Ever found yourself at a crossroads between sticking with what works and daring to innovate? That's where we kick off our latest foray into the real estate investing realm. Judged by Matthew Potter, with the dynamic Chris Jefferson, the perceptive Leon G. Barnes, and our always provocative disruptors, RJ Bates III and Steve Trang, we tackle the big question: to innovate marketing or not? Prepare to sharpen your investing acumen as we dissect marketing strategies, skill development, and the delicate dance between consistency and creativity that can make or break your success in this industry.
Now, let's get personal. This episode isn't just about strategies and markets; it's about the moments that define us as leaders. We strip down to our most vulnerable selves, sharing stories of face-palm-worthy gaffes and tough lessons learned. From RJ's Pizza Hut epiphany to CJ's financial confession and beyond, we reveal the less-than-shiny side of leadership. It's a tour through the trials that have honed our savvy and a testament to the resilience required to steer the ship in the turbulent waters of real estate.
Wrapping up with a spirited exchange, we dive headlong into the contentious debate over hedge funds and their sway on property values and affordable housing. The gloves come off as we spar over the forces shaping the market, from hedge fund influence to government stimulus and interest rate shenanigans. It's a no-holds-barred exploration of inventory management and the burgeoning shift towards multi-family homeownership. So join us for an episode that's not just about the numbers, but about pulsating through the heart of the real estate market with wit, wisdom, and a few unexpected laughs.
With over 1,000 Videos, this is the #1 channel on YouTube for all things Virtual Wholesaling. SUBSCRIBE NOW! https://www.youtube.com/@RJBatesIII
_________________________________
FREE RESOURCES FOR YOU:
If you want to learn how to close deals just like me, The King Closer, then download the free King Closer Formula PDF: https://www.kingclosersformula.com/close
Join our exclusive FB group community for real estate investors and wholesalers ($0 to join) : https://www.facebook.com/groups/titaniumvault/
_________________________________
Learn more about the systems I use to virtually wholesale nationwide using the links below!
Get 66% off LeadZolo Motivated Seller Leads using our exclusive link: https://www.leadzolo.com/titanium
Speed to Lead PPC Marketplace: https://app.ispeedtolead.com/TITANIUM
Get 1000 FREE Buyer/ Seller Leads with a Batch Leads Trial: https://batchleads.io/titanium
Close 30% More Deals Using our preferred TC ezREIclosings: https://titaniumtc.com
Save 20% on Privy (Nationwide Comping Tool). Use Promo Code TITANIUM: https://www.privy.pro/
The Most Powerful Dispo Tool: https://get.investorlift.com/titanium/
Propstream Free 7 Day Trial (Nationwide Data & Comping Tool): http://trial.propstreampro.com/titanium/
Ever found yourself at a crossroads between sticking with what works and daring to innovate? That's where we kick off our latest foray into the real estate investing realm. Judged by Matthew Potter, with the dynamic Chris Jefferson, the perceptive Leon G. Barnes, and our always provocative disruptors, RJ Bates III and Steve Trang, we tackle the big question: to innovate marketing or not? Prepare to sharpen your investing acumen as we dissect marketing strategies, skill development, and the delicate dance between consistency and creativity that can make or break your success in this industry.
Now, let's get personal. This episode isn't just about strategies and markets; it's about the moments that define us as leaders. We strip down to our most vulnerable selves, sharing stories of face-palm-worthy gaffes and tough lessons learned. From RJ's Pizza Hut epiphany to CJ's financial confession and beyond, we reveal the less-than-shiny side of leadership. It's a tour through the trials that have honed our savvy and a testament to the resilience required to steer the ship in the turbulent waters of real estate.
Wrapping up with a spirited exchange, we dive headlong into the contentious debate over hedge funds and their sway on property values and affordable housing. The gloves come off as we spar over the forces shaping the market, from hedge fund influence to government stimulus and interest rate shenanigans. It's a no-holds-barred exploration of inventory management and the burgeoning shift towards multi-family homeownership. So join us for an episode that's not just about the numbers, but about pulsating through the heart of the real estate market with wit, wisdom, and a few unexpected laughs.
With over 1,000 Videos, this is the #1 channel on YouTube for all things Virtual Wholesaling. SUBSCRIBE NOW! https://www.youtube.com/@RJBatesIII
_________________________________
FREE RESOURCES FOR YOU:
If you want to learn how to close deals just like me, The King Closer, then download the free King Closer Formula PDF: https://www.kingclosersformula.com/close
Join our exclusive FB group community for real estate investors and wholesalers ($0 to join) : https://www.facebook.com/groups/titaniumvault/
_________________________________
Learn more about the systems I use to virtually wholesale nationwide using the links below!
Get 66% off LeadZolo Motivated Seller Leads using our exclusive link: https://www.leadzolo.com/titanium
Speed to Lead PPC Marketplace: https://app.ispeedtolead.com/TITANIUM
Get 1000 FREE Buyer/ Seller Leads with a Batch Leads Trial: https://batchleads.io/titanium
Close 30% More Deals Using our preferred TC ezREIclosings: https://titaniumtc.com
Save 20% on Privy (Nationwide Comping Tool). Use Promo Code TITANIUM: https://www.privy.pro/
The Most Powerful Dispo Tool: https://get.investorlift.com/titanium/
Propstream Free 7 Day Trial (Nationwide Data & Comping Tool): http://trial.propstreampro.com/titanium/
Welcome to this week's Pardon the Disruption. I am your host, Matthew Potter.
Speaker 2:Every time we start the show, cj talks in nonsense and then he gives a compliment to the host, to the judge.
Speaker 1:So I see the strategy now. Mr RJ Bates.
Speaker 3:We don't have any NBA questions, so I wanted to throw in the NBA today by saying you guys are like Detroit Pistons and San Antonio's birds, I feel like Steve Skin, is like a slightly lighter, oh so shadowy.
Speaker 1:Shadowy's P. We have, mr Leon. Do not forget the G barns, the.
Speaker 5:G and Leon G barn stands for growth. We haven't had a lot in my life on my face, so we're trying a new experiment. Ptd has made me better.
Speaker 1:Absolutely Greatest outros of all time. Right there, what is going on everyone? New year, new changes around here. On PTD, we hope you enjoyed our intro there. I'm your host, matthew Potter, and we're going to go ahead and get into it With a breakdown of our show's rules. Five questions Everybody will get one minute to answer. During that time, though, I will be awarding points based off of their actual argument as well, and then also during their two minutes afterwards, and then at the end, somebody's going to win. Likelihood is don't bet on RJ Bates this week. That's all I'm going to say. We're going to start it there. All right, we're going to start with intros with our reigning champion, young Ralph. We grew up with him. We have CJ Jefferson out of Richmond, va.
Speaker 4:Richmond, va. Chris Jefferson. Always good to be here. It's good to see you, gentlemen. Happy new year, excited for another episode of PTD.
Speaker 1:There we go, All right. Next up we have Leon. Do not forget the G Barnes collective genius. Go ahead and introduce yourself.
Speaker 5:Happy new year everyone. I am so ready for our first episode of 2024. And just was caught off guard there for a second, because I heard that we had rules on this show. Since when Is that new show? New year. We have rules now. I'm excited for this. Maybe, maybe RJ and CJ will actually adhere to those rules this year. We'll see.
Speaker 1:If I was a betting man, I would bet against that, leon. I'm just letting you know, man. All right, next up, mr Disruptor himself, steve Trang, introduce yourself to the people.
Speaker 2:Hey, what's going on everybody? Steve Trang, real Estate Disruptors, new year, new me, new PTD. Right, we're changing the format just a little bit. Hope you guys are enjoying it. Our videos are going viral. I am being personally attacked on PTD. It's outrageous. So if you guys are subscribed, please. Or if you haven't subscribed, please subscribe and to defend my name, because I am being assaulted verbally inside the comments. My ego can't take much more of it.
Speaker 1:Absolutely Offend or defend. Make sure you subscribe. Go ahead and take some shots at us, steve. We're having a lot of fun there. Last, certainly not least, coming to us from DFW, we have RJ Bates, the third. Introduce yourself.
Speaker 3:What's up everybody, new year. Cj still doesn't have any energy, steve still doesn't have a personality, leon still doesn't have a barn, or a barn, a sheer. That's what. I try to say Still doesn't have a beard and a father still sucks as a judge.
Speaker 1:Of course, man coming in guns blazing from the barn over there. Thanks, bud, we appreciate it. All right, we're going to go ahead and get into it with our first question, which is going to be based off of this video. What you all didn't see was RJ actually just polished off an entire box of pop tarts while that was playing. I just want to go ahead and make that clear for everybody, all right. So for question number one, real estate investors use the same marketing channels, like the same postcards, cold call scripts, et cetera. Should they stick to what works or should they get creative? Start us off, cj.
Speaker 4:Look, I think you can get creative in your skill set, you know. I mean, you know marketing channels are marketing channels and right now the low cost marketing channels for many are winning because you know the lower the cost, more value that you can do. You know so, like when it comes to cold calling, for example I know RJ is huge on this, steve as well. I think it's a skill set gap. You know, if you want to really get good at doing deals, if you want to be able to separate yourself in your marketing, what is your skill once you actually have a seller communication?
Speaker 4:I think so many people are focused on the copy and paste of oh, is RJ cold calling or is Steve doing this or is, and everybody's just trying to copy and paste those things, not thinking about the skill that has to be attached to that. So, yeah, I mean I think you got to get to a point where, yes, you're all, we're all going to be using the same marketing channels, right, but can you get creative in your skill set and how you're doing deals Solid?
Speaker 1:point Like it. That's good. That's good insight there, CJ. We appreciate the energy level being at the highest that it's ever been today. From you as well, I don't. I don't know where the points are going to land based on the energy level. All right, Leon, what about you? Are we getting creative or we staying tried and true?
Speaker 5:So, first of all, the pop tarts bowl. That was awesome. I love the creativity. I probably haven't had a pop tart in 40 years. I considered having a pop tart. The answer to the question that I landed on is yes and yes. Marketing, as CJ said, is marketing. In this business it all works If you're consistent with it and you have the skill set that, once you delete a lead is delivered, that you can convert on that lead. But I do think that you need to get creative within those tried and true channels. I think that all we know it all works at some level. So how do we get more creative to stand out from the other people that are doing similar channels as you? And I think there's a way to go about doing this. One of my favorite things on a quarterly meeting is did you see what such and such is doing with direct mail? They're putting offers and they're doing this, they're doing that. So we're always looking at getting more creative, but using the channels that we know are tried and true.
Speaker 1:There we go. I mean, I don't know about a point, because you haven't had a strawberry frosted pop tart since like 94, bro. I don't know how I feel about this. We'll circle back on that one. All right, Steve, don't let us down. Move or try to do true. Where are we?
Speaker 2:You got to do both. I think that you got to have RJ's part going to say hedgehog right, I think you have to have the hedgehog and I think you have to have a little bit. You know a small amount that's dedicated to innovative, something a little bit different. You go into masterminds. You're listening to the podcast, you're seeing what other people are doing effectively. Dabble in it, try it a little bit. Jim Collins calls it firing bullets before firing your cannonballs. So have a majority of your budget 90 plus percent stay the same. That's working effectively and try something else a little bit to see if you get any traction. If you get traction, go a little harder. If you don't get any traction, well, you didn't waste a lot of time and effort on it. So I think you have to do both, but focus predominantly on what's working.
Speaker 1:There we go. Okay, steve, all right, give you a point on that one. One thing, though, that we need to consider is that your cartoon behind you, right there where you went you went ham on your marketing budget lost. What was it? Dabble, dabble, 142. Dabbled, dabbled, all right. Fresh off of combing his beard, removing the Pop-Tart remnants. All right, rj, what about you?
Speaker 3:No, real estate investors should not get creative with their marketing. One of the number one problems that real estate investors and wholesalers have is chasing shiny objects right, they want to go find the new unicorn that's going to make them successful. And it's like dude, we all send the same postcards. Okay, we're all cold calling. We're all sending texts, we're all buying now paper lead leads Like do what works. Stop trying to recreate the wheel. Get better at comping, get better at talking to sellers closing deals, get better at dispositions. This is where your focus should be, and if you've got a well oiled machine, then, and only then, should you try to come up with something creative. Recent point Eric Burr, he's got a well oiled machine. So then he decided hey, mom, do you want to go on TV? And it worked. But it was only until he had the well oiled machine before he tried to do something creative like that.
Speaker 1:Point for RJ on that one. That was a solid EB reference there. We appreciate it Way to bring EB's mom into it. We appreciate that yeah.
Speaker 2:And I would say, as far as creative right, we're not saying be completely innovative, we're doing something completely from scratch. I'm going to do something that's never been tested Right. Like most of us are not in the innovation space, what I'm talking about is keep me ears on the ground, seeing what's working Right. Like we started using lead Zolo after closes Olympics, after seeing RJ have success, and then we started by dabbling, seeing if we like it right, hey, we're getting contracts, let's go a little bit harder on it. But if it was a complete bomb we would stop it. But we didn't go hard, we didn't just throw 15, 20 K a month in it lead Zolo, we just put a couple of thousand. So I'm talking about like creativity is just dabbling a little bit and seeing what's working for someone else, see if we like it, see if we don't like it.
Speaker 5:And RJ to your point. How do you know, like if you're just if you're watching this and you're just starting out how do you know what is tried and true, that they should stick with? How do they know that?
Speaker 3:Well, there's enough information out there, just on YouTube alone for free, that says hey, cold call, hey, send out this direct mail. What I'm saying is is, if you decide that you're going to do direct mail and then you decide you want to get creative and come up with your own postcard or your own letter, like, that's where you get lost, like dude, we go talk to REI, print mail and they say this is the postcard you sent, this is the letter you said don't try to recreate it yourself. What Popdarts did here was very creative and innovative. No one else has really done it. You've mentioned it before, outside of maybe Duke's mail with their bowl game. That was creative. I'm not saying that, hey, you shouldn't try the the tried and true methods. That's where the free information is out there, leon, they know what works and what doesn't.
Speaker 2:What's pissing me off is RJ is crushing my dreams of sending Popdarts.
Speaker 1:I was going to say dude the way that RJ says Popdarts. Just off that point for RJ, like he's like Popdarts, like he's all excited over there.
Speaker 2:I'm sending Popdart direct mail.
Speaker 5:I think that was our I think that's where we were answered Both Steve and I were answering from is that you know bowl games have been around for a hundred plus years and you know no one has done what Popdarts has done, and so we were assuming that at least I was. I'll speak for myself here that investors have tried and true channels and always should be looking at what else can I do to help conversions at a higher level. Excuse me, this is the wrong word. How do I get more leads from that particular channel? From what I'm seeing currently? I do think you need to be creative and think outside the box and why communities are so great? Because you always know what new innovations people are trying in their particular markets or regions of the country.
Speaker 2:And I am shocked that CJ are in-house marketing professional is not suggesting anything in regards to AB testing.
Speaker 6:No.
Speaker 4:I was just.
Speaker 2:CJ are you running?
Speaker 4:the same Facebook ads for the last 12 months. I was letting y'all finish, honestly.
Speaker 1:You woke the sleeping giant, here we go.
Speaker 4:No, I was letting y'all finish. Steve, you used the word test. Business is kind of simple, right Like. You have to create a baseline. Here's the problem. Most people in the Like to get in the wholesaling. They struggle to create a baseline because they're too busy trying to copy and paste. You have to create a baseline of what does work right.
Speaker 4:And that's why, like, I hate when people like talk so much about KPIs, because it's like, why do people think that everybody's KPI should be the same? Right? That's not how business functions, right? Point of C.
Speaker 4:You should be developing your baseline KPI indicators right, or your baseline. You know what marketing data is telling you. And then you should be getting creative in testing other things, split testing other things to it against your baseline to see how it impacts it. And if it's like Steve said, hey, I tried Lizolo. It started working really well for us, so we went and got more into that. You know it's because we don't even know that this worked for Pop-Tart yet. All right, I'm just gonna be supported as well. What?
Speaker 3:was the last time anybody talked about pop tart. I mean, that's really work. I mean any anyone outside of the Bates household, probably like 2006.
Speaker 1:Maybe I don't know. So, clearly pop tarts work there. It did.
Speaker 3:Here's. You get ready to give me a couple of points here. No thanks, why? Leon is the pistons okay, like even his answer. He's agreeing with me when he's trying to disagree. Yeah, if you go to collective genius, one of your guys inside of collective genius says, hey, here's what's working in my marketing, and then you take that and you copy it. You're not being creative, you're literally just somebody else. I'm being creative at all. I.
Speaker 1:Can see a point for RJ there, but I'm waiting for Leon to destroy him back. Let's go.
Speaker 5:It's a valid point. My what I'm saying to the creativity is that you know, these are ideas that people are coming up with that are thinking outside the box, and iron sharpens iron and that's why you go to communities like ours, because you get. You get your creative juices flowing because you see what someone else is doing in their marketplace. So creativity typically breeds more creativity.
Speaker 1:There we go. Okay, all right, I enjoy the round. I hope that you guys are enjoying the new scoring system better. It gives everybody more of a fair shake and I don't have to listen to RJ's crap anymore, which is great. I'm thorough, I'm thoroughly happy about that. Looking forward to Leon and Steve stepping it up with the question number two. I'm sure that Steve has an answer for this one. What is one of your most embarrassing moments as a leader of an organization? Why don't you start us off, rj?
Speaker 3:Yeah, so it's one of the best moments of my life. It was when I was a general manager at Pizza Hut and the man from corporate showed up and Wopped my restaurant and said that I was nothing but an over glorified shift manager. I should have never been promoted. He said it in the lobby, in front of my employees, in front of some of my regular customers, and it was my last day at Pizza Hut and it's looking back. I was extremely embarrassed because it was a shot directly at me and who I was as the leader of that restaurant, and. But it also woke me up and what I was truly embarrassed about is the fact that I had dedicated eight years to a corporation that Essentially did not care about me at all, knowing that I had so much more to give, and so, looking back at it, it was one of the best moments, but it was also a highly embarrassing moment right at that moment.
Speaker 1:Gotcha real quick. Was that pre RJ Bates beard?
Speaker 3:There was, there was a goatee going on.
Speaker 1:Yeah, that's what it is. The goatee is not good enough. We needed the beard man we that's that's what it is. I'm glad that she got out of the hut, though I am All right, cj. What's going on, boss? Most, most embarrassing moment as the leader of the organization. Give us something good to work with here.
Speaker 4:Yeah, I was. I remember a day in 2017 having to tell people working for me at the time that I couldn't pay him that day, and that was like it was embarrassing and humbling, you know, at the same time, but it was. It was embarrassing because it was never a conversation I've ever had to have before, but I was in a position where, you know, like I had, like, had a conversation with a bankruptcy attorney. I'm trying to figure out what I'm gonna do, and it's embarrassing when you've got people whose families, you know, depend on you. They depend on you, they believe in you. So that was definitely an embarrassing moment. But I'll say also that you know and it speaks to the people that I worked with at the time Like they rose behind that, though right, like they believed enough, you know, in my humbleness, they believed enough that we could kind of rise out of that. You know which we did, you know, within a year or so, but definitely most embarrassing moment about for man.
Speaker 1:Yeah, that's definitely, that's hardcore. All right point to CJ on that one. And then I don't want to leave my man with the rose colored Cups over there, the drink cups. You guys know what I'm talking about a pizza hut. I got it. I got to go ahead and award RJ a Point for his embarrassing moment. All right, the man who clearly has had no embarrassing moments in his life, leon G Barnes, what about you? Most embarrassing?
Speaker 5:appreciate you saying that I struggled with coming up with an answer for this one, but then RJ reminded me that time that remember the the book it Program. The pizza hut had me to certain amount of books and you got a personal pan. I'm so embarrassed that time I walked into RJ store, call me out for not reading all the books. I said I read. Dude, I totally forgot about that. Thank you for helping me remember that embarrassing moment for me.
Speaker 5:They all go back to very similar to RJ, go back to my corporate days and working my way up to corporate ladder. And you know, looking back as a young leader within the organization, I look back at all those opportunities that I had to lead and you know, the one thing they do teach you really, really well at the corporate level is that as a leader, you have to always be on. And I remember all those social gatherings where I was not on. I probably had a few too many pops and I look back now at those and a super embarrassing today. I probably wasn't embarrassed in my my late 20s and early 30s at the time, but those are the. Those are some of the things I think about the most of what a jackass. I was In my late 20s and early 30s. Thankfully, I've grown out of that.
Speaker 1:I Absolutely love that Leon worked in bucket on PTD today like.
Speaker 5:You gotta be a certain age to remember that yo buckets where it was that we're gonna.
Speaker 1:we're gonna throw a couple points on the board for For bucket, just out alone. All right, steve, what about you? Most embarrassing as a leader?
Speaker 2:It actually happened just right now About two three minutes ago.
Speaker 2:It was when I found out that we got an over glorifies shift manager on PTD. Like I had no idea that we had done this Now, but congratulations on the on the upgrade. He's not just over glorified shift manager at titanium while Cassie runs a show. So, looking back there, we hadn't. The very first time I asked Gary Harper to come out to run an annual meeting this was in 2020 he came out and ran annual meeting and he gave me a very heavy dose of humility. You know, I thought I knew what I was doing. I've read the books, I've taken the courses, I'm coaching people right and he came in and he just pointed out every single thing I was doing wrong as a leader of an organization. That was tough right. So I was that. I was embarrassing For myself because I thought I had a higher sense of self-worth. I was like, ah, damn, this sucks. This whole two-day core annual planning sucks. So I'll say that's probably it. That's, that's number one for the absolute daggers.
Speaker 1:Hold on RJ for the absolute daggers that Steve just shot at RJ right there. I'm gonna go ahead and Throw three on the board for Steve with the core of fine shift manager. Let's go.
Speaker 3:All I'm gonna say is is about that moment with Leon when he came in. That was actually right before the guy from corporate came in, because what happened is is I looked at Leon and I said you clean shaven bastard, that boxer and clover or horses that I threw the personal pin right at him. And that's when the guy walked in and said your restaurant is a mess. Rj. Glorified shift manager.
Speaker 5:Yeah, I was the hut man that was. You went there for dinner like it was a fine dining establishment.
Speaker 2:But definitely what CJ is talking about. Man, that's, that's my greatest fear, my greatest fear. Yeah, it's like hey, like See, yeah, I've been there bro.
Speaker 3:That's I'm. You're right, you bring that up, that that is a you want to talk about a humbling moment? Yeah, man, as an entrepreneur, convincing people to come work for you and Be the driving force behind your organization, and then having to look at them and say, hey guys, I can't write you a check today. I've been there and it's. It's a very, very humbling moment, for sure 100%, man it.
Speaker 4:It puts things in perspective Because, you know, I think sometimes, man, when you're an entrepreneur, you're hitting it so hard all the time You're just going for the gusto. And then things progressed to a point where it's like, alright, now you got people that depend on you too. Right, like, imagine, if you're right, you know, you were at, I used to work at T-Mobile. I can't imagine if T-Mobile would have came in one day and said, hey, yeah, not to wrap, man, like we can't pay you today. So yeah, I mean entrepreneur, but I think that's the conversation we got to start having to. But entrepreneurship is real, like it's, you know it's. It's tough, right there's, you're gonna run into those challenges for sure.
Speaker 1:Great point Point for CJ gonna give a point to RJ as well for absolutely destroying Leon. And the truth has come out. Leon G Barnes has not read Animal Farm. So there you go, only serial killer novels. That's the only thing that he's reading these days, all right. Next up for our next question, we have our viral video topic of the week. Go ahead and check it out. Oh, it's a live look at RJ going after pop tarts right there. All right, go ahead and start us off on this one. Go ahead and start us off, cj. What is the scenario where you have overreacted like this?
Speaker 4:What is the scenario? I don't know that. I I can't say that I overreact. I'm not. I'm just not somebody that just overreacts the scenarios or situations. I'm pretty slow to the draw, low energy, as RJ would say. Yeah, I can't really think of a time I've overreacted. I mean not to that extent you got to be a bit stoic. I mean, this guy's in a courtroom I don't know what this, I don't even know the context of the situation right here. I mean this guy does a Superman dive at the judge. I mean that's probably the fastest way to make sure you stay in jail. I don't, I don't believe in emotional decision-making. I'm just, I just don't believe in it at all. So anytime I feel myself getting emotional, like doing a deal with RJ, and he's texting me 30 times a day and I just want to call him a snap, you know Like I pause, I get a little still and I say to myself I'm like I'm sorry, they fucking baits, you know, you're relaxed, you know. So I don't really get too too excited.
Speaker 1:Cool as the other side of the pillow. A couple points to CJ on that one. He's always just calm, cool and collected. All right, leon, what about you Scenario where you've overreacted like that?
Speaker 5:Well, first of all, I used to be able to jump really, really well back in the day, but I've never been able to fly Impressive for context. Cj he had just. The judge basically says she wasn't going to give him parole and he just absolutely.
Speaker 5:I can say that I'm very thankful At my life, this chapter, going back to the old bucket, this chapter of my life. I try not to make emotional decisions like CJ and I don't think I really have a lot in my life, but if I look back on something most recently that you know I probably Overcorrected or overreacted. Hindsight. You know it made sense at the time, but hindsight you're going man I'm, I cost myself a bunch of money. And that's when, in March 2020, when we all looked at what our inventory was and the world was shutting down the NBA had shut down, the NCAA tournament had shut down and we went oh my gosh, I've got 20, 30 properties here that I'm about to start rehab on and I don't know where the market is going.
Speaker 5:And so if I had any overreaction to that, it was fire cell. Let's get rid of everything because we don't know where the market is going. And at the time, that was the right decision. Well, looking back, had I finished those projects, I probably would have doubled or tripled, if not more, my revenue. So, most recently, say from an overreaction standpoint, looking back hindsight, 2020. It's, it's fire-selling during COVID solid over reaction there.
Speaker 1:A couple points to Leon on that one. Definitely Not pulling out a Superman anytime flying over the desk there. All right. What about you, steve? When was the time that you overreacted like our friend here in this video?
Speaker 2:So, like CJ, I'm fairly stoic, 99.9% of the time. Negative one point, however, what my surprise some of the people watching is I've had the police called on me multiple times. Three points, and One of those things that I that generally doesn't sit well with me is when I'm told no. So I had a situation where I was buying a home house I currently live in and we had this ridiculous realtor wasting my time and she wouldn't hand me the key to go look at the property while she was previewing it, locking me and my family out trying to look at the house and, like I said, wasted like 15, 20 minutes of my time. And when I went, it's like, hey, can I have the key now after you waste all my time? She said no, I'm gonna put it a lockbox, something snapped. I Kind of said in very loud volume give me the Key right.
Speaker 2:And she said no, and then she walked all the way over to the lockbox but the key in being a responsible realtor, by the way, like she was doing that part correctly, that's only part she did correctly. She said to me that I can't believe you would talk about waiting for your kids, and I followed up with. Maybe I wouldn't. I'm only talking, though, because you're acting like something. Sounds like a horse. And yeah, she called the cops filed code of ethics hearing. Fortunately, my friend is actually in charge of the Board of Ethics, so it was no problem. But I got a personal phone call from the real estate commissioner for the Department of Arizona To tell me how disappointed she was in me, so that's probably a slight overreaction on my part.
Speaker 4:I'm not gonna lie to you.
Speaker 1:I'm not gonna lie to you. I saw the entire play-by-play of this and it was hilarious. I'm gonna give Steve a couple points because he did clean it up a little, but yeah, that's.
Speaker 5:I mean I'm not gonna lie. As soon as he said he got pop under cops, hold on in. The first thing I thought of is where's the popcorn?
Speaker 4:This is why. This is why, in your continued education, realtors shot in a car by the way. If they tell you to lock the door behind you. This is crazy people that are out here looking at these houses, getting emotionally attached. Don't come in here and beat you with the cookie tray, man.
Speaker 2:I got two hot buttons, wasting my time and telling me, no, we're gonna have problems all I'm gonna say All I'm gonna say is that was the day that 420 Steve was born right there.
Speaker 1:That was it. Alright, rj. What about you? What was the time you overreacted?
Speaker 3:Yeah, so mine was just a couple months ago and I found out what happens if I feel like someone is Trying to attack my children. My son scored the game time goal in a tournament game against a team from st Louis and as he was standing up From scoring the goal as he got knocked down from a dirty hit from behind, that player Then chopped his leg from behind with his stick and turn. He fell down and legitimately I thought he was hurt because he's never stayed down on the ground and where I was standing I had to walk all the way around the rink and as I was walking around he stood up and I stopped right in front of the st Louis parents and the MC in the arena started playing the jeopardy music and I'm watching. Trinity went like barely be able to move his leg to get off the ice and the referee Decides that the goal was not going to count, it was no goal, and All of the st Louis parents cheered as loud as they could. As my son looked like his leg was broken and I was Triggered, I turned around. I dropped 38 f bombs on their head right there. I told them all to get the f out of Texas, go back to Missouri. I don't know how these people even live with themselves.
Speaker 3:I continued to walk around a corner. One dad tried to approach me, asked if I wanted to fight. I then asked him if he wanted it. That's how he wanted the rest of his story written and I I consoled my son. Hope him. What happened then yelled at the entire team and said they all cheered that your teammate got hurt. Fuckin may go pay for it. My son went out on the ice, had the game winning assist right as I was walking back in front of those parents and let me tell you I let them all know exactly how I felt about it. I'm surprised you all couldn't hear me yelling in Phoenix. It was that loud.
Speaker 1:So we actually did. I think it was on the group taxes. We actually saw the yelling and the anger there. First off, I got to give a point to Leon for the popcorn over here. That was a beautiful. I love that. Point. Point to RJ on you know taking care of his, you know taking care of his son there. For everybody else, though, maybe there's like a way that we can correlate this to basketball so we can understand it, because nobody watches hockey.
Speaker 5:Can I just say this this is you know, rj, all those times that Jimary Breeland was on the show and you just gave it to him this, they all knew everyone in st Louis.
Speaker 3:The best part about my story is we then have a tournament in Chicago and we have to play the exact same team again, and so when I walked in the arena, all of the parents turned around simultaneously and looked at me and go he showed up. Oh, okay.
Speaker 2:Let me, let me speak for everyone. Rj here where I can say we're all disappointed in you.
Speaker 3:Commissioner.
Speaker 4:Sounds very RJ ish I'm pointing RJ ish.
Speaker 5:Before we move on, I just want to you know save the other Examples, steve, but I can't wait to find out about the other times the cops were called on you.
Speaker 2:So, yeah, I got cleared by the police, they got cleared by the board of ethics and, and and there was some other Nutcase realtor that was coming at Potter and I pretty hard and we took the lessons from this one. Yes, we did and got him an ethics violation. That was like one of the best days of my life.
Speaker 3:You're on board with hating realtors. Are you joining the RJ and CJ train here? I?
Speaker 2:think I agree with you guys, the 80% of them are useless. I've agreed with you from day one 80 to 90% of them are useless. I'm just saying you can't disregard the whole industry because 80 to 90% of them aren't so bright.
Speaker 1:Which, by the way, thank you for bringing that up, rj, I'm gonna take away one of your points for tagging me and your damn real the other day about how you don't like realtors. It was actually I would if. If I was on the other side even as, like the listing agent, I would have been like dude, I'm not even working with you now. Like fine, just send me over a cancellation. Have a great day.
Speaker 5:So I can understand your frustration. Explains why, steve. You know he's getting a cop's call now. He may have gotten cleared by the realtors association, but he can't fly TSA pre-check because.
Speaker 4:Steve's on the most. I Want to see Steve in like a police conversation.
Speaker 5:Negotiating with the cops.
Speaker 4:All I can think about is like one of those people on my first 48. It's like soon as they give you like a happy meal. He's just like he's snitching on Potter man. He's like now.
Speaker 3:Listen, I'm gonna let you go, mr Train, because you know you didn't physically harm the realtor, anything like that. But you wear those mom jeans one more time.
Speaker 2:Listen, cops love me. I. I cut off an unmarked cop car going 105 and got off with a warning. All right, cops love me.
Speaker 5:Steve been living thug life all this life.
Speaker 4:NWA is making it.
Speaker 1:It's why he's got get rich or die trying on the back of his door.
Speaker 5:I thought he was all about, all about the hug life.
Speaker 1:Yo Point for hug life. Point for RJ over here. Hey, if I had my board man, I'd be like you guys up, but you know, all right, we're gonna get to our next question. If there was a real estate investor portal, which role, position, acquisitions, dispo, etc. Would garner the most attention? Nil, why don't you start us off on this one, leon I?
Speaker 5:Think it depends upon where you are in your business, the phase of Business that you're in. If you're starting out and you're you know, you know younger in the business and you're looking to fire higher, your first couple of employees, I think it leans your quarterback would be acquisition, someone that can convert leads and Do do deals. I think that's where you would you would go to first. That's who would get the most NIL money. But I think if you're an established Someone that's looking to grow and scale their business as an investor, I think by far the quarterback of the real estate investing portal would be an integrator, a COO, operations. You can't scale without that talented person to help you operationally. Because most real estate investors let's face it, our entrepreneurs, their visionaries, they chase shiny objects and operations is one of the hardest. So by far that operational role, if you have an established business, would would garner the most in IEL money.
Speaker 1:Ding, ding, two, two points to you on that one integrator, very important Speaking of shiny objects. Steve, what do you think about this?
Speaker 2:Unfortunately. I completely agree with Leon. You know I posted something on Facebook last week I'm looking to build a company worth a hundred million dollars. Right, I can't do that without the right operator, without someone with experience and you look around, you know I actually have. I'm supposed to be at my quarterly meeting right now. Right, we got Amanda Dean next door and she's running our quarterly meeting like that is Is talent that anyone else would have loved to have been able to hire if she ever became a free agent, you know. So the biggest Lever in every organization is gonna be the person right next to the visionary, because the visionary can have big dreams, but they're so busy dreaming they can't get anything done. The integrator, the COO, is the executive that Implements and executes division at a high level and make sure that everyone else inside the organization is operating or is gone. So I would say the COO.
Speaker 1:Definitely point point to you on that, steve. It's very true. All right, rj, what about you? What? Who are we dropping in the portal?
Speaker 3:Appreciate Steve. Sounded like chapter one attraction. Great job, steve.
Speaker 1:Thank you.
Speaker 3:What? What is gonna garner the most attention is going to be acquisitions. Just like the quarterback does for football teams. You know, in the, in the transfer portal, the teams that are going to win are gonna be the ones that go out and get the quality Dispositions managers, the ones that can get the most amount of money. This is gonna be your offense and defensive linemen. I say it all the time it's the most, it's the least talked about. It's topic subject when it comes to real estate investing, how are we actually selling these deals? Who is doing it? What are the steps that they have to take? It's the most underappreciated and it should garner the most attention, but it does it because it's not sexy Getting the contract. Sexy is what everybody wants to see. So, garner most attention acquisitions, but it should be dispositions.
Speaker 1:All right, yeah, we, I can see a point your way on that. Acquisitions very important. Thank you for that. We appreciate you as the number one lead manager in Dallas, fort Worth. As always. Alright, cj, I will take away now. Now, I'm gonna take it away and give it to CJ. How about that?
Speaker 4:right. Yeah, I mean acquisitions. People are a dime a dozen really, and In terms of if you, if you look hard enough and if you know where to look, you can find quality acquisition people. That's not extremely difficult. Finding a quality integrator, I Think, is probably the hardest position to fill in all the business in any business. I mean somebody that can run operations, they can manage and handle reporting, somebody that can take thoughts, ideas, visions and map those things out, create processes in which to execute from.
Speaker 4:If you go company to company with people in our industry, people in any industry, the people that are not where they want to be at, that's generally the key piece that they're missing. They're missing somebody that can strongly, you know, manage operations and facilitate growth within the business and data back growth. Shout out to mine, deandra, I appreciate you. Yeah, if you don't have a operations person, it doesn't matter how good your sales rep is, because you'll never be able to grow, you'll never be able to skill, you'd never be able to bring in more sales reps, so that won't really matter. You got to have somebody that's managing that operation about.
Speaker 2:For facts so I could say for sure who I wouldn't hire. It's an over glorified chef manager.
Speaker 3:Protected. I got a question for you said it Acquisitions. People are dime a dozen. It's funny you bring up a dozen because I Won the closers Olympics. 20, 21, 20, 20. We haven't, we haven't mentioned that there's always a dozen competitors in the closers Olympics. Just that a curiosity. If there are a dime a dozen, how come I'm the only one that ever closes deals in the closers Olympics?
Speaker 4:Point on that one, I close.
Speaker 4:Yeah, that's a fair question. You know you're not getting like true sales leads, right, you're getting inbound leads. Really, you know, like, how good do you got to be with that? Like the person who can close cold traffic, right, that they've never interacted with a day before in their life this is the first time we've ever interacted. That's salesman. Like if you can have that conversation and sell somebody I know somebody who's got a good sales training Close more salescom. Shout out to the guys over there All right, go to the link. All right, click on it, fill out the information form and all I want you to do All right, I saw what you do. All right is I need help. Put in the comment box put I need help on how to really sell.
Speaker 5:This is why I said it's phases right if out of the gates. I think acquisitions and disposition is Huge and I think it would garners the most attention Depending upon where you're at in your business. But Steve can attest to this when we meet Quarterly at our community events, you know you can always tell who the best integrators, operations, coo's, whatever you can always tell because of the business and you. What you can't tell is typically that they are employees and we don't need to, they don't need to hear this, but every single one of them would double their, their salary. More like a question, no question, exception of a few. I think of a few guys that I know are well compensated and they have great leadership that takes care of them at a different level, with the exception of a few, but most of them. Exception of a few, but most would double. You know our good friend Ren Bartlett was one of those at one point. Amanda Dean, who you mentioned. Steve, there are some fantastic Integrators that could double, if not triple.
Speaker 4:Yeah, rj, you think you think pace Morby would still be doing what he's doing if you took Cody Barton out the picture and you just threw in a bunch of?
Speaker 5:you threw in a bunch of RJ bait sales reps, that's all I know, that the person that would garner the most attention is that role, because most times when you know someone that has a big business, what do you typically say I need one of them.
Speaker 4:Exactly yeah.
Speaker 5:I need one of him's, I or hers, I need one of those on my team.
Speaker 2:I told I actually had a conversation with Eric Brewer a couple days ago as like, look, right now I'm looking to hire a Benmont.
Speaker 5:Yes, that's exactly.
Speaker 2:I'm looking to hire a Benmont to help me scale. And, by the way, point to CJ for close. More cellscom shout out so you know what?
Speaker 1:actually, great, great point there, steve. I want everybody to go ahead and take a point from Steve. So now, steve, yeah, point goes RJ, point goes to Leon, point goes to CJ. Out of Steve's. Don't, ever, don't, ever try to flex on my authority again, absolutely.
Speaker 3:No, real quick. Here's where I'm at on like to going back to the question in the NIL transfer portal era. Okay, when we're talking about an integrator, I feel like that's like the head coach, so that's not that you could get in a transfer point, it's not a player, that's like yeah, that's a quarterback. That's a quarterback.
Speaker 5:No way, yeah, positions that you know, within the real estate investing, within real estate investing businesses. So they're all. They're all within the portal everything one up.
Speaker 4:QB has to know every single play for every position on the entire field. That's their job. Right is to know exactly what's gonna happen for everybody. What route are you supposed to run? What gap are you supposed to hit? Who are you supposed to block? They got to know it all, like that's being an integrate. But I wouldn't even know what to do today If you didn't tell me what to do second and fantasy this year. Oh, my god, dude, you didn't make the playoffs.
Speaker 1:Shout out to CJ losing the clapping cheeks.
Speaker 5:I can't believe, I'm the team.
Speaker 1:Don't, don't look at me like that. Yeah, I don't know. Man CJ plays in a wild league over there. I don't know.
Speaker 2:I had to unsubscribe from that league.
Speaker 1:Yeah, real quick. Before we get on to our next question, we wanted to go ahead and have a word from our sponsors. Acoustic force, pat Hilton. Here you go.
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Speaker 1:Thank you to Pat. We appreciate everything that you've done to help Steve finally have a actually you know Well, well engaged Ptd channel over here. We do appreciate it. We're gonna get a good work.
Speaker 2:That's doing good work?
Speaker 1:No, he definitely is, and I absolutely love that. Everybody's throwing haymakers at Steven. Comments on the shorts. It's great, it's all RJ's VAs, but it's still great. All right, we're gonna get into our next question here. This is one of everybody's favorite questions. It's a trending topic. The majority of people on social media believe hedge funds are to blame for increased property values. Is that true or not? Start us off, rj.
Speaker 3:No, hedge funds are not the reason for the increase in property values and I'm saying that.
Speaker 3:I'm saying this to all of you keyboard warriors, please tear it up in the comments. Okay, hedge funds are not the enemies. Okay, the reason why the property values went up is because we have a shortage of houses. Okay, the other reason why property values skyrocketed is because we had record low interest rates in 2021, in 2022, I mean like this is the reason why people could afford a $400,000 house that they could never afford in the past. Okay, it's not because of hedge funds. They don't own that many houses. They're not holding on to that many houses. Get it out of your head and stop reading CNN.
Speaker 1:There we go. I like RJ Bates conviction on that. I'm gonna give him another point just for the conviction. Okay, we're gonna go to CJ over here. I know CJ, cj is gonna give us something. Go to work with what you got, man.
Speaker 4:Yeah, we call this saying anything, you know like Are they fully to blame? No, but are they largely to blame? Yes, and it's just really simple logic. If a lot of the inventory is being purchased and held and not back out on the market, it's vastly contributing to the supply demand issue that we have as a country. Right like? That's a simple understanding. And so a lot of these properties that are being purchased by funds are not going back out onto the marketplace For homeowners. You're being either held or they're being traded fund-to-fund, right, so they don't ever these houses don't ever get back to the market. So, again, I wouldn't say they're fully to blame, but I think there's blame to be placed On hedge funds for sure.
Speaker 1:I wonder if there's like half points I can give. Can I give like a half point?
Speaker 6:to.
Speaker 1:CJ on that one Because, like, I feel it a little bit, but we're only halfway there. All right, what about you, leon?
Speaker 5:So I would lean towards that. It's more not than true. I think everything is a math equation and I think this is part of that. There's you know to both CJ and RJ are correct, but I do think that you know the Prior to COVID. So 2019 inventory was already low.
Speaker 5:Covid put lighter fluid on this fire in regards to the importance of home ownership, coupled with low interest rates, and all of a sudden, everyone needed a house and didn't care about the purchase price to cared about their monthly and could they afford that. So you put all of that together and you can say that you can't blame one particular thing. It's part of the equation, right? Everything was. I mean, houses were selling in 2020 and 2021 like like cabbage patch dolls. In the 1980s, inventory was already low and people wanted them as soon as they could get their hands on them. So it's part of the equation. One fourth, I think, is the number in regards to hedge funds buying Properties and maybe a little bit less in regards to percentages of how many houses the hedge funds. So they're not, they're not taking all the inventory and away from those that want to purchase it, but inventory has been low, I mean dating back to 2017 and 80.
Speaker 1:Very true. I like your analysis there, leon. I'm going to go ahead and throw a point your way, for that you know more than anything, just so that it's a competition with RJ here on the point board right now. You're going to have to bring us home solid Steve closemoresalescom, what you got.
Speaker 2:I think it's an interesting premise. I don't think they could be much more wrong in believing hedge funds are the cause, and the reason why is that the market bears right, like the property is worth what someone's willing to pay. Now people who are willing to pay really came down to what they could afford and because interest rates were outrageously low to keep people buying things and because the balance sheets with the Federal Reserve were increasing so that they could buy more mortgage assets and everyone got these ridiculous amounts of stimulus money for their down payments it was this recipe for driving up prices. So if they want to blame someone, it's a pretty simple direction to blame it's, not the hedge funds. So I know CJ believes that they buy a third or they own a third of the properties. It's not quite that high, but beyond that, yeah, I think it's an outrageous premise.
Speaker 3:It is. And going back to your point there, steve, with CJ's misstep, lot of people are saying last week or two weeks ago, he said he would eviscerate me for saying 35% of American homes are owned by hedge funds. I mean, dude, we want to go viral for the right reasons. Okay, they're not to blame, all right Point to RJ on that one.
Speaker 4:I'll take that. I'll take that. We corrected the stat after the show, but nonetheless, right, I think you guys are completely naive and uneducated. If I could be frank, if you think that, if you think that that doesn't have impact on the marketplace, that tells me you guys don't pay enough attention. Cj, cj.
Speaker 2:I hear what you're saying right. Because they're buying properties. I hear it, I hear what you're saying. And they are paying more for periods of time than what other people could pay. Right, they're paying, they're pushing the comps up, but at the same time, people were willing to pay it because all they cared about was the payments. They didn't care about the price of the house. They didn't look like. Oh my God, that house was $5.50 weeks ago. Why would I ever pay?
Speaker 4:$5.50 for this. That didn't happen because of COVID or in the last couple of years. That's always been the case. That's always been how people bought houses. You guys are naive if you think that it's not true.
Speaker 2:No, for sure that's the case. But recently, right post COVID was, interest rates went down to the high twos. They went down to the high twos. Facts Like everything was affordable. Literally everything was affordable. We weren't quite the big short where strippers are buying seven houses, but if you go back to 2015, 2016, when rates were three to 4% or whatever they were.
Speaker 4:At the time, people still made purchase decisions the same way. Anybody who's buying a house, they're buying the house based on how much the payment is going to cost them. Right, Like that's just what it is. The question I think is are hedge funds impacting the market? Is that right?
Speaker 5:That's the question. I thought they'd blame for increase.
Speaker 3:They blame for the increase of property.
Speaker 4:So if you guys heard what I said, I didn't say they were totally to blame. I said they do have a hand in the pot and they have a very large hand in the pot because they have extreme buying power. Like if you look at how many properties were sold to hedge funds in Phoenix, Arizona in the last three years, Steve, do you have any idea?
Speaker 2:Talk to Potter. He's the one that's helping them destroy our economy.
Speaker 4:Okay, Potter, how many would you say?
Speaker 1:Potter. All right. First off, I feel like that was similar to the tag RJ threw on Instagram of me. If I'm being completely honest, here in Phoenix Metro, if you're looking at, I would say that they probably purchased anywhere between 20% to 30% of the available inventory that fit their respective buy boxes. Oh and then interesting.
Speaker 4:So are we really having a conversation saying that if a fund or funds bought 20 to 30% of inventory that they did not insert back to the marketplace later, all right, those properties never got back to the free market, so that limits the supply that the free market is able to take advantage of because it pulls down the inventory.
Speaker 2:Yes, we are having this argument.
Speaker 4:In effect, that then increases the property values in total for the rest of the properties on the market. You guys don't think that's accurate.
Speaker 2:It's affecting the supply, but doesn't change the fact that people buy based off what they can afford.
Speaker 4:Yes, I hear you on that. I'm asking are you saying now that you don't you believe I don't think they teach us in AR? Are you saying that you don't believe that affects the market?
Speaker 2:It affects supply and demand. It doesn't affect what they can put, what they can pay, if you put that 20, 30% back, and it wasn't purchased by institutions.
Speaker 5:It's not a part of the equation. Is that what you're saying?
Speaker 4:Ask that again. You said, if we put that inventory back into the market, take that 20 to 30% and it's not bought, purchased by institutions.
Speaker 5:You believe all of that is purchased by homeowners.
Speaker 4:No, no, no, no, no. I think more investors will purchase those properties as well, but I would. Could we agree or disagree that hedge funds are going to retain more properties than the average investor that buys a property? Totally agree.
Speaker 5:We're on the same page here because I have said it's part of the equation. I'm asking Steve and RJ is that those properties, especially 20, 30%, that's a major number that that inventory to CJ's point is not? I'm not saying they're fully to blame. I said it's part of the equation but that's a massive number that will be rental properties from here on out, forever.
Speaker 4:What would happen, leon, if that 20 to 30% that the podger just referenced? What does that do to a market that's already on a tightrope in Phoenix Arizona at the moment? What would that 20, if half of that went back to the market in the next 16, six months? What does what happens to that market, leon? Massive price drop, massive price drop, massive price drop.
Speaker 5:I wouldn't say massive, but potential price drop Enough that.
Speaker 4:it's going to hurt a lot of people, put a lot of people out of business.
Speaker 3:Loose number that you all are forgetting about here is he's saying 20 to 30% of the inventory that was available. But we already had massively known low numbers of what inventory was available. So when we say we throw out loose numbers like 20 to 30%, it's all relative to how many houses you're actually talking about. So, Potter, would you not agree that there was a low number of houses even available?
Speaker 1:Yeah, for example, one of you know one of the funds, what actually would fit their buy box at any given moment that was active, you know, post COVID, until interest rates kind of shot up June of 2022, there was about two. It was about 2000 homes at any given moment that was actually would fit their their buying criteria. So out of that you're talking about 40 homes, roughly Okay.
Speaker 3:So we're, we're not, we're not talking about. It's moving the needle a whole lot. And also, let's not forget that a year ago, an astronomical amount of hedge funds stopped buying real estate. All together, they paused.
Speaker 4:Hold on, hold on, hold on, wait, wait, wait, wait. They did and it, and it changed the market.
Speaker 3:I.
Speaker 4:Am I wrong?
Speaker 5:no, you're not wrong, because I live in a market that has been affected by that. I've seen a ton of Southeast investors struggle To buy houses. It definitely affected Listings there. More days on the market is definitely affected inventory, but Hold up, hold up.
Speaker 1:I'm gonna interject something for y'all. I know that we talk a lot about affordable housing on this show, correct?
Speaker 6:So what? It's one of our hot, it's one of our show.
Speaker 1:Calm down there, steve. The reality is, though, right now, with the environment of interest rates, with where our current market cycle is, nobody wants to hear this and nobody's gonna like this, but hedge funds are your actual providers of affordable housing for the masses. Right now, a lot of these houses are being rented, for example, in Phoenix, at $2,000 2200 Monthly, whereas if you went to purchase that same home, say on an FHA down payment assistance, something of that nature, that same house is gonna run you 3000 to 3500 a month.
Speaker 3:So rip that shit into a short what you got to say now. Keyboard warriors.
Speaker 5:So, I think it's naive, though, to say, guys, that maybe today they're not solely to blame, and I don't believe that. I didn't say that in my answer. It's part of the equation, but I think you're naive if you don't think that that percentage is going to continue and affect Values and inventory moving forward.
Speaker 4:Yeah, I mean it's completely, completely gonna affect inventory.
Speaker 2:There's no question in that part.
Speaker 4:Yeah, but that that then in has impact to the market, right like don't think, keep up. Yeah, it's impossible. Look so what happens whenever?
Speaker 2:it's go up, they still buy homes. They just buy worse homes.
Speaker 4:Yes, it's still buy homes All right, here's what's gonna buy, what they're gonna afford here's what's gonna happen.
Speaker 4:I think I said this the other week, so, like redfin just came out with a report, I think this week. Right, that's 16% of housing is affordable, right? 16%, all right. So what's gonna happen? And? And and y'all should really think about not being this naive, honestly. Right, because what's gonna? Because it's gonna impact our businesses. What's gonna start to happen is our society is changing before y'all's eyes, and y'all are not paying enough attention to it at the moment. In the next 10 years, you're not gonna be selling houses to one person. You're not gonna be selling houses to one family. You're gonna be selling it to multi families. It's gonna be two people's families buying a house to live in together so that they can even afford it All right.
Speaker 4:It's happened in other countries too, but it's gonna be happening here in the near future.
Speaker 3:Are you gonna blame? Are you gonna blame what happened in Hawaii two decades ago and why they've been doing that on hedge funds too?
Speaker 4:No, listen, listen what I'm saying. This one, it's all I'm saying is this right? The impact is the artist is fired up.
Speaker 3:All right, if we you can't, you can't Play, come out here with doom and gloom and then not back it up with the what's, what do you feel is so? Doom and gloom you're sitting there talking about. Hey, we're not gonna sell houses to one people, we're at selling the multi families that's been happening on the west coast.
Speaker 3:Yep where a lot of people, where hedge funds are not buying, where they're buying in the Midwest and the Sun Belt and places like that. This has been happening on the West Coast, where the majority of you keyboard warriors rat anyways.
Speaker 4:Yeah, but alright, but that's because. That's because they get a shoebox in LA for the last 20 years cost you a million bucks, all right, but what happens when that's what it cost you in in in St Louis? Right, that's gonna take a long time, right?
Speaker 1:Yeah, but like what happens, Louis is a mill.
Speaker 4:No come on, yeah, yeah, yeah, yeah, it's on me. I feel like I this doesn't mean.
Speaker 2:We're gonna make a lot of sense.
Speaker 4:I know Leon reads enough that I can't agree with you.
Speaker 5:No, I've said that Today's answer it is not solely to blame, but it is something to, especially in this industry, to keep an eye on. As more and more funds on more and more doors, there are less opportunities for us. The biggest opportunity you have moving forward if you want to look at the glass half full is hold as many doors as you possibly can, because in 10 years you take those 200, 300 doors and you sell them and you retire and then you go sip a Mai Tai in Hawaii. That's what yeah, yeah.
Speaker 2:So I think, Chris, chris Jefferson, we're gonna have a conversation after this. We're gonna start a hedge fund. That's the plan.
Speaker 1:There you go.
Speaker 5:You. You own the bank, so you should be able to do that.
Speaker 2:We'll start there. Well, we'll have we'll have SEB Scott's, a community bank fund, the hedge funds. Great, perfect.
Speaker 1:I like how Steve's worked in like seven promos during this show. He's not even getting any points for it, but you know, we love, we love those promos. We're gonna start calling him promo Steve.
Speaker 2:I I differ to the hedge fund expert over here.
Speaker 1:You did thank you and you know. And then RJ's like oh okay, here we go, keyboard warriors. So it's, it's, it's finished. No, it has. Look at it. Look at the scoreboard. Here we have RJ Bates winning the inaugural PTD of 2024. Certainly do appreciate everybody tuning in. We hope that you guys had as much fun as us. We're gonna go ahead and do some outros. Rj, say bye to the people.
Speaker 3:Yeah, man, excited to win this particular episode. I am here to defend all of the hedge funds rights that CJ doesn't tear down. The hedge funds of America, gay, gay for capitalism. Love, love the new format, the scoring system. Hope you guys do too. Looking forward to next week.
Speaker 1:RJ Bates, wall Street's secret weapon over here. Thanks, we appreciate you, cj. Say bye to the people.
Speaker 4:You know great episode. I'm excited for PTD this year. I'm always excited at the rule changes from my constant winning, so I'm glad we changed the rules a second time. Try to try to appease RJ so that I don't win as much. Hopefully, hopefully this will be helpful. Hopefully this will be helpful for him this year. I appreciate everybody tuning in again. Make sure you like, comment, subscribe, share this with somebody else. Much love.
Speaker 1:Outros are gonna be amazing this year, I'm sure of it. All right, leon, go ahead, say bye to the people.
Speaker 5:My favorite show of the year so far, loved it, enjoyed it, learned a lot of new information about Steve train and Can't wait to hear those other Elite stories. My goodness, this is. This is new year, new Steve for sure. And RJ, I'm gonna need you to send me your address For winning today's show. I'm gonna send you back that personal pan pizza, my friend.
Speaker 1:Yes, oh, last, certainly not least, steve, go ahead say bye to the people.
Speaker 2:Yeah, fun show, as always. Shout out to charge up the you shout out to collective genius, so shout out to the family tree. Close more cells, calm and shout out the pizza. I mean, it was a great.
Speaker 1:Yo, all right, we're gonna go ahead and leave it at that and based off of that, you know, steve might end up in some legal trouble. So make sure that you contribute at Stephen Steven's legal fund. Calm, that's his. That's his new, that's his new website. We will see you guys next week. Thanks so much.