Jason. That's right, that's right, buddy. How you been? Very good. Have you ever seen that show, the movie Five Heartbeats?

No, I never even heard of it. It was on a single, group from the 50 i think in the 50s or the 60s and uh they open up the show with the whole band starting and they have this montage of the lead singer diving over through alleys and under trash cans and running them through backyards and he slides in just in the naked time just one of the yeah so that's great you think of this good so welcome buddy merry christmas to you hey thank you merry christmas to you and everybody uh joining us today and uh inflation is definitely the buzzword of the year, just like you were saying.

It is crazy. I mean, I just, and I think it's going to get worse, you know, so that's what we have to look forward to. It's certainly looking that way. You know, before we begin discussing how to invest and get rich in an inflationary environment, you know, I've noticed that occasionally something will kind of start trending and it'll be kind of come the ethos, within the ethos and it's all consuming and you're going to hear it a certain word or a certain phrase, over the place. And I don't know if it's ever happened to you, but it grows to such a point there where you feel like you're still left behind and you have no idea what they're even talking

about, but now you're kind of afraid to ask. Yeah, yeah, because everybody should know what Let's Go Brandon refers to. Exactly, that type of thing. Perfect, perfect example. So I think selection is kind of a word kind of like that. So if we could, and just the way that you explain this concept and this idea so eloquently and so easily to understand, can we just start the beginning and then we'll go move into how to actually get rich in today's market. So Jason, what is inflation? Yeah, so that's a good question, you know, and it's good that you start with that because

a lot of people don't understand it. You know, they think, well, inflation, well, prices are going up, right? But you know, it's just not that simple. It never is, right? It never is. So that's the way most people experience inflation. Okay, but technically that is not inflation, exactly. Academically speaking, inflation is really just an increase in the money supply,

inflating the money supply. And no one can deny that that has happened in just massive, massive abundance where money has been created out of thin air. And really, Matt, we should not even use the word money. We should use the word currency, which is, a more accurate word. So the US dollar is not money, it is a currency. And these right here, that I'm going to hold up for everybody if they're watching the video, these are Zimbabwe dollars, okay? And these are a currency, and they are worthless. Money has intrinsic value. So all the

gold bugs would say, well, gold is money, right? Gold is money, because it has been considered money for many thousands of years. And paper currencies, which always, at least historically, have always reached their intrinsic value, literally the paper they're printed on. And so if you go to Wikipedia, for example, and you type in the word inflation, you're going to see this picture of a woman in Weimar, Germany, the Weimar Republic, which was the early era of, of, you know, really what led to World War II. And so type inflation, and unless the entry has changed, you're going to just scroll down there,

and you're going to see this really telling picture. And maybe this has changed. And now I looked this up not too long ago, but just keep scrolling down there. I bet it's there still, because it's just such a telling picture. It's a black and white picture of a woman in Weimar, Germany, shoveling their currency into a furnace, right?

And the moral of that story is the intrinsic value of the currency, the Weimar currency, was literally only to produce heat. That's all it was actually worth. And there are stories, as they experience their incredible inflation, there are stories of people getting robbed, right, because it was desperate time, desperate time. And there's this one story of a, there you go. That's the picture of the second one there, Matt.

That's the one right there. Look at that. Yep. And this other story that's really interesting about that. Is she using that for fire? To keep warm? Yeah, just to keep warm. That's an intrinsic value.

That's remarkable. Right? That's all worth because it costs more money. It wasn't worth it to trade. the currency for wood to burn, right? Which would have been much more efficient and last much longer in the furnace. It wasn't worth it to trade that. It was just simply worth it to just throw the currency into the furnace and burn it.

Could you imagine doing that with dollar bills? Maybe that's the point we're going to come to someday. And the way things are going, it's looking like that could happen. So there's this other story. I'll just tell you one more, and then we'll move on to the meat and potatoes here, if you will. someone in a Weimar Germany pre-World War II taking a wheelbarrel full of currency, right, full of cash. They had a wheelbarrel full of it, and they wanted to go into a store to buy something, just to buy some food items, and the wheelbarrel wouldn't fit through the door.

It was too wide. And so they left it for just a minute, ran in to buy something, and someone dumped it. all the currency out and ran off with a wheelbarrel because the wheelbarrel was worth more than the heavy load of all that currency, right? So we've got to understand that currency is really just a symbol. And, you know, people understand this a lot better since the era of Bitcoin. When Bitcoin came around, a lot of people started understanding monetary policy and using a lot of the buzzwords, like one of the buzzwords you hear often. And now more people understand this than ever. When I started talking about this, you know, 18 years ago, people, like, you know,

one person in a big room of 100 people understood what I was talking about. But, you know, the term we hear a lot now is fiat money or fiat currency. And fiat, that word just means by authority or by decree. That's all it means. And that means that, you know, the dollar, whether it be the U.S. dollar or the Zimbabwe dollar, and by the way, this is 100 trillion Zimbabwe dollars. I just want you to notice that. I'm rich. Great. That's just a symbol, right?

But I do want to moderate that saying with, you know, people dismiss the U.S. dollar too quickly. Okay. So let's just be reasonable about this and have a balanced viewpoint on it. Yes, of course, you know, they say things like, the U.S. dollar isn't backed by anything, and that's why I'm buying gold or silver or Bitcoin or whatever, right? They say stuff like that. And that's not true either. Okay, the U.S. dollar is backed by something.

It may not be backed by gold, and that's true, but it is backed by aircraft carriers, nuclear missiles, police forces, standing armies. It is backed. There is no question about it. It is backed by the most powerful military the world has ever known. And so to say that it's not backed by anything is just, you know, that's just silly. Okay. It doesn't make any sense.

So, you know, let's have some balance in that conversation. But what we can do is as investors, especially in the most historically proven asset class, the world has ever known, income property, right? It's by far in way the best asset class because it has these really special multidimensional characteristics where we earn our return from a lot of different ways, right? We don't just earn it one way. You know, think about it. If you buy gold, since we've talked about gold, or,

precious metals, silver, platinum, palladium, whatever, right? It's a single strategy. Buy low, sell high. That's the whole game. That's it. Nothing else, right? If you buy a non-dividend paying stock, the whole strategy is buy low, sell-high.

There's nothing else to it. If you buy a dividend-paying stock, you get two strategies. You get buy-low, sell-high, get income or dividends in between. That's better, right? but income property gives you return from so many ways. Yes, buy low, sell high, sure, buy low, refinance high. You know, buy low or buy it market, buy high and refinance higher. Buy high, sell higher.

You know, that might be the one for today because everybody thinks it's so expensive, which by the way is a bit of a misnomer too. And, you know, but you get income, you get depreciation. And when I say depreciation, I mean the good kind, meaning the best tax benefit offered of all, which is depreciation. Real quickly, Jason, before we go. Principal pay down, yeah, go ahead. Before we go too deep into like the strategy and what to do,

and then I want to get there because I love having this conversation with you. But can you explain like, you know, we're looking at the last inflation numbers came out or as 6.8% approaching a 40-year high, just shy of the 40-year mark. And but if I look at, and I did this example in a present, about a month ago. You know, if you go to a subway sandwich, you go to their their website. The $5 foot long is now six inches long. So to me, that's like, okay, your money was just cut in half. Yeah, right? That's called shrinkflation, by the way, shrinkflation is the word for that. Okay. And then, you know, my wife's Starbucks latte is a dollar more than it was this time last year.

So that's like a 25% increase. You notice and everyone's noticing it at the gas pump. right now. So where does this 6.8% number come from where the real world number is 25 and above percent? Yeah, well, it depends on the item. So inflation is measured most commonly by the CPI or the consumer price index, right? And that is highly manipulated. It's manipulated in three major ways, weighting, substitution, and hedonic indexing. Three major ways they manipulate the indexing. So basically what that means, is, okay, there's a basket of goods which comprises the CPI or the consumer price index. And all the things in that basket, they can change the weight of them.

So they make these assumptions that, hey, look, you know, if the cost of bread goes up too much, we'll just change the weighting, you know, and assume people aren't eating as much bread as they used to, and we'll put the weighting more on some item that hasn't increased as much or inflated as much. So the basket of goods that you hear all the time, they're actually considered, like they're visualizing a real basket of goods like what someone would normally go to the supermarket and buy? Well, no, it's not just that. It's got all kinds of things in it. Like one for real estate is called owner's equivalent rent. And that's a whole rabbit hole there. Okay. So if you want to learn about how they apply it to real

estate or, you know, housing, look up owner's equivalent rent. Okay. And go down that rabbit hole. It'll take you a while, I promise, because they do everything to confuse what we all see in our daily life, which is totally simple. We know prices are rising like crazy. They're rising much more than the, you know, 7% give or take that they're telling us. So wait, okay, substitution. Price of beef goes up. They assume everybody will switch to chicken. But maybe you think chicken's a dirty bird and you don't like chicken, right? So substitution. Hidonic indexing. You know, this iPhone, this was about $1,500, right?

And, you know, my first phone was $3,200, and all it did was make phone calls. That's all it did, and it weighed 14 pounds, right? So, you know, this phone now is much better. There's no question. But what they do is they index the cost down because the technology keeps getting so much better and they assume that you paid less for the phone than you really did because they hedonically

adjust the price of it. Now, okay, that's actually conological, right? I can buy that theory, but here's the problem, man. It basically says to all of us that we as people are not entitled to progress. The consumer price index gets the benefit of progress. We don't. So imagine if they hadonically indexed from the invention of law. light bulb or how about this the wheel you know it'd be like everything is totally free and it's not

free right right well the other part of that is like with that that that $3,500 phone that you had that only made phone calls you don't have the option to buy just a phone that makes just phone calls yeah right right so you can't you couldn't take it down to 10 bucks for a phone that just made outbound calls That's a good point. Yeah. It's not, that product isn't available anymore. Right, right. Not that you'd really want it anyway, but yes. No, but I mean, if we're going to, the apples and apples thing, I'm just kind of thinking about that. No, they manipulate the index. Now, they do it one more way. Let me tell you one more, okay? You might have heard this phrase around, they say core inflation.

Okay. So for core inflation, or what's also known as the core rate, okay, what they do is they take the CPI, which which is already a scam, okay? And they manipulate it again, and they say, look, there are two items in the CPI that are just, they're just so volatile. We need to take them out. Food and energy.

Now, look, the cost of energy is in everything. Everything takes energy. To get a product to market, to manufacture it, to whatever. The cost of energy is, everywhere. Okay, that's like air. It's just everywhere. Okay. So they strip out food and energy because they're too volatile. It's the most absurd thing ever, right? I mean, nobody can live without food and energy. Right. That's even more of a scam.

Got it. It is. And they do this to us, but we have to play the game, right? We don't have really any control over it. So to play the game, I mean, I guess there's a game of survival, and then there's a game of being able to thrive and really make this work for you. Yeah. Right. So, and we hear about it, and I just, I just pulled this up this long as I was trying to get some sort of current news footage for our conversation today. And I just stumbled across this accidentally. And this is like something that most people will go to as their hedge against inflation is they're going to buy the precious metals. You know, and then the headline is gold is losing its status as an inflation hedge.

And, you know, we looked at the prices over the last probably 10 years. is kind of virtually unchanged, hasn't done too much, but the inflation is certainly skyrocketed. It certainly hasn't kept up. So I guess what are some of the things that, like best practices you can do in this type of environment? You can do exactly what the two most powerful entities the human race has ever known are doing and have been doing for a very long time. So those two most powerful entities are governments and central banks.

And they are doing the exact plan. that I'm about to share with all of you. And I have a name for it. So last time we talked, Matt, we talked about the Hartman Comparison Index, and I just wanted to let all of your people know that we now finally have published for public consumption white paper 2.0 on that.

So if you want that, it's free. You can just go to jasonhardtman.com, get on our list, and we'll get you the white paper. Okay, it's 17 pages long that explains basically why real estate is not nearly as expensive as many people think it is. Okay, so you can get that. But the technique I was talking about a moment ago is called inflation-induced debt destruction. And this, even though it's a mouthful, this is the plan that Jerome Powell, that the U.S. government,

Jerome Powell is the chair of the Federal Reserve, and I just mean the Federal Reserve, really, not him personally, but he's the chairman, have been using for decades to inflate away their debt. And there are many nuances to this. So let's go ahead and dive into it. But, you know, first, let's kind of talk about the problem for a minute. You know, I was talking with Ken McElroy, you know Ken, and he's one of the rich dad authors, and we started a business together, a mastermind group called The Collective.

And in my talk with him, I was talking to him about my portfolio in my investments. And Matt, I bet you felt this way before. I was saying to Ken, I said, man, I am just long on everything. I'm long on real estate. I'm long on, and I don't own much of this other stuff, but Bitcoin, stocks, you know, everything I'm long, which means I'm expecting it to increase in price, right? Versus going short on something, which means you're betting that it will decline and you're going to make money from the short. And I thought about that after that conversation, I thought, but really I'm incredibly short on one thing, the U.S. dollar. And I'm shorting the U.S. dollar by the way I'm structuring my real estate deals.

And hopefully all of you will take something from this today and take advantage of the same thing on how to really short the dollar. So if we talk about the problem a bit, we've got these two big spenders, you know, that just just love to spend. I mean, Ronald Reagan had this great saying. He said, you know, he used the old saying. He said, to say that the government spends money like a drunken sailor is an insult to drunken sailors. Because the government spends even more and even worse than the drunken sailors do.

And so we know that they're big spenders. We know the, you know, government is spending money. It simply doesn't have and definitely cannot repay. And I'll dive into that a little bit right here. But I've identified six ways that the government can really get out of this mess, right? What does it do to solve its problem? Now, the first thing it could do is it could simply default. It could say to all the people it's made promises to,

all the people that are taking advantage of Obamacare and getting free or subsidized health care, all of the people that get, you know, various government, college scholarships, Medicare, Medicaid, Social Security, disability payments, every government benefit, you know, the National Endowment to the Arts, the Public Parks, all of this. I mean, the government does so much stuff. It's absolutely insane, right? It could simply say, look, we're sorry, we've overspent, we can't keep our promises,

and so we're going to simply default. We're not only going to default to the American people, but we're going to default to all the other countries we owe money to, like China, for example. And this is extremely unlikely because it would be political suicide. And we saw what happened in Greece and many other places around the world when they instituted austerity measures. This is not a popular thing, and it's very, very unlikely that it would ever happen. the government could raise taxes, hey, eat the rich, okay? You know, they're taking too much, they're not contributing enough. That's the pitch.

But there are simply not enough taxes to raise. Let me give you an example. So the GDP, the gross domestic product, in other words, the entire value of the U.S. economy in one year is just over $20 trillion, $20 trillion with a T. Now, that's another highly manipulated thing, just like inflation. rates, just like unemployment rates, all of this stuff. But it's there, right? So this GDP is manipulated. But let's go with their number and let's call it $20 trillion. Now, not only has the government made too many promises and spent too much money today and in the past, but it has also made

these promises way into the future. And these are called unfunded entitlements or unfunded mandates. And on my podcast, the Creating Wealth Show, I've had Lawrence Kutlakov, the economist, on several times. And he has done possibly the most detailed in-depth study on this stuff. And this was before COVID, these numbers. So they're much higher now. I don't know the latest number, but it's a lot higher. I'll tell you that. Pre-COVID numbers were that these unfunded obligations the government has promised were 220. trillion dollars. That's with a T. Okay, now, the GDP of the country is about 20 trillion. So that means if the government stops spending today and taxed everybody at 100% tax rate, meaning you're all, we're all slaves,

okay, and we don't get to keep a penny of what we earn. We have to go and work hard and give it all to the government and that would be $20 trillion a year in revenue for the government. Well, currently it gets about $4 trillion a year in tax revenues, right? So if we taxed everybody at 100%, which I doubt many people would keep working, okay, if that happened, it would take 11 years to pay for the promises the government has already made without making any new promises, which, as you know, every election cycle, new promises are made. So you simply cannot tax your way out of the problem. It's mathematical impossibility. It just can't happen. Okay, well, look around the country. The country has assets. It has land.

You know, the U.S. government has a lot of federal land that it owns. It owns real estate. And so, you know, we could sell the ports to Dubai. Remember, that was in the news about 10 years ago. It didn't happen, but it could have happened. The Bureau of Land Management sells off land to real estate developers from time to time. You know, we could sell military equipment to high-tech military equipment to countries that maybe we shouldn't sell it to just because we need the money, right? So there are all these options. We could have a yard sale, right? But that is selling off assets. That's cannibalizing ourselves. And that's not a good idea. And, you know, it hasn't been historically what we've done. Okay, we could use the U.S. government to steal resources and assets from other countries.

And you might think, well, that would be so evil and awful. Well, it's the history of the entire world. That's the way the map of the world was drawn is by one country stealing and pillaging resources from another country. That's how we came at the map we have. Okay, that's just history. That's the way it is. And, you know, maybe the most famous one for this is Napoleon. Right?

Napoleon did this in spades. In fact, that was one of his criteria. He literally thought, who is the richest country around us that we can just invade and steal their assets? I mean, just study Napoleon. That's what he did. That's what he did for a living. Okay. That was the thing.

Okay. Enough negativity. Let's talk about some positive stuff. How about technological innovation? You know, there may be a technology or a series of technologies that kind of save the world. It's possible, right? you know, that could enrich the economies of the world, that could enrich government coffers. I mean, the stuff I'm talking about when it comes to the government is not just the United States.

This is virtually true of pretty much every government around the world is in trouble like this. It's just that the U.S. can get away with a lot more because it has the reserve currency of the world. back in 1944 when all the nations met in the dying days of World War II they agreed to this Bretton Woods tree

and they call it that because it was held the conference was held in Bretton Woods, New Hampshire and when they did this they agreed that the U.S. dollar would be the currency of the world

that all international trade would take place in the U.S. dollar and it made the U.S. the, really the supreme country on planet Earth, because it was the only major country that still had its industrial powerhouse. It wasn't destroyed by the war. And, you know, the U.S. did a lot of very smart things after that. It instituted, well, during World War II, lend lease, to finance basically military equipment for the Allied forces. You know, after World War II, it instituted the Marshall Plan, which was extreme American generosity.

I mean, America basically rebuilt the world, including its enemies, like Japan, okay, which was trying to just destroy the United States during the war. But, you know, the U.S. quickly realized that we've got to rebuild these other countries, number one, so we can expand the pie, we can expand the global economy, and so that we can be the hegemon. We can be the hegeman of the world and really just call the shots. And it was a really good investment. And it was not only good for humanity, but it was good for the United States too. Okay. And so that's where we are. But maybe some big innovation in areas of, you know, biotechnology, nanotechnology, energy, whatever, right, will come and kind of save humanity, right?

It is possible. But the most likely outcome will be the last one, inflation. and the governments of the world, especially the U.S., will inflate its way out of the problem. And why would it do this? Because it wants to take advantage of inflation-induced debt destruction. Okay? Now, let's dive into understanding this a little bit. To understand and get excited about this opportunity, we have to understand some things, right?

So we need to understand the difference between real and nominal. So if I had a US dollar in front of me and I said, I said, what's this called? And the year was 1980, for example. You know, any one of you would say, well, Jason, duh, it's called a dollar. What do you think? I mean, stupid question, right? And then I held it up and said today, you know, what's it called? Well, it's still called a dollar.

Name hasn't changed. And that's what nominal means. nominal means in name only. But nominal is different than real. Real is the value of it. The value of that dollar back in 1980, 41 years ago, was significantly higher than it is today. So real and nominal, big, big difference.

All right. So we also need to understand the inflation is the insidious hidden tax that destroys our purchasing power. Just as we were talking about at the beginning, it's a destruction of our purchasing power. It is a robber and a thief. It's a pickpocket.

And it destroys the value of our savings, our stocks, our bonds, and even our equity in real estate. Now, you might think, well, aren't we all here as real estate investors talking about how great real estate is? Well, yes, but we have to understand that anything denominated in the currency that is being inflated, being inflated is getting destroyed. It's getting debased.

It's getting devalued. So our stocks, our savings, our bonds, but also our equity in real estate is denominated in what? Dollars. So if you have a million dollars equity in a portfolio of real estate and inflation comes along, it is devaluing that equity. But thankfully, it also destroys the value of our debt.

And that's what I'm. really going to talk about today in detail and give you a specific example. Yeah, before you go there, Jason, and I've seen you give this presentation before, and I was following all along, but that equity part that you spent a little bit of time on, I was still having a hard time, like, really grasping that, just because, you know, you talk about that million dollars of equity that might be in your portfolio. Right. You know, two years ago, it was 800,000.

So we inflated 20%, and our equity went up 20%. Well, that's a good question. The question is, will that equity buy you more, or has it just kept pace with inflation, right? Is it because the dollar in which the equity is denominated has gone down, or is it that the value of the equity has actually gone up? That's the thing we have to ask ourselves. And the answer is complicated, right? It's like my favorite relationship status on Facebook. It's complicated.

I was thought that was hilarious that there's actually a choice. It's complicated. And that's what inflation is. It's complicated because it's uneven, right? It's very uneven. We all have a different consumer price index because we all spend differently, right? No two people spend exactly the same. So our CPI, our personal CPI for you and Mercedes is different than mine, right?

Because we spend a little differently. So does that help? You know, the question, did the asset go up or did the value of the currency go down? Right. Right. Okay. Understood. Go ahead.

No, understood. Go ahead. I like that destruction thing is awesome. So on my podcast years ago, I had a guy that definitely had his 15 minutes of fame on my show, Joe the Plummer. You remember Joe the Plummer in 2008? He went up to Obama at a rally and he said, Obama, you're going to redistribute my wealth. And so he became famous for that line, and that was all over the campaign trail back in 2008. And so I interviewed Joe the plumber, and he was a fun guy, and he was implying that Obama was going to increase taxes and redistribute wealth.

And that is the most common method of wealth redistribution that people notice, but it's not the most powerful. It's much more powerful to redistribute wealth through income. inflation, then taxation. Why is that? It's because inflation is subtle, and it's not understood by people very well. And it redistributes wealth in a couple of ways. It redistributes wealth from lenders to borrowers, and although it's behind my image on the screen there, from old to young.

Okay? So from lenders to borrowers, because you borrow money, if you're the lender, well, let's take it from the lender. You lend money in today's dollars and you get it back in tomorrow's dollars that are worth less. If you're the borrower, you borrowed in today's dollars, and then you pay it back in tomorrow's dollars, which are worth less. Okay? So that's what the government wants to do. That's what the government is doing to China and all other countries that it owes money to.

It's inflating away its own debt. It's a fantastic business plan. Why does it redistribute from old to young? Well, it redistributes from old to young because most of the time, old people have assets like savings, stocks, bonds, and equity in real estate, and young people typically have debt. So this is an intergenerational wealth transfer without an inheritance, without anybody dying. Nobody has to die to have this redistribution. It's going on through inflation while everybody's still alive. Okay?

All right. So this is an interesting video, but in the interest of time, I'm not going to go through it today. You can find it on my podcast. There's more to it there, but it's just too long to go through right now. Okay, but here's the thing to understand. And I noticed this when I lived in the Socialist Republic of California, and Matt, We're both from California, so maybe you noticed it there too. When the government is broke, it becomes predatory on its citizens.

Okay? So you really, it is not pleasant to live under a desperate government because they will find ways to tax you that may not be obvious, like raising your income tax rate. They'll just give you more parking tickets. They'll change the rules so that more people become victims of guns. government fines. And sadly, this is what's going on in our prisons. You know, just a little tangent here. I mean, we imprison more people in this country than any other country on a per

capita basis. More than North Korea. I mean, it's insane because prison has become a profitable enterprise and they're privatized prisons. And initially, you know, I was kind of for that, but I'm definitely against it now, because you don't want to make it profitable for someone to take away someone's freedom, right? And the government makes money from the prison industrial complex. It's just awful what's happening. So there are a lot of ways that the government goes and sort of taxes us. You know, policemen, while I'm all for policemen, I do not want to defund them. I think that's absolute stupidity.

But policemen, to some extent, part of their job is being the modern-day tax collector. You know, when you see the guy there, the cop doing his job with a radar gun, you know, that's a tax, okay? You know, it's all in the name of public safety always, but, you know, to some extent that is true. But it's also a way to tax, right? And so just understand and notice that in your life, okay? All right. So, Matt, you ready for a real-life example? Yes.

All right. So this might sound like some theory that's interesting. But what do we do? And does it really work in real life? And did it happen to other people? Yes. It did happen to millions of other people. And it's happened all throughout history, especially since 1971. Why? Because in 1971, Richard Nixon, our president at the time, ended the Bretton Woods Treaty. Okay? That started in 1944, and the last component of it was basically ditched in 1971. When he gave this famous speech on August 15, 1971, and said that he was going to temporarily

suspend the convertibility of dollars to gold temporarily. and now it's 50 years later and it still hasn't changed. The world accepted that and it's an amazing scam and it's amazing we got away with it. Now, it wasn't like Nixon's scam. It was the United States's scam. It was America's scam against the world, right? But hey, we got away with it and it worked.

And this created a lot of American prosperity, a lot of American prosperity that I argue would never have occurred if we didn't have that event in 1971. And sadly, it created a lot of wealth inequality, which you can just see it. Like, I could show you a number of charts that just show you how, in 1971, that was the inflection point for when the haves and the have-nots started getting really unequal.

And the middle class came under attack, and it's been under attack ever since. A great book recommendation is by Lou Dobbs, who was the CNN anchor, and I think it was a Fox anchor. I don't know what he's doing now. I haven't kept track of him. But he wrote a great book called War on the Middle Class. I highly recommend this book, War on the Middle Class. I discovered it maybe in 2004 or 2005.

It's an excellent book. Okay. So in 1972, that's where we're going to start our talk about this, War on the Middle Class. and Matt you're really good about putting stuff in the chat excellent work there he's bringing you good stuff everybody you know all the resources you got them right it's a new software it's got buttons and stuff everywhere

so it's like a full production going on right now so you keep doing you're the talent today okay cool but I'm so we're going to start at 1972 and in 1972 since no time had passed a dollar was worth a dollar okay nothing had changed changed yet. And in

1972, if you go forward 12 years from 1972, you go to 1984, that dollar was now only worth 40 cents. So, think about how extreme that is. In 12 short years, the dollar lost 60%

of its value. That's insane. That's absolutely insane. I mean, 12 years is nothing. Okay? 60% poof, evaporated. The dollar was still called a dollar, but it was only worth 40 cents, 12 years later.

All right, by 2001, we're looking now basically 30 years later, the dollar was only worth 24 cents. And we all intuitively know this is true because we live it every day. We've seen this inflation happen over the years. Now, in 1972, if you wanted to get a 30-year mortgage, you would have had to pay 7.37% because that was the mortgage rate for a 30-year fixed loan at the time.

But after inflation devalued that mortgage debt, the real interest rate you would have paid, the effective interest rate after inflation was only 1.06%. Not a bad deal, huh? Now, how stupid were all those people that did not understand this that said, you know, let's make 13 payments a year and pay off our mortgage in half the time. Or let's pay our mortgage every two weeks and accelerate the paydown. Terrible idea. In fact, just to illustrate that, I have a good sound effect.

Bad idea, okay? Much better to keep that mortgage because that mortgage was being paid off by inflation. But wait, there's more, as they say, on late night TV. But wait, there is more. Remember, mortgage interest is tax deductible. Now, everybody has a different tax rate. I understand that. But I'm just going to give you kind of a general example here on average, right?

What benefits someone would have gotten? And when we do the math, and we take not only the inflation-induced debt destruction, which makes the mortgage only 1.06%, but we take the tax deductibility of the interest, then we literally got paid to borrow the money. Our interest rate, we thought, was 7.37, was then debased by inflation, and then further debased by tax deduction. So let's look at a summary. If someone bought the median priced house in 1972, they paid just over $14,000.

In nominal dollars, in name only, they repaid over $36,000. but in real dollars they only paid just over 16,000, making that interest rate 1.06%. After tax real dollars, they paid less than they borrowed. Really let that sink in. They borrowed 14,600, but after taxes and inflation, they only repaid 12,0655, making their effective interest rate negative 1.16%. They got paid to borrow. Oops, that slide was in there from another thing.

And I've got this whole chart, which I just summarized for you that goes over year by year, what the inflation rate was and all of this stuff. But that's basically the scoop. Questions, comments, skepticism. I love skeptics. Yeah, so go ahead and we got a few more minutes left before Jason has to run. But firing your questions there in the chat box, if you enjoy what you're seeing today, go ahead and hit the like button, hit the subscribe button if you're not already.

So our actual subject of today's conversation, was how to invest during an inflation. And you show this great example of like if you purchase property, you know, in 1972 or 71 it was and what that would actually cost you going through the full cycle of your, the full term of your loan. The great example. If we were to say look at that today where an interest rate on an income property might be three and a half, four percent, depending on where your credit score is.

and we just had inflation at 6.8%. Am I doing the math correctly? Like we're getting paid 3% to borrow money right now? Oh, yeah, Matt. This is the first time in probably anybody who's watching this lifetime. It's possible you were alive when this happened before. We weren't, but someone listening or watching might be. And basically the deal was this is the first time in our lifetimes

that the stated rate of inflation is below the 30-year fixed-rate mortgage rate. Normally, it's the nominal, or the real rate of inflation, is higher than the fixed-rate mortgage. But today, the stated rate of inflation is higher than the mortgage. So literally, they're not even trying to fool us now. they're saying go out and stock up on those 30-year fixed rate mortgages. And one more thing that's very important to understand with that example I just shared. This is super important.

Make sure you all hear this. That example was on an owner-occupied house. So they got to live, they got paid to live there for 30 years. They got paid to borrow the money. But what if that was a rental property where you actually got the tenant. paid the mortgage, you didn't even pay it. And maybe they paid you positive cash flow of $200 a month extra. I mean, the return is astronomical. This is why income property is the most historically proven asset class in the entire world because it's got these unique characteristics.

So, in summary, it would be to borrow money as much as you can to buy as much income-producing real estate as you can. As long as you're buying sensible properties that will pay the debt for you. Right. Okay. You can't, this is not likely to work out well if you go buy properties in Los Angeles, for example, that are expensive, where the deal will never cash flow, okay? Now, you don't have to even have a positive cash flow.

Just break even. Like, that would be pretty good in today's world with these higher prices. But, you know, if you buy a negative cash flowing property, an expensive property that won't work, that won't work in a cyclical market. And that market turns and you have to feed that property, you could end up, you know, ruining this whole possibility here. Okay, you've got to buy sensible properties. Yeah, that was a given for me in my head, but thank you for it.

But not everybody knows that. So I take some of those things for granted sometimes. It doesn't work for everybody. Yeah, because if you're making bad decisions, there's still bad decisions. Yeah, it's a Kiyosaki says there's no bad investments, just bad investors, right? Yeah. And very good. All right.

So there's a question from Wendy. Are you worried about rental income if the government steps in and doesn't make renters pay again? A little bit. You know, the whole eviction moratorium, really, we were very worried about that when it was announced. But it turned out to be just a nothing burger. It was like a non-issue. Literally, like, we have thousands of clients that have purchased properties from us all over the country, over the many years. And, you know, they were worried.

worried, we were worried, and we thought, oh, God, this whole thing is going to be a disaster, right? But it just turned out to be like a non-issue. The people that experienced more problems with that were people that were in the apartment space. The multifamily properties experienced a lot more non-payers. And so in the single-family space, keep in mind, even with that moratoriums and stuff, you know, if people took advantage of it or took advantage of you as landlord, they still hurt their credit. You were still able to literally sue your tenant while they were occupying the property and get a judgment against them for not paying, okay, while they were occupying. You just couldn't kick them out on the street. That was the only thing. And it just turned

out to be a non-issue. Now, I do want to say, though, here's my caveat, and that is that you want to buy properties in landlord-friendly markets. Generally, markets that are politically leaning to the right, because those are the places where you're not likely to have these problems. Okay, even if the mandate, even if the rule is federal, okay, even if the CDC says you can't evict anybody, right, those courts in good markets that we recommend, like, that are on my website at Jason Harbin.com, you know, Those are landlord-friendly markets, and you as a landlord have rights, and the courts and the regulatory environment tend to uphold landlord rights there.

You go to court in California. You are instantly considered the big evil landowner, and they don't care what happens to you. Right, right. You know, one thing I noticed, and you hear that narrator or that type of question or something in that context all the time, why would you want to buy a rental property if no one's going to pay their rent? and if the government can just turn it off on you real quickly. And I always referred to this, which I thought was an extraordinary chart on, this is the national home renter or something like that.

What's this place called? The nmhc.org. Anyway, they track their rents. And here are July, August, September, October, November, December, then we have them divided by our years into three different categories. And if you does look at like 2019 pre-COVID, 2020 during COVID, here we're in 2021, you know, there are little drops. But it's relatively flat.

And this is how many people are actually paid by the sixth of the month. Right. If you scroll down to where they have the actual overall, so 95% pretty much everybody is paid and whole and complete by the end of the month. So although people paying rent can sometimes be a challenge for landlords, not that much. And even if it is a problem, it was not a COVID problem.

It was not an eviction moratorium problem. So the numbers are essentially the same all the way down. Like it never goes below 90%. Yeah, right. Yeah, no, that's a really good point, Matt. I'm glad you showed those charts. Thanks for sharing them. Also, you know, what I was alluding to before is that the renters you get in single

family homes generally are just better quality renters. They're not as transient. They care about their future. They care about their credit report. You know, they want to buy a house some. day, they want to keep their kids in that school district and in that single family home. They don't want to upset their family. You know, like, it's just a different kind of tenant than you get in apartments.

And, you know, look, we both own departments. I mean, you know, you can make money in anything, okay, if you do it right. I'm just saying it's just a different animal. That's all. Yep, yep. Here's another question. I'm not sure if I totally understand it. Maybe you do.

What about runaway taxes on property that may compensate? Oh, well, just property tax increases. Yeah. Well, that's a concern, you know, I mean, but those taxes go to the municipality, so they don't really relate to what I was just talking about, okay, about, you know, the government. I'm talking about the federal government there. But the property taxes, you know, they couldn't affect your local environment. And property taxes are going up already because the price of the house is going up. So that's how they tax us in, you know, with this inflation scam is the nominal dollars versus real dollars, right? You know, maybe you got a raise and your income went up in nominal dollars, but in real dollars did it go up? No. And the government said, well, hey, guess what?

We're not raising taxes. But guess what it did? It kicked you up into a higher tax bracket. So you got a tax increase just by getting that pay raise and now you're paying more in tax. The same thing happens with properties when they appreciate your property tax goes up. Right. So, no, that's another way they tax you through inflation. What can, what are some of the things can the average person do?

We talk about this war on the middle class. So let's just kind of look at the middle class, the average middle class person. What can they do if they can't really afford big inflation hedge type investments? Well, you know, if you've got $20,000, $25,000, you can get a single family home. You know, it may not be the best single family home, but you can get in the game. I mean, my first property was a cheap, crappy little one-bedroom. condo. I bought when I was 20 years old. Okay. Just get in the game and, you know, do the best you can with what you have. That's all anybody can do. Perfect. Some things that come to mind was

definitely try and take advantage of your FHA loan. You can get in for 3%. You can do house hacking. You can move in. There for a minute. Move, right? Partnering is another good thing. Partner and Matt, you help people partner through your network. I think you do that. Yeah, absolutely. Yeah. And so, so you, so you, you, you can get an epic partnership, okay? And then, you know, you can also buy a duplex on an FHA or VA loan if you qualify and rent half of it, right? Sure.

You're basically house hacking. So that's a way to get in with less. All right. Let's wrap it up with this one. I don't know if it's relevant, but that's a good question. Are 1031 is going to be evacuated? Well, it doesn't look like that. It's going to happen.

We were all concerned about that with Let's Go Brandon wanted to take them away, and, you know, it doesn't look like that's going to happen, but it could happen someday, and, you know, let's hope it doesn't. But it's, look, you know, you got to remember, these politicians have to answer to their constituents. They want to stay in power. They're greedy, power-hungry criminals, most of them, okay? And, you know, if you took away the 1031 exchange, that would just have so many ripple effects throughout the housing market and throughout the economy, it would be disastrous. I mean, you know, so it's just unlikely.

Housing has always been this sacred cow, and it's likely to stay that way. It's just too big a part of the economy to mess with it. Yeah, it's a good thing that a lot of those big threats that were coming down, that everyone was a little scared of, you know, six months ago, 12 months ago, or all just kind of slowly disappeared one by one. Yeah. Totally. Well, Jason, I know you got to run.

I appreciate you being here, buddy. Thank you so much. And we'll stay in touch and we'll continue to do this over and over again. Hey, it's my pleasure, Matt. Happy investing to you and all your followers and viewers and listeners. And I look forward to talking to you soon. Please stand by. We've got overhead to pay.

We'll be right back. Boarding for flight 246 to Toronto is delayed 50 minutes. What? Sounds like Ojo time. Play Ojo? Great idea. Feel the fun with all the fun. latest slots in live casino games and with no wagering requirements. What you win is yours to keep

groovy. Hey, I won! Boarding will begin when passenger Fisher is done celebrating. 19 plus Ontario only. Please play responsibly. Concerned by your gambling or that if someone close to you, call 18665331-260 or visit Comexonterio.ca. Ever hear someone say, I have too much money? Me neither. Let's get you some more. Back to the All righty. So we are discussing virtual real estate because virtual real estate transactions, they ballooned over recent months as investors tried to get ahead of the curve in this new frontier of real estate. New York-based company Republic Realm spent a record-breaking $4.3 million

on digital land in a virtual world called The Sandbox. You might have heard of it. It's becoming very popular. And then last month, a 116 parcel estate in the heart of the Fashion Street District within DeCentraland, another Metaverse sold for what would be roughly $2.5 million in the real world. So you can see this is real money. I mean, Coke and Pepsi are investing. Snoop Dog is investing. I mean, major brands and celebrities are jumping in like crazy. And I just found this article here in, let's see, the Wall Street Journal, as you can see there.

Investors snap up Metaverse real estate in a virtual land boom. Transactions for properties in digital realms are jumping guided by the same principle in the physical world. Location, location, location. And so today I've got a guest, a great guest for you today. That's where our guest comes in to help us figure all this out, right? How do investors know what is the right investment to make in the Metaverse? Or if it's even the right move for them. So please help me welcome without further ado, Mr. Casey Brown.

CEO of 3,000 capital. Thank you for having me. I appreciate it. Good. Before we begin, Casey, share a little bit about your background and what inspired you to look at and take on virtual real estate investments. Well, about 15 years ago, of course, I started out from college and didn't really know what I wanted to do and decided that I was going to jump into the real estate space and just general terms. Got my license to sell real estate and just kind of began. feeling out and learning the whole real estate, like talking the language and learning how to

just make deals and find deals and customers and so on and so forth. So as we kind of fast forward up through that part of my career of having kids and growing a family as well as growing a real estate sales business, several years ago, well, I said about five years ago, I started investing in some multi-family and some commercial properties and started getting some management experience under my belt so that I could really feel like I could have a grasp on what all of these different terms meant and how to grow a portfolio of properties. With that, it's kind of led me through and I've kind of carved the path for myself where we've, you know, what I've learned, again what all the terms meant and what and how to use money and borrow money and and and so on

so forth. So that's that's kind of a just a quick synopsis of who I am. I feel like I breed, eat, sleep, everything real estate all the time. It's nonstop. I'm always looking for another deal or I'm always looking for the next time to do to to raise capital or how we're going to put the two together. So it's just something that I that I took wholeheartedly years ago and that's this where I'm at today. Super. So share with me a little bit what you know because this is something of great interest in me and I've just started to dive into this field of or this area, this new market of virtual real estate. Why are real estate investors taking on this virtual world? Where are the opportunities? Well, the opportunities are really just like they are in any other

investment space. You know, you're looking to be, you're looking to be in early and hopefully ride the wave of value increase. and it's just like anything else. You know, you buy a corner piece of property and then you look to market it to a pharmacy company, Walgreens, something like that. It's the same type of scenario. And then as things kind of build around you,

then you kind of figure out what you have. With the digital stuff, you know, those areas are kind of already predetermined, if you will. So like you were talking about the fashion district or whatever earlier. And it's still kind of a vague process. I think even forward people that are involved in it, I think there's still some vagueness as to exactly how this is going to go and how these things are going to transpire.

The bottom line is, though, is there's only so much of it, no matter how you look at it, no matter what you do, there's only so much of it at these different worlds, such a sandbox, decentralized end. And, of course, I'm under the impression that Facebook, you know, their whole metaverse, or doubt that they're meta, that's coming down the road for you to be able to shop and buy parcels of digital property there.

And again, it's, I think, I think there's still a certain amount of vagueness of exactly how this is going to go and what it's going to officially look like. Right. You know, I mean, I've been involved in real estate for almost 15 years now, almost 11, 12 years as a trainer and an educator helping other people do the same. And, you know, for the foreseeable future, I don't see real estate. ever depreciating, really ever again, at least not while we're walking the earth. It probably goes through some ups and downs along the way, but long term.

And it's really just based off of the concept of the economic concept of supply and demand. We've just got more people right now than we got houses and they're already walking the earth and they're growing to an age where they need their own house. And we're just not building those houses fast enough. So I think this is the most solid investment, solid business you could take on for a very long time to come. But when we make this transition into virtual real estate, is that supply and demand there? Or is this a little bit more or a lot more speculation, a little bit more of a gamble? Because this is real money.

And we're talking millions of dollars for digital plots of land inside of a video game. Yep. Now, and I think that's, I think what you're looking at right now is, is yes, the video game, if you will, what you just said. The whole video game concept is something that my parents are still trapped in the world. of while I'm sitting there playing Super Mario Brothers, and they thought we were all going to, the whole earth was going to burn when we got older because we sure were going to know what to do about it because all we did was play video games. And so what's happening is, and it's happening in my own household, you know, the Oculus.

Let's just take it for just an example. The Oculus, and then the amount of time that my kids play on the Oculus, and one of them the other day was talking about they were playing a game where they were an employee. So like they're checking out groceries and they're doing this for hours on the end. And I'm like, what could be so far? Why don't you go do that for real and bring home a check? You know what I'm saying? I mean, it's just like, come on, what are we doing? And so, but I think what's happening is, is you're not going to see an immediate shift into this digital world. But you know, my generation is post-super Mario brothers and we're post-invention of basically the personal

computer and look at how the earth is or the world has transcended from from that point moving forward and and what it looks like post those things happen and so although i think what where there's some confusion arising is that that somehow this virtual world is going to stand in for the physical world and i don't think that's the aim or the direction that these folks are going I think the direction they're going is for things that can be virtual experiences will be in the virtual world, while obviously you can't own a farm in the virtual world that you can go pick a cucumber off of. So I think that the mind shift has to take place there, and it automatically has to be separated to begin with. And as these investments and as these people, these bigger will people start coming into this space,

you're going to see a lot of things like, I can't even remember my own father. He just about fell out of his chair of the day. He figured out he could play a poker online several, several, several years ago. It was one of the original, you know, everything was real pixelated and all that stuff. And, you know, he just got fell out of his chair. And then you start thinking, okay, how many people fly to just right where you're at? How many people come to Las Vegas just to roll of dice or come to Las Vegas just simply to play blackjack? Okay.

What happens when now you have a unregulated space where anybody can go on there and gamble with whatever? You know, now they have a venue online where you can actually physically go in and these kinds of things. things start happening. And one of the, I'm sorry, I may have gotten off of the original question. I think we were. Yeah, and just guess what, and I kind of get it. So I'm almost there, but I'm trying to think in like the layman's terms where this is a totally brand new concept because it is something brand new for most of the world, right?

Personally, specifically, like the civilized world that have the ability to invest if they wanted to and if they wanted to participate. So as far as these, you know, like I said, like we just said, guy paid $2.5 million for 116 parcel estate. So that's $2.5 million. So that's an investment, obviously, to that investor. So the expectation would probably be appreciation. And I guess that comes from adoption of the game.

Yep. Right? And then. Well, it's not just a game. Now, I think that's where the long play of it is not the game. It's not a game. It's one of the things that I heard, of course, you hear some different things, but one of the things that I heard Mark Zuckerberg was emphatic about, especially when the pandemic started, was, you know, you had people that were dying all across the world, not even just from COVID, but you still had your regular everyday people that were passing away. And all of the sudden, we were all strapped in our chairs at home and couldn't go anywhere.

we were straightjacketed in our house. We could even go to say goodbye to our loved ones. And when this whole idea that this digital landscape existed or was even going to, was even on somebody's radar was when he said we could go to a funeral virtually. And what does that look like? And so when you start, I mean, it's just, it's unbelievable to me that when you start thinking,

start thinking of the things that we did in the physical world and how they could potentially be put in there. So I really, that's, I think, going to be one of the biggest things is exactly what you just said, getting it, getting it from and having it move from the video game to, hey, this is actually a real world concept. And it was just like, you know, liken it to the Bitcoin, you know, the Bitcoin standard, whatever that's happening. You'll go back 10 years and people were like, you're going to buy some of those.

that what's it called you know and then they were like all of a sudden bitcoin wasn't just this toy or this whatever it was you know whatever you considered it back then and now it's like it's real world currency right and i get it but i'm trying to think because i've got a buddy who bought a hot dog stand in one of these metaverses yeah and he sells virtual hot dogs to the players and he actually is earning an income from that he's a i'm sorry my kid are the ones that bought it, V-bugs or whatever they. Yeah, and then I've got another buddy who bought a digital racehorse. Yep.

And he's got the racehorse are big, yes. He's got a racing in races, obviously. And then he's got, then he's also can send out his digital racehorse to breed. And he gets stud fees on his horse. So it's like, it's really remarkable of what's happening. And I think, you know, when we. start talking, you know, you made the, you said the term layman's terms earlier, and it's, for this whole digital landscape and these race horses and these types of things needs,

for those to ever make any sense to, I guess what I would say, the general hoodlick, which used to be me before I actually, like, sat down and just started studying and reading and learning and thinking and trying to place my mind outside of this box is, you know, the NFT praise, the non-fundings. will poking. And when you start looking at what the basis of an NFT is, and again, I know that term doesn't resonate with a lot of people and it's way out there. I get that. But, you know, when you start looking at this thing from an NFT and the NFT cannot be replicated any more than the physical horse that won the Kentucky Derby last year, they can be replicated through, through,

taking its qualities and combining it with another quality and then, you know, and then you have, but you still never have that original one. Right. And so that's the basis for learning about where made of verse is and what these investments ultimately mean on the far end of things is going to stem off of learning about what an NFT is to begin with. Right. And I get the demand.

I get the enthusiasm over it because we're already a big giant gaming community anyway. We're already kind of living in this. My son is a huge Roblox fanatic. Right. So, I mean, that's a metaverse end of itself. So I see like the demand. I see where there's potential for the profit and appreciation and the income. What if people just decided to go, you know, okay, I got real problems in the real world.

Forget this game stuff. Forget this metaverse stuff. And leave. Like, what are the actual risks involved? Well, you know, I guess the risks involved are just like anything else. Now, to a certain degree, you have to consider the risks like just like owning physical real estate. I mean, just, you know, buying a lot somewhere. What if everybody all of a sudden decided, hey, we're going to leave Las Vegas, which happens, you know, cyclical type stuff.

But again, you're going to have that, you're going to tend to have that continual demand to, some degree. I just got done having a discussion with a guy about this, about his primary residents here in the town I live in, and he was like, I said, you know, real estate is 100% undefeated against sell. Real estate will always sell. It will always sell. No matter what you do, it will always sell. The thing that hinders it is the price. The price and the person behind that price hinders what that real estate is worth. Now, again, when you start looking and saying, okay, all of these people would have to leave at one time, and then all of a sudden, if they all left the Central land, now you're sitting there,

you're like, hey, got this $2 million dollar plot of land and it doesn't really exist, but it does exist on the blockchain, but it doesn't really exist in the physical form. You know, I guess that really that risk is yet to be seen. It's yet to be seen because people haven't, there hasn't been an episode of that. yet. Just like I'm sure, you know, back years ago, I keep saying Las Vegas because it is, it's one of the cities that always stirs up in my mind because because I've heard of people that have bought half a million dollar homes, sold for 200, re-bought back for 100, and then sell it for 500 again. And that seems to be the city where it just goes around like you're holding a snake.

It just, it never seems to have, have a balance and of supply and demand. And so I think there's there's probably going to be a cyclical portion to this that's yet to be seen. And I think that's going to be with NFTEs. And I think we've seen a little bit of a crypto fall off in the last week or two. But, you know, it's like anything else, the demand, you're betting on the demand being there. But now, again, we have to come back to the fact that there is these different worlds, too. So there's, you know, there's sandbox. There's decentral land. There's any number of other decentralized areas where we can create digital real estate. Right.

But the fact of the matter is, I think your bigger thing is going to be somebody creating an epic world that then also starts pulling these people away from over here. It would be like saying, hey, you know, one country offers this, and now all of a sudden people from every country in the world start going there. The land in that area is going to decrease. value, but so that I think is going to be a bigger issue than it just necessarily falling off because people are like, hey, I'm just going to go start doing this. But again, it's still yet to be seen. I mean, and then the forecast for it, everything is strong in FTI-wise right now.

I think because people are still figuring it out. They're still looking at it. They're still trying to weigh it. My dad still thinks that he can take a screenshot. He's got just as good of a photo as I do one I paid $2,500 for. And so you've still got that level of figuring it out to happen. You know, and I agree with you. I mean, there's a lot of unexplored territory that we have right here.

But it's certainly, I look at something like that example of Mark Zuckerberg changing the name of his company to be meta. Like there's a lot more. It's got to be happening under the scenes. He didn't have this wild dream and decided to do it and I was going to start this project today. I'm imagining that that project is much further along right now

than most people realize. It's here, right? And then I look at Jack left Twitter, right? And he goes over back to his primary operation being square. And then within a week, he changes the name to Block for blockchain. But now you've got two of these amazing entrepreneurs are now competing in racing for adoption, right? So just because of that, I have no doubts of the future of this. And I'm still thinking of the potential risks.

I think there's going to be a lot of risk investment. I mean, I don't think that's going to go. I think this is essentially the, you know, the people that finally started coming back in the stock market after the Great Depression. I mean, they didn't have no idea what Coca-Cola. was going to do and they had no idea so i mean i think it's the same scenario um but until and and the other i was thinking about this and and you know we haven't even begun to to see my wild brain idea is that probably less than 5% of the entire population even remotely begins to have a grasp on what an ft is and it's already exploding i mean crypto punks 500,000

you know 500 600,000 I mean you know that kind of stuff and and again we're still talking about such a minute percentage of the population that really understands that where does it go from here when when all of a sudden now 80% population understands it and there's only so many you know 9600 parcels of land is not that many and then 9600 that comes from where that's the number of parcels in that's the central and i think is it 9600 or 96 000 right okay off the top of my head it's one of the other. It's a limit though, right? Yeah, there is a limit and they're not going.

You know, and a lot of people, again, my dad will take a screenshot. I've got one look and I didn't pay anything for it. I'm like, really, come on now. And so it's the same thing that once these projects are complete and that, you know, the chain is ran, that's it. I mean, that's it. And now they can always, you know, you can always add the horses and you can have more. Now, but those horses, that first breed of horses, I mean, those are the perfect ones. Everything's going to be, that's going to be the high watermark that everybody's going to play off of after that.

So it's all in a matter of, and again, like you said, these massive entrepreneurs and their vision for, like they're thinking of things that you and I, my kids are going to eat for dinner, and they're thinking about feeding somebody in the digitally. For sure. Again, I'm talking about the risk. One of the thing that mitigates a little bit of the risk from real world real estate is the ability to use other people's money to leverage. And I'm looking at these numbers here in the millions to buy a parcel of real estate or buy some digital land. Are there any options for financing yet? Or are these just going to be all cash deals for right now? Right now they're pretty much all cash.

Of course, aside of anything that you do on the outside before you ever get, there, but you know, you've got to exchange it into Ethereum and then, and then you go, like, if you want to buy Indcentraland, is it M-O-N-O, their token? And so once you have those tokens, you know, there's going to pop up where people are going to start leveraging that stuff. And he's got a digital car. He said he said, but there's going to be stuff that pops up. And that's where it's going to go.

And so it's really hard. I'm sorry. I just saw those questions pop up. and I'm trying to read those and like you just said earlier, producer and answer and everything at the same time. Yeah, we'll get to them. Let's look at that.

So it's a good question right here by Matt Smith. Why would you want digital land? You know, and I just at a blockchain convention here in Las Vegas, it just last week and I spent three days there to learn more about this. I really wanted to understand because, you know, when I was in the music business

and the digital download came along. I was like, there's a question I had. Why would anybody want to download a digital song? Right? Like, people want to go into the music stores, and they want to go in, and they want to look at the record albums, and they want to read the liner notes,

they want to look at the picture, and they want to touch it, and just the smell of vinyl was like, that was like a heaven for me. And I know there's a lot of audio files out there that felt the same, and I didn't think the digital download to ever take hold.

And I was sharing this with the guy, actually the rodeo was in town in Vegas. And I was in a bar having a beard, and we were watching the rodeo. They had a live stream of it going on. And I was talking to the guy, and he said, where are you from? What do you do? And he asked me about this. And like, you think about the rodeo crowd.

There's probably no crowd further away from digital land than a rodeo crowd. And I was explaining it to him, just like how I explained it to you. And the bartender, as a girl, she overheard. She goes, I'm cool. I'm staying here in the real world. I'm not going to play with that. That's bad to sound like nonsense to me. And it clicked.

And I told the cowboy that I was sitting next to, I said, you know, that was me in the music business. I'm not going to be that person this time because I'm out of the music business because I ignored it. And this might take hold, it might not, but I'm certainly going to know about it before I make a decision one way or the other. Think about it from a marketing standpoint. You know, think about it from the marketing stand. This is right Matt just asked the question. With the digital land, I don't understand the value you get. Well, the value you get is anything you can do in this world as a marketer to gather people and gather eyes,

no matter whether it's digital or not, is worth something to somebody. I mean, how much money do they pay for billboards? I mean, billboards here, where I'm at it in Kentucky, you know, $1,500, $1,500 a month, but how many impressions are you getting? And that's the same thing here. It's how, you know, our kids are in their playing in this game and they're doing this and racing horses or whatever they're doing, well,

they're selling them Play-Doh and all that other stuff. And Pepsi just bought up blocks inside of these games, right? Because they want to foot being shown while you're playing the video game. It's a digital billboard. Buy your corner, put a digital billboard up. Every kid that comes in the game

sees that billboard when they go by. How many Legos do you think we're going to sell for them? I mean, it's astonishing to me where, you know, once the population can get over the fact that this stuff can't be reproduced and you can't just all of a sudden that the Metaverse or Decentraland sells everything they've got so then they just make more. It's not like that.

It's going to be very much the same system. And I think Metaverse and Sarat, I'm sorry, Metaverse, Decentraland and Sandbox, you know, those are going to be your Pepsi and your coat. Yeah. Those are going to be your market leaders that once they start getting the hold, and start having, you know, substantial income, they're going to start snatching up the smaller guys that come along with the newer ideas. They're going to start snatching up the Mountain Dews and the mellow yellows and that's where it's going to go.

They have to pay crazy money for that stuff because of the impressions, again, you know, if they can, if they can say, hey, we'll pay $3 million for that corner, but there's, there's a half million kids a day to go past that corner. That's worth X amount to us because it costs us this much to acquire our customer. Mm-hmm. Same deal. And I don't have the perfect answer for this of why people would want digital land and why people would be interested in this.

What I can tell you, based on what I've, my studies over the last few months, and specifically this weekend, I really did a deep dive and talked to a lot of very smart, wealthy people that are throwing everything they have at this. The reason you'd want it is because that's where the people are going. Yep. Right? Just like a stadium. I mean, on a digital stadium and have a digital rock concert,

and you still, you have people file in there, and it's all about advertising. Look at this. I mean, think about, I remember, do you remember when Facebook first went public? I don't even remember what year that was. Was it 13? 13. No, I was going to go. First went public.

And I remember my mother of all people, and she's just as bad as my dad with the screenshot and wherever. She said, well, they give Facebook away. How are they ever going to make any money off of it? And I stopped and I said, are you serious? They've gathered virtually the attention of the entire world. on a minute by minute basis and you're wondering how they're going to make money and you drive down the road and see billboards and you it was just like I was astonished that that

just didn't click immediately like hey here we are now let's start inserting ads in there and making people play right so you're going to be starting hearing about this more and more the metaverse and this is like a new digital universe where people are spending their time playing so if you have kids you know what Roblox is that is a metaverse and my self sun is in there all day long and keeps asking me for 10 bucks to buy some more tools and some more materials. Robo. Right? And then the other

thing, if you go back a little bit further before we really got into all this, if you remember that game called the Sims, where you build these little towns and everything like that, that is a metaverse. And they're actually regenerated and they formed up with this company Gala, Gala Games, which has been a huge token and cryptocurrency in the last couple

months. But this is where people are spending their time. And if you've got kids, you know it's got their undivided attention. they'll sit there and look at it all day long. There's adults. I used to live across the street from Staples Center. This was about, I don't know, 10 years ago. And this was 10 years ago, and I couldn't understand this concept,

but they had the EA Sports World Championship at Staples Center. And they sold out the Staples Center to watch people play video games. Yep, they played it. Yeah, and that was 10 years ago. So it's, what do they call this? It's an irrational passion. And when you form a business, you want to, you want to solve or address one of two things. You want to address an urgent need or an irrational passion.

And I really see this being, people are so passionate about this. To me, the person that's got one of the biggest potential profits in this whole thing at the end of the day is the guy who may be a kid right now. But the person that merges the virtual world with the physical world, now I say that in not like wanting to be a back to the future kind of guy or whatever, but I say that under the perspective, you know, COVID has already taught us that we don't care if we have to wait a couple of days for our order. As long as we know that money's out of our bank account and that thing's on its way, we don't care. So when they start saying, when you start digitally grocery shopping and then all of a sudden that order appears on your, your front step or Jeff Bezos sends a drone and drops it off at your front door, man, I mean, everybody called him crazy 15 years ago.

You'll never be able to deliver packages by drone. Well, I mean, it's not it's not a year, 100%, but it's definitely a part of it. It's where it's working for sure. That's so, I mean, so what I'm getting at is, is it's all relevant. And, and, you know, the person that can merge those two worlds, and you digitally grocery shop and you digitally whatever you feed your digital dog and whatever else you do. Well, to that point at this event I was at last weekend, the exotic car companies are already starting to do this. You go out and buy a Ferrari, you're going to get the physical Ferrari,

but you're also going to get the digital NFT that you can take with you inside of your video game and drive it around in your video game as well. And they proposed this idea that was, they kind of blew my mind. Imagine a world. where that digital car is going to be worth more than the physical car. They said, it's coming. And someone's like, well, how could you possibly see that? It's the status. It's the status.

And the status comes from, you know, you drive a car around right now, only the people in your neighborhood are going to see you in that car. But if you're driving that car around in the Metaverse where everyone's living, everybody's going to see that car. And it's going to provide much more status and marketing dollars and influencing and all that stuff. and it was just remarkable. I'm going to have to wrap this up in a minute. But Casey, what are you doing at 3,000 capital to make sure that you're making smart

real estate investments and how you're doing this to maximize the returns for your investors as well? Well, the first thing that we're doing is we bring a really almost an irrational boots on the ground approach to things. And the boots on the ground in the real world, not the virtual world, the boots on the ground is really where you, you know, I always say if you go to a piece of property that you're looking at investing in, you have to know what it feels like to be there because ultimately your tenants are your clients. And so we take, again, almost an irrational look at the physicality of

what we're investing in. And when we start moving our investors' money into places like that, We have to make sure that it's an investment that we can close out later on, something we don't want to get stuck with somebody else's boat anchor. So we take a very strong approach towards making sure that the physical asset, the dollars, and that we're in a decently appreciative market as far as like regular times go. We don't want to go off and invest in a multifamily complex in the digital world just yet. We want to stay in places like Cincinnati and Indianapolis and this triangle, what I call the triangle of car batteries. That's kind of the next step. So we are specifically looking for multifamily properties. We're specifically looking for investors to come in and help us kind of bite off the big chunks of some of these properties that are in this triangle.

And we want to provide, you know, reasonable returns and let people experience the ownership of real estate quite possibly when they don't have enough capital to own the whole thing. Sure. And we talk about real real estate now or are we talking about virtual real estate? Real real estate. Okay. Real real estate. 3,000 capital. We are on the physical side.

But again, the digital part of it is seeing where this is all going. So, yes, the real real estate part of it is is we're going to, you know, we want to raise capital for this specific area. So this is where we're looking for multifamily and investment type stuff. Okay. So if people want to learn more about what you're doing and see if they wanted to participate, they would go to that's what, 3,000 capital.com? It's 3,000 capital.com. I know that URL up there looks a little funny, but just go to 3,000 capital.com. We're also Berevest verified so you can find us on Bearavest.

We've spent a lot of money and a lot of time putting this stuff together, and we're really moving on and hope to be several thousand units down by this time next year. Perfect. Well, there's a lot more to discuss as this is going to be constantly evolving. And if you're involved in the cryptocurrency world or in the Metaverse world, things are changing by the minute. Like, it's happening so fast. Let's go ahead and do this again somewhere in the near future as things involved.

And then, yeah, I guess that's it. You go to 3,000 Capital.com to check out what Casey and his company is doing. And thank you for being here. I really appreciate it. Yes, sir. Well, thank you for having me, and I appreciate it. And I hope everybody has a Merry Christmas and enjoys all that that has to give. Super.

Same to you. Thanks, Casey. Thank you. We'll be back with more right after this. With Amex Platinum, $400 in annual credits for travel and dining means you not only satisfy your travel bug, but your taste buds too. That's the powerful backing of Amex. Conditions apply. Mainstream media is ripping us apart.

This is news to bring us together and make some money in the process. The share of mortgage loans and forbearance decreased by 39 basis points to 1.67% as of November 30th, According to the Mortgage Bankers Association, the latest sign that the sun is setting on loan forbearance agreements hammered out under the CARES Act. You see under COVID-19 legislation signed by President Donald Trump in April 2020, many homeowners could strike deals with their lenders on a year-long or up to 18-month forbearance plan. With many such plans expiring, forbearance fell across the board. So just 835,000 homeowners are still in forbearance plans after a COVID-era peak of over

four million borrowers doesn't look like we're going to get that foreclosure tsunami that everyone was predicting. The National Association of Home Builders CEO, Jerry Howard, noted on Wednesday that rising inflation doesn't seem to be hurting home builder sentiment, arguing that new houses can't be built fast enough amid strong demand. Howard provided the insight on Varney and Company shortly after it was revealed that Home Builder sentiment held steadily in December. The National Association of Home Builders, Wells Fargo Housing Market Index, this month, rose, one point to 84. The number ties the highest reading of the year that was posted in February. The index can range between zero and 100, with any print over 50 indicating positive sentiment.

Any reading above 80 signals strong demand in the marketplace, and the new home builders will continue to build. The price of rent rose on average more than 10% nationwide in the third quarter alone compared to the same time last year with significant spikes seen in many smaller cities, according to a recent analysis from rent.com. Monthly rent for a one-bedroom apartment in the U.S. on average was up 10.59% to $1,690. The study found, and two-bedroom units went up 11.88% to $2,050. Not the best news if you're a tenant,

but that's great news if you're a landlord, and this trend very much like home prices isn't showing any sign of slowing down. So if you'd like to get on the right side of this equation and benefit from rising sale and rent prices, download a free investor's guide over at cashflow savvy.com, and Mercedes will hook you up. Now, if Hollywood learned anything this month,

it's that moviegoers want to see more swinging and less singing. Spider-Man No Way Home brought in $253 million domestically during its opening weekend, smashing estimates and posting the third biggest worldwide debut of all time, behind only Avengers Endgame and Avengers Infinity War. It's not a passing fad, it's the future of money. What happened this week in cryptocurrency? In late November, Budweiser popped open a cold one and took a foamy gulp of crypto, changing its Twitter name to beard.eath and launching an NFT,

an unfundable token project of 1,936 unique digital cans that sold out in minutes. The collection immediately soared in price on the secondary market. On OpenC, the world's largest NFT marketplace, the cheapest resales went for upwards of 0.5 Ethereum, that was $2,200 approximately at the time, and rarer cans for more than $20,000. To support its NFT launch, Budweiser has also adopted the conventions of Web 3, a catch-all term-encompassing innovation built on blockchain technology. Its Twitter account name traded memes with crypto-influencers. It established a Discord community, and it pledged the holders of its NFT, that each will act as an entry key to the bud verse, unlocking exclusive benefits, rewards, and surprises for NFT holders.

This is just the latest sign of corporate America's experimentation with crypto and its willingness to invest significant branding resources in those efforts. So what other companies are getting into NFTs? Well, the announcements have come fast and furious from corporate giants across a variety of sectors. Nike acquired RTFKT, a leading NFT and digital collectibles brand, to expand its digital capabilities, and Adidas launched a buzzy collaboration with Pixel Valtz, Punk's Comic, and Board Ape Yacht Club, two of the world's most successful NFT projects. It has also

reserved a large plot of digital land in Sandbox, a fast-growing Metaverse platform. Time Magazine is producing a children's TV show based on Roboto's, a popular robot-themed NFT project, and the NBA's Dallas Mavericks are rewarding fans who purchase tickets on Ticketmaster with exclusive NFTs commemorating, their attendance. But why now? Well, one, the desire to get in early on a potentially massive technological paradigm shift. You know, many established companies of the last two decades were slow to take advantage of the internet and mobile technology, and they ended up losing significant market share to digitally native upstarts. So by dipping their toes in early, big brands are hoping to be in a better position if crypto does turn out to be fundamental to the next wave of internet innovation. And number two,

the brand building and marketing opportunities. Crypto-native companies and influencers have tapped into the mimetic and fast-moving qualities of internet culture to build huge followings on social platforms, and brands see an opportunity to appeal to a new generation of consumers steeped in that world. By partnering with successful Web3 creators and establishing their crypto bona fides, legacy brands are attempting to position themselves as trendy innovators, even when their businesses remain focused on selling physical products and providing services in the real world. There is a delicate line to walk, though, since inauthentic-seeming launches are getting panned by the crypto community. Big picture. These

early steps into crypto by established corporations are clearly experiments to see what works and resonates with consumers, and there is no doubt that many will be chalked up as failures. However, as interest and participation in crypto-based technologies continue to pick up steam around the world, expect more brands to launch new projects to snag mine share in this new market. As White Castle would say, it's probably nothing. And then there's venture capitalists who have invested $30 billion into crypto startups this year. More funding than the sector has received in every other year combined.

The previous high was $8 billion in 2018. Investors are funding anything and everything crypto-related, pitchbook analyst Rob Lee told Bloomberg. And with that, Merry Christmas to everyone celebrating this Saturday and a happy festivist to everyone airing their grievances this Thursday. The Staples Center will be renamed Crypto.com arena on Christmas Day. 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 that you do 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'm going to take great care of them. All righty, so God loves you and so do I.

Health, peace, blessings and success to you, and I'm Matt Terrio. Living the Dream. 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 and access to better alternatives. By doing so, we can create lasting change. If you don't smoke, don't start. If you smoke, quit. If you don't quit, change.

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