Why Most People Will Never Build Wealth (And How to Break the Cycle)

Most people aren't wealthy because they don't understand money. I would say the majority of people don't. Like if it's in their account, they understand it. If they have they're owed, then of course is such alert. Yeah. I mean people always say like, oh, I'm bad with money, and that just means that they're bad at balancing their tech book. But really, like understanding money is something that most wealthy people understand money. That's the thing that's funny. Because it's it's really not too difficult. It's it's almost like like, I know, like to compare it with you, like, once you start to understand health, like what you eat and how it makes a difference, then. It's crystal cleayer. So it's just a matter of just understanding a few things. Yeah, because if you don't understand money, no matter what you try to understand about being wealthy or how to obtain wealth, you're never going to get it if you don't understand the. Basis nocause the only thing you have is I'm going to work more right, right, But that's not what you want to do. What you want to do. Is is make more, but you want to keep more right. You want to what do you call that passive income. You want to be making money passively, but. Also understanding like what's your time worth? And you know, I always talk to people about you know, I get asked to do all kinds of stuff all the time. And now I've learned, Okay, is it worth my time? Is it worth my time to drive over there, sit down, spend half a day, spend a full day. And now, while a lot of you might not think that way, you should be thinking that way. Yeah, yeah, And I think what you have to understand too is the currency now is not like the currency you know from the sixties. It is just paper, right, And so if you're just holding paper, that paper is going to continue to lose value, especially now that we're in these high inflationary times. So what you want to do with that paper is buy assets that build you wealth because that paper, just because it's called currency, people kind of know, oh it's money, you know, it's worth something, but it's really not worth anything. Well, it's worth something is there's a trust behind it. But I want to go back just the second. When I was a kid, I remember Fort Knox. I remember like that's cool, super cool, Like nobody talks about that anymore because as a kid, there used to be the gold standard, and so the gold standard changed in the seventies, which means that you go back and look at the Breton Woods or Nixon and you know all that stuff. You can see how the dollar did coupled from gold. It used to be balanced by gold. Well when that decoupled, it changed a lot of stuff, and just go back and look and you can kind of see the evaluation of a dollar ever since then. But the point is when I was growing up, my parents were They believed that let's pay off the house to all this stuff. So the philosophy was. Very different as a kid, and what I learned for a long long time. So there what you have as a generational shift in the way things were and are today. Yeah, but when your parents were younger, that currency was tied to gold. So as gold went up, you know, it stabilized it, right and gold din't necessarily go up, but it was stabilized. So it was stabilized by that gold. Now it's literally just paper. You got to nothing, right. It's the technical word is fiat currency. Just look up fiat currency and you'll see that. Here's an interesting but scary fact there's been over two thousand currencies in the history of the world, and not one has ever survived ever. Well, and truthfully, I mean you could you could say that the dollar survived after that they went off the gold standard, but it was a full different currency. So just because it was still called the dollar doesn't mean it was the same currency. And then they've talked about this digital dollar that's coming out is a way to just because it has the same name doesn't mean they're not changing the currency. Correct, And what I mean by that is you go back to the Ottoman Empire, the Roman Empire, and some of the really big empires. Right now people say we are the current day Roman Empire. What I'm saying is it's it's a death of a thousand cuts and you can't see it. It's the it's the frog in the pot that the temperature slowly getting turned up. And that's actually what the point of the show is is for you not to even debate this. It is actually a currency. It's a fiat currency, and the government can print all they want to devalue it over time. And so so if if you just understand that one basic thing, you now can get ahead of that or just be in the right spots. Well, I think a. Thing that's interesting is the reason that prices have gone up on gold, in real estate and crypto is not because those things are worth more. It's just because our money is worth less. Right. One of the things that George Gammon taught me a lot, and Jason Harbin uses it is a lot. He's always like, well, things have gone up, and what he'll say is compared to what. So I love the statement compared to what, because if you measure things in gold, like if you're if your whole a lot of gold, let's say you're outside of the US, and things go up as compared to gold, or as compared to oil, or as compared to you know, fixed call it hard assets. I'm talking about real gold too, not that paper gold. I'm talking about like a gold coin, you know, like a gold coin today is worth let's say twenty seven hundred, you know, and I've been buying since it was seventy eight hundred, right, and so you know, and just what just a couple of years ago was two thousand and before that, I mean I remember, for for a long time it barely got to two thousand. By the way, I'm not pushing that you buy gold. What I'm merely saying is there are things that can go up and there are things that can go down. And in this particular case, as of right now, gold has gone up. But it could also go down. And currency, for sure, though to your point, has the valued and we'll continue to value it because you can't. You know, I always ask Kiyosaki, you know, this is a funny thing because he's I go, what do you invest in? He goes anything that no one can print, you know, which is a real basic statement. But it's true. You can't print oil, you can't print real estate, you can't print goal physical goal. You can print dollars. And so that's kind of the point here. It's it's not actually it's this is a fact, it's not a judgment. So so something about our friends, right, So we hang around with a lot of wealthy people. Obviously none of them are holding money, none of them are hoarding cash. Right, Yeah, And so there's a philosophy around that too, because if I just got done at the collective, and I know we're going to talk about that, but one of the things we're talking about is should you hold on to cash Well. George Gammon had a very interesting discussion around this. He said, if bricks works, now we know what bricks. Is, right, why don't you explain it? These people don't. Bricks is a lot of the countries are upset what's going on with the US dollar and and br cs. I think it's Brazil, Russia, India, China, and South Africa, I believe, and I could be wrong on the s, but anyways, that's bricks and there's a lot of countries that have applied and they're kind of out there looking at maybe replacing the US dollar at the point now, way down the road obviously, but the fact is is people are upset at what's going on with the US dollar, just like you should be. By the way. That's all I know, the whole point here. But what is what George said, He goes, if bricks is successful, what that will do is it'll make the strength of the dollar go up, not down. And I had to wrap a head on this, you know, because he said, when there's less supply of something, it actually makes something stronger, just like real estate. He's like, you got to think of dollars as you know, as a supply. So when there's too much of it. It's the values and when there's not enough of it, it goes the other way. Now, of course this is George and just go follow George Cavin's channel. You know, i'llow some stuff on this, but I'm. Not the guy to to to explain this technically. But the point is, you know, as you start to look at the dollar and what you're holding, you you have to take a look at what the what the world's also doing, because people are not happy, you know, at what's going on with the US dollar either, right. So I wanted to dig into, like how most of our friends do hold assets though, because I think most people that want to be wealthy, they don't necessarily have friends that are wealthy. They don't. They only know what their friends are doing. And I you know, are a lot of our friends, you know, they're invested in a lot of them are in real estate, dot gold, crypto, those kind of sitting the markets. They're in the markets because they know if they're holding onto cash the last five years, they did not do as well as that they would invested in anything else. That's true, I do believe people should have cash though outside of the system. I believe you you have physical gold, you should have cash outside of the system. So while they're not heavy in cash, and I can't disagree with that, then that's why I brought up bricks. There could be a time where if people are pouring out of dollars that the actual dollar could get stronger. That doesn't make any sense to me, I know, because if they're not, If people are pouring out of the dollar, it's not like a normal in my opinion as that where it's like, you know, we already have too many and if people are just choosing they don't want to use them, and we got we get taken off as the world currency, I would imagine our dollar would be worth very little. Well, I don't know, we'll have to see. I think you know, this is when George took he took some bitcoin, he took some physical gold and physical silver and US dollars and he drove down Argentina and he said what everyone wanted were one hundred dollar bills. And so the world right now wants dollars. Yeah, and because there's the bricks, isn't really yet worldwide righte. So the question would be when, when and if there is something that that people don't want to use it. When they don't want to use the dollar anymore, doesn't make. It stronger or weaker. And George's case was that the dollar will get stronger at least initially, and I think, you know, it made a lot of sense of what he said, But again, go to his channel if you want to understand more about that. But to your point, one of the things that you can watch is the d X Y, which is the dollar index, and that kind of shows you the strength of the dollar. But there are times to be long on the dollar in times not to be and I think that, you know, through inflationary times and a lot of money printing during wars and stuff. To your point, it's probably not best to be heavy and cast because whenever you're holding and you're safe from ten years ago, is buying you less today. Right, And I think that too. You know, the key to building real well is not to just hoard money. And that's kind of what we're trying to teach people on here, is that you want to be investing in these assets because these assets. Are going to move with inflation. So inflation is basically a hidden tax, and it disproportionately affects the poor and financially uneducated. It does because it helps people with assets. Like we've all if you owned a house in the last four years, if you've been in the stock market, in the crypto market, anything like that gold market, you've made a lot of money in the last four years. If you didn't own any of that and you were just relying on your salary, then you have lost money because the inflation has gone up. Even if you've gotten a raise, you've lost money because that's what inflation does. It gives you the illusion you're making more money because you get a raise, but because everything is went up, you have less money to spend on your months and months and needs. Right, if you got two people, one is one hundred thousand in cash and another has one hundred thousand in home equity, the person with the home equity actually has done better because that's a hard asset and over time, Like if you just look at this too, the one hundred thousand in the last few years buys you less because of inflation. That's kind of the point. But at the same token, that inflation has also made the components of the home go up. It's made you know, there's inflationary components. Inside of a home. We're talking about appliances and lumber and carpet and you get all the things it takes to build a home. So that's what we're talking about here, is if you're in a hard asset, then that's where you want to be with your money. You don't want to be heavy in cash. Right and then so. Because I think you will get screwed by the system. You know, everyone's told you know. You go to college, you get a job, you work hard, you buy a house, you retire, you have social security, but that is going to be for the poor people in the future because. Plus most of those don't work anymore. That's right, get buy house, and who knows if social security is gonna. Be around, right, and so, an inflation basically wipes out the middle class. So you know, when you have something inflationary, if you don't have assets, you become poor, which is what the middle class is feeling right now. A lot of you in the middle class are feeling a lot poorer. And if you have assets, then you become wealthy. So it just wipes out the whole middle And the only thing it's not how much money. These people are making. The only thing that wipes them out is whether or not they have assets or they just stayed in casts. That's right, and that is so true. So if you have assets, you're moving the right direction. Mm hmmm. Because to your point, I think the keyword is hidden. It's a hidden tax. It's something that you can't actually see. But when you go to the store, like Dadiel is as diverse as you all wanted to think she is. When she goes to our local organic market, you know, she walks down all the aisles, but the exact same thing going to her basket. True. Is that true? Yeah? Okay, all right, so let's talk about that. So in the last two or three years, what is your Because literally, guys, when I say the exact things, I always laugh because the exact things come out of the. Exact things come out of her sack every single time. She never waivers, even though she pretends like she's going to be so experimental. What is? What is? What has happened on the well? I mean they've at least doubled, probably more. I said they doubled about a year ago, but they're still going up. So I mean not as dramatically, but I mean they've overdoubled. So what's been what's gone up the most? Oh, I don't know. I just look at the final bill. I don't look at the things that I'm futament that's fair. Yes, The point is is, you know it's doubled, and so the same things doubled, and so that's what we're talking about. That's you know, so her one hundred dollars is now two hundred, or two hundred is now four hundred or. Whatever it is. That's real because you know that's multiple times a month, and the same thing with so many other things. You know. I was talking to George Gammon this weekend at a collective event and he's like, I went to Dick Sporting Goods to buy tennis shoes. He goes, you know, it's impossible really to find really good tennis shoes for under one hundred dollars now, yeah, And I was like what yeah, And he's like, check these out. These aren't even the highest end shoes. And I said, because I went on the Converse website, which I love my little you know, my little chucks, you know, my little canvas ones. You know, you go on there dials like everything's one hundred plus for tennis shoes. So that's what we're talking about. You know. It's so if you guys had ten grand in the bank or one hundred grand in the bank, you're you're buying. The things you're buying for are more money. And that's actually what we're saying here. If you're just saving money, who knows where all this is going to go. Well, I think it's important for us to list things that are assets versus liabilities, And I think assets are things that create money for you, right, like stocks, real estate, starting. A business, crypto. Even liabilities cost you money, like your car, credit cards, and even your house. And I know your house is one that people kind of argue with you on unless you're house hacking. Unless you're health hacking, right, unless you're somehow creating money out of your house, because you have to sell your house in order to make the money and then buy a different house, so it's not really income producing. Right. It's funny because I was talking to somebody the other day last week actually and they're like, yeah, well it's a million, but it'd be worth two million. I go, well, not really, like I go, still a million of cash, we're I was looking at investing in something and they're like, well, it's. Gonna be worth two million. I go, well, only if we sell it, And I go, so are we selling it? No? Well, okay, then it's not like it's it's a million of cash, and so what does that cash produce financially? You know, what's the return on that cash each year? And then I'll take a look at it and maybe at some point, if. I decide to sell it, it's worth two million. Maybe it's not. But the point is people sell on something that hasn't happened. Again. We like to use the words fact or judgment. You know, a fact is it's a million dollars. A judgment is it's going to be worth two very different. A fact is the cash flow is X. A judgment is we think it's going to be why. So you know, you have to keep going back to what are the facts every time? And the facts are your food is up, your gas is up, things have cost more, period and they're inflation ay, and the FED is trying to fight it. You know, they're going to continue to fight it because it's crushing Middle America. One something else I want to touch on while we're on this subject is building wealth generationally, right because you so some of you guys, you know, you're listening and you know you might own a home and you are planning on passing that down to your kids or your church or you know whatever, and you're thinking that that's generational wealth. But it's really that's not generational wealth. Right, right, I know it. We're getting into an interesting subject because you know, we talked on our Live recently about step up in basis and you know, which is a tax that they're looking at as you transfer wealth. But I think that's important, right, So I think that's important that we discussed this because I think this is something that they're going to over time try to do. You know what were when a lot of people are starting to retire. They're looking at these guys. It's a big deal. Okay, Just so think of the baby boomer generation, right, Well, most baby boomers have a nice net worth, right, they've been you know, I don't know what that number is. There's a lot of people that don't, but let's talk about the ones that do. Let's talk about the millions of dollars that potentially could be inherited over the next. Ten or twenty years. It's a lot of money. I'm talking about. When I say millions, I'm talking about per family. So it's in you know, it's who knows how big it is. It's in the billions, maybe even the trillions. I don't know. But the point is the government's got their eye on that. They're like, okay, like my. Mom, you know, she was a hairdresser her whole life. Back they bought their house for like ten grand or something crazy, if you can think about that. So the house I grew up in, very modest home, my dad built onto it. It's worth more, but it's worth somewhere between seven hundred thousand to eight hundred thousand, let's say, depending on what's going on. So we had to put my mom into a nursing home because she broke her hip and libty is a very complicated story, but the point is the rent income from that home. Is actually taking care of my mom, which is awesome. And then of course I'm helping as well, and so are my brothers and sisters. At some point, my mom's going to pass. She's in her nineties and just like I am. But the seven hundred thousand dollars, let's say, of that home is going to be she's already it's going to pass to the kids, right, Who else is she going to send it to? Right, So this is the inheritance piece. So let's call it seven hundred thousand. The step up and basis means that it could pass to the kids with no tax. That's called the step up the time my mom passes that. If that, when that's transferred, there's no tax. If they start going after that, Now, what could happen is, because this was discussed within the siblings, if the if the houses worth seven hundred in the and there's a let's say some kind of a tax, let's say thirty percent, Well, thirty percent of seven hundred is two hundred and ten. That means that there's a two hundred and ten thousand dollars tax bill as well. It wouldn't be on the seven hundred, be on the difference between what she bought. It for, right, which is ten thousand. Okay, Yeah, so let's just say it's two hundred okay, okay, So there's a two hundred thousand dollars tax bill that's due, which means. That my brothers and sisters and I have got to look at whether we have the money or not. Probably most more than likely they're going to want to sell the house and get the five hundred net. The two hundred goes to the government. That's what's up on the chopping block. And most kids, you know, if you guys think about your kids and you know the home that you would pass down to your kids, most kids aren't and be able to afford that because they need cash. They need that much cash. So you know, yeah, the inheritance, we should we should do a whole show on this, actually, because the money that's going to be transferred and inherited is very very interesting. I already know people that have gotten things from their parents, because I'm a younger baby boomer, I already know people that have gotten money from their parents, and what they immediately do is they sell the business and they sell the house and they get the cash. Yeah, and you know, it's no different than a lottery winner. You know, of course, what they do is they some people manage it really really well. I think when you're later and you're a little bit older, you start to learn more things, but some don't learn at all. Yeah, depends on your situation. Yeah, so what depends on how financially educated your kids are too, you know, if you're not that financially educated and they're not that financially educated. But in truth, a lot of kids can't afford to up take a property, right Like I saw this in Charleston when I was there, and the homes are boarded out, like you have really nice homes next to homes that were like falling apart. Well, why would a home in a nice area be falling apart? Well, most likely somebody inherited it and they can't afford to upkeep it. They're barely paying the taxes and insurance and all that stuff, and they don't know how to cash float or anything like that. Those homes come with big expensive repair bills. So if you don't have some savings and things, well, just like if I had. I was given one hundred thousand dollars today, I would do something very different than if I gave it to my twenty three year old son, right like, he would do something very different than I would do. Okay, And that's the point, you know, as you start to pass these things on my son at twenty three years old, what do you think he's going to do? It's going to go buy a new car. Yep, Right, he's gonna go probably take a couple of trips. You know, ain't upgrade from things furniture, this and that. And the last thing on his mind is. Going to be, you know, investment in real estate that rites with inflation. Right, it's just a fact. Well, and if you're even if your kids are older and they're in their forties or fifties and they have credit card debt and they have that, like, it's gonna all go to that kind of thing. So you got to look at, you know, who you give them the money to. It's no different than a lottery winner or somebody who gets a signs of a big contract and like the NFL or something. It's no different. Like like like we're really good friends with Seth Joiner and Kedra and they're like Seth is a master of personal development and learning about money and all that stuff. And it's super impressive, right what he knows what he's doing, and it's mitigated risks and things like that, and he's done a phenomenal job. But I also know some of his friends because I've met some haven't done such a. Great job, right, and and so but it's not. It's not an athlete issue. It's a you know, I can do that in my own family. I could add money to my brother and my sister and they would handle it very differently, right, right. And so the point is it's not it's not a label, it's what do you know and what are you doing with that? Right? And and that's the issue. And so this as this money gets transferred or if it's real if if somebody takes real estate on, you know, what's going to happen is they're going to say, oh, I love the cash flow or I want the equity. Right, that's those are the two things. And you know, I have friends. I have two friends that just sold businesses, third generation businesses. Third generation you know, because you imagine that like the you know, the grandfather, you know, pioneers and probably scraping by and transferred to the next generation who's probably grew it a little bit maybe and then had a pretty good living, and then they had kids and all the grandkids are looking around and they're like, Okay, this is worth a lot, right yeah, And I don't want to run this thing, and I'm selling it. Literally, I have two friends right now. I can think of the top of my head that are in the middle of that. One of them just closed and we're talking about a lot of money. Yeah, and that's why, you know, that's why you have to For one, you have to teach your kids, and then they teach their kids about wealth, because any generational wealth that you do leave behind can be squandered and no longer generational anymore. Right, But real generational. Wealth is something that kicks off cash flow. So like if you have rentals that produce ten thousand dollars a month, right, that's real generational wealth. That's stuff that you know, people can live on and produces money without them having to sell anything. Yep. Oh well, guys, both my kids work for me. Now. Now there's a long journey getting them here. Trust me. My son Kyle is in the middle of acquisitions. He's underwriting deals, he's looking at cash flow, he's looking at leverage, he's on the calls. Okay, that's by design, by the way, my other son, he's coming up the same way they grew up, playing cash flow. They understand the difference. And then in two weeks I'm having a meeting with them to go over on our state plan. Okay, first one ever, And the point is it's it's it's an education process because they could squander everything I've done, you know, they can. They're gonna step into a lot of positions, not all of them, but they're gonna step into a lot of them. And we have a very complex estate plan. But the point is you have to I've seen this so much where a lot of times the grandkids. What I'm most concerned about is not my kids. I'm concerned about their kids, you know, they what's the incentive and what's the process. And the generational wealth is a tough one. Most most people squander it by their third generation. And certainly I know very few families that are that have the wealth. From from you know, in the fourth generation. Right absolutely. And and for those listening that are like, well, you know what, I guess I'm not going to have generational wealth because I can't afford all these houses and things. It doesn't have to be houses, you know. Like we know a kid that's like eighteen twenty years old that has a bunch of cars that he's on Turro with right He's making I think fifteen twenty thousand a month on these cars that he's running on this application. You know, people do it with boats. Like we were just in Charleston and running a boat and this guy had a boat and was telling me, I rent this thing for fifteen hundred a day and this is what I paid for it. And you know, so it doesn't have to be houses. It's just anything that makes money passively for your kids and their kids and everything. And that's it, guys. It's it's you know, first, you got to learn it. Yeah, And that's actually the biggest problem, huh. I think. You know, you sprinkle money onto a person whatever in want to reform that is inheritance or lottery or or whatever, you have to figure out how to keep it, how to preserve it, how to grow it. And that's complicated, and then you owe it to yourself, I think, and on to your family to teach them what to do with it, you know. I mean I. Obviously my brothers and sisters, we all came from the same parents. We all think very different things about money. Yeah, right, and I think that's common. Right. You know, my brother and you know, he he turns to a lot of his over to a wealth manager. My sister started buying single family homes and she was a bookkeeper, whole wife. Obviously I've got a business around it then, you know, but we're all still fine. Yah, right, So you can. Get there a lot of different ways. It's but the point is to you know, you know, I was talking to Jason Hartman. He read that book Die with Zero. It's very interesting, you know, because he's he doesn't have kids, he's not married, so his mindset is very different. He's like, I'm gonna he goes. He told me, He's like, he told me the number. He's like, I could spend this much. Per month, you know, and so why would I work anymore? Right? And of course I was like, well how about like what about medical bills at the end? You know what happens if some appens videos, you know, and how do you know where you're gonna die? It's kind of interesting and uh, but there's a book out on it, right. A lot of people are resonating with it, and you know, some. People don't want to pass money on at all, you know, and he's certainly in that category, you know. And you start to look at some of this wealth, you know, like even Robert Kisaki and Kim you know, they've crushed it, right, they invested very well there at the top of the game on knowing exactly you know, how to how to how to manage money in most ways. And and I and. They've become, you know, somebody that a lot of people will listen to, you know, But now what, right, they're kind of you know, they're entering that called the last chapter of business, let's say, and they want to enjoy life and all that stuff. And so you know, now you have all this money, what do you do with it? It's a fair question, right, so not all of it gets transferred. I know, I know that, I know specifically they're they're gonna do a lot of charitable things, and that certainly is a choice. But there's a lot of money right now having this conversation. Yeah, absolutely, So hopefully you guys learn something about money. You have to understand money in order to be wealthy. There's a lot of different ways to do it, but it's definitely something you should dig into. So the Collective men in Vegas this weekend. So fun, my gosh, best one yet. And for those that don't know, the Collective is your previeum group mastermind. It's so good. Yeah. First of all, the member well We have five partners, right, Jason Hartman, George Gammon, Russ Gray, Robert Helms, myself, and everyone comes and you know, it's really interesting, like I George is like I made a commitment, I'm coming, you know, and he's such a big part and so everyone is, you know, and everyone gets up there and says what's on their mind, what they're working on. But more importantly, we do hot seats. These members they get up in front of the. Room and say this is, this is I've got this going on, and the whole group confidentially like. Goes over the problem and it's just like a brainstorm session. It's like that. So they're literally they are a hot seat and they don't have to bring up anything if they don't want. But that could have gone on and on and on. We had incredible speakers. Oh my gosh. You know when you want to see the eagles at the sphere too, and you said that was amazing. It was unbelievable. I got to tell you, it's one of the best things I've ever done. Like it's it's uh to first of all the eagles, who does love the eagles, but then to have the graphics and the sphere. It was. It really made it special, I gotta tell you. And and of course. We were all on a high from from two days with the with the whole group. Everybody bonds, These are all business owners. These are all people that are doing really well. Some people have exited, have a lot of money. I'm trying to figure out what to do with it. Some people are wrapping companies, some people are middle of selling. But it's a commitment for all of them. And I've gotten to know them all really, really well too. And there's just. So much everybody's it's funny like everybody's walking around with the same questions and it seems like right. And so I really enjoyed. I learned a lot because I do a lot of one on ones with them. So you were saying that Georgia had an interesting conversation how he went back and read September eighteenth, two. Thousand and eight, two thousand and seven. Yeah, seven, when the Fed lowered the interest rate by. So it's interesting because the Fed just rate lowered rates by half a point, like recently, right on the eighteenth, by the way, and then they also on the eighteenth of September two thousand and seven, which you guys remember was going on. That was kind of a rough time. I was literally in the middle of that. That's the beginning of the Great Financial Crisis. Okay, so that's a really important thing to understand, and we wanted to do a really crazy recession. So all right, so George went back, you know, per George, George is so funny. Literally he started reading the Wall Street Journal before during after he started taking a look at the FED cuts that were going on in O seven and you know, because he's trying to figure everyone's trying to figure out, you know, what's FED going to do now, especially we've got this election everything. I think what was really, really, really interesting was this. The federal funds rate was four point seven five in September two thousand and seven. Very similar to where we are at now. There was a half point and by the end of December two thousand and eight, so just a little bit over a year, it was zero. Oh interesting, zero, So went down four point seventy five percent. INT's let's call it fifteen months. Obviously we're not at two thousand and eight. Guys, I get it, like you all are going to go We're very different. It's all true, but you have to go back and look at some of the comparisons. And what George was really interesting his research showed is how wrong the journal was because it's all print like you know, they're like, oh, it's going to do this, it's going to do that, and inflation was higher at the time, and of course we completely spun out right. The whole housing. Market just collapsed and crashed during this period of time, and it took obviously seven years before things started tighten up. So I thought it was very interesting. And also, don't forget it created the bubble that were in. So what did you take away from them? Because you don't think the housing crash is going to happen again? So what what would you take away from what he presented? Yeah, well, I think there's a couple of things. The biggest thing for me is don't believe what you read, because that's number one. I mean, you can you can literally read it. You can say they said this is gonna happen. They said this guy, and George is like, almost in almost every case, it was wrong. And what what's going to happen as as the economy rolls out? You know there's going to be different moves made right as as as inflation goes up or down, you're going to see you know, you're going to see these these ratrol out. The one big thing that happened in two thousand and eight was we had a real estate crash, right, we had all we had real estate devalued, single family primarily, and that all dumped onto the market right away. And that creates huge opportunities for anybody who's aware. That's very very different today. And I think what we're going to see instead is you're going to see we have an affordability problem, so very different, and so the affordability problem might drive lower. Rates right right, versus the burgeon fly issue versus fly Yeah. So I don't know, we'll see yeah. But he also said he thought I agree with him. I think that all the commercial office and all the commercial stuff that everybody's kind to do and glue on and click baity, I think that's all going to be absorbed by that middle class and it's not going to really be disruptional. Like everybody thinks, what. Do you mean absorbed by the middle Well, take a look at. Who owns office buildings, pensions, retirement plans. For one case, you know, call it your quarterly statement that you probably never opened that. Oh so you think it's going to affect the pensions of course. Course, yeah, because those are those are the investors. You got to follow that. Like, you know, on a single family house, it's your. Mom, it's your dad, it's your brother, it's your sister, it's their life savings. Right on an office building. It's not it's calipers, you know, the California Retirement Pension let's say, or something. You know, it's you know, these are USAA, right, they invest in commercial real estate. I'm not saying that that's going to be good or bad. What I'm saying is, well, actually the deal we just bought in Henderson, Nevada, guess who who took the hit the loss? A life company. Okay I won't say which one, but that's who that was the owner. Yeah, a life company. So that was a lot. You know, typically the same investors they invest in apartment syndications as office No. So so here's the way it works. You know, you're my dad was a union plumber, right, he put money into a union. That union pension. Invest the money, so it could be that, you know, so he doesn't even my dad my name know that he you know. Was invested in stuff. So that's how that works. The teachers, pension, retirement, firefighters, all that stuff that's all managed. That's all invested into things like tax, the stock market, bonds. So what they see a hit on, like, well, will those people that are invested in that like that? Yeah, it depends on how eavily they're invested. So yeah, and also banks, let's don't forget about them. So why is it? So why is it that different in like, why don't pensions invest in multifamily? Okay, oh yeah, yeah no. But but like anything, there's risk managers and there's diversification. So let's say let's say there's ten billion dollars. It's probably more than that, but let's just say it's ten billion. They might take a billion and put it in multifamily, a billion, put it in tech, a billion, put it in t bills, a billion, put it in bonds. I mean, you know, I'm being very general here, but the point is that they would want to diversify that. It's probably even way more diversified than that. So there's allocations to different sectors and then the bi diversification and allocating you've now spread your risk over multiple different kinds of things, and so you have to look at who's heavily like like, I know, for sure, Wells Fargo is heavily sitting in office buildings, right, right, that's something that you can actually google. But also office had always been stable, so it was always kind of a good safer investment. In the years. Yeah. But so but if you're let's say, let's say you're sitting there as an employee of Wells Fargo and your net worth is tied up in Wells Fargo, and you know that, like you might want to look under the hood. Like that's why I'm saying, like, you know what I mean. Yeah, so you just you know, yeah, I'm not And that's what I mean by being going to be absorbed. It'll be absorbed into those life companies and those insurance companies and those retirement plans, and says that's that's where a lot of the money comes from. Ross and I have done deals with life companies, We've done deals with pensions. You know, that's the way the business is. On the. It's basically institutional money, right, You're looking for a return, right, so instead of using an individual LP or a. Bunch of them. You would go to a life company and they there's one in instead of fifty. Got it? So you think that's all just going to be kind of absorbed. Yeah, that's what it's looking like. There's still obviously a lot of individual LPs that are getting. Clobber right now in the multifamily. And some of the other things. But those, again, those are one hundred thousand dollars, two hundred thousand dollars investments. Some are more. But the you they're credited and they're it's gonna sting, don't get me wrong, but those are those are very very different than somebody who owns a Wells Fargo stock Sorry Wells Fargo by the way. So anyways, well, thank you guys for listening. If you're interested in being an investor, we have a new deal Mason ranched. It's going to be a ground up construction deal and we have a whole webinar on it. If you want to learn more, just go to invest with mc forward slash Mason m ASO N A Z.