Epic Real Estate Investing - Markets, Money, Housing—The Chain Reaction Nobody’s Ready For | 1494

Episode Date: June 3, 2025

In this episode, Matt examines the current economic landscape marked by billionaire Ray Dalio's financial crisis warning, illegal tariffs, and a shrinking US economy. They delve into the impact of AI spending, trade court rulings, and the ongoing tug-of-war between the Federal Reserve and the White House. The discussion extends to the housing market, noting significant price drops in major metros while highlighting stable demand in certain cities. Matt advises on navigating this turmoil, emphasizing the importance of strategic positioning, nimble decision-making, and focusing on real returns. Practical advice includes locking in lines of credit, stress-testing deals, and focusing on rental properties to withstand economic volatility. BUT BEFORE THAT, hear why Musk is pulling back the curtain before he leaves! About the off-market real estate strategy I mentioned at the end: https://docs.google.com/document/d/1EV7cmIuBujFRZqOswpj5Rz5NwdMdY7EddVxbux3rAMY/edit?tab=t.0 Two easy ways to beat the system: https://docs.google.com/document/d/1UmDXBPlQ3sMzbi9kxPiM-t3ygGz22VOL6Kmn_fwQEzk/edit?pli=1&tab=t.0 Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. To begin this morning, a man who truly needs no introduction. The Doge father brought a chainsaw to Washington, and after 130 days, he's saying goodbye. Now, Elon Musk is officially out. It's now official. Elon Musk is leaving his role. Musk is leaving after his whirlwind tenure as the head of Doge. And just like that. Musk is officially out of the Trump administration.

Elon Musk reign as Doge chief came to a bittersweet end. If the system can eat billionaires for breakfast, turn bulldogs into chihuahuas. Is anyone safe? Watch this. You're about to see the dirty secret Washington's been hiding for decades and why the biggest names

are dropping like flies. You want out? Well, by the end of this, you will have the plan. Elon Musk just said he's pissed. And I am too, frankly. For once, someone powerful was fighting for us. And the system chewed him up, and we're next. This one stings.

Musk volunteered to save us money. He was willing to take some time away from his companies. to do what he thought was right, to get some things going. On a mission, that was to get waste and terrible spending out of the federal government. And somehow that became the problem. A Democrats firebombed his cars and called him a Nazi and accused him of taking drugs. Elon Musk didn't have to get his hands dirty in D.C. He could have played it safe, rockets, cars, and counting his billions.

But instead, he jumped headfirst into government waste, calling out almost $200 billion in junk. And not programs that we disagree with. Actual waste, fraud, and corruption, money that could have gone to roads, schools, or back into your pocket. And Congress's response? I think they're only sending $9 billion in Doge cuts to, which is nothing. It's a drop in the bucket. Less than 5% of what he found.

And then they buried even that into a separate bill where it's going to die. It's a joke. And not a funny one. A few senators stood up, sure, Mike Lee, Rand Paul, Chip Roy, Thomas Massey. But where was everyone else? You've got to imagine the frustration of Elon Musk. He's a guy who's used to getting things done. Republicans have the House. They got the Senate and they have the White House. It's a perfect setup to finally tackle government waste. And they couldn't even support the guy doing the heavy lifting for free. Elon took hits from

every direction. The media, lobbyists, career politicians who don't want their gravy train disrupted. Meanwhile, people who should have had his back were nowhere to be found. So he is frustrated that even the Republicans in the House in the Senate and the House have been captured by Washington interests. And let's be clear about what this cost him. Elon's companies took a beating. Tesla stock dropped. He's getting death threats.

His personal life's under a microscope. All because he tried to save us money. We received several 911 calls about a fire. There were acts of violence. Death threats. lawsuits, mandatory rehirings, shouting matches with cabinet members, Tesla profits plummeted by 71% and Musk's net worth dropped by $100 billion. They can't win an argument.

They're not going to really debate you on the issues, but they are pretty good at the vicious activism. So it looks like that's their platform going forward. Go with us or we'll destroy you. And what happens next? They'd turn up the heat even more. Hit pieces, drug rumors, private photos, anonymous sources. He took a lot of coupo for what he did.

The New York Times on Musk's last day called him a drug addict. Quote, he told people he was taking so much ketamine that it was affecting his bladder. He took ecstasy in psychedelic mushrooms, and he traveled with a daily medication box that held about 20 pills, including ones with the markings of the stimulant atoral. New York Times is that this? same publication that's Fedder Pulitzer Prize for false reporting on the Russia Gate? Is it the same organization? I got to say if I'd say if I'd pull this or a Pulitzer counter. But so I think the judge just ruled against New York Times for their lies about the Russia Gate hoax, and they might

have to give back that Pulitzer Prize. They found cocaine in the White House and the Times never cared. And they never accused Hunter, but they're accusing Musk with no evidence. You see it every time somebody challenges the system. Suddenly, their dirty laundry is front-page news. They're not just coming for Musk either. This is a message to future Elon Musk-type individuals. Maybe not someone quite as rich, but someone who has the nerve to get into politics, even for a short period of time. Do you agree? That's exactly right. This is what happens when you refuse to play the game. This is what happens when you stop talking about it and actually start being about it. Nobody else has had the guts to do this, but Elon Musk did.

He happens to be a really good person who loves the country. We need to be following the lead of Doge on this. He's one of the greatest business leaders and innovators the world has ever produced. He stepped forward to put his very great talents into the service of our nation, and we appreciate it. They should beg for him to stay because he's saving us a lot of money. If Elon Musk, with all his money, brains, and connections can't break the swamp's grip, what shot do any of us have? Well, we still got a shot, and I'll explain in just a second.

But we finally had someone in our corner ready to take the arrows, and the system chewed him up and spit him out. Doge became the whooping boy for everything. So if there was some cut, real or imagined, everyone would blame Doge. And yet he goes into Washington, faces this obstacle of backstabbing and people lying flat in your face, people who said that they trust you and that you were going to work together, etc.

I think what you learn about Washington, I've been doing now for three years. It's a nasty place. That feeling that you've got right now, that's what millions of Americans have been saying down below in the comments. Finally, someone tried, and the system crushed him. And apparently, the system got to Dan Bongino and Cash Patel, too. You hear about this? Strap in. It gets worse.

Dan Bongino wants the loudest, most relentless voice against government corruption. And Cash Patel wants Trump's Bulldog, the guy who said he'd drag the truth about January 6th, out, no matter what. After watching their most recent interviews, the fire's gone. Bonjino used to go scorched earth. Now, a woman who worked there very nice said, you know, I used to watch your show. I miss you. I said, you know, I miss me too. It's, you know, part of you dies a little bit when you see all this stuff from behind the scenes. The guy who once said he'd never quit, now looks like he's seen exactly what happens when you actually threaten the people in power. And Patel, he's tiptoeing, promising definitive answers are coming soon, but nothing comes out.

The same man who once stared down the media, the FBI, the intelligence community, now he's under investigation, buried in legal bills, attacked from all sides. And suddenly, it's all hedging, it's all caution, no more direct shots at the swap. Is this really what happens to anyone who dares push back? They got run through the ringer, smears, leaks, lawsuits, threats. Doesn't matter if it's Elon Musk, Dan Bongino, Cash Patel, or anyone else. And it really makes you seriously wonder if Trump will be able to pull off his grand plans and actually make America great again. It's becoming clear now that this isn't about politics.

It's about power. And the system always protects itself. Has this swamp monster grown to a size that can't be B? I mean, if the loudest, toughest fighters got crushed, what hope do the rest of us have? By the way, if you're enjoying the turmoil that Musk, Bonjino, and Patel are going through, and you're thinking, hey, my team is winning, it's not. Democrats may be happy to see Elon Musk formally leave Washington. Washington just tried to debower him. He became an instant villain for informing and educating Americans

about how much waste and fraud and thievery there is out of the federal government. I don't really understand that reaction, but he certainly got beaten up. The fundamental moral flow of the left is empathy for the criminals and not empathy for the victims. There's been way too much of that. That needs to stop. To the president's point, there's been immense judicial overreach that is unconstitutional, that was never intended. And it's undermining the people's faith in the legal system.

It needs to stop. It's gone too far. If you didn't notice, the baby just went out with the bathwater. They say you can't fight the Fed. It looks like it's even bigger than the Fed now. The swamp is real. The swamp wins. And if it can't be beat, why even get so worked up about this stuff?

It's a valid question. And one we should all seriously consider. I mean, we've got better things to do with our life, right? Because here's the truth. Politicians aren't going to take care of you. And now they've shown us they'll never let the anti-politicians take care of you either. Do you think that those people think that the American government is fair and competent and that is in their best interests?

Their schools don't work. They're not getting the skills they need. And you heard that just now. So we've got to acknowledge you. And I also call it blue tape. Because, you know, Republicans, you generally don't like red tape. You understand the devastation of it. But most Democrats, they love it.

They want more of it. And they want to make it so confusion, you can't even meet the rule so you get punished and fined afterwards. Your life is up to you. If you can't fight the system, you have to fight inside the system. Do it yourself and for the people you love. And here's the deal. We need money.

You need money. And that's not being greedy. That's reality. The money, it feeds your family. It keeps the lights on. It pays the doctor bills. And it helps you help your kids, your parents and your friends. Anyone who tells you money isn't important doesn't understand.

how this world works. This here is a real estate channel, but actually it's a money channel disguised as a real estate channel. Real estate is just a tool. What we talk about here is not about fancy kitchens or waiting 30 years to maybe pay off your home. Real estate is how regular people, people like us, can win inside this rigged financial system. Here's what I mean. The system, it's inflationary by design. That means your dollars are always losing value. So how do you win? You use their game against them. You do what they do. You borrow money that gets weaker every year and you use it to buy real estate, which gets more valuable every year.

That's how you beat the system. Borrow money, a depreciating asset, buy real estate and appreciating asset, and let time do the work. This channel, it's all about real estate because it's the only asset class that lets you do all of that. It's the only asset class that actually puts you on the right side of the system, the undefeated system. If you want any kind of financial freedom in this world, you need real estate somewhere in your plan. The more you own, the better. Do it yourself or partner with someone who can do it for you. I put together a free download below that shows you both ways.

There's no fluff, it's just real talk. It's just a Google Doc. You can just click and save, and it's yours. Listen, I'm just a regular American, a Marine Corps veteran, tired of watching people's paychecks shrink while Washington laughs. I thought, just maybe we had some fighters this time. But if they can turn bulldogs into cowering chihuahuas, what options do the rest of us have? Well, I've laid one very realistic one out for you.

But if the people we send to fix things just get run over, is there any way to actually change this mess? Or do we accept the rules and play the game the best we can? I'm going to hear what you think. Let me know below. This is not the end of a Doge's, but really the beguet. That's why Elon Musk walks away from the White House with his head held high, despite Doja's $160 billion in current savings falling short of his trillion-dollar projection. Let's hope Doge becomes a permanent entity in Washington. And let's hope it becomes bipartisan.

Everybody should be against waste and fraud. And as I said, we do expect to achieve over time the $20 of savings. We can't do it in like a few months. But if you stay by the middle of next year, with the support of the president, Congress could we achieve $20 dollars of savings, I think so. We're on track to do so. And remember, we're $36 trillion in debt, folks. This is an emergency.

You don't have time to dink around with this. We're paying more than a trillion dollars in, interest payments. So if you want to actually put this country on a fine footing and fund all those things that you want to fund, you got to get rid of all the waste, fraud, and abuse. But now, Democrats, what they've done, they've just taken a position of, oh, we're against common sense. That's really where they are today. This country has to come together so that we don't get left behind. We can do this. I know we can. That's it. That's it. Thank you, Mr. President.

I'll see you next time. Take care. Ever hear someone say, I have too much money? Me neither. Let's get you some more. Back to the show. A billionaire, a trade court, and the Fed walk into a bar. No, seriously. What's going on isn't a joke.

And if you connect the dots, there's a gold mine hiding in this mess. You'll know the true story behind a billionaire hedge fund legend warning. that were steps from collapse. Tariffs declared illegal and then instantly brought back and the Fed and the White House at war, and the US economy just shrunk for the first time in three years. And yes, for the first time in maybe a decade, buyers are actually winning in the housing market.

If you think this feels like a game rigged for insiders, hey, I get it because that's exactly what I'm seeing. So let's break down the dominoes that are falling and the real moves to make right now. So, Ray Dalio, founder of Bridgewater, the world's biggest hedge fund. He just dropped a bomb. He said, we're in a critical, critical situation for a financial crisis within a year or two. Now, Ray, he's not some doom and gloom YouTuber.

No, this guy called 2008 and manages $140 billion for a reason. But here's what's different this time. Dahlio isn't just screaming about debt. He's looking at the collision of two monsters. America's crazy debt binge and the insane costs of the new AI arms race. You probably saw Trump's trip recently. Well, this AI thing is becoming a really big deal. Here's what most people don't realize.

The U.S. is burning through $25 to $30 billion annually on AI development. China, they're spending $15 to $20 billion. That's serious money on top of everything else. Most people are staring at interest rates, but I'm asking a different question. what if the next bubble isn't housing or tech or anything that the Fed is involved in, but the cost of keeping up with AI right when the government runs out of rope? Think about this. Our debt to GDP ratio is now 40% higher than it was during the 2008 crash.

We're way more leverage than when the whole system nearly collapsed. Dahlio says the Congressional Budget Office's numbers are just scenarios, not certainties. Translation, don't get it. hypnotized by the official story. The real risk is the domino you're not watching. Here's how I see it. If you're only watching what everyone else is watching, you're already behind. And speaking of things changing fast, check out what just happened with tariffs. Last week was wild. On May 28th, a U.S. Trade Court rules Trump's tariffs illegal. Then, literally the next day, an appeals court brings them back.

Routers says this legal ping pong has already caused. American companies, $34 billion. That's not some abstract number. No, we're talking about actual paychecks, lost jobs, and busted supply chain. The judges said Trump doesn't have unbounded authority to slap tariffs on the world, but then the appeals court hit pause, keeping the tariffs alive while the lawyers fight it out. When the rules can flip overnight like this, the slow and stubborn lose. Fast-movers and flexible thinkers win. While most people are sitting around hoping for clarity, you should be asking, how can I pivot before the crowd? Here's what I'm watching. Which cities and industries rely heavily on cheap imports?

Which ones are getting hammered by higher costs? Because tariffs aren't just about expensive gadgets. No, they create ripple effects that hit real estate values and trade heavy cities and kill jobs. If you're thinking about this the right way, you're already asking, where are sellers getting desperate. Where's capital fleeing from and where's it rushing to? Want to know where the next domino falls? Follow the pain and the opportunity that uncertainty creates. History shows us the pattern. I mean, every time global supply chains get robbed, whether it's tariffs, war, or policy chaos, certain places get hit first. Remember Detroit during the oil crisis? The Midwest when trade wars kicked off? L.A. ports during COVID. Property values in those areas dropped fast.

Sellers got desperate and smart money swooped in for deals before the news caught up. Right now? Same story playing out in Midwest manufacturing towns, in port cities, and export-heavy farm regions. They're all feeling the squeeze. But if you think that's chaos, wait till you hear what's happening between the Fed and the White House. Jerome Powell, the Fed chair,

just met with President Trump yesterday as of this recording. And on paper, they're discussing growth and information. But come on, if you've been paying attention, you know Trump's been hammering Powell to reduce rates. Powell actually had to tell Trump that monetary policy would be based solely on careful, objective, and non-political analysis. The fact that he even had to say that should be concerning. But here's why this matters. When the Fed stops being boring and starts being political, everything gets more dangerous. Goldman Sachs ran the numbers because they're warning that if the Fed caves to political pressure, we could see stock prices tank, the dollar weakened even further,

and inflation spike all at once. They've seen this movie before in other countries, and it never ends well. So here's the thing. Don't wait for some formal press conference. Run the scenarios now. Like, if Powell caves to Trump's pressure, do we get a little rate relief, or does inflation suddenly spike? If he stands firm, do assets tank? What happens to your cash, your debt, and rental income if things get choppy. Me? I want my financing flexible. My cash stack healthy and my assets in places that do well even when the government loses control. You don't wait for the all-clear. You position yourself before the news hits. Here's what I'm actually doing. I'm locking in lines of credit now before lenders tighten up.

Actually just got approved for $150,000 at zero percent interest through loophole lending.com. part of my strategy to have dry powder ready. I'm also stress testing every deal against higher interest rates and making sure that I've got exit strategies if buyers disappear. Plus, I'm focusing on properties with strong rental demand because when chaos hits, people still need somewhere to live, and that keeps your cash flow alive. The point is, make your moves before the headlines force everyone else to react.

I mean, think about 2007, right before the crisis hit, smart investors who locked in cheap long-term financing and prioritized rental properties were able to hold on and even scoop up bargains while, you know, everyone else was forced to panic sell. The ones who waited for the all-clear, they got blindsided by frozen credit and crashing values. Timing and preparation made all the difference. But while everyone's arguing about policy, the real economy is already showing cracks. For example, here's a headline of I had to dig a little bit for. The US economy actually shrank by 0.2% last quarter.

Not less growth, actual contraction. First time in three years. Now, that number is a bit skewed because Apple shipped in like five plane loads of iPhones from India just before the deadline. But here's what matters. Companies are so spooked by tariffs that they're scrambling to import everything that they can right now. Meanwhile, consumer spending, it's slowed to just 1.2%.

That's the weak. in three years. Corporate profits? Falling off a cliff. When Americans stop spending, that's when things get real. This could signal a bigger shift from endless growth to a much harsher reality where just breaking even counts is winning. The biggest risk here isn't just prices dropping. It's getting trapped, unable to sell or refinance. I mean, think musical chairs, except half the seats vanish while you're looking the other way when the music stops. And all of this, The chaos at the top, the legal flip-flopping, the policy battles, and now a shrinking economy, it all lands right at home with the market everyone cares about.

Housing, where all the dominoes finally falls. Housing Wire says demand is technically up, but here's the reality. Redfin reports prices falling in 11 major metros, the most widespread price drops in 19 months. The median mortgage payment is $2,860. That's just $25 shy of the all-time high. 14.3% of deals are getting canceled. That's the highest for this time of year since COVID. New listings are up 12.8%.

But buyers, they're evaporating. And those peak-era sellers who've been holding out, they're finally throwing in the towel. But here's the thing about real estate. It's local. And this is where it gets interesting. These scary headlines might be true for much of Florida and Texas, but places like Cincinnati, Kansas City, or Indianapolis,

different story. Affordable homes and steady local economies are keeping demand strong, and prices way more stable there. Quick question for you. Drop a comment below. Is your local market feeling this crunch yet, or are things still normal where you are? I read every comment, and honestly, you often spot trends before the experts do. The real issue this time isn't just about prices dropping. It's about liquidity. Can you actually sell if you need to? Are there enough buyers to keep the market moving? If you're on the sidelines, keep watching, but maybe consider getting up from that rocking chair. If you're selling, stay nimble. If you're hunting deals, don't settle for just okay. This is when fortunes quietly change hands in the right market.

Look, the biggest risks aren't the ones everyone sees coming. They're the dominoes behind the dominoes. Remember what I said about that AI spending, that $25 to $30 billion annually? That's on top of a debt load that's already 40% worse than 2008. Something's got to give. And I never trust the system to save me. I trust my math. I trust my plan and my ability to move before the herd. Keep your creative strategies sharp and focus on real returns no matter what the market does.

Cash flow is king. If things turn south fast, you want to be positioned to ride out the storm, not forced to sell at the worst possible time. The opportunities are there if you know where to look and have the guts to act while everyone else is frozen. Remember, every crisis creates winners and losers. The difference? The winners saw it coming and positioned themselves accordingly. Here's what's crazy. While everyone's panicking about the coasts, there are markets right now where smart money is quietly moving in. Next week, I'll reveal the five cities where investors are finding opportunity amongst this chaos. You might be. You might be.

be surprised which ones make the list. Remember, in times like these, being informed isn't just smart. It's profitable. Oh, and one more thing. Since I mentioned that I focus on off-market deals, I've received requests about how that actually works. Look, when markets get choppy like this, the best deals usually aren't on the MLS. They're not on Zillow. They're the ones where you're talking directly to sellers who need to move fast. I put together a simple five-step playbook that I use for these conversations. It's literally the exact questions I ask in order. Nothing fancy. If you want to see how these deals actually happen, I'll drop a link to it below. It's free. No email required just a Google Doc that you can click and save. Fair warning, though,

it's not for everyone. If you're not comfortable having real conversations with sellers or you're looking for some magic script, this isn't it. But if you want to know how off-market deals actually get done, it's all there. Anyway, that's it for today. I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them.

God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. This podcast is a part of the C-suite radio network.

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