Valuetainment - July 21, 2022


Another 2008 Housing Crash - Or Worse？ Real Estate Bubble Explained


Episode Stats

Length

20 minutes

Words per Minute

200.07993

Word Count

4,172

Sentence Count

351

Misogynist Sentences

1

Hate Speech Sentences

1


Summary


Transcript

00:00:00.320 Exactly a month ago today, we shot a market crash video, and at the time, I knew the market
00:00:04.400 was not in good shape, but the last 30 days, based on a lot of research and a lot of data
00:00:08.160 that we've looked at, which I want to share with you, as bad as I thought it was, it's
00:00:12.160 a lot worse.
00:00:12.760 Now, you get to do whatever you want to do with this data.
00:00:15.100 Dave Ramsey calls it fear porn, saying there's a lot of people getting scared, and they're
00:00:18.500 excited about the markets.
00:00:19.460 Nothing's going to happen to the market.
00:00:20.720 It's going to be all right, because the inventory's not taking a hit.
00:00:23.280 I'll give you data.
00:00:24.920 You read the data, free PDF.
00:00:27.020 Choose whatever you want to do with it, then make a decision for yourself, because
00:00:30.880 when you look at $3 trillion of wealth being lost in retirement in the first six months,
00:00:36.500 a trillion in crypto, and you know that domino effect, because the question becomes, is it
00:00:40.940 too late?
00:00:41.660 Can we do anything about it?
00:00:43.340 When people stop making money, and their wealth goes away, they have less disposable income.
00:00:49.860 When you have less disposable income, there's less spending.
00:00:52.680 When there's less spending, there's lower business profits.
00:00:54.920 Lower business profits leads to layoffs, then it's unemployment, then it's foreclosures
00:00:59.460 and bankruptcies, then divorce, crime, drugs, OD, alcohol, protests, riots, back at it again.
00:01:05.800 Sounds scary, but that's data.
00:01:08.100 And by the way, Elon Musk said, recession is part of the economical cycle that is natural
00:01:12.720 to go through it.
00:01:13.820 But there's three Ps that he talks about.
00:01:17.020 Number one is predict.
00:01:19.060 Always stay multiple moves ahead.
00:01:21.280 Number two, prepare.
00:01:22.800 Get ready for what's ahead.
00:01:24.200 And number three, persevere.
00:01:26.540 Stand tall and find a way to make it through.
00:01:29.220 And we're at the phase where you've got to be prepared, and you've got to persevere, and
00:01:32.700 you've got to find a way to make it through.
00:01:34.560 Okay, so a lot of this may sound scary, but I want you to put your logical hat on, set
00:01:38.040 aside the emotional hat, just go through these trends, process it together, and then make
00:01:42.360 a decision of what you want to do with yourself and your business moving forward.
00:01:45.540 Having said that, these are the topics we're going to cover.
00:01:47.740 Number one, mortgage industries.
00:01:48.900 How refi data is affecting the industry.
00:01:52.420 The interest rates.
00:01:53.720 How investors and builders are backing out and kind of changing their strategy.
00:01:58.140 Active listings.
00:01:59.320 Real estate value.
00:02:00.540 Construction layoffs.
00:02:01.780 Freddie Mac, Deputy Chief Economist, said something very interesting.
00:02:05.360 Foreclosures consequences.
00:02:07.220 And the similarities between now and 2008.
00:02:09.840 So before we get started, let me give a quick shout out to the sponsor of this video, and
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00:03:21.460 So let's get right into it.
00:03:22.520 First thing I want to look at is mortgage refis and how investors and builders are changing
00:03:26.880 their approach.
00:03:27.600 Now, when you think about the real estate industry, you have loan officers, you have realtors, you
00:03:32.440 have escrow, title, appraisal, all those guys, but I want to focus on loan officers.
00:03:37.120 What a loan officer does is when you're buying a house, say you're buying a million dollar
00:03:41.520 house, you need to get a million dollar loan approved so the realtor can show you the homes.
00:03:46.200 You go to a loan officer.
00:03:47.380 The loan officer comes back and gets you the loan for a million dollars and he'll say 3.8%,
00:03:52.480 5.4%.
00:03:53.540 The loan officer makes money in a couple of different ways.
00:03:56.320 One is new homeowners getting a loan from a loan officer or an existing homeowner who
00:04:03.880 is wanting to refinance their house for lower interest rates.
00:04:07.460 For example, you bought a million dollar house five years ago at 6%.
00:04:10.960 I'm just making up the number.
00:04:12.600 I call you, I'm the loan officer.
00:04:13.960 I call you a year later and I say, hey, interest rates have dropped from 6% to 4.5%.
00:04:18.600 I'd love to help you save some money on your payment.
00:04:21.660 I can lower your payment from $6,000 a month to $5,000 a month.
00:04:25.120 Oh my God, that's great.
00:04:26.000 Let's refinance.
00:04:26.980 That's refinance.
00:04:28.160 The loan officer makes roughly 2% on that loan.
00:04:30.640 If the loan is at that time, say a million dollars, 2%, $20,000, he's at 50%, he makes
00:04:35.300 10 grand.
00:04:35.960 That's the loan officer.
00:04:37.280 Now watch what's been happening with applications in the refi market.
00:04:40.280 Number one, mortgage application volume was 52.7% lower last week compared to the same
00:04:47.400 period one year ago, according to Mortgage Bankers Association.
00:04:50.900 Now that's mortgage application, which means I may be buying a house and I want to loan
00:04:55.800 for a new mortgage of a house I'm buying.
00:04:57.960 But watch refi.
00:04:59.720 Applications for refis on existing mortgage dropped 75% from a year ago, according to the
00:05:06.860 MBA's refinance mortgage application index.
00:05:09.700 According to AEI Housing Center, which tracks mortgage applications by the number of rate
00:05:13.600 locks, no cash refis have collapsed.
00:05:16.880 You ready?
00:05:17.760 By 93% from a year ago.
00:05:21.680 That's 93%.
00:05:22.860 Most of loan officers, 80% of their income was on refi the last few years.
00:05:28.340 The refi business is gone.
00:05:29.680 Which means if these guys were making 50 grand a month, now they're making roughly 10 grand
00:05:33.020 a month.
00:05:33.500 If they were making 20 grand a month, now they're making roughly $4,000 a month.
00:05:37.000 That's a very big difference.
00:05:39.480 So now, if you're somebody that's saying, Pat, I'm not in the real estate world.
00:05:42.420 I'm not good with math.
00:05:43.320 What does this really mean with interest rates?
00:05:44.700 Let me just simplify it for you.
00:05:46.220 If you bought a half a million dollar house, let's just say your loan is $500,000 and you
00:05:50.340 bought it two years ago and you got a nice 3% rate, your payment would be roughly $2,108.
00:05:56.100 Now, if you buy a house, which roughly today, the rates are on 6%, the same $500,000 loan
00:06:02.960 at 6% is $2,997.
00:06:07.420 That's nearly $900 higher.
00:06:09.600 Now, if you were to buy the same $500,000 loan at 9%, watch what happens here.
00:06:15.860 The payment becomes $4,023.
00:06:19.700 It doubles in payment from 3%.
00:06:21.920 Same loan amount, same house.
00:06:24.300 Everything's the same.
00:06:25.600 One was 3%.
00:06:26.700 It was $2,100 a month.
00:06:28.500 The other one is 9%.
00:06:29.500 It's $4,000 a month.
00:06:31.360 How many Americans can go from $2,100 a month to $4,000 a month?
00:06:35.440 Not many.
00:06:36.160 That's interest rates.
00:06:37.260 So now, some people in the real estate world, you may be watching and saying, Pat, give me
00:06:40.360 a break.
00:06:40.680 It's not going to go to 9%.
00:06:41.920 It's not going to go to 12%.
00:06:43.560 It's not going to go to 15%.
00:06:44.760 Okay, fair.
00:06:45.500 Maybe you're right.
00:06:47.000 But Musk said, prepare.
00:06:49.160 And I'm advising you to be prepared so you can persevere.
00:06:52.520 So let's say, what if it goes to 9%?
00:06:54.620 I think it's going to go to 10%.
00:06:56.360 I think it may even go higher than 10%, but I think it's going to touch 10%.
00:07:00.040 Let's take a look at the history of interest rates.
00:07:02.360 If you look at this chart from 1970 till today, today it shows around 5.7% interest rate.
00:07:08.440 If you go back a couple years, you'll see 3%, 2.8%.
00:07:12.140 You see how low it is right there.
00:07:13.640 Now, if you go back 20 years ago, you'll see it was at 5.8%.
00:07:17.300 Here's the crazy thing.
00:07:18.520 If you go back around 2008, 2007, and go all the way back from 1970 till around 2007, 2008,
00:07:26.500 rates were never below 5.7%.
00:07:31.160 If you gradually move back, you'll see it go to 6%, 7%, 8%, 9%, 10%, 11%, 18.5% during Jimmy
00:07:40.200 Carter era.
00:07:41.560 So you saw this.
00:07:43.180 I'm giving you history.
00:07:44.880 I'm not selling you a loan.
00:07:46.240 I'm not selling you to sell your house.
00:07:47.760 I don't benefit from you doing anything with your house.
00:07:50.420 I'm not in that business.
00:07:51.640 I'm giving you stats.
00:07:52.880 Here's a part you have to be very careful with.
00:07:54.980 Go to 81, when Jimmy Carter was president, and it was hyperinflation.
00:07:59.100 Everybody was like, oh my gosh, what's going on?
00:08:00.940 CD rates were at 14.5%.
00:08:02.660 What did we do back then that caused rates to go this high versus today?
00:08:09.120 What we did back then, was it as ugly as today?
00:08:11.120 Was it a big pandemic back then?
00:08:12.460 No.
00:08:13.580 Today, printing money after printing money after printing money after keeping rates so low
00:08:18.240 after all these things happening, we have fed the economy.
00:08:22.260 With so much fake success, that it's about to pay price for it.
00:08:26.320 Meaning, be prepared that it could go that high, but definitely be prepared that it could
00:08:30.980 touch 10%.
00:08:31.740 And if it does, my example of $500,000 at 3, 6, 9%, you got to do the math at around 10%.
00:08:38.260 Here's what this means.
00:08:39.720 A $500,000 loan is probably going to be a $250,000 loan five years right now at 9%, which
00:08:46.340 means value of property could drop 30%, 40%, 50% in certain areas.
00:08:53.200 Not saying it's going to happen.
00:08:54.620 Just be prepared that it could.
00:08:56.640 Now, when it comes down to builders, a recent article from Bloomberg said the following data.
00:09:02.400 Builders are slashing their prices on new homes at an unbelievable rate as the market cools
00:09:06.980 and prices drop at the fastest pace ready since 2006.
00:09:11.780 Austin, Texas, Nashville, new construction offering with price cuts has quadrupled from
00:09:16.120 a year earlier.
00:09:17.240 Phoenix tripled.
00:09:18.400 Tampa region doubled.
00:09:20.380 So now, I want you to take a look at this chart and kind of explain to you why this matters
00:09:23.560 so much when it comes down to builders.
00:09:25.240 You're seeing this chart that says 1 million homes.
00:09:27.180 And at the top, it says single family building backlog.
00:09:29.600 Look at the difference with the blue, which is single family homes under construction, permitted,
00:09:35.880 skyrocketing, that's inventory, and the orange is mortgage purchase demand.
00:09:41.820 This is from a U.S. Census Bureau.
00:09:43.400 So if we haven't more builders are building areas that is not bought by anybody, but mortgage
00:09:50.980 is dropping, that's when inventory goes up.
00:09:53.780 When inventory goes up, prices goes down.
00:09:56.020 So this is not a good sign to look at when it comes down to a value of homes staying stable.
00:10:00.920 So the next thing to take a look at is active listings, which Dave Ramsey, who said, you
00:10:04.600 know, this fear porn, all this stuff that he says, it's just not a big deal.
00:10:07.880 Maybe a little bit.
00:10:08.860 It's not going to happen.
00:10:09.680 Nothing over five years, which by the way, five years, he may be right that nothing's
00:10:13.280 really going to happen over five years, but we're talking today.
00:10:16.120 Okay, we're talking today when, hey, I want to buy a house right now.
00:10:18.560 You may want to wait another year till you buy a house.
00:10:20.880 Just watch this data here and you make a decision for yourself.
00:10:23.120 So this is from realtor.com showing active listings and you'll see the different colors
00:10:28.700 represent different years, 2017, 18, 19, 20, 21, 22.
00:10:32.780 I want you to focus on 2022 all the way at the bottom, which is yellow.
00:10:36.880 You'll see the active listings in January goes down.
00:10:40.200 If it goes down, property value goes higher because there is less inventory for you to
00:10:45.380 buy a house.
00:10:45.920 For example, if I make an offer on a house here and I'm saying, I want to buy a house
00:10:49.240 that's close to this schooling because I want to send my kids to this private school and
00:10:52.560 my realtor says, there's only two houses in this market with a swimming pool.
00:10:56.100 I don't have a lot of options.
00:10:57.440 There's only two homes.
00:10:58.560 If there was 50, I can negotiate and say, if you don't give it to me at this price, I'll
00:11:02.380 go over there.
00:11:03.200 But if it's only two, they're going to get 50 offers because 50 people are fighting to
00:11:07.080 get that one house.
00:11:08.260 The seller's in charge.
00:11:09.760 But if listing was 50, the buyer is in charge.
00:11:13.280 Make sense?
00:11:13.680 So look at the numbers.
00:11:15.120 January to February, inventory goes down.
00:11:17.540 This is good for sellers.
00:11:19.120 February to March, pretty much unchanged.
00:11:21.260 Good for sellers.
00:11:22.340 March to April goes up a little bit better for buyers.
00:11:25.740 Look at April to May.
00:11:27.000 Goes up.
00:11:28.200 Look at May to June.
00:11:29.460 Goes up 18.7%.
00:11:32.800 Now that's only two months.
00:11:34.800 If this chart, the number to follow is this one.
00:11:37.400 It's very important.
00:11:38.480 If the active listing keeps going higher and higher and higher and builders have a bunch
00:11:45.940 of place that's not occupied, and that goes higher and higher and higher, and the amount
00:11:51.480 of mortgage applications goes lower and lower and lower, you don't need to be a genius
00:11:56.900 to know.
00:11:57.880 You have to drop the value of your house to sell it.
00:12:01.020 It's just what's going to happen.
00:12:02.020 That's pure basic economy, supply and demand.
00:12:04.780 This is why one of the most important data to look at is active listing that tells a story.
00:12:10.780 So that real estate value, obviously, in the last two years has gone up.
00:12:13.320 Not 10%, not 15%, not 20%.
00:12:15.500 It's gone up 40.4%.
00:12:18.080 Some areas, even more than 40.4%.
00:12:20.820 But across the board, 40.4%, which is great.
00:12:23.640 It's gone up, so people are making money.
00:12:25.540 If you own a house, you build a lot of equity for yourself.
00:12:27.860 But here's the challenge.
00:12:29.040 If that's going up, what else has gone up?
00:12:31.060 Construction's gone up.
00:12:31.980 Steel's gone up.
00:12:32.920 Material's gone up.
00:12:33.720 Energy's gone up.
00:12:34.940 Furniture's gone up.
00:12:35.760 Concrete's gone up.
00:12:36.780 Transportation's gone up.
00:12:37.800 Softwood, lumber's gone up.
00:12:39.220 Price of freight has gone up 26%.
00:12:41.460 Price of deep sea transportation freight is up 35%.
00:12:46.780 So that's all good for the economy.
00:12:48.960 But what happens now when inventory goes up and people are no longer buying at the pace
00:12:53.560 that they were?
00:12:54.460 What's going to happen to that 40.4%?
00:12:56.640 Could it go back down to zero?
00:12:58.020 If it goes back down 40%, it's what?
00:13:00.180 It's what it was worth two years ago.
00:13:01.680 So that's pretty realistic.
00:13:03.220 But what if it goes down 60%?
00:13:05.140 What else takes a hit?
00:13:06.480 Steel, furniture, construction.
00:13:08.840 All of those industries also take a hit.
00:13:11.740 This is why it's all intertwined.
00:13:14.420 But let me continue.
00:13:15.440 Remember at the beginning when we talked about the fact that less disposable income leads
00:13:20.020 to less spending, lower business profits, layoffs, unemployment, foreclosure, bankruptcies,
00:13:23.840 divorce, crime, drugs, OD, alcohol, protest, riots.
00:13:26.800 Okay.
00:13:27.320 What does this lead to?
00:13:28.860 Layoffs.
00:13:30.040 There's layoffs everywhere.
00:13:31.420 Compass.
00:13:32.420 Who, they, I love Compass.
00:13:34.100 I've done business with Compass for many, many years.
00:13:35.940 They're great.
00:13:37.180 Compass is letting go 10% of their sales.
00:13:38.900 Compass is like the, you know, the high-end community realtors.
00:13:42.680 If you work at Compass, it's very prestigious.
00:13:44.700 They're letting go of 10%.
00:13:46.020 Okay.
00:13:46.760 Redfin announced they're laying off a ton of people.
00:13:48.840 Chase, they're laying off just 1,000 loan officers.
00:13:53.260 And then you're seeing layoffs in all these other industries.
00:13:55.980 But this is what Freddie Mac's deputy chief economist, Len Kiefer, said last week, tweeted
00:14:01.420 about this.
00:14:02.440 He said, the U.S. housing market is at the beginning stages of the most significant contraction
00:14:08.300 in activity since 2006.
00:14:10.420 By the way, keep in mind, he doesn't get paid to do this.
00:14:13.400 He's in the industry.
00:14:14.340 So Freddie Mac knows something about this because they've been through this before, but they're
00:14:18.180 also saying it's going to be worse than 2006, which the last one I'm going to share with
00:14:22.120 you on this topic is foreclosures.
00:14:23.960 Why foreclosures this early?
00:14:25.460 Aren't foreclosures are supposed to happen six months from now, maybe next year?
00:14:29.180 What would you say is the increase in percentage of foreclosures that we have in 2022 compared
00:14:36.600 to last year, same time?
00:14:38.960 What do you think the increase is?
00:14:40.820 20% more foreclosures?
00:14:42.700 40% more foreclosures?
00:14:44.660 60% more foreclosures?
00:14:46.960 It's not going to be 100%, right?
00:14:49.060 You ready?
00:14:50.180 We have 700% more foreclosures this year, same time than we did last year.
00:14:54.920 Let me say that one more time.
00:14:55.720 700%, 23,204 foreclosures, according to the database management company, ATTOM, Data Solutions.
00:15:05.920 That's 700%, and it's just getting started, okay?
00:15:10.360 These are the kind of things, when you watch Big Short, did you notice how cocky and arrogant
00:15:14.360 everybody was?
00:15:15.240 Lehman's going out of business?
00:15:16.360 You're crazy.
00:15:17.380 WAMU going out, and it never happened to WAMU.
00:15:19.360 Oh, it's a 300, with AIG, Merrill Lynch, Countrywide, New Century, you're out of your mind.
00:15:26.040 That'll never happen.
00:15:27.220 And then everybody said, holy shit, it's happening.
00:15:30.100 So I'm not telling you it's going to happen.
00:15:32.180 All I'm telling you is history says, if it repeats itself, it's happening, except it may
00:15:38.160 be uglier because we printed way more money.
00:15:41.380 Now, this next data, simulators of 2008 versus today.
00:15:45.440 In 2008, okay, the average worker, say he made $80,000 a year, whatever the number is,
00:15:51.800 the house prices at the time were eight times the average worker's earnings.
00:15:56.920 So eight times 80 is what?
00:15:58.520 $640,000, right?
00:16:00.340 You know what the number is today?
00:16:01.980 Eight and a half times.
00:16:03.760 So if in 2008 was eight times, the average American's like, I can't afford to buy that
00:16:08.940 big of a house.
00:16:09.460 What are you talking about?
00:16:10.340 It's eight times my income.
00:16:12.420 It's crazy.
00:16:13.780 Don't worry.
00:16:14.440 It's eight and a half today, okay?
00:16:16.560 Which means it's worse than what it was in 2008, which means what?
00:16:20.940 It's got to come back down to around three or four times, which is the number, okay?
00:16:26.160 It's either income's going to go up, which it ain't going to go up because there's layoffs,
00:16:29.820 or it's the price of real estate's going to come down.
00:16:31.520 So again, if you're watching fear porn like Dave Ramsey says, I'm giving you stats.
00:16:36.820 Go chop these data up and say it's a bunch of crack or whatever, but give your argument.
00:16:41.420 This is data telling you eight and a half times today versus what it was in 2008.
00:16:47.000 So everything we talked about so far is real estate related, right?
00:16:49.300 It's all tied to real estate.
00:16:50.280 But what about crypto?
00:16:51.600 All these people that became crypto millionaires, 80,000 wiped out.
00:16:55.080 80,000 crypto millionaires wiped out.
00:16:57.240 What do you think they were buying?
00:16:58.420 Nice homes, nice cars, nice watches.
00:17:00.960 Wiped out.
00:17:02.180 Luxury watches.
00:17:03.040 Exotic Rolexes, Patek Felipe, they were taking a massive hit.
00:17:07.080 Exotic cars taking a massive hit.
00:17:08.900 All the tech stocks, NASDAQ is down.
00:17:11.220 S&P is down 19% for the year.
00:17:12.860 NASDAQ is down 28% for the year.
00:17:14.660 It doesn't matter what you look at.
00:17:16.220 Everything's taking a hit and everything's intertwined.
00:17:18.800 So when you're looking at this data and you're asking yourself, how bad can it be?
00:17:23.520 Michael Burry from The Big Short said the following.
00:17:27.160 He said, as I said about 2008, it is like watching a plane crash.
00:17:30.760 It hurts.
00:17:31.420 It's not fun and I'm not smiling.
00:17:33.600 He also predicted that the next crash will dwarf the 2008 bust, which sparked a global
00:17:39.100 financial crisis.
00:17:40.700 Okay, so now that you've put your logical hat on and you've got a lot of data, let's
00:17:43.820 take that off.
00:17:44.320 Put the emotional hat on because we've got to now move.
00:17:46.320 You've got to move.
00:17:46.880 You've got to take some action.
00:17:48.000 We'll give you the PDF here in a second, but stick around.
00:17:50.400 There's a few things I want you to be thinking about.
00:17:51.940 Number one, I said this back in 2009, 2010, when I had a lot of money in the bank.
00:17:56.540 I spent cash and Denver posted an article on me saying, why are you living in a house
00:18:00.200 and you're renting?
00:18:01.500 I said, why should I buy a house?
00:18:03.000 Well, isn't that the American dream?
00:18:04.380 I said, absolutely not.
00:18:05.920 American dream is not home ownership.
00:18:07.780 American dream is equity in businesses, entrepreneurship, side hustles, being part of a startup, getting
00:18:15.480 a piece of that company.
00:18:16.420 That company goes sales.
00:18:17.960 It goes public.
00:18:19.200 That's the American dream.
00:18:20.720 Then you make the money there and then you can buy a house if you choose to.
00:18:24.080 The stress has been so much about the American dream.
00:18:26.780 We have to shift.
00:18:27.540 So a lot of people are looking at renting.
00:18:28.920 And by the way, the plus minus for renting right now, it's $850 more makes sense to rent
00:18:34.500 than it is to buy.
00:18:35.220 It's more expensive to buy today than it is to rent, to own to rent.
00:18:38.380 So that's one part.
00:18:38.980 Now, again, if you're in real estate, you're not going to like what I'm talking about,
00:18:42.080 but I've been straight up with you since the day I started Value Team.
00:18:44.240 So that's number one.
00:18:44.860 Number two, side hustle.
00:18:45.900 If you're making a million now, you're making 200, you got to do something on the side.
00:18:48.620 If you're making 200, you're making 50 now, you got to do something on the side.
00:18:52.200 If you're fully unemployed, you don't have a job, go learn new skill set and get a side
00:18:56.120 hustle for yourself.
00:18:57.300 There's never been more important than now to do that.
00:18:59.760 Collaboration, find the right partnerships, save money today.
00:19:03.960 Get some cash.
00:19:05.840 Things are going to be discounted even more.
00:19:08.620 My prediction, I may be wrong, but I'm telling you what I'm doing.
00:19:12.660 Things are going to be discounted even more, I believe, the next 6, 12, 18 months.
00:19:15.880 Don't try to time it perfectly.
00:19:17.440 You just want to be able to get it as low as possible, even though you're not going
00:19:20.260 to hit the...
00:19:21.120 To get things you purchase at the rock bottom, very few people get that lucky.
00:19:26.380 But even if you get a 20% of rock bottom or 10% above rock bottom, you're going to be
00:19:30.400 fine.
00:19:30.960 Things are going to be discounted over the next 6, 12, 18 months.
00:19:35.120 Just an hour before I shot this video, I got a tweet from a guy that's a value-tainer
00:19:38.860 sending me pictures of a bunch of watches that are, you know, million for watch or Rafael Nadal.
00:19:44.820 He's selling this next one here for $132,000.
00:19:48.900 This next one is $68,000.
00:19:50.720 He's sending me all this stuff with watches.
00:19:52.400 All of these guys are going to be discounted 50 more percent the next 6 to 12 months because
00:19:56.780 people are not going to have a choice.
00:19:57.700 They need cash.
00:19:58.760 And last but not least, as painful as it is, it's time to recreate yourself and start
00:20:03.060 kind of doing your own research.
00:20:04.520 Don't wait for me to do it.
00:20:05.540 Go study for yourself.
00:20:06.940 I did a Zoom with a bunch of CEOs yesterday.
00:20:08.860 83 of them were on, CEOs that are part of our consulting firm.
00:20:12.500 You know what every one of them I taught?
00:20:15.080 I went 15 minutes showing them how to research anything within their industry.
00:20:20.160 I said, here's how you research.
00:20:21.660 Go spend an entire day, not an hour, not 30 minutes winging it.
00:20:26.120 Spend an entire day away from everybody.
00:20:28.920 Research the history of your industry to learn what kind of right pivots to make.
00:20:33.380 So now having said that, I owe you this PDF.
00:20:35.000 If you want this PDF, click over here to get the entire thing, all the notes, all the links,
00:20:38.660 everything we talked about, and if you never got a chance to watch the Market Crash video,
00:20:42.580 somebody shared this video with you because you're in real estate, you may want to watch
00:20:45.620 the Market Crash video as well.
00:20:46.960 Click on that link here to watch that.
00:20:48.820 Have a great day, everybody.
00:20:49.860 Take care.
00:20:50.460 Future looks bright.