February 2020 Greensheet #10 Investor Letter

Summary: Summary: On this episode, you will learn about the Secure Act and how it affects your retirement plan and your future. You will also this get this month's real estate market updates. simplepassivecashflow.com/investorletter simplepassivecashflow.com/green10 simplepassivecashflow.com/alf simplepassivecashflow.com/lendmistakes simplepassivecashflow.com/dentist simplepassivecashflow.com/2020-launch

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Transcript: 0:04 When I got smart and so my primary residence to start investing investments that actually made sense who I needed a place to diversify quickly as opposed some money market or some high reward checking account Let's face it, turnkey rentals are cool and syndications are great but they don't come around often I stumbled upon the American homeowner preservation fund the owner George new marry once apartments indicator to is now sponsoring the podcast is fun cuts the middleman out to crowd fund the solution to the mortgage crisis in America they empower you to fund the purchase of distressed mortgages and earn returns at smoke any other passive fun if you find something else better out there, let me know oh yeah, they work with families to keep them in their home after buying an underwater note at a huge discount. It's an opportunity to make an impact on families and communities while earning returns. start investing with a zoals hundred bucks in invest in hp. com if you want the free burn zone book please send me an email at Lane at simple passive cash flow calm 1:03 This week we are going to be doing the 2020 February edition of the green sheet investor letter you guys can check out all these letters and past videos at simple passive cash flow calm slash investor letter. And make sure you check this out on the YouTube channel to make a bunch of slides. And if you're listening to this on the podcast version, probably going to want to check out a lot of the graphs that are put in there to kind of brings another dimension to this. But however you guys want to consume this podcasts YouTube channel, it's all fine with me. And those of you who are high net worth passive investors 1:36 still using a 401k or self 1:39 directed IRA, you're doing it all wrong, man. I don't have any retirement accounts because I would rather pay taxes on it today when my income is less than in the future. Just very counterintuitive. People will say that you're going to make a lot less in the future, which as you know, we do things a little bit differently at simple passive cash flow, why I'd like to not use a timing plan or what we call requalified money is that I want to avoid the unify and you bit tax now the one way you can do this VA retirement con is called a QR p or qualified retirement plan you guys can check this out at simple passive cash flow calm slash qR P and also fill out the form there and you can get a free book sent your way to learn more about it and here is the show is 2:20 a story about a dude named Lane he moved to the mainland and bought one place to stay and then one day he went try to rent them out 2:28 and then he became one real investor. 2:33 It is February 2020. This is the monthly market update or I collect a bunch of news articles that I've sifted through. You guys can find the show notes on the sun at simple passive cash flow calm slash green 10 that's with a one zero green one zero. And I do this every month recapping what I've been up to at the end and some of the biggest news headlines that I've been seeing that I think in pack macro and some Micro markets out there. Again, all these will be posted on the YouTube channels if you guys are missing out on the audio or the video version, guys just checking on this on the audio version, you guys can check out more there too. So if you guys don't know who I am Lane Kawaoka, I still have my PE and you guys probably found me through the simple passive cash flow podcast. But if you guys haven't already joined our Facebook community online, probably find it by going through simple passive cash flow. We is what we call ourselves. So biggest news that happened this month case you didn't know it, but they signed the secure act which basically Rob millions of millions of dollars and millions of Americans without you guys even knowing. So let's break this down. What is the secure act here? So you remember when the government was kind of going bankrupt and they needed to come up with some new laws to not have that happen while this is the byproduct of it. And what it is, is a way of generating income for the government, which is typically not very good for us. Americans is In a better way, kind of the deal for us got worse. So here's a few bullet points it expanded the ability to run multiple employer plans for plan years beginning after December 31 2020. Had safe harbor rules apply for plan years beginning after December 31 2019. Long term part time workers permitted to participate in 401k plans which applies generally to plan years beginning after December 31 2023 consecutive 12 period the employer has at least 500 hours of service a repeal the maximum age from making IRA contributions which appeals to contributions made for taxable years beginning after December 31 2019. Increase the age for a minimum required minimum distributions which we call it rmds to 72 and applies to distributions required to be made after December 31 2019. With respect to individuals who attained age 70 and a half after such You guys are probably sleeping, you guys are probably just like any other Americans probably didn't pick up anything, nothing really popped up there. But here is there were some good things in there. Frankly, I don't really care because I don't have any retirement plans myself, I rather invest my money and take all the depreciation today and live off that today. So they changed the rule with rmds after death. So before they got rid of stretch IRAs, you guys can go all that you want. But basically what you were able to do is say your parents died and they had an IRA, they could give it to you and they would keep going stretch, but now they have this little nasty rule a year that basically requires all IRAs and qualified plans to be distributed within 10 years of death. So you got a limit. So if your parents die and you have this money, you got to spend it in 10 years, so the red flag should be going up. Everybody got screwed out there. The Senate version had a five year limit by the way, but it turned out to be a 10 year time horizon. There is a next Up to the 10 year rule for surviving spouse. So if your wife or your husband dies, they have the IRA that 10 year rule doesn't apply. Also exemptions children under the age of minority. So basically, if you're a kid and once you become an adult, I believe that 10 year old clients at that point, it doesn't apply if you're disabled chronically ill, and another individual who is not more than 10 years younger. So look at it from this direction the government wants to wants to harvest returns from us, the citizen, they want us to pay taxes they want. They want to get the money out of these silly retirement accounts that they promised everybody that they would have tax free, but at some point, they're going to tax these things. And the government's just sliding all this revenue up quicker. That's essentially what's happening here. So it's a big, big deal. This is just a good example of how these tax laws can change. Back in the clinton days they inherited tax with way less, it was like 600,000 today their inheritance taxes. Super, super high. You know, that's why you have kind of read government at this point. But if somebody else gets in there, these rules might change. And one of the biggest things in here is under the RM DS. The biggest exemption is a surviving spouse, they may just choose to get rid of that whole surviving spouse exemption, which means if your spouse passes away other than all that the heartache and the sorrow you're gonna have to pay taxes on their estate, which I think is unfair, but hey, that's like a one of the coolest byproducts of this is if you guys are doing the QR PS you guys can contribute up to when you file your taxes. So if you're like me and all the cool kids filing your taxes in September and October, you can contribute to your to your P for the previous year, all the way up to that point, just like how you're able to do for your Roth IRAs or IRAs, same kind of rules apply. So the secure act kind of open that up and then now you can have annuities and your retirement plans. So that kind of opens up a whole new door for those of you You guys, you know playing around with life insurance, Internet Banking concepts there. If anybody has any questions on this, feel free to type it into the chat, but I'm going to move on to kind of more rapid fire headline title is top multifamily markets in 2020, or the small metals and the suburbs. And they're seeing as a result of the slower economic growth apartment demand is projected at 240,000 units in 2020, which is approximately 20% less than that of 2019 estimated 300,000 units CBRE are he comments. rent control is sort of making a comeback. There was real laws passed in late 2019. Limiting and rent increases. If you read into it. It doesn't seem as bad I guess depending which side of the table you're standing on right politically, but sometimes they'll put in restriction where it needs to be based on some higher number that they're really never get, I think is sort of fair. But regardless, I mean, if you're investing in California, I don't know why you arguing that or even any other blue state for that matter probably not getting the rental value of the 1% rental value ratios for anything that's not a war zone property or C class property or worse. So I don't know why you would be doing that the U haul release their top 20 growth cities for 2019. And this is something I tracked closely This is the U haul is which used to move around with when you are broke and you didn't have any money. So it's it's a good indicator for what the blue collar workforce housing folks are doing when they have to move. A lot of the influx of people are in the Florida State Raleigh Durham, North Carolina is number one, Ron Rock, Texas is number for a lot of Florida ones in here, Cortland, Idaho Manhattan, Harrisburg, Pennsylvania. Actually, I don't know if this chart is incredibly useful. I mean, its top growth cities I'd rather see in the more regions and states that'd be how I would use the U haul Report. 9:58 I'm super excited about new program. I'm rolling That's going to reinvent scammy Real Estate education programs. So excited like Marie Kondo cleaning stuff up excited. Announcing my new mastermind program which consists of a closed members site with 27 packed weeks of content, plus bi weekly group video conference calls to us whatever half of the calls will be centered around granular investing tactics, and the other half will be holistic wealth building strategies that I have learned from the wealthy. 10:25 That's 25 plus hours of group coaching and masterminding and a secret Facebook group too. I know what you're thinking none another flippin Facebook group. Well, this one's going to be different, more intimate, exclusive, and no cheapskates or shady vendors in it. I've been coaching individual clients over the past couple years and I figured out what you guys need in a way to provide it in a cost effective way. learn more, go to simple passive cash flow.com backslash journey and join for the first cohort fills up, an introductory pricing goes away. 10:59 Update online conservation easements This is more for the accredited folks who make over two to $300,000 adjusted gross income per year but for everybody's entertainment what our land conservation easements so land conservation easements are a tricky way of getting a tax write off by designating a piece of land a land conservation easement, it no development can go there in the future by doing this, it becomes sort of a taxable donation. So just like how you take a bag of old clothes out to the Salvation Army, and you arbitrarily call that $500 but what you're doing here is you're taking a piece of land that has some nice environmental value to it like they usually put it around like chump will do this around his golf courses, and they'll designated a land conservation easement. But the tricky thing is that they'll like they have the value of land but then they'll mark up some kind of like fictitious development plan to be basically get an appraised value of when you are five to 10 times higher than what the land is actually worth. So what guys will do is though and invest or basically donate 50 grand and it goes on a taxable donation, but they get like a five to one pop on this stuff. So for every 50 grand they donate, they get 20 $50,000 of deductions, not credits, deductions, but for a guy and, you know, making more than $350,000 a year, that's a lot of money at 50 cents of every dollar of tax savings. The news is recently a lot of this has been getting a lot of unpopular attention, and it is kind of fishy. So investors are kind of in a holding pattern, how they're doing this. If they really need to get the tax deduction. What they're probably doing is just chancing it and doing it but they're not being overly aggressive and they're sticking to a boost ratio of five to one or less. So it's kind of one of those things where you don't want to be greedy, was it pigs get slaughtered hogs get fat so he basically buying charitable donations at 16 cents on $1 couple of charts markets with the largest rent growth year over year from November to November 2008 22,019 and the with the markets with the largest rent decrease I have these charts flip flop but the list you don't want to be on these are the losers number one Midland Odessa number two Honolulu number three bathroom rage before Scranton and number five, Lafayette Louisiana and the winners a top five markets are number one Pensacola which went up 8.3% Phoenix Arizona went up 7.9% number three Huntsville Alabama went up 7.1% for is Las Vegas 6.4% and number five, Portland, Maine which we went up 6.3% I'm aware of all these markets of Pensacola was kind of a weird one. I got surprised by that one someone told me it had to do with I guess there was like a hurricane there a while back ago and now this is part of the bounce back. Most markets will just kind of get keep pace with inflation, maybe two to 3% a year more of the hot markets will be five to 8%. So these are hot markets here. Amazon's 1.4 million square foot Florida project near Orlando is taken off. But don't be misled by another Amazon fulfillment center. This one's only going to have 500 new full time positions. And when you're looking at a tertiary market, for example, Huntsville, 500 jobs, it's nice right but not that much. Usually a bigger announcement from a major employer might be more like on the 1000 magnitude or higher one the few thousand jobs that's a big news but I think you see a lot of these new sources for real estate they'll say a search an employer, but at the end of the day, you really have to see what kind of what's the numbers how many people are going there. And also what is the multiplier effect for like a Boeing or like a car manufacturing on you have a lot of the ancillary other providers like bait build other pieces of the car the airplane. I don't know how it is with these Amazon fulfillment centers maybe if somebody sells snacks at the 711 or something like that but I don't think you have a big multiplier on on that but I could be wrong realtor.com came out with their 2020 housing forecast and they are take it for what it's worth right a bunch of realtors then again they do like to spend money on a lot of things like probably a lot of number crunchers and data peoples but they're saying mortgage rates by the end of the year will be going up a little bit to 3.8% average median home price will go up almost 1% existing home sales will go down 1.8% and I believe that talking more about volume than pricing and then homeownership rate 64.6% and single family home starts which are new builds will be going up to 6%. And another site but I found from our [email protected] are is that millennials make up over 46% of the mortgage rates. donations up from 43% last year according to realtor.com. So maybe the millennials are finally moving out of mom and dad's basement and getting into the game. It's about time we have some more news on that later. Another news headline says us monthly volume and pricing trends by sector. This is post setup at simple passive cash flow calm slash investor letter, and then you can drill into the February report. From there Howard Hughes spends bottom half a billion dollars in Houston and his portfolio includes the former headquarters of a narco petroleum and chemical Philips plus a warehouse and developable land. A Seattle office report says that in Seattle, there's strong market dynamics continue to support the metros rapid expansion with a saturated tech sector extending and shaping the current real estate landscape. So yeah, Seattle has a lot of tech jobs, the big white collar workforce apparently they Working in offices, right? Go figure that there's a little chart there showing the growth of that more of that office space employment. So here was that us monthly volume and pricing trends by sector. So you have the office, industrial retail and apartment space shown. A lot of you guys are into technical analysis. I don't know if you guys are any good at it. I was never but you have the price growth, which is the line but then you have the volume bars underneath it. And usually when you have a lot of volume and you have movement, then that's a positive signal that you can really look at as a trend. And when you have movement on low volume, that's typically a maybe a false positive trend, a little map here of the largest employer in every state. Some of the more popular ones where our community is mostly based out of Washington is bowling. Oregon is Providence health. California is the University of California. That's a little weird, Nevada. MGM resorts, we don't care too much about those other states. Hawaii is altered industrial and never heard of them. But pretty much everywhere south east of Texas, Oklahoma, Kansas, Iowa, Illinois, Indiana, Ohio, Kentucky, North Carolina. I think that's Virginia. Everything south of there is Walmart or the biggest employer in the state. So a little bit of trivia there. So I was reading some articles on newer trends in apartments and some of this was more on the E Class side. Coffee calls the A plus side I mean, these these are like the 1500 dollar to 20 $500 one bedroom apartments. So they're saying like, what are the new amenities that are going in and all of this has nothing to do with stuff I buy, which is the more workforce housing It is interesting to see what is going in there. So they're saying like the peloton bikes, the ones that had the little computer screen that apparently people are going crazy over recently, they have gyms in the apartments they want the tenants to feel special. I don't know what that means but more like white glove service. I know a lot of people have kind of been taking my advice and selling your primary residence because it doesn't make you any money invest the money instead and a lot of people are really liking the apartment life. You got the pool, you got kids, you don't have to worry about cleaning anything. They like the pool, you got a gym, there's a pool, and it's a lot cheaper to don't believe that nonsense of renting is just throwing money down the drain. I mean, whoever said that's probably stuck at the day job. You don't want to listen to that guy. impact of the next recession on the multifamily market is the next on topic. This came from the US Census Bureau data. So in the green line, it's showing that the vacancy rate, which typically is between six and 11%, obviously after the recession kind of spiked a little bit but over 10% but slowly but surely the past 10 years it's been coming down to almost all time lows for About 7% or so. And homeowner vacancy is usually about 1% to 3%. I pulled a chart of the stock market here. I honestly don't really follow the stock market stresses me out. But from time to time I like to know what's happened just so I can kind of poke fun at people who like trade stocks and options and think they know what they're doing. Yeah, I mean, pretty much at all time highs where we were in year 2000. Here market US market cap divided by GDP is what I'm looking at. So I don't know if you guys have bosses that shop at Macy's but they might be really sad because nearly 30 of the retailers 641 locations wash clothes following a decline in comparable sales through the holiday season. And we've been following this trend the last few months ago and listen to pass investor letters to get was forever 21. I can't think of the other ones but a lot of these storefronts We're kind of going out of business. It's the whole click vs brick battle get it click on your Amazon versus anyway another article that I put up is the retail property taxes is likely to rise and Sapir one announced that it will close up to 450 stores the electronic store Bose A lot of you guys like to wear and be anti social as you go out in public will close the remaining 119 retail stores but it's not all doom and gloom because if you shop at the discount retailer Five Below they will be opening 180 stores actually bought that place was like a frozen yogurt place at one time and then I went in there and I found that otherwise so Ponzi scheme alert $700 million from the income store. Now we did a podcast maybe about a couple months ago about buying websites sort of like how you buy a distressed house you buy distressed website that is suitable for me you make it a little bit better. So the income store I understand that This this model, right is is sort of like a trading you could you could buy and sell websites on there. I don't know exactly what they were doing. But apparently they took everybody's money and this kind of story came out, which is kind of a shame. You know, I'm all for getting these marketplaces open so entrepreneurs can get involved, but it's times like this where like, it makes everybody gun shy where you get one back after that kind of spoil it for everyone. We were talking a little bit about the millennials possibly moving on and finally buying homes. So there was a study that came out by the Deutsche Bank research that the median age of homebuyers is now 47 years old. And that went up from 31 to 47. And there's a little graph there. That shows, you know, way back when in 1980, the median home buyer age was 30 years old, and it's just been going up year after year after year. A lot more since the financial crisis. I mean, I guess people are having kids lot later. Another graph millennial share of the US housing market small and shrinking. So this graph is showing the millennial home ownership, slum share of American real estate home by each generation by medium cohort age. So showing how the baby boomers are they love that homeownership stuff. And then the Generation X folks, they're kind of hitting their Apex it looks like right now and then the millennials are kind of behind some new trends in apartments or in housing in general are bigger showers so you can cold shower, I don't know maybe have two people in there. I don't know what that's all about. But it was interesting. Like we have a more of a nicer apartment more of a B plus asset. And what we're having to do there is removed a lot of the bathtubs because people just don't use it. They'd rather have a more fancy or tiled shower than have a bathtub. They'll pay more for that. So I don't know if they're gonna fit two or more people in there but the showers a little bit more popular more modern these days maybe that has to do with people just being too busy. They just got to go in and out. They can't put rose petals around their bathtub and drink wine around that time. I was just joking there. Some of you guys need to laugh a little bit later in the day here. And then multi generational housing is becoming more popular and Hilton's launching this new brand called temple. So it's supposed to cater towards ambitious modern traveler, whatever that means you'll have iPhones or something like that for strategies for 2020 success in class, the multifamily space I've kind of moved on from classy properties, they're really difficult they never pay I think it's just better to be more in a B class type of asset unless you have a really really severely under market and you're going to do heavy value add like more than five six grand per unit rehab per unit. But this article that there's four strategies that they cited, first one was new markets. So looking markets that people aren't looking in number two was employing tech. And I really understand this whole tech angle. They're saying like, Oh, you have to use Alexa and all you know the little things, all that Amazon stuff, you don't put that in class B and C properties that'll grow legs and you'll you won't find it anymore. But maybe they're talking more about the smart thermostats. It didn't say 10 employees because in these type of areas, your employees are very important the leasing agent you pay them on salary in apartments and then regulations because like all the new rental control laws has been upon all that stuff. Very important recently went to a mastermind and a family office gentleman came in talk to us about a few trends that are happening said that in the year 2025, there'll be more people turning 65 then babies born so that means there's going to be a lot more older people soon but don't go to simple passive cash flow calm slash elf and start to learn how to make your own assisted living facility like A lot of you guys will do that is a huge, huge undertaking and something I tried to do and I just backpedaled and plus the silver wave isn't there yet, like a lot of the baby boomers are finally retiring, it's going to be another decade or two until they really start to use that assisted living facilities. Another big trend that they cited was the race for 5g and I don't know how to pronounce right, like who way but there's this big, big thing versus them, the United States where they don't want to use their technology because they think they're going to steal from us. I don't know if that's true if they really gonna steal from us. But you know, being from America probably isn't good if they win that race. And it's sort of the modern day race to the moon. It's riddled with backdoors. Lane two, don't trust it. Don't trust it. All right. Good thing. We're still getting the G here in Hawaii. So it'll be a while. Another thing that I found interesting from the presentation was, I think in the year 2026, there's going to be more electric cars than gas cars. That's sort of the inflection point. You know, a lot of these guys are family office money. And if you've never heard of these terms private equity family office and venture capital private equity is kind of the syndications people who are a million dollar to $5 million network. We're family offices are more on the scale of 50 to 100 plus million dollars, big money housing market falling short by nearly 4 million homes as demand grows. So this is just more of a general article. That's just reiterating. Look, guys, the country needs housing, and especially housing for folks who don't make $100,000 or more. And we're continuing to build new product, but the pace of population growth is increasing, and it's not keeping up with the pace with demand. And that's why I think why a lot of us fall back to real estate because it's sort of a commodity and you'll always need it. New podcasts and articles that I put together in the month of January 1 was the financial freedom for dentist so I have a lot of dentists in the mastermind program like almost seven or nine of them I realized so I got a bunch of their thoughts together and I remove the identities and zip codes and social security numbers and I put some of the the thoughts there and might be more of a dentist thing but it might also apply if you're a doctor or any other high paid professional to another article I wrote was the private money lending top mistakes I put it at simple passive cash flow calm slash lend mistakes you can also check out the dentist article at simple passive cash flow calm slash dentists we had an accredited investor Come on the podcast and do a coaching call with me appreciate when you guys do that i a lot of you guys really like to watch vicariously you know for high paid professionals is really many different scenarios that I have a lot of these coaching calls in the YouTube channel. I have them in index and a section if you guys want to check out some of the past ones. Yeah, check those out. And see if they help you but just know that not all situations are like and the biggest part of this at the end of the day is deal flow What are you going to do right like you read that Rich Dad Poor Dad book and you're like All right, we're going to take over the world but what are you going to do? You don't know right? He doesn't say anything because that kind of changes all the time. Who do you work with December 2019 they changed some borrowing standards. Some of you guys are still buying those rental properties or turnkey rentals there was some changes and how they calculate think that to income you guys can check out there all these links are again on simple passive cash flow calm slash investor letter number five here habits you guys miss the goals webinar. I believe the webinar was simple passive cash flow, calm 2020 dash launch. Do you guys want to go and watch that webinar again, but I made a little sub article on habits and I had Richard Wilson on podcast 184. He is a family office guy who manages and millionaire families. You guys can check that Went out at simple passive cash flow calm slash family office catching up on that chat box here one person mentioned or they're asking my opinion on the previous retail malls at least metropolitan areas possibly converting to food halls areas for experience halls I'm looking into like commercial commercial centers, these are the more ones with your haircut, place your food place grocery store, because I think you're always going to have to go to those and that's why Amazon had the insight to buy whole foods of brick and mortar at the end of the day. I mean, still the minority of transactions are done online. I think the problem is the more mulish you know, your cube malls not the big boxes like the Best Buy and those type of areas but going to the mall, that experiences going away. And yeah, I think you point out a good thing here like food halls, eateries and experience observe definitely coming online, right? We're like the old 90s retail mall that's obviously kept dying. But now people want more experiences or something family friendly or just a variety of food options. It's kind of like a one stop place. I guess it just kind of reinvents the idea of what going to the mall is. I mean, I saw I was just wasting all the time couple weeks ago during the holidays watching this like these guys went into an abandoned mall and YouTube probably find them on Dandan mall videos but yeah, I mean people want more funding hop golf will have that stuff the whole Have you ever been to Vegas guys like to do that? Well, I know you guys are thinking something else at this point. But like the construction equipment, like you have construction equipment, you just, you know move dirt around that kind of stuff or like escape rooms I like escape 31:38 from things like drive a tank or 31:40 you know, various experiences coming unique. The can't get a lot of places, right? I know that they call them D boxing to where they take a big space and they'll chop it up into these little food halls too. That's another term. I'm more of a spectator with this stuff. I kind of see it. I kind of watch it but I think as an investor, I try and stick to Certain things that I know, but eventually I think at some point multifamily apartments will just get so saturated by people who think that they can do it. Because I guess it's kind of true, you can kind of just pick a property manager and you can get lucky. And it's easy. And that's why a lot of people do it. And that's why a lot of the dumb money goes there. So eventually things will correct. And apartments won't be as good cap rates as other things. But I'm going to move into more of what I've been doing other than spelling things wrong, like I normally do. But these are the six needs that Tony Robbins always talks about. So this is how I always break it up. We're meeting growth, trying to get to know my investors better. I probably had about three four calls with investors every day for the past month. I think everybody wants to get on their 2020 goals and book a call, but we haven't had a chance to connect trying to connect with everybody at least once. So go ahead and do that. And then I'm also planning the tour's been high gain and do a luau in Hawaii and you guys can check that out symbol passes. Cash Flow calm slash week three, that's February 714. To 17 way I'm trying to contribute back to others, you know, and those calls, I always try and make it a point to give some kind of referral or critical feedback to anybody because I didn't really have that when I was building my portfolio. And I think a lot of people don't realize like, I'm gonna bought my first rental in 2009. And I bought my next one in 2011, I think or 12. But for like about five years, it was like watching grass grow. And I wish somebody would have told me don't buy 11 rental properties. They're a pain in the butt. I wish somebody would have told me that number three significance. So I've kind of been turned on to this whole family office concept where you kind of work with a smaller number of clients. So I've been kind of focusing on maybe turning into a family office where I work with people who are one to $10 million net worth folks where I'm sort of the consultant I'm in the middle of the wheel, doing the wealth planning, estate planning, wealth management, tax planning, trust and Corporate Services, family, governments. And then you know, what is the meaning behind your existence like a charity philanthropy, you can't just get a tax guy right on your team because the tax guy doesn't talk to the deal guy who doesn't talk to the wealth management guy, right? It's good that you get specialists on your team and you should, but there's a reason why there are specialists, they don't have the big picture away. I'm getting uncertainty. And the reason why I put this there and I read all I'm really like certainty, and I know all we all do, we all like to stay in our comfort zone. But I'm going to try do the first multi day event in Hawaii. I've been trying to plan it this past week, which is getting to be pretty close up to the wire. That's just how I do things, but it's gonna be cool. It's gonna be awesome. It's gonna a lot of fun. I think we got probably about over 30 people coming. So it should be good. How am I getting certainty in my life? So we had a gentleman Microsoft come to our mastermind group to kind of talk about how do you grade different investments and he kind of says great idea of budget 1234 of investment grade versus speculative grade investments, and assuming that the performers are using good assumptions and not just bogus yeah you can kind of break it down what kind of investment philosophy do you have? Are you just want to go balls to the wall and just do a high growth or you just want to do cash flow stuff and should you do that if your net worth is under half a million dollars so you got to take on some risk right if your goals are bigger number six love and connection so I been consciously trying to book four trips a year now they don't have a day job it's hard because I go traveling all the time to check out deals and but I encourage everybody to plan vacations. I know that sounds really silly but most people don't do it because if not you can just be Kobe Bryant and just disappear off the face of the ER was all for nothing. And what some of the resistance or distractions that I've been facing that I'm sure everybody else's the heck it's February right guys, you're one fourth way through the year and you had all these goals, you probably forgot the damn things, you know. Just remember you're gonna be like Janet is March going to be like January other than that no exceptions living a good life things are good some junk is buying your bought this like doorstop it's kind of heavy it's a Boolean to you guys can get the links on the website and I've been like trying to buy a lot of things that are automated. So I have these crazy automation with Alexa and trying to automate everything but I found these super simple you just press the button based on how long you want it to turn on. So the coffee pot I'll just turn it on for an hour so doesn't go on. And I've been reading this book willpower doesn't work by Benjamin Hardy, so heavier ears if you like to read books, but here it is in one minute. As human beings we are terrible at executing we need to give ourselves every single chance that we can get to hit success and a lot of that is building systems around making us successful. So what time you're waking up What do you how do you set the table for your day The next day, I just like reading the book and I would listen to subconsciously and they would mention certain examples and it would like trigger different things for me to change or new systems and put in place I can't really think of any right now. I would recommend it it's a pretty quick read no easter egg for you guys they know happy things. Here's the legal disclaimer And that brings us to the end of the February report. That's it. We'll talk to you guys next time. 37:26 This website offers very general information concerning real estate for investment purposes every investor situation is unique always seek the services of licensed third party appraisers inspectors to verify the value and condition of any property you intend to purchase. 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