Ekabo Home Financial Freedom Mastermind Podcast
A podcast for those who do not believe they were put on this earth to work 40 to 50 hours per week for 40 to 50 years, to hopefully retire at the age of 65.
Ekabo Home Financial Freedom Mastermind Podcast
138. Tariffs and Real Estate: What They Mean for Your Next Home Purchase!
🌟The Hidden Impact of Tariffs: How They Affect Your Job and Wallet in Every Industry!🌟
Welcome to the Ekabo Home Financial Freedom Podcast! I’m your host, Niyi Adewole, joined by my co-host Nasir Young. In today’s episode, we’re diving deep into the dynamic world of the Atlanta real estate market, breaking down the latest trends and strategies that every investor, homeowner, and curious onlooker should know!
🔥 The Quote of the Day:
"Love the home, date the rate."
This quote by Niyi Adewole advises homebuyers to prioritize finding a home they love while viewing interest rates as a temporary factor. It encourages buyers to focus on the emotional connection to the property and to consider refinancing later if rates are high at the time of purchase.
🔍 We’re Unpacking 4 Game-Changing Questions from Our Community:
- What are the current trends and developments in the Atlanta real estate market?
➣Homes are selling for 97-98% of the list price, with significant projects like the Beltline expansion and West End Mall redevelopment. - How are interest rates affecting affordability and homeowner decisions?
➣Current rates impact affordability while keeping homeowners locked into lower mortgage rates. - What should first-time homebuyers and investors focus on in 2025?
➣First-time buyers should leverage the buyer's market, while investors should consider short-term rentals and affordable housing.
🎙️ Episode Highlights:
🏡 The Power Shift:
- Learn how the end of bidding wars is giving buyers more power in 2025, making it a prime time for investment opportunities.
📈 Investment Insights:
- We discuss the ideal price-to-rent ratio and why now is the perfect time to consider rental properties, especially near the Beltline.
🌆 Neighborhood Spotlights:
- Get the inside scoop on hot neighborhoods like the Beltline, West End, and Holsley Yard, where you’re not just buying a home but investing in a vibrant lifestyle.
💡 Future Developments:
- Stay tuned as we explore major redevelopment projects, including the West End Mall and its impact on the local economy, housing, and community.
🔑 Key Takeaways:
- Understand the current market dynamics and how to leverage them for your financial gain.
- Discover actionable investment strategies tailored for both short-term and long-term success.
- Learn about the city’s commitment to affordable housing and why it matters for your investments.
🌍 Why This Matters:
In a rapidly changing real estate landscape, this episode is your essential guide to navigating the Atlanta market. Whether you’re a seasoned investor or just starting out, our insights will help you make informed decisions that can lead to financial freedom and wealth building.
Imagine securing your dream home or investment property while enjoying the vibrant culture and community that Atlanta has to offer! This isn’t just
🗓️ Tune in every Wednesday at 7 PM Eastern! Don’t miss out on our journey toward financial freedom through smart investments.
👉 Hit that subscribe button and turn on notifications so you never miss an update! Let’s unlock your potential together!
Our Links
➣ Financial Freedom Mastermind Facebook Group - https://www.facebook.com/groups/53083...
➣ Peer Space Host Referral Link https://www.peerspace.com/referrals/g...
➣ AirBNB Host Referral Link https://www.airbnb.com/r/niyia41
➣ Ekabo Home Network (IG, Youtube, Email) https://linktr.ee/ekabohome
Niyi Adewole is a licensed realtor in Georgia, brokered by EXP Realty. Feel free to reach out at Niyi.Adewole@exprealty.com if you would like to work with an investor friendly real estate agent.
Welcome to the Financial Freedom Mastermind Group Podcast. Here we're all about breaking free from the 40 to 50 year work grind and accelerating our journey towards financial freedom. Join us every Wednesday at 7 pm Eastern as we explore different types of investments that can fast track your path to financial independence. We serve as a hub for connecting with fellow members during our sessions so you can share successes, ask questions and keep the momentum going.
Speaker 2:Good evening everyone. This is Niyi Adewale, host of the Acabo Home Financial Freedom Podcast, joined by my co-host.
Speaker 3:Nasir Young, and today we are diving deep into what's really moving the Atlanta real estate market. We're breaking it down newsletter style, with a little more of a twist and a lot more strategy.
Speaker 2:So, whether you're an investor, homeowner or just nosy about the Beltline West End and what your neighbor's house is worth, you're in the right place.
Speaker 3:So let's kick it off with the numbers that matter. Atlanta homes are currently selling between 97 to 98% of the list price. And so what does that really mean? Right, are people selling only 98% of their home? Well, no, it means homes are selling slightly less than the price it was listed for, and in our case that's two to 3% less. Those client bidding wars are over, and have been over for quite some time.
Speaker 2:And I, for one, am happy about that. I can tell you, having bought real estate from 2020 to 2022, I got tired of hearing highest and best from all the realtors, so I'm happy that's disappeared and buyers are gaining a little bit more power in 2025. It's great if you're looking to invest, and the price to rent ratio is now hovering between 15 and 16, which is really the Goldilocks era. It's not too hot and it's not too cold.
Speaker 3:Oh, knee, come on. You're showing our age with the Goldilocks reference. I mean, I'm pretty sure that just went over several Gen Zers heads and it's a shame. Right, they do math different. Their nursery rhymes are not the same. I don't know what's going on with this generation.
Speaker 3:But translating what Nii just said, that means renting your place still makes a ton of sense and if you're buying to hold, returns are looking solid, especially in neighborhoods buzzing with the Beltline energy and riding the wave of the MARTA expansion. I mean, look, the median sales price is hovering somewhere around $375,000 with a 3% year-over-year bump. So no, the market is not cooling off, we're just cruising at a steady pace. Right now, you know, and I get it, there's still the question of interest rates. They're floating between 6.7% 6.8%. Sure, that's affecting affordability, but it's also keeping a lot of the homeowners locked into those golden 3% mortgages. And for investors, that's a win because it's helping us remain in a buyer's market. And what does that do? That provides you a ton of leverage. Prices are being propped up right now by a variable that can shift in your favor over time. Yes, you know it Love the home date, the rate Come on now.
Speaker 2:Love the home, date, the rate, I love it. And it's one of those things where control what you can control right now. Go out there, get the house and then, as you mentioned, eventually, when those rates come down, you refinance that thing. But now we're going to zoom in on Atlanta's favorite child, the Beltline. The Westside Park is going to be almost twice the size of Piedmont Park when it's done, and for reference, piedmont Park is 189 acres while Westside Park is clocking in at 280 acres. Any real estate nearby is already heating up and if you're buying near the Beltline, especially Holsey Yard, ponce City Market or Lee and White Corridor, you're not just buying a home, you're buying into a lifestyle walkability, breweries, biking and ATL magic, not to mention big equity upside.
Speaker 3:You know. Speaking of the transformations, let's talk about the West End Mall. It's a $40 million redevelopment deal and affordable housing, green space, retail and hotel space. I mean the worst. Think Brooklyn meets Atlanta, which with a little less gentrification, of course. The redevelopment project has been already kicked off with phase one and expected to be completed in 2026, just in time for the World Cup. We've all been waiting for this boom when it comes, because we know it's coming and the final phase is going live in 2028. This transformation screams dollars. I mean, it's an amazing addition to the already vibrant area that is the AUC. And for those that do not know, that's the Atlanta University Center, where top talent for academics are meeting the world's needs at record pace. Now I might be adding a little bit of size to it, right, but no, the AUC is comprised of Spelman University, morehouse College and Clark Atlanta University. You can only imagine what the returns are going to look like during the homecoming season.
Speaker 2:Come on now, and the homecoming season is my favorite time of year and out here there is plenty to celebrate when it comes around. But I want to give a shout out to the city leaders for making affordability a part of the blueprint for the build around the Metro of Atlanta. They've already financed 4,500 units through 2022. And by the end of 2030, they want to have 20,000 affordable units added to the city, which is pretty incredible.
Speaker 3:You know, a second ago you mentioned Ponce City Market and I just wanted to double down on that because they have an amazing culture. Shout outs to Jamestown LP who designed and managed that space. I just recently went to Ponce, obviously walking on the Beltline, but you have to try this amazing seafood at WH Styles Fish Camp. I know the name of the restaurant could be improved but I'm pretty sure they spent a crap ton of time curating that menu because the oysters are bomb and the calamari is next level.
Speaker 2:I'm adding it to the list, nas, don't let me down. And the calamari is next level. I'm adding it to the list, nas, don't let me down, you know.
Speaker 3:so let's talk about these other investment angles. Our featured listing on Oakland Drive is a three bedroom, two bath at 275K and projected to pull in about 74,000 a year in SDR income. That's nearly a 20% return on investment.
Speaker 2:Listen when we're looking for typically 15% or greater, 20% is to the moon, so that's pretty incredible. It's basically printing money. While guests come out here to enjoy the Atlanta Beltline, you're going to enjoy your own travels, probably in Europe somewhere, with the money that you're making off of this thing and because you're near Tyler Perry Studios and Mercedes-Benz, the occupancy is going to be high year round.
Speaker 3:You know I'm riding a bit of that wave right now with my short term that's in that same area, so I'm loving every minute of it. But it's not all about short term plays. You know the city Section 8 initiatives and senior housing bonds also open doors for long term passive income, especially if you're tired of Airbnb guests' messages at 2 am. And trust me, acabo Home Rental Management knows all about those 2 am messages and the late checkout requests 10 minutes prior to checkout time and cleaners in route.
Speaker 2:You sound like you've been scarred by this experience Just a little bit, just a little bit.
Speaker 3:Yeah, you know. And so there's two big things to keep your eyes on Data centers versus housing. The city of Atlanta just hit pauses on more data centers creeping into residential zones, especially near the Beltline and Martyr Stations. Mayor Andre Dickens made it clear the priority is people, not servers. And listen, I'm not the one to talk about politics, but this is an amazing power move for Mayor Dickens.
Speaker 3:Okay, so I might be lying a little bit. I'm definitely the one to talk about politics because I mean, it drives real estate, especially speaking, you know, about how that drives markets. Don't remind, or don't let me forget, I'm definitely going to have to talk about terrorists later. But anyway, this power move blocks plans that would have dropped massive data facilities right in historic neighborhoods like Adair Park and the West End, which are two places that need more housing, retail green spaces and not more concrete boxes. You know, at the same time, marta's new BRT line is pushing forward, despite some delays, bringing high speed transit straight from the South Side Trail. I mean, this shift in mobility is huge. It's setting up big winds and communities. You know, right on the belt line, bottom line, atl investing in neighborhoods and making sure tech does not grow the cost of living.
Speaker 2:Yeah, and it makes sense. Right. And as investors in the Metro of Atlanta, you want to invest where the city is building infrastructure, not just where it's trendy. And so when you talk about some of these areas where they're starting to put the transit right so they can bring more people from one area to another to work, that's a good area for, probably, rentals, right? And when you talk about some of these new initiatives that they're putting forward to prioritize residential zones and have more density, this is a good sign for Atlanta moving forward.
Speaker 3:Okay, nii. So what's the key takeaways for the audience? What's the need to know?
Speaker 2:There's a couple. There's a couple. So first thing is prices are steady. They're not spiking, they're not cratering, but they are steady and there's opportunity everywhere as we shift to a buyer's market. The next is for our investors. Specifically, the strategies that are working in 2025 are STRs. As long as you're doing the luxury type of STR and taking it to that next level, using designers, things of that nature. Affordable housing that's always going to be a need and if you can find a house where you can qualify for Section 8, those things are renting up pretty quickly. And then beltline adjacent properties, properties that are close to the beltline or at least on the path of progress, where you can catch up with some of these new developments that are popping up For buyers.
Speaker 2:You've got a little bit more power now. Use it. Don't be afraid to use the force that you have right now. It was like a three, four year period where you had no power and it was always highest and best, but now you could actually go for those credits. You can submit that offer that may be a little bit lower than you feel comfortable submitting and see what happens. And then for our really everyone listening, watch the West End, watch Holsey Yard. There's a lot of development happening out that way, from Georgia Power to new mixed use projects like the West End Mall that you mentioned earlier. Keep an eye on the West End projects like the West End Mall that you mentioned earlier.
Speaker 3:Keep an eye on the West End Knee. You're bringing up just a tad bit of trauma for me when you talk about those old bidding wars. You know that's actually how we met I don't know if you remember and it was a great experience. I ended up securing the deal I got now and I'm loving every minute of it. But for all those out there, if you ever need help mapping out your next move, you already know what to call A Cabo Home team's got you covered.
Speaker 2:Come on now. Be sure to subscribe, comment, like and share this episode with your team, and visit cabohomecom for more updates. And if you just close with us, don't forget to get your free LA voucher pass for LA Fitness. We will support you there as well.
Speaker 3:Yeah, I like to hear that. You know we're for LA Fitness. We will support you there as well. Yeah, I like to hear that we're not just about homes, we're about health, wealth and walking the Beltline to stop. Okay, so in truth I never walked the Beltline for more than like a half a mile. Those damn Lime scooters just get me every time. I guess I'm still a kid at heart.
Speaker 2:Come on now. It's hard to avoid the Limes. I've taken it plenty of times as well. We just want to thank everyone for allowing us to join you on your journey to financial freedom, and we're going to catch you on the next Acaba Home Financial Freedom Podcast. Thank you.
Speaker 3:Man, so got to talk about those tariffs. What do you think?
Speaker 2:So it's one where man. So I didn't fully understand the lengths that our commander in chief wanted to go to with these tariffs and you saw how the bond market reacted immediately and I personally didn't believe it was going to and I didn't understand the correlation by how this was going to potentially raise interest rates. I didn't see that happening until it actually happened and so I was against it before, but now I'm fully against it and I don't know that it's going to work. What are your thoughts on the tariffs? You probably know a bit more than me on this piece.
Speaker 3:No, I wouldn't say that. I mean, I will say the first thing I thought about was the fact that I think somewhere around like 60 or 70% of our lumber comes from Canada. Raising the tariff definitely is going to have some long-term effects on building new homes and just making renovations on them. I mean, we remember that one time when wood skyrocketed and that was not a fun time for builders. But you know, I don't know, man, I think I can't say I'm for the tariffs, but I do think it puts us in a unique position.
Speaker 3:It's just a lot of cards are going to have to fall in play for it to come to fruition. What I think may happen is, if these tariffs stall the economy, they're going to have to make a pivot, and so, because we're increasing tension between our foreign partners, the only way that you can make a pivot would be some things that you can control. Fortunately for us, the thing that they can control relatively easy right, you can't just pull a lever and change things but interest rates, and so there is a possibility that these tariffs can have somewhat of a positive effect and lower interest rates to get the economy moving again with home purchases.
Speaker 2:Agreed and that was kind of the thought heading into this year. It was like, okay, at least interest rates are going to drop a bit and we're going to be able to refinance and maybe go buy houses, because typically in recessions housing actually does okay, except for 08, which it was caused by housing, but since then it's been okay. But the piece that I've been researching and actually read a couple of books on now is what happens with just the money supply and their confidence in the dollar just around the world. And that's the piece that's gotten shaky, because this trade war came kind of out of nowhere and it came way stronger than anybody thought and it was kind of blanketed and not really directed at certain individuals. It's hit even a lot of our allies. It has shaken the confidence in the dollar and I think we're at a three-year low for our valuation against other currencies.
Speaker 2:And so when you start to see that us being a global power and having other people want to hold the dollar as a reserve currency is what allows us Americans to enjoy those low interest rates If the other countries start to dump this, even if it's just to spite us, you start to see the interest rates spike back up when the tariffs were originally announced, or really when presidency was originally announced, you saw interest rates come down a little bit. I think it got down to like 6.6, something like that, and now it's starting to rise back up. Last week it was up towards seven before there was a pause in those tariffs, and so I get nervous about that piece. And the other thing is I read a book called what Happens when Money Fails. Have you heard of this book about Zimbabwe?
Speaker 3:I have not, but now that you mentioned Zimbabwe, I'm pretty sure it's going to be a good read.
Speaker 2:Yeah, it's a great book. Zimbabwe, when they first got their independence from Britain, had their currency stronger than the Euro at certain times. They had so many natural resources. They were exporting everything. People were coming to do business with them. A lot of mismanagement in government allowed for hyperinflation to creep in and then people lost confidence in their currency because it changed every other day. I'm not saying the US is anywhere near that, but when you see what's happening, with people losing confidence in the dollar around the world, it starts to make your borrowing cost go higher and devalue what you have at home.
Speaker 3:Yeah, man, I think you're hitting on some key things here. For starters, a small plug this is the time where you should serve your country, because if things get a little out of hand, we're going to need some help. But taking a step back, I think there is some inroads there where you have to consider how the dollar looks globally and you hit the nail on the head that our market doesn't seem that attractive or safe anymore. And so when you compare us to other stock exchanges, the one thing that America had was that it was a safe investment. And now, sure, every stock market fluctuates, right, but it was pretty confident that over time you were going to make some money in the American stock market. Now, when you compare that to, like China, they have increased amount of volatility, and so we're seeing the same thing right now, but worse. And so you know, I am curious to see how things play out over time with the exchange. But I mean, only time will tell.
Speaker 2:This is true, and the one thing that I would question with you and it's one I've been thinking about we haven't had a real recession since like 08, because it's hard to count the pandemic, because everybody went through that and it shot down and then it went crazy, and so I think it kind of overcompensated for it. But at least in my adult working life I haven't been through a recession. Would you say that we're overdue for one? Do you think we're going to head into one? Are we in one right now? What are your thoughts on the recession piece?
Speaker 3:So there are some scholars that believe in order for an economy to truly recorrect, it has to go through a significant downturn, and so thank you, obama, for what you did to stabilize the economy and keep us going. But there are scholars that believe that giving the banks the bailout put us into a long-term crash course that could have significant impacts over time. And, look, I can't say. I'm smart enough to either agree or disagree, but it is interesting to think that we are still dealing with things that have happened years prior. And so do I agree with the way Trump has handled things. I can't necessarily say that I do, but I can say what he's doing is something that should have happened a very long time ago. To course, correct, it's just he's taking big swings when I think we should have been taking some more pointed approaches.
Speaker 2:And I would agree with that, and I appreciate how expertly you navigated that tough subject between Democrat, republican, but actually getting to where we're trying to get to, which is, how do we stay on course and actually make our future better than our past. And so I'm with you. I think what he's trying to do is take some of the spending out and actually get us to have a budget. It's like you can't just keep spending and trying to increase how much, because I mean, look at it I'm going to butcher these numbers because I didn't look at it beforehand. For the 08 crisis, I think we spent maybe a trillion or maybe a little bit less than that, like in the 900 or 800 billion range to kind of bail some banks out and things of that nature During the pandemic. Only a decade later, we're spending three, four trillion in printing, and it's showing you how less the dollar's being valued at even just a decade later.
Speaker 2:And after reading this book on hyperinflation, I get nervous about that. The only real way to start to combat that is to have some pain in the market, as you mentioned. You've really got to pull back. You've got to start cutting some of the spending. The piece that I think you mentioned that makes a lot of sense is you don't want to come with a sledgehammer and do it because you don't know what you're going to break. And so within the first 90 days we've had all these cuts and it's like dude, this is too fast. The market's going up and down. You got to slow it down a little bit, but I get it, I get it, I get the overall goal.
Speaker 3:Yeah, man, trump is. President Trump is very much a bull in a china shop. Yeah, hey, look to each his own. But time will tell. I will say the one key thing I think, at least, how I'm posturing in this market is I think it is a safe bet to double down on affordable housing. Look, president Trump can do a lot of things. What I don't think he's willing to take a big swing at is pulling back the section. You know the voucher program, and so what does that actually mean, right? Well, if you structure your deal well enough, where you're purchasing or you know, purchasing long-term rentals in low-income housing communities, you could set yourself up to at least hedge the downturn. Right, because the government, it, just has to stabilize that community and so it's going to cut the checks. Now, if he decides to pull those checks with Doge, don't say you got your advice from me.
Speaker 2:Listen, we will give you his contact info in the show notes. Don't hit up me. That was Nasir, Nasir, for the record.
Speaker 3:But look, man, that's my only strategy to hedge this downturn. I mean, the other thing too is trying to build up my coffers, right. So try and build up enough equity where, when the market turns, I have some liquidity to go in and make some strategic decisions. Yeah, 100%, but you know it's tough too right, because I am not against finding good deals and paying at this interest rate Because, like we said before, there is a lot of leverage on the buyer side because homes are getting on market and just sitting.
Speaker 2:Nas, you hit it spot on. And when you talk about real estate in general, through most recessions that aren't caused by real estate, it actually performs well. This is one of those assets that goes up and to the right over time, as many of you know, and especially when you combine that with the risk of inflation continuing to heat up because that's what tariffs do as well they spike inflation there's already a risk of that continuing to go back up, and so when you look at being able to get a property that will cover itself and just hang on to it, I think that's a major win coming through this term. But when you talk about make sure you're building up reserves, I think that's a huge point that needs to get repeated. You need to have cash on the sideline.
Speaker 2:This is not 2020, 2021, where everything's going up 20% a year, where you just want to get it all on the market. You do want to have something on the sideline, and we can all take a lesson from the page of one of the greatest investors ever, warren Buffett, who, before this whole drop and, I think, before the presidency, had $330 billion on the sideline. I'm looking forward to seeing him come back in and buy something too, because you know he's not going to stay on the sideline forever.
Speaker 3:Man. You brought up Warren Buffett, and I think about this dude in terms of his investment strategy all the time. It's like he has a pulse on the markets that no one else has or ever has had, and it's mind-boggling. You know, at some point he's had to have had so many stocks and been able to model things so many times where he can see certain triggers, whether it be from the political side or certain downturns in the economy, where he can kind of see some things shaping out and make some key decisions, or he's got an inside man. It's just phenomenal.
Speaker 2:Yep, and that guy hasn't given them up in all these years, just like Charlie Munger. Or maybe he's just following the Reddit profiles. Man, once people start talking about I'm going to be an investor, he's like hold up. That person has no idea and he's pulling his money.
Speaker 3:Yeah, man, I don't know how he does it. All I can speak to is real estate.
Speaker 2:Hey, and real estate is where 90% of millionaires first got their million, and so it's a great asset to be in. The other piece that this has made me start to actually research and look into, I was doing it already like dollar cost averaging in there, but now I'm actually like, okay, this could be a viable thing. Bitcoin it's highly controversial. There's a lot of people that are like, hey, no, there's other people that swear by it, and for me, when I look at how currencies can be manipulated the US dollar, how hyperinflation can infect that over time, it's one where I want to continue dollar cost averaging there just to see what happens. Because if we do shift over to a model like that, especially now that we don't even carry cash in hand, it's all digital anyway. I'd be interested to see how high that goes. But what are your thoughts on crypto and all that?
Speaker 3:Man, listen, you are going down a lane. I probably should spend more time researching it. I really should, because there are some games that can be made there. I am willing to take a lot of risk.
Speaker 2:Bitcoin is just one of the ones I always stay away from. That's fair. That is fair. One of my guys and it's one of those where you got to know yourself right One of my guys who invested in Atlanta for a while. Now he's doing all his investments in Washington, where he lives.
Speaker 2:He was heavy into Bitcoin. He was doing I forget what you call it options, where you put down one-tenth of it. What do you call that? Where you put down one-tenth and you don't have to put the whole amount? Yeah, you're talking options trading. Okay, options. Yeah, yeah, he was doing options for that. I think he was doing it when it was at, I don't know, like 40K and it went up to like 50 or 60 and he's living great. And then at around then when he sold most of that because he couldn't hold the water, had he held it till now it's 100K, but you really got to be in it super long term, at least from what I've seen. I'm not putting a lot. It's not like, hey, this is going to be my future here. I'm putting maybe just a small percentage 2%, 3% over their dollar cost averaging percent over their dollar cost averaging.
Speaker 3:Yeah, man for sure, I am not opposed to doing, you know, casino betting with Bitcoin.
Speaker 3:And so for those that don't know, casino betting for me means I go to the table or go into the casino that night with the amount of money I am willing to spend, right, and I'll sit down at the table If I go up. Every time I go up, I start partitioning money that a part of that allotment back into my pocket, and then, if I'm up, I start partitioning money that a part of that allotment back into my pocket and then, if I'm up, I play with the money I'm up on for the rest of the night. And so if that's the model for Bitcoin, so be it. You know, it's funny. We got on the topic of Bitcoin. I have several friends that has made thousands of dollars and for a very small few that made millions, shout out to Howard Howard Emerson, but no man it dollars. And for a very small few that have made millions, shout out to Howard Howard.
Speaker 3:Emerson that is. But no man, it's money to be made. It's just for me I don't know heads or tails, there is no, and maybe I just don't know enough about it, but I can't make a calculated decision. It's kind of just riding the coattails. And so, yeah, if I knew more, then I would consider it at least at scale where I can try and make a little more off of it. But like I said, I guess that's just the risk I'm not willing to take.
Speaker 2:Hey, come on now, and that is fair To that point, majority of my investing is all in real estate, which we study every day. Same with Warren Buffett. He's definitely not in Bitcoin, because he studies the stock market and companies every single day, so that's where he focuses in investments, and if you are able to become an expert at something, whatever that is, whether it's stocks, whether it's real estate, whether it's Bitcoin become an expert in that in and of itself helps lower your risk. That's the key.
Speaker 3:Now I will say, in this vein of investing, I am curious how emerging markets are going to shape out. I think there is some interest there with trying to identify where some of these foreign countries can potentially come in and find their niche to make an upside, and so that is where I'm going to start taking a bit of my research to try and figure out where I can make some inroads there. And then the other part, keeping a pulse on these Fortune 500 companies to see who's making the big shifts to come back at scale to America. In that same vein, shout outs to Ford.
Speaker 3:In this moment, when President Trump decided to double down on his tariff agenda. In this moment, when President Trump decided to double down on his tariff agenda, ford decided hey look, can we make gains? Sure, right. But can we decrease the gains to be more profitable? And so they're taking a chance, right? So they've lowered the cost of their cars to a price that would be comparable to how much they would charge their employees to buy a car, and so I don't know where they're sitting. With this next release, I'm curious to see where their quarterly reports are going to be at. But the ruin meal is that they've actually seen an increase in sales Wow.
Speaker 2:So I didn't even know that news about Ford. Shout out to Ford as well. That's amazing to lower their price when we know that your costs are probably going up a little bit. And I saw a commercial, I think, yesterday during the game where Ford was saying that they manufacture the most cars in the US already. Am I spot on with that?
Speaker 3:I'm not 100% sure, but I'm loving that energy right. Double down in this time with having a value proposition to the American public. Make people want to reinvest into you. You know I was. I give kudos to Warren Buffett, who recently posted that he was excited to pay as much as he paid in taxes this year. You know that's that's. That's walking into the room and making a statement for sure.
Speaker 2:Oh, yeah, yeah, and and part of the reason he was excited is because he didn't lose it all in the market when it all went down literally this year. So he's excited, but he was smart too, and I was having a conversation with one of my former managers at Baxter literally earlier today, and we were talking about this piece and the thing that I don't know is actually going to happen. So they're trying to bring manufacturing jobs back to the US, right, and have people start working and things of that nature. I don't know about you, but I don't know many millennials or Gen Zers or the generation after that that want to work in factories. Like it's just not a thing anymore, right, it's literally not a thing. People want to be influencers, people want to go and you know, and things of that nature.
Speaker 2:And so, even if these jobs return, who's going to actually work? It is one the question, and the other thing is AI is getting more and more powerful. Right. By the end of this decade, more than likely, we're going to be able to replace a lot of these factory jobs anyway with robots, right, that are pretty smart. And if I'm a company one of these Fortune 500s trying to bring manufacturing back to the US while still keeping costs down. That's probably the way they're going to be looking anyway. If McDonald's and Chipotle can bring in these robots that can chop things and make it easier, why not do that for cars?
Speaker 3:Yeah, man, a hundred percent. But you know I'm going to take off the politically correct response for two seconds, two seconds, and just say you know my opinion is Americans are, by and large, man, we're getting soft, like you know. I don't know how else to describe it. Look, I was in the military for eight years, and about six years out of the eight I spent the bulk of my time in the field, right, and so for everybody that doesn't know being in the field, you know it sucks, depending on what time of year. It is either too hot or too cold, and so that's, you know it sucks, depending on what time of year it is either too hot or too cold, and so that's, you know, somewhat similar to what you would expect in a warehouse either it's too hot or too cold, uh, and you know, I I think suck it up right, like and here's the thing, here's why I say suck it up when you look at how america was postured back when we were a manufacturer in boomtown, yeah, going to work sometimes, so a lot of the times it's so, but the country was seeing significant gains and the wealth gap was not so spread right, and so we need to see a portion of that come back now. Granted, we'll never see the uh amount of manufacturing that we've seen once upon a time. It's just with the amount of technology, it's just never going to happen.
Speaker 3:But if I were a company and I was bringing back a percentage of my companies to America, manufacturing to America, I would make a strategic play to go to low-income communities, and so this would be the time where I would have my lobbyists focusing on trying to create policy around me, creating these manufacturing plants or whatever I'm bringing back in low-income communities. Because the reality of it is, if you're going to get wrench turners and get them fast, those are the people that are going to do it, and you get to help the community by getting them some dollars in their pockets, create different incentive programs for them to reinvest into your company and buying your product, and then what you do at the same time is there's some synergies there. Because you build the know, like and trust right. That factor starts to spread across the community because you know I'm buying your product and I work here. So now we're taking pride in these things.
Speaker 3:You know it's no different than Quiet as Kept. I don't know if most people know, but the black community bailed out Cadillac right Cad quiet as kept. I don't know if most people know, but the black community bailed out Cadillac right. Cadillac was a failing company and then it turned on the black community to buy Cadillac and then Cadillac became a prosperous luxury car manufacturer. And so I do think there's possibilities to get back into these low-income communities and make some inroads.
Speaker 2:Yep, and it also helps when you have a ludicrous track that's stuck in everybody's head, talking about the Cadillac Cadillac grills.
Speaker 2:But anyway, but one thing I would say is and I'm with you, right, I hear you on that piece, and even when the synergies I thought about while you were talking about this is what if you did what they do on Google campuses, which is build housing, affordable housing, that, hey, maybe this is the incentive, because the piece you're going to compete with is there's a lot more ways to make money now that does not require you standing on your feet the whole day. You can go drive Uber. So it's a question of how much can you pay at these factory jobs? Are you paying more than Mickey D's or something else where I could do on the side while building something else? That's the piece I struggle with.
Speaker 2:Plus, back in the day, what made it, and not even that long ago, even the medical device company I was working with. The reason I joined that company is because they had people that were celebrating 30, 40, 45, 50 years with that company. Now, looking back, I understand why. It's because, up until 2012, they were offering a pension, and so a lot of the people that even retired right around the time that I left were still getting their pension and getting paid. You know, 60 percent of what they made in their best five years for the rest of their life, and so the factories used to do that before and take care of you.
Speaker 2:But I mean, you found out after people live longer and longer that that's just not. It's just like Social Security it's not going to be around when we, when we, need it, right, and so I don't know how you get back to that. That pension was a major driver for people saying, hey, it's going to suck right now, but it's going to be great in the future. It's almost the reason that you take some of these government jobs Like, hey, 20 years in, I'm pension, I'm good. I don't know how you get around that.
Speaker 3:Yeah, man, it's going to take a lot of pieces. Just because I have somewhat of a squirrel mentality, I'm going to go for the one that caught my attention first, please, which was Uber. Man. Look, every time I get in a car and take that Uber ride, I always tell them. I say, hey, how much money are you making on this ride? Because I'm going to tell you how much I paid.
Speaker 3:So you need, as a driver, you need to know these things, and I challenge these drivers to start being vocal about it, because the reality is, the platform does not work if there are not drivers to drive, right.
Speaker 3:And so, yeah, there's going to be people that need a ride, but they're going to have to figure out another way if there are not drivers.
Speaker 3:And so Uber is in a unique position, because I think when they first released, the splits were somewhere around 60 to 70, the drivers way, and then the other 30 to 40 went to Uber, and so now they have teased out the elasticity of their pricing on both sides, right, and so they're running regressions on how low can I take this number for the driver and how high can I take this price for the person that's requesting the ride, and so it is very often that I will take a ride and pay somewhere around $30, $27 to $30, and my driver's making seven to eight bucks, right, and they're never going to be able to put two and two together until they open their mouths, right. And so this is the economy we're in, where people are being very sophisticated at structuring business practice, right, and so we have to have a little ownership as the business owners and start putting things back in favor of the person, right, and that's not vocally. People are going to say that's what we do, right, but like, are they really doing it behind the scenes, man? And that's that's the challenging part. You know, I don't like industries that don't put the client first, and that's just brass tacks, man.
Speaker 3:Call me not, not, not meant for the business world, I don't know, but I'm the type of person where I want the business owner to treat me how I would treat the person if I was on the other side.
Speaker 2:And that is spot on. That's also how you retain and kind of keep people right and you get those people that are doing like five-star drives and things of that nature, where now everybody's experience is great with Uber, which helps you retain business, and people don't look at Lyft right, and so I've definitely felt the increase on the customer side Every time I go to the airport. Now it's like dang man, this used to be 20 bucks, now it's like 40. What happened there? But to your point, it is a difficult thing, right, and I think that, especially nowadays, you really have to try to take it into your own hands, as you mentioned before right, because that wealth gap is getting wider and wider, and so you have to find other ways that you can maybe put a side hustle together or build out a business that really makes sense for you to kind of go from there.
Speaker 3:Yeah man, a hundred percent, which I know, I've said it a million times already, but that is exactly why I doubled down on real estate. Come on now.
Speaker 2:Same here and Nas. Anything else top of mind before we wrap for the night?
Speaker 3:No man, I'm just. While we are in a bit of I guess we can call it the start of an economic downturn, I think there are still ways to stabilize your investments and hedge against what could be, I guess, impending. I just would say stay optimistic, keep your ears to the ground and utilize platforms like this and other platforms with people that are talking about investing, because that's really the only way you can really hedge about it. Try and absorb yourself with as much information as possible so, when the time comes, you can make a strategic and calculated decision.
Speaker 2:Nas, you are spot on with that. We are going to end there with those wise words and also invite you to go ahead and like, subscribe and follow and send this to some of your friends and family as we continue to build this market update out. We're going to be coming back more often to let you know what's happening around Georgia and the Metro of Atlanta, to help not only our investor clients but those that are considering it, and even if you're considering moving down here, I think this is going to be a lot of value to you. One other piece that we will mention is we're going to be having an Acaba Home event on May 17th. It's going to be exciting. We're going to have our whole network there. Last year, I think, we brought in about 50 people or so to network together, talk about real estate, talk about the market and really make meaningful impact, and so we look forward to seeing you there. Until then, we bid everybody adieu. Have an awesome night.
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