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What are you using this time for? This time of quarantine if we're using this time to grow, to develop, to develop your faith, to heal, to plan, to strategize, to build your business guys, what I'm sharing with you is this can be a blessing if you use it to develop a skill.

Hey, I'm Christy and I'm Ray. And our passion is to inspire entrepreneurial couples to cocreate the life and business of their dreams and enjoy the ride. Together, we built three successful businesses. We have a beautiful three year old daughter and we pride ourselves on living a life by design. And our goal is to help you do the same. Are you ready to take your relationship, your health, and your wealth to the next level? If so, let’s do this.

All right, so on this episode it's an episode where I got interviewed by Jorie and Kevin and I interviewed on what's going on in the market, what's going on with the finances, what's going on in the world right now? And I thought it was very irrelevant to add value because most of the people are follow us on both onboard are couples that work together in the real estate space and how to crush it and see what's coming up on this market cycle. It's a long interview at 75 minutes. I encourage you to listen to it all at once. The last 15 minutes are really magical. We go into what the silver lining is, what, where, where the opportunities are and what can come, what the potential is out of this. So listen to the whole thing and we really appreciate you and we love you and we hope you get a lot of value out of it and I'll make sure we post the link to the video as well as a video on YouTube so if you want to see it more in a visual way. Thank you. We love you. We appreciate you. Thank you.

(00:01:42): All right. My brothers was going down another episode of shut up and invest live every Wednesday at one o'clock now that the new climate of Coronavirus, I got my man in the house. Jay money has always Jorie. What's up brother?

(00:01:55): What's going on Kevin? Man, I'm doing good. We get me in the house most of the day. How was your Easter?

(00:02:11): Good bro. We did a little virtual zoom Easter with the family and that's like the new, the new vibe now and I did get a chance to reach out to our guests today, a brother from another mother, a man with vast experience. So we've been talking about having him on the show for a very long time and I'm glad that we have a Mon now, especially with the craziness that's going on. It's almost like the timing always works out the way it needs to. And we got Ray Ray in the house. Mr Ramon Gonzalez. What's up my dude?

(00:02:43): What's up guys? What's up Kev? What's up J? Money man. Just happy and grateful to be with you guys today man. I'm so Kevin. Proud of you for becoming a dad now. So I'm really excited for what's unfolding.

(00:02:55): Yeah, yeah, yeah. There's, there's always rays of sunshine in the middle of the storms and I think that's kind of what we want to talk about today. We want to talk about, I know all three of us here were involved in real estate and business and then the finance market during the 2008 crash and we're starting to see a lot of the similar signals and that's kind of where I want to have this conversation. I don't want to make it super doom and gloom, but we do want to have awareness and consciousness and talk about the rays of sun shines within those warning signs. And I know Ray, you were definitely one of the major players in my network that took a full advantage of the swing of the cycle back in the last crash and, and it's allowed you to have the lifestyle with your beautiful wife and daughter and you have now a podcast where you talk a lot about it called both onboard. Definitely one of my top podcasts that I listened to. And you've been able to build a life by design because you took a situation like we're currently in right now and a climate that we're in and you knew how to navigate the waters and take full advantage of it. You recognize the signs and with that experience and exactly what you were able to do. Now you live a beautiful life by design with your daughter and your wife. And tell us a little bit about that and then we can get into the specifics.

(00:04:21): Sure. So you know, we started doing a fix and flip buy and hold in Oh five before that I worked corporate for GE. So let me give you a background on me before we get into the economic stuff. Economics has always been one of my passion market cycles because I learned this from Wayne Gretzky and Tony Robbins, great people can anticipate the market, great businesses are anticipatory. They know what's coming. So they skate to where the puck is going, not where it is right now. Right. And again, this is not about timing. This is just about using reasonable caution. Hey, six months ago, Kevin, if I had, if I asked you a J money in the Miami market and real estate overall, we grew up close to all time highs, like you didn't need up in the stock market, you're close to all time high.

(00:05:03): So you didn't need rocket science to figure things out. And now is that, does that mean Hey, step out and be fearful? No, just proceed with caution, right? And what I call a reasonable caution. What that means is, dude, you look at the cards you're dealt with, right? So you look at those cards, you don't make it worse than what it is and you don't make it better than what it is. You call a spade a spade. And then once you can do that, but that's probably to do for guys like us generally that are very positive, right? We always want to see the silver lining and yet there is always a silver lining. And look at the spade, the way the state is dealt to you and then deal with that. And if you get a new card then you can change your mind.

(00:05:34): But you got to deal with what, what, what, what is and then anticipate where it's going. So that's, that's one. So economics always been a passion of mine. Study market study, market cycles. We've made all our wealth from Kevin, understanding the market cycles and anticipating what's coming now am I going to tell you what my money and every single deal and we got in and out perfectly. No, we left a ton of money on the cycle and this cycle we got hit cycle. So the first time you get hit with the market cycles, kind of like Kev, like you went through it and Jay money, it's like a punch in the face. You have fear, you don't know what your deal with, you know what's going on, you don't know how to shift, you don't know where to ship, you don't know what's coming. So you're kind of dealing with it day by day.

(00:06:10): The biggest thing you can really manage, not even control is your own mindset. So the biggest thing I'll share with you guys is what are you using this time for this time acquiring team are using it to, you know, I just saw an article on Forbes that a lot of people are watching porn, YouTube videos high on seed high on high on weed and alcohol and junk food. If that's what you're using this time for, that's not gonna work out well for you if you're using this time to grow, to develop, to develop your faith, to heal, to, to plan, to strategize, to build your business. Guys, I've filed unemployment twice in my life. First time I was going to school at FIU, the government got a hundreds of thousand dollars return on that unemployment. I took that time, educated myself. I'm not here to brag or boast. Just what happened is I graduated in three years instead of four Summa cum Lottie got a job at GE doing economics for them and I paid thousands of taxes and it just, it boosted my career. Second time when GE laid me off, I built some at home buyers and with some home buyers, they made a huge return. I've paid millions of dollars. I the company in taxes from some home buyers. So what I'm sharing with you is this can be a blessing

(00:07:24): If you use it to develop a scale. Definitely. I figure we've been saying the same thing. I mean the mindset is what's key, right? Right. If you, if you watch the news all day, you fill your mind with negativity as a man thing, if you will become, right. So whenever you're thinking about what you will be crumb right to the last thought, you know, now's the time to watch Netflix and Hulu and binge watched every TV show and then go to CNN and go to Fox and on the Facebook it's up will drive you crazy, man. It will drive you crazy, right? You got, you got to actually protect what you're putting into your mind right now. And it's enough people who've been through it, right? And then plan the strategy.

(00:07:59): They money. I love what you said. I mean, I've been reading, I've been reading a lot of Jesus' stuff lately, whether it's through something someone channeled him or the Bible and he says, you judge a tree by the fruit that it bears, right? No good tree can bear bad fruit. No BA, no battery can. Very good fruit. Right.

(00:08:17): Less a pivot over to some of the latest news and and kind of get your guys's reactions on it. So on Monday you heard that chase changed their residential guidelines on lending, where now the only mortgages that they're willing to take on, and we're really talking about the risk factor that they're willing to take on is someone who's got 720 credit scores who any percent down and reserves, meaning X amount of months of that mortgage payment that's going to be in their bank after they qualify and close on the loan. We had Six months usually ever.

(00:09:01): Yeah. It's about six months of reserves that they're looking for.

(00:09:04): Hold on. Let me, let me, let me backup a second and give a little bit of a macro of what I think is going to unfold because I think it's relevant. I think what you had last cycle was a real estate driven depression that then caused everything else. I think this cycle, I think Kevin and Jay Mani, correct me if I'm wrong, a lot of the underwriting compared to what happened last cycle has actually been pretty safe. The banks are actually well capitalized. I think that the real estate market is strong and let's not get it twisted. Real estate has become a debt driven product, so here's what I think happens. This cycle that is different. There's a ton of corporate debt, a ton of student debt, a ton of pensions that aren't going to be fulfilled and as this debt is not able to rolled over, that's going to affect the credit markets, which will then have to affect real estate cause a lot of real estate is debt driven.

(00:09:48): So Rita think won't lead this, but to say it's not going to be affected. I think that's ridiculous. It's him. It's going to be a casualty of war. Yes. Whereas last time it wasn't the forefront. Right. It was leading the charge. Yeah. Just said that though. Cause you know I haven't seen a lot of real estate agents and investors who, and I'm sure we'll get to this, you know because the market was so strong before whatever this happened, they think because this is only, they think it's only an issue with the virus where they don't realize that the economy itself was Teeter tottering before the virus sin. Right? Real estate was good, but the credit mortgage weren't as good as you think. If you actually look at the underlying fundamentals. So I think people might be surprised by the market get affected because they thought I'm not real. Estate is fine. When opens back up, we're good. They don't realize that, well let's say it's one piece of the whole credit market site.

(00:10:35): Everything guys, everything in real estate is priced up the bond market. As soon as you have a yield inversion, which is what happened, the whole yield curve inverted. So you could lend that money to the U S government on a three year treasury and make more than when you could lending it out for 10 years. That doesn't make any sense on a, on a, on a curve. It's kind of like you want to see that curve. So now what's happening is, and the yield curve is usually a great predictor so far, you know, as the best predictor we have of a upcoming recession in the future. So really guys, the bond market drives everything.

(00:11:05): Yeah, one thousand one thousand and I think the reason why I want to make sure that on this episode we really get into what the news is showing us is we have a lot of real estate investors right now that are sitting there expecting the flips and everything to go right back to normal. As soon as this virus has done, they're expecting to be able to still sell the house that they currently have on the market. Exactly. At the same prices they're holding on and kind of, I want to not give them the gloom and doom, but a little bit of a warning sign of reality check of what happened.

(00:11:44): A little, a little wake up call, a little little, little love wake up.

(00:11:47): Yeah, exactly. So

(00:11:49): On that, on the chase thing, I saw that same thing. Now are they their,

(00:11:54): They have a lower credit score program.

(00:11:56): What I saw is that right now it's seven 20 okay. I thought it was. So let's back up a second. So now watch this is, this is, this is for conventional,

(00:12:05): This is mentioned on there basically an ad and I imagine they'll consider other programs if they're going to find that same credit box, if they're going to fall into the same credit box, for example, all the other lenders for FAA chain, which is very important for the flip game for a lot of us that are in that FAJ

(00:12:26): Let's not make things up. Let's go one at a time so that we can walk them through this. So inventional usually above the price of FHA. So you're not dealing with a median w with the entry point, which has always been more demand for because no one is pulling in that product. So you've got a conventional buyer before could put in 5% and what was the minimum credit on that Cub? Six 20 credit scores. Next 25% now they have to have seven 20 saw a jump of a hundred points and an additional 15% down plus six months reserves. So I spoke with my man, Kevin, and just give me some ballpark numbers. If you had a hundred people that used to qualify for conventional 10 qualifying now is that accurate? Yeah, definitely. You've got a huge shrink in demand supplies increasing. What's going to happen to price play this out. Yeah, increasing on, let's get the magic. We haven't even got into unemployment. If you're unemployed now, you no longer qualify to get that mortgage. So now instead of it being 10 it's just five.

(00:13:25): Yeah. No matter what your credit score is, if you're unemployed, not going to happen

(00:13:30): And we'll get to this later on. But that right there is why creative financing is going to rule today. Coming up soon, really soon, creative finance is going to be one of the biggest games in the market because a lot of people who used to be able to like let's say, let's say that 110 that 90 still has a good job, right? Well, let's say 50 of seven good job. They still can't qualify for a house anymore, right? By conventional or FHA. So creative finance is going to be the new tool to help them get into a property,

(00:13:56): A J money. I did a bunch of creative financing on the way out. Here's what I'll tell you. Creative financing works a whole lot. Well, when you have a product that you can solve creatively under FHA limits that you can still positive cashflow, but if you have a house that's four or 500 grand, 700,000 other, it's hard to make that house cashflow and you're probably paying hard money on the debt that isn't. Those numbers do not work.

(00:14:16): I totally agree. I tell you, yeah, let, let's, let's say that this is, we're talking about the cash flow lower markets where it makes sense. Yeah, yeah, yeah. If you're in Miami right now, it's hard to do any of those kinds of deals for some all three

(00:14:27): Or even, or even if you're in, even if you're not in a market like hearing words, it's not a sexy market, but it's the price point driven. Right? Once you get to a hundred thousand you just can't cashflow it for enough to cover the cover your mortgage and then make a profit. Right. I'll set her on the drop. Those houses that are in the higher price ones above that, they are going to drop more relative to the FHA entry-level demand price point because they have more room there. That's the man.

(00:14:52): Exactly. Yup. Yeah. I mean me and Kevin said this months ago that we said this back in the spring right now and that'd be a good time to be in that market. You know that was higher than FHA, you know, luxury and in high end markets we stopped looking at that stuff a long time ago.

(00:15:07): Yeah. The jumbo market from the lending perspective right now is at a standstill. Big dogs like chase already made the first move. I expect a lot of the big boys to follow and that's in convention on. That's in the jumbo market.

(00:15:21): I said the conventional and jumble guys, if you have you, if you already bought this product and you don't want to hold it and you don't want to move in,

(00:15:28): Get out, get out,

(00:15:30): You're better off getting out and breaking even or making a profit than taking a loss later on because if your goal was to get in and get out, get out.

(00:15:38): I would even take a hit if I can get out fast and the head is not going to break me because here's what, here's definitely what I want to say guys. I pray that there's a miracle and there is of recovery that we didn't see coming and listen, I hope that I'm completely wrong.

(00:15:58): Me too.

(00:15:59): Now, if we're talking about Ray's job with some knowledge, break it down so it's plain English. If I lose 10 to 20 grand on a deal, and that's not going to break my personal finances and my business finances, and in two months, three months, you know, we're back to normal miracle of God. Hey, I can recover, keep it moving. And you know what? I played it safe, but if it gets really nasty and I tried to hold on and now I'm stuck on that and that's gonna bring down my whole business, cause I couldn't get my head

(00:16:35): And now you're done 102 hundred GS because that market terms turns like this. Now you can't sell it. Now you start dropping price, now you're chasing the market and you're dropping price, but the market is dropping faster than you. Now there's less buyers. This, the more you wait, I'd rather you take a punch in the face right now,

(00:16:52): Then gets water later. The higher you go up, the more you can fall down. Right? So, and Kevin knows this, I had a hotel property that'd be closed right before this happened that we were fixing up the hotel. A quick quick fix though, right? It was on the market. I did that. It was the only property I had on the market. I don't want to hold anything in a market right now. Anything we pivoted, sold that property basically for break even, right? Like within a week because it's all about time valued money. First of all, we got some cash back into the coffer. Then we can have there to be able to use the buy more deals that come out that are cheaper and I don't want to quit that. Probably we can reduce price by 10 15 grand a week when this starts hitting. So get out of that stuff. You don't want to sit and hold onto it.

(00:17:33): Well, Jay money, not just time. Value of money, what I call risk reward on these higher end properties, every single day that happens at chase deals you a new card. You're taking on much more additional risks. So what? What I look at things does this, does this new change give me, give me reason in present moment to be reasonably cautious? That's the first question. If the answer is yes to that, then how much? How has the risk profile change if it's changed materially, which in this case for that product has and they have to adjust? What are we talking about?

(00:18:05): The key thing to understand right now, but this is all your mindset, right? If your mindset's now focused, clear where you can make these decisions and it quicker benign, you get stuck, right? How many people right now, their mind is clogged? They're thinking about all these other things about how can I adjust my business right now to make sure I'm putting myself in the best situation? Right? We saw in 2008 people just hold held on this stuff because they were so focused on the fear. They couldn't actually think clearly to make the right decisions for their business.

(00:18:30): Well, I thought it was going to get better. They sent Henderson, Oh, it's going to come back here. It's gonna put you out of business guys. Guys, I saw guys with hard money portfolios of 50 million go get a job. So I, I saw the guys that live in my own neighborhood, couldn't take their kids skiing to Colorado. A family tradition be broken. It hurts my heart. I know these guys now, they made it all back. So the, the, the, the backdrop wasn't someone, some of them did. Some of them are still working a job.

(00:18:56): Yeah. And I'm getting calls every day from people trying to figure out can I pull out a line of credit on this property to hold me over to wait? And they're talking about HRVs are still 300 a RV's are still 400

(00:19:12): There was, they're not skating where the puck is going.

(00:19:15): Correct. Exactly. 1000% and what they don't understand is that right now the money is not looking at your ARV the same way you're looking at your ARV.

(00:19:27): Definitely. Yup.

(00:19:29): The biggest message I want to take away from today's episode that you're still stuck on three weeks ago.

(00:19:36): You gotta be looking three months from now that that that house, especially if you're in the higher end, might drop 20-30% so get ahead of that now. Yeah, and you get showing and then guys be engaged with these properties. You're selling them. If the buyer goes through, I want to know what the feedback is. I want to know what's going on minute to minute, day by day. I want to make adjustments. Why is it not selling? What's going on? And then if you do get it under contract and the prices and the price you like, be willing. If the, if the buyer is strong and he qualifies, push the closing clothing into close sooner. Push the appraisal inspection sooner. Make sure it actually closes. Guys, Kevin and I have been through and saw Jay money, you know, Hey, Hey, we're going to close on Friday. Hey, cool. We close Friday. Hey, you know, we closed late in the day, but don't worry about it. We'll just do a wet cloth. You know, we'll close come Monday. You never got funding and you never got the money. This happened in Oh eight

(00:20:24): Often you sign documents saying you're closing the wire. Never got there.

(00:20:31): Do not. Can I see us often? Or Oh, someone will say what's in the contract? Oh, it's sold. Nothing is sold until you actually have that money in your bank account and it cleans your bank account. Guys, understand that. I'm not trying to put fuel in you, but now is the time to be involved with these closings and engage and actually make it through the buyers more than the seller

(00:20:48): In this market. It already changed. Nope.

(00:20:50): Here's the other one that I posted today. I don't know if you guys can see that, but J P Morgan and Wells Fargo both announced that they're building their reserve account. So JP Morgan chase is putting six point $8 billion to protect against a wave of loan defaults and Wells Fargo is putting away three point $1 billion to protect what's about to happen. The shoe's dropping. They're expecting massive amounts of loans not being paid. What does that mean today?

(00:21:27): Well, I mean, I think it means great point of, I think you have two things. Anyone who bought a house in 1819 conventional 5% that's a realtor commission. You don't have any equity.

(00:21:38): There's no way.

(00:21:39): I mean that's, that's a default right now. And if you're FHA, it's 3% I mean, if you got unemployed, I mean, I don't know how you don't see that going into, into, into default right away.

(00:21:49): That's what they're saying there. They're preparing for unemployment, right? They're preparing for unemployment and then unemployment is the cause. Okay. Defaults in the, in the payments. And you can't sell that house because he knows the market's gonna drop. Right? So there's a lot of people with no equity. There's been, how many you said before we've been at historic highs and price, right? Historic highs, historic home sell. It's been going up for a long time. All those moments you bought 70 I'd say 1718 Dory. I'm positive that equities is going to be gone in a heartbeat, man. I want equity. Appreciation is like, it's a fictional thing that people, if you base them on appreciation, it's fictional. We'll just say that it's there and it's not there. Right. You can't base

(00:22:32): Market given the market take.

(00:22:35): So they said that JP Morgan had the I didn't have the biggest drop or decline to income and most of it was tied to that reserve. They build up. Oh yeah, they're preparing. They know what's about to happen. Their liquidity is gonna dry up their book and they're making sure that they're capitalized the right way because they'd been through this before.

(00:22:52): And guess what, you know who else has been through this before? The markets, the local judicial foreclosure they've been through before. So guess what, when these defaults start happening and guess what? The banks had been through this before. So yeah, the banks might try and work it out, but if you think you're going to live in your house for two or three years, rent free and cut unemployment, I think you have something else coming.

(00:23:11): And that's key because I will say, I remember I worked, I sold Oreos like exclusively during the last, you know, housing crash in banks were going through and the seat of the pants, they did not know what they were doing, right? It took them till about 2014 to figure out what they were doing. That's why there was so many amazing deals because the banks know what you're doing. They know now, okay, they know now they still have inventory that didn't hold anything from the market for years. Right. They find product document issues that they have before. It won't happen again. They're not going to give people free passes this time. You're preparing right now for what's coming

(00:23:43): And a lot of the laws, I don't remember from Oh eight to 2013 we're changing the judicial system so that all these defenses you could file the banks already wiggle them out. You can no longer go sack your limitations. You can't argue all these things like, so what I'm saying is we have a much cleaner, robust system to purge the stock

(00:24:03): 100% now here's another shift. That's recently happened. FHA market, the FHA lending guidelines before you can buy with as little as a 580 credit score, they quickly took action and pushed it all the way up to 640 across the board. And a lot of lenders have put what they call an overlay on top of that, that they're saying, I don't even want anything unless it's six, six weeks on an FHA. So now what happens to the market or what we call affordable housing that no longer can you buy anything unless you have a minimum six 40 credit score.

(00:24:47): So six 40 score, but let's, let's get into that. So you went from five 80 to six 40 that's what 140 no, that's 160 point jump.

(00:24:57): I have 80 to 60 40 that's 80 points.

(00:25:00): 80 points. But really you're saying six 60 so it's really a hundred points.

(00:25:04): Correct.

(00:25:04): Right, because the marginal files don't get done. So in addition to this, to the a hundred point jump, what happened in DTIs?

(00:25:11): They're tightening up because they're depending on you and I'm already seeing that as we're running you approvals, all the ones that we used to get when we were stretching approved without a problem.

(00:25:26): And guys, let me backup a second. The reason I know these terms, I'm not a mortgage person. How do I know these terms? Because in Oh eight I had to go learn this stuff because you had to be willing to work with these buyers and understand the ratios in their terms because that's how the buyer and the financing become much more important,

(00:25:45): Right? So it's desktop underwriter, which is basically the first line of defense for banks. You got to run it first through this online application and that needs to say it's approved before it actually moves to the very, to the live underwriter who's the one who actually stamps it and takes the responsibility for the bank by saying, yes, this person can buy this property because I physically checked out all the paperwork and it matches what went in to this online system. So this is what we call a D U and that's the first line of defense that if you can't even get an approval there, you can't push it to an underwriter to get,

(00:26:28): Could've had some exceptions. You could have done another way. You could, you had other offsetting, what are they offsetting bags and rubber, they call it compensating factors or whatever factors. You don't have that anymore. I think that qualifies her. He doesn't black a white.

(00:26:43): Yeah. Come in there.

(00:26:44): Hey, you know me, you see me all the time, you want me out? No, you have to get to that D you first even get to that is that position in DTI is his debt to income ratio

(00:26:52): To income ratio. So yeah.

(00:26:54): Yeah. If you have two buyers, two borrowers and one has a better DTI, that guy's going to get done a lot better.

(00:27:00): Yeah. And again, remember you need to be working, they're doing employment verifications till the day of closing. So, I mean, I've continued to lose every single week deals in the pipeline that we've had because people got laid off or got for a load or took 25 to 50% pay cuts that they're still working, but they're not making the same amount of money. That's the current climate as of today. Completely changing the game.

(00:27:30): And if you're working day to day and you have a house in her FHA, what he's really telling you is do not delay on many times push contracts to close sooner. Like get the appraisal out there. Time is not your friend right now.

(00:27:43): Correct. I mean that's, that's the flip Mark right there. Estimate you've lived your house for efficacy and regulations to find that buyer. And so, I mean, if you've got deals or not as you were playing, flip and sell your buyer pool, just shrink bylaw,

(00:27:57): Right? So your buyers shrank for a lot of reasons. One, the a hundred point jumping credit too, they have to actually go under the system. Three, a lot of them lost jobs. So if you've got a house where you're close to pricing it to that FHA price point, I would take the hit now and price it at that FHA amount and open up the buyer pool because I believe that in that affordable market, there was more demand before going into that affordable market. There's no new construction and there's still a lot of demand, but you're going to have a lot of supply come on the market too for the same reasons as before. These, these lore and more blue collar are the first to go, so you're going to have a lot of foreclosures. You're going to have a lot of people lose their jobs. So again, you have the same thing on both sides. I think that if I had to choose and I had a house to sell, I'd much rather have the FHA house because as Jay money said, I have other options. I can sell them on owner financing. I can still price drop and get FHA. I can rent that out and refinance at least get my capital back and hold it. So you have other options you can do on that lower end, you know, not lower end, but you know what I mean? A FHA still

(00:29:00): Laura and price point. Bottom line. It's a lower end price point.

(00:29:04): It's affordability guys.

(00:29:05): Yeah.

(00:29:07): If we're talking about, I'm currently right now holding on to properties that I'm in the middle of trying to flip or trying to figure out what I want to do. You just pointed it out. Let's, let's, let's really walk through here. If I'm somebody who's got one or two projects and let's say they're in that lower price point, depending on which market you're in and which state and city you're in, and I can qualify for FHA, but they do not rent to cover what my cost of the money is right now because maybe I'm in private money and maybe I'm paying a premium because I wasn't using my own money and now it won't cover all the costs. So I'm in a situation where I'm in a project that doesn't qualify for traditional financing because we haven't been able to rehab it yet because maybe I can't get inspections done because the courthouses are closed and whatnot and we're halfway through that project. I can't rent it either, so I'm stuck on that deal and I was trying to make 30 40 50 grand. What do I do?

(00:30:15): You wholesale that SAP sucker,

(00:30:17): Get out,

(00:30:18): Get out,

(00:30:19): Get out, and someone else who can deal with it. Take over.

(00:30:23): Okay guys, this is, it goes from weekends to strong hands, right? Like the story of the Bible, right? He gave the guy five golden coins and guy came back with five coins. More shall be added to you, right? You think that one coin, you'll know what you're doing. This is what's going to happen. You're going to have to get out and in the work, the worst part is you want to get out and salvage that relationship with the lender. That's what matters right now. If you don't, if you destroy these relationships, Aw man, you're really going to struggle because now the word goes around,

(00:30:52): Right? We talked last night. How many guys you already know personally and as July that are refusing to accept that L they're not. They don't want to, wait a minute, I'm gonna make 40 this Corona thing's going to be done in three weeks. Like I'm gonna hold on to this property. I'm going to figure out how I can fit. You know how many people are refusing to accept? Well, the numbers and the news we're just discussing right now.

(00:31:18): So do I mean rule number one of personal development is you have to accept and allow what is, if you're not accepting, what is what? What are you doing? You're trying to, you're trying to, you're trying to make it the way you want it to be. And that comes from a control fear place though. The way to the kingdom is allowance. Allowance is a door to the kingdom. Allow it. This is what it is. Accept it. It is what it is. What are we talking about? Yeah. If you want to deal with that with the, and I'm not saying right or wrong, but if you have a project you can't make progress on and you can get out, get out and pay your lender and I, I guess I think night either people aren't doing what we're doing this, we wake up every morning, we read the headlines, right?

(00:31:54): Again, we're not watching news. I'm going to find these sellers, the chase headlines, the FHC and how the hell has it affect us? Do we need reference sources? And when you do that and you kind of put your money in there, guys, I'm looking at data. I'm not looking at drama. Don't give me the story. Give me the cards. I can, I can. I can fill the blanks. Just give me the freaking data. Right? The numbers, numbers, the numbers don't lie. Right? I think people were actually sitting back to like, Oh, this doesn't return to normal. As soon as business opens up, no banks and investors and hedge funds and walls, wall street, they don't just return normal. There they are. What is it? They don't really have a lot of risks involved in things, right? So when you see a hot, high risk, they pivot quick, right?

(00:32:31): And change right away. I mean it's a long time. The lady that opened back up from Oh eight Lenny threes and January, what happens now is credit is being repriced and no one knows where that credit is going to reset. Should be not credit risk. Risk is being repriced. No one knows. Like for example, the reason we're not lending right now is I cannot price the risk and if I can't price the risk, I sit on the sidelines. I don't know where this is going to drop now. I'm not trying to time the market, but right now, unless something is a no brainer, it doesn't make sense and neither can they. And when these wall street loan programs, when they backed out, they're not coming back. Most of them are not coming back. The Goldman Sachs, the Genesis, these boys, and if they come back it's going to be much different terms, much loyalties and only the best borrowers that actually fulfilled and paid are going to be able to get some of that money.

(00:33:20): And let's stay there. We were just talking about there's a lot of the PR, a lot of the institutional minus than driving. This market has been from wall street, right? All street came though I'd never before us are lonely. They created programs for private financing, you know, institutional money. That was a big portion of why investors could go out there, right. And do what's been done. That's been done for the last 10 years. So you need to raise private funds first of all, from private money. If you don't know how to do that, you're in big trouble,

(00:33:43): Right? Because that come from the relationship with Jay money. But if someone wants a wholesaling and fixing and flipping and they go to Kevin and say, Hey Kevin, can you connect me with Genesis capital? They're lending at eight one 90% of purchase, a hundred percent of rehab. Why? Why go to the private sector? Why have relationships? I got, I got this money over here. Guess what game changed? No.

(00:34:02): And how many people burn bridges? Chips for a painter. Perfect. One person. Oh no, they're giving me 8.99 okay. Call me when the Corona Corona.

(00:34:19): And the weird thing is though, I've gotten some calls for those guys and I'm saying, yo brother, I forgive you and I'm here to help you. But I saw how you dealt with me last time. Why? Wow, I've got those are them with me forever. I've got those. I've been with faithful refute. I've got those with me since the guest. Why am I going to, why am I going to go to you now? I don't know how you perform. You just talk a good talk.

(00:34:37): That's cute. And now, now is not the time for you to take a risk on somebody new. Right now you have guns you've been dealing with has been there. You want to see a track record in?

(00:34:46): Well, we just said it across the board from the smallest of smallest to the biggest of biggest. Everyone right now is going to say, Hey, experience, track record and liquidity.

(00:35:00): Amen.

(00:35:00): So if you got to right now go liquid as fast as possible because good deals now are there still going to be money out there, but you got to put a lot more skin in the game then you had to four weeks ago and you gotta know what you're doing and you gotta have the relationships that believe and can support and are going to be able to make that happen for you.

(00:35:25): You gotta be better at exiting. A lot of guys were the market shifted from, Hey, if you could find a good deal, then the exit take care of itself. Now it's the other way around. Good deals are going to be everywhere. Can you exit and can you buy low and sell

(00:35:37): Below market on the way out. So if usually buying at 70% ARV, you gotta be buying a 50% of RV to sell at 90% of what you think today's prices

(00:35:46): 100% so now let's walk to the next reality here. The PPP programs, the commercial situation, the SBA bailouts. It seems like we're all paying attention to how the government is essentially bailing out small business, commercial financing and everyone right now that's stuck not being able to make payroll and not having revenue come in. The reality is even people, and me and Ray were talking about this yesterday on the phone, even people that you are sitting with feeling like they are ultra successful because they have the four laundry mats or the nine daycare centers or whatnot are scrambling right now because they were not managing themselves with the right liquidity and reserves and really paying attention to what was going on. They were doubling down and bedding and let me extend myself. Maybe they shouldn't have opened up those extra three daycare centers and kept more reserves and liquidity on the books and now they are facing, no matter how successful the business has been over the last seven plus years, now they're facing the situation that if they don't get bailed out, and here's the thing, these loans are covering you for eight weeks. What happens in eight weeks when I can't bring people back to my restaurant or I can't bring people back to the daycare center.

(00:37:14): Well, let's, let's, let's walk that out from an economic standpoint. Let's say they do get this money in those loans, right? When you open back up, are you going to go back to full capacity? Heck no. You still have to keep some kind of social distancing, but your fixed overhead hasn't changed. You still need a cook. You still need a fixed overhead, so you've got a lot less revenue,

(00:37:30): Same fixed costs,

(00:37:32): And let's assume that the business has no leverage. You're not going to be profitable. And if you have leveraged that business, meaning that businesses have borrowed, like a lot of these corporations on borrowed,

(00:37:40): You're negative. So you say never eat a beautiful thing. Yeah.

(00:37:44): Oh, when she turns on you, it's nasty.

(00:37:46): Yeah. I mean we're talking about the small businesses, nice big corporations in America or broke guys. Ford got downgraded. Yeah. You realize the federal reserve is ex by Sandy will buy junk corporate bonds. That was an act when it was created that you can not buy junk. They had to change it. It was interesting. You're buying insolvent companies that should be let to go burn the whole country company from big to small. It has been running on. We got credit, credit, credit, credit. Let's just keep going, going, going. And now basically art can defend has to go on everybody.

(00:38:22): Well here's, here's what the Fed's not billing out the small business for. I'll get a bill. But your local type of shop, that's not happening.

(00:38:29): No. So again, I think we've made the point that even if we're allowed to go back outside [inaudible] two weeks, three weeks, 40 days, whatever it might be, the ripple effect behind this is still going to be where we have to figure out what that means for us in our real estate business and our personal finances and our bottom line. 100% so now that we've established that, I think we're, we've, we've,

(00:39:01): That's a second on PPP cause people think PPP is a lifesaver guys, it's eight weeks. It's, it's, we didn't, we didn't apply for it. So one thing I want to share and I see a lot of it in my market is if there's not a need, don't apply guys. Like what are you showing the universe? Like this is going to come back to you if you're applying because you can try and get an angle on something. You can try and figure something out too. Don't apply. Like, like what is the energy behind you applying? If you actually need it, you're going through a hardship. What I see is a lot of people applying with multiple companies trying to get what they can, thinking this is a free for all that energy is coming right back at you

(00:39:35): Thinking it's free money thinking they don't have to pay it back. It is a loan and that's another challenge that banks are having right now with the SBA because the closing guidelines are not clear yet, which is why funding hasn't been released. The forgiveness policy is not a hundred percent clear yet, which is why funds are not being released as well. So here's what happened

(00:39:57): Guys. No one that I know has gotten a single check.

(00:39:59): Yeah. The lending institution, let's say I give you $50,000 for the next eight weeks so you could pay your team, your rent and you know, cover for the next eight weeks. Okay, not a problem. You got that money right? Eight weeks happens. You're not back in business. No revenues coming in because for it to be forgiven, you got to keep that team together. If not, now you got to pay that loan back. Okay, fine at 1% guess what? The bank is not making money carrying that debt at 1% especially if your business stops paying them back. Now they got bad debt on their books. How much can these lending institutions that are rushed by the government and the politics to push out this bill that was passed, how much of that bad debt can they maintain on their books before we really have a major issue?

(00:40:54): Well, let's back that up. What happened last time banks got all this liquidity, the reserve federal worst said, Hey, zero margin requirements that you can lend it out. What did the banks do? Hold on mr third you're going to give me a bunch of money and I could go alone and out of 5% and take a business risk or I can let them back to the government at three 4% and play the yield curve game and make money off the government off their money. Yes they did. So, so the reunion, the reason you didn't get inflation last time is cause the money never got the velocity. The money has to move through the system. Right now you've got a dead corpse. There's no velocity of money. So these people thinking we're going to have hyper hyper inflation or inflation. You need money velocity. You don't have money velocity, you have printing. But if it doesn't, it doesn't speed up. You've got deflation decrease. You mean price is dropping, income dropping, you have fixed debt. Deflation is no good. The U S is crying. Avoid deflation like it's going out of style. Much worse than deflation would really be disastrous from the country. Much one is coronavirus.

(00:41:55): So now how do we take advantage now that we see all the signs now that we know we've been through 2007 2008 again, we're starting to see this is familiar territory now as investors or as people that want to get in the game and take advantage because they know that someone like Ray, someone like at Primo made their money in these last 10 years. How can I position myself? How can I take advantage? How can I not let this stuff scare me but instead motivate me so that in 10 years I can be pulling somebody else up and teaching them about cycles?

(00:42:37): I think one of the biggest things is study history. Study economic history, study economic people that actually did great during this cycle. Joe Kennedy, no one knows who Joe Kennedy is and he's a, he's one of the guys that really inspired me. If he read his autobiography, he's the guy who started out with $4 million, 1929 turn it to 150 million by 1934 dude, his family is Royal. I mean, dude in this country, right? This is, this is the day to day of Kay are we tie it all right. Like, like that to me is like amazing how someone just rewrites their stars like that. I mean that's

(00:43:10): Epic. What you said is amazing too, right? Cause that's all Kevin, I've been reading a book, it's called black. It talks about the in black new York's history. It's like construction era. Right? And the one guy in it made his money. Oh the malaria breakdown. The Memphis in 18 hundreds right? Malaria broke out. I read this a week before Corona virus said, right? We read that kind of stuff in your mind, you can set a different cause you can see, okay this person, so your books in general is, if you want me to focus your mind on, okay, how do I do this? Because somebody had done it, did it before. Right? It takes the fear away. You have a real life example of how someone has came through before you apply that to you. So I think reading books, especially here, she books, that's all I do. I mean that's so important right now.

(00:43:51): History guys who made it through an economic history because again, history doesn't repeat itself, but it does rhyme. So if you understand what's coming in, much better prepared. Does it play out exactly the way it did? No, but you're prepared and understand guys, this too shall pass. This has not my love, my boy Les Brown. This does not come to stay my man, my people. This has come to pass. This too shall pass. Yeah, so keeping that perspective, keeping gratitude and appreciation, right? Studying the ascended masters, studying Jesus, like, like really looking at a higher perspective of all this is going to pass once you get there. I think you look at things that are eternal and what's eternal, your faith, your relationships, your friendship. This money thing, it'll come back. It always does. I think the biggest key right now would focus on relationships.

(00:44:39): One thing we haven't gotten into when you said about credit lines, I'd like to kind of dig a little bit their credit lines and also portfolio lenders. Well, credit lines and portfolio lenders are based on relationships. Private money is based on relationships. You can build those. Now and yet you'd have been much better at digging the wall before you were thirsty. Having those banking relationships. Yeah. Where are you going to get the best rate? No, but I can call a couple of bank VPs Maselli and they're picking up, Hey, you're ready? What do you need? Hey Ray, how's your family? Those are the calls you want to have right now because they have money and they want to lend, but they're not going to someone who is not a proven performer, so these banks, these local community banks, they're still lending, but like my friend GC says that they don't know you. They ain't going to flows you and to get business with small banks is slow. Why is it relationship driven? What relationship take takes time. Yeah,

(00:45:33): 100 now if, if I haven't built those relationships up until this point, I don't have experience. I haven't been in the game for five, six, seven years. I just started, I've done maybe a couple of deals or I was just getting into it or maybe I've done a couple flips. Now I'm stuck. Now I'm realizing, I'm hearing what you guys are saying. I'm getting out. I'm gonna start calling now and try to get out of these deals wholesale what I can and try to come in.

(00:46:04): Let's pause right there guys. Wholesale should be the go to strategy. If you cannot wholesale deal, you should not be buying it, right? So whenever I bought something, I was always able to wholesale that deal. The reason I bought it fixed and resolved it, it's I wanted the extra profit, but it was already a steal of a deal. I wasn't trying to do these tweener deals. I see a lot of guys that they can make a deal, work on a wholesale. So they close it, they clean it up and they put it back in the market. Those tweeners I got murdered on last time. Yeah. They're like, have you guys seen the, the little bird, the Roadrunner, and then the coyote is tasting him. It's like that Acme bomb pulls up, blows up in your face. You know what I mean? That's, that's how it is.

(00:46:43): When you those on those tweener deals, make sure you buy right. And how you know if you can wholesale, if the market tells you that there's a buyer for cash, that's how you know it. So I would, I would focus on raising private capital and I would wholesale as much as you can. I see a lot of guys get amped up on this. You'll Ray bro, I'm going to just highlight them. You'll right bro. I'm making a 30 grand 40 minute rip on this whole seal. You do that on regular market. You look in a four or five GS 10 maybe. So your expectations and if you have high overhead cause you got fat during the other cycle. Get lean. Yup. I was going to say that the days of those 1520 25,000 our wholesale fee come back to reality right now if you can get two, you get three. I was so foreclosures for banks that I was making Purdue, I was selling her. It's more than a year, right? 1300 per grill. I'll take it all day long. Right? So expectations are what you create, you are deserved on the deal.

(00:47:40): You make two grand on the deal staff, those two grands up, right? Stack it up saying, I was thinking people were buying. Find the guys and the girls up the money. Right? Find out what they want. First of all, you can't buy those final ones. Find those deals for them and whatever. You killing them, get them right. I think about 2000 bucks on the assignment fee. There's a lot of money for what you're doing. Does that center took us a ton of hours to get that, get that 2000 and keep moving to the next one and keep stacking those up. I would agree. And also Jay money or this market changes. You now have what I call alligator buyers. Warren buffet buyers, the buyers that were buying with this wall street money. Everything else, they're gone. So what'd you guys, the old timers like Ray? Yeah. Well you want to make that much? Yeah. I don't care what you make. I never looked at somebody else's pocket, but if I'm buying and I have cash and I'm coming on cash, this is my number. You want it? Cool. If not, I buy on my price. Does that make cause remember the golden rule, who has the gold rules

(00:48:42): 100% and where I was getting off the question, Ray, if someone's going to approach you right now, they don't have the track record. They don't have necessarily the experience, but they have the hustle. They have the right mindset. What's the best way to make moves in this market right now? If they're trying to approach somebody like you somewhat or they're trying to approach their friends and family to gather some liquidity, to be able to add value and take advantage of the opportunities that are coming.

(00:49:12): I think you just nailed her brother, my man, real Ray J. Money. How do I add value to you? Like Ray, what would make sense and be generous? Seeing the past, you could be less generous. Now you have to be more generous. Hey, Ram, got a deal. Listen, I need some money, right? Not only will I pay you the hard money, but then I'll split the profit, which, how's that? Hey and, and, and I'll put some my own money too at this guys. When I first started I did. He was like that. I had one of the hard money lenders. I said, look, I don't have any name. I'm willing to hustle. You put up the money, I'll do all the work and then I only want to pay you the hard money. But then I'll split the profits, which yeah, and that's what I did guys you, but again I see, I see of like, Hey, how do we do less versus how do we do more together?

(00:49:51): How do we split up the pie so we can all meet more together? See guy, her concern with Kevin, how do I cut a pizza? And what I want to do with these guys is how do we build the pizza factory? The challenge is most of these guys are so limited in mindset, they're so focused and I work with a lot of these guys. They're so focused on, Hey, what is Ray costing me versus what am I getting? I never look at somebody else's pocket, but like let's, let's keep it 100 like if, if this is not the time it'd be greedy. Especially if you're starting out like this, this idea of the, of the elephant and the elephant and the in the end, right? If I'm the elephant, let's keep the perspective. I've got the one and I've got, I'm not judging you, just if I've got the balance sheet and you need something, let's figure it out together. But let's throw that out. How we can build a pizza factory together and be generous to each other, and how can we make more not, Hey, well, we just made a hundred grand and, and you're going to keep 50 of it. So why don't you look at the fit that you made. That wasn't possible because I w if, if, if you, if I wasn't in there, you went in and made nothing. But rather than focusing on that, they focused on what they pay. So people focus on the cost versus the investment.

(00:50:52): Yeah. That's what I go. Or humility. It can be very important, right? We were into social media. I'm this guy, I'm that. I'm, that would be humbled, humbled, and you might need that person for this. I mean, I don't need all this, right? We're all being humble. The humility is going to win once the whole time. Hmm.

(00:51:23): I think humility is one of these huge, huge things. I mean every book I'm reading right now, talking a lot about that and even the ascended masters, right? The master is the one that has mastered the art of always being the student. I mean I tried that. I like that. I mean I try to Jesus his mouth like I'm not like I'm just mastered being a student and I'm always a student. So that keeps you humble and it keeps you in check.

(00:51:44): Yeah. 1000%. Guys, I think the message has been loud and clear in this episode. I think right now this is not going to be something that's going to be over in a couple of weeks. We've said that loud and clear. The news, the facts, the numbers are showing that we're going to be in this for awhile. So

(00:52:04): One second there. Kevin, I want to get your opinion on this. Do you think this will get tighter?

(00:52:10): Yeah. Because at the end of the day, the third and fourth quarter of this year is going to be huge to see where those defaults actually go. I mean, how long are we talking? How fast can people start working again? How fast can people get back on their feet? And the longer this takes, I mean if we, right now, today is April 15th this tax day they baby backs, they usually, the government's collecting today, the government is not even collecting today. Like let's put it in perspective, this is uncle Sam's payday and he's not getting paid right now. That's the reality. So once we know that, are we going to be in 20 30% unemployment or is it going to be better than hopefully those numbers? How fast,

(00:53:06): Oh, let, let's back up a second. Let's say you do get unemployment and you're getting the additional $600 a week for 39 weeks of your giving plus your regular employment, unemployment rate to your money. So you might be getting eight, 900 bucks a week.

(00:53:19): Well. And the 600 additional is only for 13 weeks or 13 for 39 so let's say you

(00:53:25): Can milk that out. A lot of people aren't going back or they're going to try and find side hospitals because you got this basic thing met. Now I'm good with that guys, because I've built my businesses on that. So again, let me go back to where we started. What are you going to use this time for? Are you going to invest in your test? A single best investment you can ever make is in you and yourself and growing that in mind. So what skill are you going to develop? What relations are you going to do? Are you going to build this time to kind of, you know, build out yourself, build your relationships, build your network. So I think that's the biggest thing. So I think this takes some longer because why these people aren't coming back to work. I got a couple questions in here from the people.

(00:54:03): Number one, what's the book that you're reading, Ray? And what's the book that you're reading? Jury. What's the name? Right. Well, I'm reading, I'm reading the Bible and I'm also reading the way of mastery by the Shanti crystal foundation. I'm reading those two books at the same time. The book I discuss is called black fortunes, black fortunes, black forest. We all read the Bible every day. For right now, the lens is a marriage. I said, read the Bible that day. That's very important to the Bible. The Bible has been, and again, I read a lot of stuff. I'm just really studying. I'm studying ascended masters and I'm studying more. I'm not studying what they said. I'm studying how they live because if we can embody, I think what's happening, Kevin, so we'll, we'll get into this. Now, I do want to talk about this, but let me just wrap up with my first one thing I didn't share.

(00:54:48): Okay. There's only two reasons properties don't sell. One is the price to it in market property. There's no other reason. Properties don't stop, so stay on top of that. What I think is happening at a high level, Kev, you know me, I'm a spiritual or you get into that. There's actually a question about that. What about land guys? I one of the things Kevin and I spoke about yesterday, I made a big investment with some guys that had a proven track record on a land deal. I never land on land and it's probably one of my biggest concerns right now because land doesn't cashflow. And guess what? Builders, I wrote a whole six page paper on this to the investors. Kevin and I shared it with you and Jorie and I shared with them, I said, guys, if I'm a developer and I still like the land deal I'm going to put up, I'm going to put a put option on it.

(00:55:32): I'm going to go out there and say, Hey, I'll give you a loan deposit. Give me 90 days to close and I'll see what happens. If 90 days it turns around, I'll close. If not keep the money, I'd rather lose two or 300 grand then three or 4 million. And again, building right now is the highest risk in the market. It's always been the highest risk. And if I am and if we are correct that deflation and lower prices are coming from supply and demand, why not just buy something that cash flows below replacement costs and mitigate the risk versus build a new 100% build cycle of 1824 months and you don't know what's coming. Why take that risk and and the debt for land deals are usually personal or you're sending personal recourse much harder to get because wall street is not funding that. So you're going to put a lot of your money and said deal, sign a PG and then and then build with no cashflow for 18 to 24 months plus the lease up of the thing that they hit.

(00:56:24): Yeah it is. I think you can buy land at the, at the bottom cycle is when you get some rain. If your capital, if you have some reserves, you want you some land, you wait till the cycle drops right now and maybe buy a covered land play. I know a lot of guys in texts, I got a couple of guys that buy a lot of industrial land. I put a bunch of cows and now hire a farmer. So at least the land covered itself. Exactly. Yeah. Right. So you, you don't do a naked land play where you're out out the pocket every single month. Guys, this negative cash flow, that's the alligator. You want to stay away from the alligator. You want to be his buffet. What is a buffer doing this then? I'm not on a ton of money. A couple hundred million. He only buys when it meets his terms. Dude, he got Goldman Sachs to give him stock at a discount and he got reps and warrants. Goldman Sachs is usually the one issuing that he got up from there. He got it from when I used to work at GE and Goldman bill us out. Who'd he got Jean to bend over and we'll sign it like, you know what I mean? So there's going to be great opportunities.

(00:57:23): Cassius King,

(00:57:23): Cassius King, manage day to day. So again, manage it. Adjust daily, look at the cards you're dealt, make sure you study the market every single day. Be adjustable, understand that we're shifting. We have shifted our way to a buyer's market except that you see, excuse me, to to what is it? Yeah. Buyer's Mark. Yeah. Working with the buyers and become much more important guys and making sure that buyer qualify. The buyers are gold right now. Deals are going to be everywhere. Yeah. And money.

(00:57:52): Our money wires being held up depending on the deals. I mean, a lot of private money wires were held up commercial. I just had one of my smaller commercial lenders pull out this week even on deals that they already had approved and committed to right now the conventional, the FHA and the VA, they're still funding, but but regular traditional commercial lender, I mean regular traditional banking wires, they're not necessarily being held up. Just banks right now are slammed on all angles on the lending side, on the taking on customer service side because everyone's calling and trying to renegotiate, put their payments on forbearance. People are right and they're, they're shifting their teams, shifting their efficiency, their processes, their SOP. So overall, banks are running on a much slower efficiency speed then

(00:58:50): Unusual. You have that relationship, Hey, you're mr private banker. I need this PPP put in front of everybody. Can you help me? Yeah. Ran and got you. Yeah. Thanks for if you have the, the relationships are so critical right now. I think the other thing is when we spoke about yesterday, we didn't mention his lines of credits. It's hard to get a line of credit now if not impossible, but if you have one already, I would be a fan of pulling it now sooner rather than later or refinancing so that you have the liquidity. Unless that Atlanta credit is secured by something, but if it's an unsecured line of credit, I remember those getting pulled from me in Oh eight by bank of America,

(00:59:21): The secured ones because it's secured and they saw that you didn't have usage. They said, Hey I know you thought you had a hundred grand. Their availability, we're cutting it down to your balance.

(00:59:32): It may happen. It may not. I think you're in a much better position if it's, if it's collateralized by something,

(00:59:37): I'd pull it right now. I pull it and put it in my bank because at the end of the day, I'd rather pay a couple hundred bucks on interest on it and see how the next 90 days play out. Then they send me an email. Like I said from the beginning, I hope I'm wrong, but I rather pay $3,000 I'm going to have a hundred thousand 330,000 whatever it may be on my side and then you know what? Oh, I didn't need it. Things are back to normal. It wasn't as bad as we thought. Okay, cool. Here you go. Ask me a couple dollars.

(01:00:15): No, no, you're in, you're buying insurance. Your logic is irrefutable. Wow.

(01:00:20): Eh. All right, so on the higher level, on the real true,

(01:00:23): Let's talk about that cause someone asks about mobile home parks guys. Right now what you want to be investing in if you are going to be investing is in necessities, not amenities, not luxuries. So housing, we'll do well, affordable housing forward and we'll house parks. We'll do well. Oh, let's do some storage. I'm not saying it's a bad deal, but if I have to choose whether to keep my home somewhere, I'm going to choose the home. So what else am I seeing guys a mess than I retail. That's not the time industrial maybe because I think Amazon is crushing it. I think Josh are going to do very, very well, but I think housing is supported by the federal government. Even look at something as, I got a couple of guys that I know well, I do a big, a lot of student housing.

(01:01:06): Guess what Fannie and Freddie did on the agency side. Hey, we only have a limit for student housing and it's not an, it's not a necessity. It's not a necessity. Necessity is middle-class BC workforce housing. That's what they're going to give money to. That's what they've always been money too. Students, sellers right now are calling, they're calling. Oh, they're getting hit. If you have student housing, either like, you know, residential homes and multi-families, they're taking a hit right now. A lot of college colleges are empty when not only are they empty. So some of the guys I've talked to have a lot of these units so that maybe 50% of the portfolio is made up of student housing. Their biggest concern is they actually get collections because they have, they're good operators. So like right now the people that are going to make through this are great operators.

(01:01:47): It's who can turn the crank. But also what if guys, Jay, Mani and Kevin, what if the whole school system changes and what if worst case, they don't start all semester. That is a game changer. I've said that that whole model, all right, pseudo laws. The whole model was broken, right? You're seeing it right. I have to go away to college, live in a dorm, live Jasper, succeed in business. That morals would take a hit, right? That and then follow with how many corporations? Right now we're figuring out how to operate with half the employee base, right? Half the employee base us. So those two right there or were you shit. So this is, this is the shift now. Great point. Jay. Money of, of what I wrote in the article that I sent to you guys going from a third dimension reality to a fifth dimension reality.

(01:02:38): What's trying to happen in the universe, the whole earth, mother earth, she's evolving, she's going into a new vibration and everyone in here is being forced to go to that new vibration whether you want to or not. Can we go and again only can we go gracefully? Can we grow and expand and wall as a collective? We're going from right and wrong in a, in a, in a division and a separation consciousness to a urinary conscious. So my father and I are one, so there's a collective consciousness to what serves the greater good. That's where we're going. That's where this is going to go. Now are they going to be corporations that try and fight this? Absolutely. The federal reserve is one of the first ones that's got to go because clearly the whole monetary economic system is not working. And guys, I'm not a Democrat in our Republic and I'm a guy from the heart.

(01:03:20): When you have 80% of this pie, 90% of this pie controlled by 1% that system does not work. This is not the capitalism that I signed up for. Not capitalism, those work when it's left alone, but what you have right now is nationalism. And what we're going to is fascism where the government is bailing at the government, the federal reserve are bailing out the corporation. They build out the banks. Now they're going to bail out the corporations, then they're going to bail out the pension funds. Like where are we going? So I think that's a J money look at the other system is dying. The, the, the the hospital system, that healthcare system that is a defunct, reactionary system, nothing in that system is proactive. Nothing is holistic. Everything is reactionary. How can we give you a pill? Big pharma runs that. It's not sustainable schooling.

(01:04:06): These kids are coming out with massive debt that they cannot file bankruptcy on and then they get a degree, they're in debt for hundreds of thousands of dollars and they're, they don't know anything. You're alone. Anything. No. Yeah. Okay. That's the whole point. You're learning that we're not being taught anything. We were paying this money. We're paying for tuition, for footprint, for food, housing. We can learn all this. We can take it. You go online for free. You go to YouTube university. Teach more than I can file. Amen. That's also going to happen throughout the educational system. I think you're going to see a lot of homeschooling. I think you're going to see a lot of different things because you go to a traditional school, it doesn't work. There's no personal growth. There's no development. There's no, there's no outside the box thinking that no one.

(01:04:45): Kevin, the reason we spoke about yesterday, why do people struggle financially? Well, they got no financial skill sets. They don't know how to balance a checkbook. They're not looking at balance sheets and I'm looking at P. And. L. They don't get accounts reconciled. They don't know where they stand every single month. They don't know how to first forget. Forget looking and analyzing a financial statement and seeing what the data is telling them so they can make better decisions. They don't. They don't know what's going on there. Dude, this is a good book. You got whatever. What is it, Carla? What is he as a scholar? They called them blind. You got blind leaders. Yeah, fine leaders or are they going, yeah, we know

(01:05:18): Right now are running to the government demanding to be saved and blaming someone else and an and and instead of looking in the mirror and saying, what decisions have I made in the last 12 months that have put me into the situation that I'm in right now that is causing me so desperately to need the help from uncle Sam?

(01:05:45): Yeah. Requires personal responsibility. So at the core of this, the most important thing we're going to share with you all of most is every initial sold up in my life. Not only did I attract it, it's here to serve me and I am responsible, and am accepting a hundred percent responsibility for. And that shows up is my creation. I created this thought of lack. I created this thought of this misperception, this illusion that I had to hustle and work hard. And every dollar is a grind. And because I don't feel worthy on the inside, I have to go spend this money on illusions to try and make me feel worthy. Like what therapy? Let me go out, let me, let me roll up on this, on this G money just cause I got the money. Why not? Why not make it so you don't have to fake it? Oh, I think it's you make it. No, make it, make it

(01:06:30): And when you make it, you don't even have to fake it. You're not even there. You're not even in that world, bro. Listen,

(01:06:36): It just is. It's who you are. Yeah, I agree totally with that. One of the big things that's changing right now is that's amazing is this whole work life balance. It used to be a work life balance. We're going to a life work balance and I think it's magical. I think we're going to be able to do more with less, much faster. Matter of fact, I know it's happening.

(01:07:00): Oh, I got, I got clients on mine right now figuring out, trying to figure out how they can get out of their leases because they've realized that the working from home and the virtual team, it's actually something that they were forced into, but they think now they can make it work and save $10,000 a month that they didn't need before. And they would have never found that. They would have never even had that thought because it was business as usual in the rat race, grinding, grinding. And you don't even think twice about it. But now I've had plenty of those conversations of, you know what, we might keep things in a certain way. Virtual, we might keep this system.

(01:07:44): Yeah, we're, we're going back to a new norm. What's not going to be the old normal. And I think office gets killed on this. I think sodas, retail cause a lot of the things are being delivered. I mean this is changing the way we eat. Like right now we used to cook a lot of food. Well guess what? Right now I'm, who reads a lot better? I don't have to go do us. I don't have to leave the house. So really I'm buying back my time. Right? So this becomes much more important. I think something else that's magical. Kevin is a book called secrets of the millionaire mind by T Harv Eker.

(01:08:10): Yeah, for sure.

(01:08:12): When do you just talking about, look at the, you know, look at the, look at the fruit the tree produces, right? But then within that, what determines what fruit? The tree produces the roots. So what this book is going to allow you to do is to go look at those roots, which is inward guys. The inside game always determines the outside game. Every dollar you're made came from you. You are the source of that money and you are abundant and you are successful and you are safety and you are security that you have to own that shit inside first. And then abundance comes, you are abundance. And then it comes. If you chase abundance from a place of lack and put some meaning at the fill you up, I will tell you from personal experience, no matter how many minutes you have, no matter how many things you do, you're not going to be fulfilled.

(01:08:54): You can not have a happy ending. You can not have a road filled with hustle, grind, efforting, and then somewhere else later I'll be happy. Enjoy the ride. Happiness, my boy Wayne Dyer. Happiness is the way. Yeah, I said that. I can't remember. I just still content. You got it. So content and whatever, wherever you're at and not finished and enjoy that peace, right? Peace that surpasses all understanding. It doesn't matter what's going on around me. I'm peaceful, I'm happy, joyful content and when it keeps shrinking, right? But whatever I got right now, I'll just keep creating as I go. Imagine Jay money and love what you said that it was beautifully said. Imagine if we truly create from that place Jay money versus the place that we used to create from was a freaking saber tooth tiger right behind me. But I don't want to love personal X.

(01:09:41): I don't want to set personal responsibility and I'm afraid to look at that dang say with a tiger in the eye. But you know what happens when you sit down and meditate and pray with that saber tooth tiger? You realize that you're beyond that. It's just an illusion. Do not be afraid. Do that all over the dang Bible. Do not be afraid. Do not be afraid. Look at the type in the eye. I'm not saying avoid fear. I'm saying embrace fear. I'm saying this time you have two choices. Love or fear, love guys, choose love every time and love is even stronger than faith because love can look at the fear and still embrace and make space for the fear. So embrace the fear, dance with the fear, and then forgive yourself for having that illusion. It should be yourself, the Holy spirit. Come and do that dish for you. Definitely.

(01:10:24): Yeah. This is not about the mistakes you've made in the investments you've made and the purchases you've made and the spending you made and let it bring you down. It's to awaken you to decide and declare that today is the last day and tomorrow is the beginning of this new world that we're all going to get a chance to be a part of.

(01:10:48): This is the beautiful part about what we're going through. Well guys personally. Yeah, and we chose this guys before we all manifest that down into physical form because we're the thought of love and form. Before we came down we said, Hey, we want to be part of this. This is going to be fun. We're going to get to grow through this. Guys, there's no accidents in the universe. You're here during this time. It's for a reason guys. Yeah, so lead and Lee would love guys. That's the magic in this and I think once we get to the other side of this, there's going to be a lot of that.

(01:11:22): I agree. There's going to be so much opportunity, right? We all know what happens. Trans trans person. Well, if they're gonna be happy, right? So if you sit on, you're like, Hey, I want to, I want to have, I want to be able to be in that spot. My fame st Kira for generations. These, that's what happens out of this, right? If you can, if you can maneuver correctly, we've all been here, you know, you did a wonderful job, you know, before you can create that generational wealth through these times. Right? And it's an opportunity for things to reset. If you get in the shot to come in and do a lot, I want to say it's overpriced. You couldn't even get in. Right? A lot of people can get into this game now because of what's going to happen with the economy. So you gotta you gotta have perspective on what's going on and take the right perspective.

(01:12:01): Well that's that lesson with what's an actionable

(01:12:05): Second on that brother? Cause I want to elaborate a little bit more on ONJ money. You said dude, Jay, like one of the things, I'm a big fan of external abundance and wealth and money and, and, and generational wealth. But I'm also a fan of not only just leaving a legacy with what generational wealth is to what if we get to actually live a legacy too and change the whole collective and not just build treasures here but lay him up in heaven, right? Where moth and dust cannot corrupt, right? What if we both had an impact that would change people's lives? That point thing, this is going quite a hundred percent in my world,

(01:12:37): 100% actionable step I want to leave you guys with, we did about an hour and 15 cause this is, this was a lot, a lot going on. A lot to say from a both numbers perspective, internal perspective. If you're listening to this and it resonates and you want to be ahead of the curve, if you want to understand what the cycles are for both your personal life and your financial life, share this talk with as many people in your network as possible and then jump on a zoom call or jump on a conference call together, talk about it and figure it out and figure out what you guys want to do together. As a collective and see, get in touch with guys like us. Bring, bring that energy and bring that value. Cause realize there is a shift and let's start the conversation.

(01:13:27): I'll make it a study guys, make it. Dedicate yourself to it. Make it us like I don't take up studying Jesus lightly. I'm studying him. I'm studying the way he lived. Like make this a study. If you want to do well in finance, make it a study. You want to build a big bicep, make it a study. You want to build a great bond. Like I study these things. Take like I just don't know how to

(01:13:48): In love with the process. Yeah, I'm obsessed guys. Very good tag, right? We appreciate your brother. Say a say less time to the family. Love you guys. Predict you guys. Thanks for hanging out with us and listening to the bolt on board. Go to our website@bothonboard.com to receive your free report on seven game changers for highly effective entrepreneurial couples. You can also connect to this on Facebook and Instagram, Apple onboard. If you got value from us, please subscribe to our channel and leave an amazing five star review so we can help others get on board to co create the life and business of the dreams and enjoy the rug. We hope to connect with you soon.