00:00:00
and today they're going to crash it's
00:00:02
going to take people down and now it's
00:00:04
here Office Buildings will soon be
00:00:06
homeless
00:00:07
shelters oh I took your advice I bought
00:00:09
a house I'm going to make some money I
00:00:11
said at the top of the freaking Market
00:00:14
don't listen to your stupid real estate
00:00:16
agent who tells you that oh the price of
00:00:18
real estate always goes up because it
00:00:20
doesn't when I hear people coming up to
00:00:23
me oh the price of real estate going up
00:00:25
and they're jumping into buy real estate
00:00:27
right now I don't say anything and the
00:00:29
reason is is that people are just
00:00:30
getting into the hype all this credit
00:00:33
it's actually debt credit and debt
00:00:35
pumping into its economy trying to
00:00:38
prevent this crash and if inflation
00:00:40
keeps going I get richer I am extremely
00:00:44
happy and I think Biden I'm not
00:00:45
Republican or Democrat he intentionally
00:00:48
wants inflation that's why he shut down
00:00:50
the XL Pipeline that's why he stopped
00:00:52
drilling to get oil prices up when oil
00:00:55
prices go up here all these truckers in
00:00:56
Ottawa screaming they can't get food to
00:00:59
the table and all this prices of food go
00:01:01
up inflation keeps going up regardless
00:01:04
of what's going on just because the
00:01:06
policies shutting down the EXL pipeline
00:01:08
stopping drilling of oil so the price of
00:01:11
oil goes up I watch all this and
00:01:13
meanwhile these people are jumping out
00:01:15
and buying real estate like there's no
00:01:16
tomorrow and I can't even talk to them
00:01:18
we're on a turning point But please
00:01:21
understand ladies and gentlemen
00:01:22
inflation makes the rich extremely rich
00:01:26
the middle class will pay higher taxes
00:01:29
and the poor will get poor because
00:01:31
they're the ones who can't afford that
00:01:33
$25 wagu steak that my friends are
00:01:36
selling so that's why it's one of the
00:01:39
biggest critical turning points and
00:01:40
that's why I don't know how many years
00:01:42
ago when I walked past Richard book and
00:01:45
borders and it's the dollar crisis if
00:01:48
you understand what's going on the
00:01:51
problem is the US dollar cuz in 1944 it
00:01:56
stopped being money it just became the
00:01:58
reserve currency of the world and then
00:01:59
71 Nixon took the dollar off the gold
00:02:02
standard we're being set up right now
00:02:05
one of the biggest changes in world
00:02:07
history and so oh I bought a property
00:02:10
what do you think I I can't even talk to
00:02:11
him because this to me is 2007 all over
00:02:16
again and then the repo Market collapsed
00:02:19
2008 the market collapsed and back in
00:02:22
2008 this guy named bakia I believe it
00:02:24
was could print money and this is where
00:02:27
we are today you've got to wake up
00:02:29
ladies and gentlemen cuz otherwise
00:02:31
you're just this stupid little hog just
00:02:35
driving to slaughter so America is one
00:02:38
of the we're at not just America one of
00:02:40
the biggest turning points in world
00:02:42
history and like there was Rockefeller
00:02:44
one of those guys said is when Sho shine
00:02:47
boys are giving you stock chips time to
00:02:50
get out and I was in Safeway the other
00:02:52
night and these people are coming up me
00:02:53
I did what you said I did what you said
00:02:55
I bought a rental property I bought a
00:02:57
rental property and I came back back
00:03:00
home and I said to Kim time to sell it
00:03:02
is so dangerous but you can't talk
00:03:04
somebody out of it because they drank
00:03:05
the Kool-Aid so that's why I'm really
00:03:08
honored to have a dear friend Richard
00:03:09
Duncan been friends for years he helped
00:03:12
Kim and I time the last turn back in
00:03:15
2008 we made fortunes because what
00:03:17
everybody was selling we were buying and
00:03:19
that time has come again and so that's
00:03:21
why please listen to what Richard Duncan
00:03:23
has to say a few months ago the Fed was
00:03:26
still creating $120 billion every month
00:03:29
month and then in November they said
00:03:31
they were going to start tapering that
00:03:33
reducing that by $15 billion a month but
00:03:36
the very next month in December they
00:03:38
said they're going to double that and
00:03:40
reduce it by $30 billion a month and
00:03:43
that meant that it's going to come to a
00:03:44
complete stop the money printing is
00:03:46
going to end totally early next month no
00:03:49
more printing next month no more
00:03:51
printing and then the real blow came
00:03:54
they started letting it be known that
00:03:56
they were planning to do the opposite is
00:03:58
it a printing a lot of money through
00:03:59
quantitative easing they're going to
00:04:01
start destroying a lot of money through
00:04:04
quantitative tightening now when they
00:04:06
print money that pushes asset prices up
00:04:09
when they destroy money that tends to
00:04:11
make asset prices fall and the stock
00:04:14
market how do they destroy money well
00:04:16
they destroy money because when they
00:04:18
print money they buy bonds with it money
00:04:21
and normally when the Bonds mature they
00:04:23
just roll them over and buy a similar
00:04:26
kind of bond but they destroy money by
00:04:29
by essentially selling those bonds and
00:04:32
when the FED what happens is the Bonds
00:04:34
mature and the FED doesn't roll them
00:04:37
over someone else has to buy the bond so
00:04:40
the FED gets its money back and when the
00:04:42
FED gets money back that money just
00:04:44
evaporates the FED doesn't need to keep
00:04:46
any money because it can make all the
00:04:48
money it wants anytime it wants to so
00:04:50
it's a bit complicated to explain in
00:04:52
just a few sentences but the bottom line
00:04:54
is it's the opposite of quantitative
00:04:56
easing quantitative tightening destroys
00:04:58
money and that tends to make stock
00:05:00
prices fall and we're about to get a
00:05:02
heavy dose of quantitative tightening
00:05:04
coming into effect within the next
00:05:06
couple of months and it's going to make
00:05:07
it harder and harder for Mom and Pop to
00:05:09
go buy that house or expect they're
00:05:11
going to flip and isn't that going to
00:05:12
drive inflation through the roof well
00:05:15
they think the opposite when they
00:05:17
instead of printing money that's the
00:05:19
thing that normally causes inflation it
00:05:21
stimulates the economy it creates growth
00:05:23
but when they destroy the money that
00:05:26
tends to make asset prices fall like
00:05:28
stocks and property so people are less
00:05:30
Rich so they spend less money and if
00:05:33
they spend less money then prices tend
00:05:35
to fall so that's why they're doing this
00:05:37
they're worried now that the inflation
00:05:39
rate has moved up to 7% and they're
00:05:41
taking steps to bring it back down but
00:05:44
what they may find is this could cause a
00:05:45
significant stock market crash and some
00:05:47
of the high flying stocks got hit a
00:05:49
whole lot harder than that look at meow
00:05:51
or what Facebook whatever those else I
00:05:53
call now they tanked destroying $230
00:05:56
billion of American Wealth there goes
00:05:59
your for 401K sweethearts and that's why
00:06:02
I spoke out against 401ks forever you
00:06:05
know and all you guys are going you're
00:06:06
planning on renting your property people
00:06:08
won't be able to afford the rents that's
00:06:10
what it means well so total credit is
00:06:13
equal to total debt because one person's
00:06:16
loan is another person's debt right so
00:06:19
the two have to equal each other so one
00:06:21
way of thinking about this easiest way
00:06:24
to think about it is all the debt in the
00:06:26
country government debt household sector
00:06:28
debt corporate debt financial sector
00:06:31
debt all the debt it first went through
00:06:33
$1 trillion in
00:06:35
1964 when I was 4 years old now it's $90
00:06:40
trillion from 1 trillion to 90 trillion
00:06:44
during my lifetime and this credit
00:06:47
explosion which would not have been
00:06:49
possible if we had remained on a gold
00:06:51
system where dollars were backed by gold
00:06:54
but this explosion of credit has
00:06:55
transformed the world wait Richard hang
00:06:57
on hang on you're speaking like an
00:06:59
econom again credit is what the fed and
00:07:02
the treasury allow people to get to the
00:07:04
big Banks like Wells Fargo and all that
00:07:06
and that credit then allows people the
00:07:08
banks to send out debt so then
00:07:11
corporations and individuals come in and
00:07:13
they take credit and they turn it into
00:07:15
debt but the same thing so by creating
00:07:18
credit debt could explode am I correct
00:07:20
on that or incorrect no I think you put
00:07:23
that exactly right yeah credit is not a
00:07:24
word people use they use credit card but
00:07:27
they think about debt their household
00:07:29
debt so that's that's what I'm saying we
00:07:30
don't teach Economist you know we teach
00:07:32
everyday mom and pop who's trying to
00:07:34
speculate on their 401k or their house
00:07:38
the reason I tend to use credit is
00:07:40
because I say this system that we have
00:07:41
now is not capitalism it's creditis Yes
00:07:45
creditis sounds better than deism I try
00:07:48
that crtism
00:07:50
works capitalism to
00:07:52
creditis growth drives economic growth
00:07:55
now we're dependent on it yeah what
00:07:57
Richard is saying is the way America
00:07:59
grew was because we produce products now
00:08:02
we don't produce products they create
00:08:04
credit or debt am I correct on that one
00:08:07
that's right instead of our economy
00:08:09
being driven by investment and savings
00:08:11
as it used to be it's now driven by
00:08:14
credit creation and consumption and more
00:08:16
credit creation and consumption and
00:08:18
that's been great the problem is it
00:08:20
requires credit growth to survive if
00:08:23
credit contracts we have a depression
00:08:25
and that has made us dependent now on
00:08:28
government borrowing and government
00:08:29
spending to keep us out of depression so
00:08:32
if you're going to buy you know how mean
00:08:34
I know how many people oh I took your
00:08:36
advice I bought a house I'm going to
00:08:38
make some money I said at the top of the
00:08:40
freaking market and what about all these
00:08:43
guys in this 401 case 401ks came into
00:08:46
existence in 1974 it was called aressa
00:08:50
and I to speak out against 401ks because
00:08:53
I look get censored with this one but
00:08:55
401K is like a condom it gives you a
00:08:58
false sense of security while you're
00:09:00
being screwed do you know what I mean
00:09:02
and if this Market crashes when they
00:09:03
raise these interest rates if they do
00:09:06
you know your 41k turns to
00:09:08
201k just as you get ready to retire all
00:09:11
you old guys like me hear what I'm
00:09:13
saying if they raise interest risk CU
00:09:15
they're going to stop inflation your
00:09:17
401k may be toast I'm not saying it's
00:09:20
going to happen or if you're a
00:09:22
millennial and you got Mom and Dad who
00:09:24
are living in la la land with their two
00:09:26
401ks you might be in serious trouble
00:09:30
a very important subject and the subject
00:09:32
is real estate basically it's important
00:09:35
simply because it's real estate parts of
00:09:36
it are serious serious trouble right now
00:09:38
but when things are bad also as good
00:09:40
opportunities are things how many places
00:09:42
of the world have we gone to it's been
00:09:44
all over the place yeah we travel the
00:09:45
world we're talking about real estate
00:09:47
because number one real estate uses debt
00:09:49
and you may or may not know this but the
00:09:51
US dollar is debt and there words money
00:09:53
cannot exist unless somebody borrows it
00:09:56
and so all these guys our friend Dave
00:09:58
Ramsey this is live debt free I go you
00:10:00
got to be crazy but I'm going back Dave
00:10:03
up if you don't know how to handle debt
00:10:05
definitely live debt free right Kenny
00:10:07
yes that's right I agree if you don't
00:10:08
know what money is and how to use it
00:10:10
then he's right on I met Dave a
00:10:13
Resturant up the street here and uh he's
00:10:15
a great guy and his advice for most
00:10:17
people is cut up your credit cards get
00:10:19
out of debt and all this but Kenny
00:10:20
what's happening in the real estate
00:10:22
market today's interest rates go up and
00:10:24
all this stuff I just heard Richard
00:10:25
fiser the Dallas fed chairman he said a
00:10:28
unit that could be wrong the numers
00:10:30
3,500 units one apartment complex went
00:10:33
down well that's a lot prop and black
00:10:35
Zone defaulted on debt in New York on a
00:10:37
set of buildings I call it we're in the
00:10:39
first inning and I'm afraid it's going
00:10:40
to get worse you don't have to be afraid
00:10:42
about that it's happening already it's
00:10:44
definitely happening the issue this year
00:10:46
and next year is going to be what we
00:10:47
call maturing debt debt that's maturing
00:10:50
another thing to understand there
00:10:51
different types of real estate some of
00:10:53
the worst properties are The Darlings
00:10:55
called Office Buildings here with oh I'm
00:10:56
going to own an office building in
00:10:58
Manhattan and all this and today they're
00:11:00
going to crash it's going to take people
00:11:02
down I just read an article today Robert
00:11:04
that the cities and counties are
00:11:06
actually throwing money at developers to
00:11:07
convert Office Buildings into Apartments
00:11:09
they already know that those buildings
00:11:12
those Office Buildings are going to be
00:11:13
eyes soures at some point I was a
00:11:15
student of Dr R bck Min Fuller they call
00:11:17
him the friendly genius you know John
00:11:19
Denver call him the grandfather the
00:11:20
future the futurist and years and years
00:11:22
ago in the 80s I heard him say Office
00:11:24
Buildings will someday be homes for
00:11:26
homeless people I went what you know
00:11:28
that was sacrilegious for me back then
00:11:30
and now it's here that's quite a
00:11:31
prediction too that was what how long
00:11:33
ago was that 50 years 50 years ago I'm
00:11:35
listening to this guys's Office
00:11:36
Buildings will soon be homeless shelters
00:11:39
and you look at the number of homeless
00:11:40
is exploding I don't want to be an owner
00:11:42
of a homeless shelter as you know it's
00:11:44
either going to be the worst of times
00:11:45
for Real Estate or the best of times
00:11:47
right the reason living debt-free makes
00:11:49
no sense simply because the fiat
00:11:51
currency called the US dollar the Yen
00:11:53
the pay of the Euro they're debt they're
00:11:56
instruments of debt like a bond is
00:11:58
instrument of debt debt and that's why d
00:12:00
r say living debt free it kind of goes
00:12:02
Contra indicative how can that be if
00:12:04
it's debt but the good thing about debt
00:12:06
is it's debt and on top of that the more
00:12:09
debt you use the less tax you pay it's
00:12:11
not obvious to a lot of people just do
00:12:12
what the fed's doing yeah it's the
00:12:14
strangest markets we're in serious
00:12:16
serious world econom is in serious
00:12:17
trouble but it's also a great
00:12:19
opportunity time we use debt all the
00:12:21
time 100% debt and it tell you it is a
00:12:23
game of debt we're borrowing it less
00:12:26
than inflation so that's when when we
00:12:27
talk about money that's how you do it
00:12:29
another good thing too is the amers are
00:12:32
now floating to the surface as they say
00:12:33
I feel terrible for people because
00:12:35
people come up to me and they go oh I
00:12:37
took your advice I bought real estate
00:12:38
I'm going holy moly real estate's not
00:12:41
like a stock you don't just buy real EST
00:12:43
like you buy Apple difference is if you
00:12:44
buy Apple stock and let's say it's 10
00:12:46
bucks and it goes down to six you can
00:12:48
get out of it really quickly but with
00:12:50
real estate it's not that liquid and
00:12:52
that's why you've got to be smarter and
00:12:53
why I cringe when people say oh I just
00:12:55
jumped into real estate oh my God that's
00:12:57
like jumping off a moving trainer or
00:12:59
something you know so much is going on
00:13:00
in real estate what happens is guys like
00:13:03
you or I would say anybody over 50 has
00:13:06
seen it has seen it they've seen the
00:13:08
Cycles they've felt the pain if they
00:13:10
made it but a lot of people are pretty
00:13:12
delusional about and it has been for
00:13:14
years next year is going to be better
00:13:15
than last year it's just not the case no
00:13:17
what happened since 2008 they kept
00:13:19
lowering interest rates and the whole
00:13:21
world economy went into a bubble correct
00:13:23
was a real estate bubble a bond bubble
00:13:25
and a stock bubble and so everything got
00:13:27
inflated but as it started to lower
00:13:29
interest rates in 2020 or high raise
00:13:30
interest rates in 2020 a lot of those
00:13:32
bubbles are bursting so it's good news
00:13:34
and bad news and all of us are old guys
00:13:37
the people I caution that you have a
00:13:38
financial planner that's a 35 let's say
00:13:41
that financial planner is only known a
00:13:42
boom Market you know because as a
00:13:44
dropped interest rates the market kept
00:13:45
going up so I meet some of the young
00:13:47
women and men they oh yeah yeah yeah all
00:13:49
they know is a good Market but the
00:13:51
biggest opportunities float when the
00:13:53
body start floating you know the body
00:13:55
started floating to the surface you go
00:13:56
oh my God I can't believe that came up
00:13:58
oh my God look at that you there was so
00:14:00
many deals coming up when the fish start
00:14:03
to float and it goes to the saying your
00:14:05
profit is made when you buy not when you
00:14:08
sell so the cash flow versus Capital
00:14:10
gauge strategy that you laid out in
00:14:11
Bridge Tad ported this is the time where
00:14:14
you're going to start to realize that
00:14:15
philosophy that's been our philosophy
00:14:17
all along everything I have cash flows
00:14:20
and that's just not the case for a lot
00:14:22
of people a lot of people bought big big
00:14:24
assets on a capital gain strategy and
00:14:26
guess what that gain is not there so
00:14:28
capital gain strategies we call it
00:14:30
flipping when I first met Kenny 20
00:14:31
something years ago everybody listen to
00:14:33
flipping you know show flip this house
00:14:35
and all this so you buy a property for
00:14:37
let's say 10,000 it goes up to 15,000
00:14:40
you flip it net five but you pay capital
00:14:42
gains and we don't do that I'm chuckling
00:14:44
because the world's full of real estate
00:14:46
gurus if you're a housewife or a house
00:14:48
husband and you bought two real estate
00:14:50
properties you're now Donald Trump as
00:14:52
far as you're concerned right but
00:14:54
there's some of these charlatans on
00:14:56
YouTube I've got into arguments with
00:14:57
some of them this guy says the way you
00:14:59
get rich just go out and buy a 200 unit
00:15:01
apartment house and I said you don't
00:15:03
start with a 200 unit apartment house
00:15:05
that's suicide but that's what he was
00:15:06
selling and I know the trick is called a
00:15:08
bait and switch so you go there he shows
00:15:10
you how you twoo can buy a 200 unit
00:15:12
apartment house for like nothing down
00:15:14
and all this other stuff but you're on
00:15:15
the hook for millions and then you go
00:15:17
roaring off and try to do it his real
00:15:19
gimmick is to sell you what he's selling
00:15:21
oh you can't do it I can do it for you
00:15:23
yes exactly yeah it's frightening times
00:15:25
but it's also exciting times always
00:15:27
remember your profit is made when you
00:15:29
buy and one of the things I really get
00:15:31
kind of sad about people you know when
00:15:33
Real Estate started going up everybody
00:15:34
started jumping in and that's not when
00:15:36
you jump in not when it's going up you
00:15:38
want to ride that roller coaster down
00:15:39
and then buy when there's a line out the
00:15:42
door of people trying to buy the asset
00:15:44
that means it's over as many of you know
00:15:46
the economy is on shaky grounds you know
00:15:48
banks are failing all over the place and
00:15:50
the question is what do you do about it
00:15:52
and I get really really excited because
00:15:54
your profits are made when you buy and
00:15:56
as prices of real estate crash it's
00:15:59
actually the best time to be a buyer but
00:16:01
as I say it again I meet people who are
00:16:03
amateurs of this business they weigh you
00:16:05
know the price on that 100,000 went up
00:16:07
200,000 oh we got buyers lined up for
00:16:09
the property and that's when people jump
00:16:10
in you should be getting out other thing
00:16:12
too is that people say I don't have
00:16:14
money and all this when the real estate
00:16:16
market crashed it's crashed several
00:16:17
times and I had no money and I saw I
00:16:20
trying to put a deal together with
00:16:21
interest rates worth 12% and today's
00:16:23
what what percent are they today yeah
00:16:25
it's more like six 5 to six and people
00:16:27
come oh you know I would have killed
00:16:29
back then for a 5 to 6% interest rate
00:16:31
that's always a good time but you have
00:16:33
to know what you're doing with real
00:16:34
estate my said always said only lazy
00:16:36
people use their own money I know gosh
00:16:38
that was such a great statement it's
00:16:40
true yeah people don't realize like when
00:16:42
you put your money with an insurance or
00:16:43
a pension or even in a bank it's a
00:16:45
liability for those institutions period
00:16:47
they owe you expense you know in the
00:16:49
form of Interest that's a problem for
00:16:51
them so they have to lend it to guys
00:16:52
like us and that's called OPM or other
00:16:55
people's money and always remember this
00:16:56
the US dollar or the Euro and all these
00:16:58
the currencies they come into existence
00:17:01
only by people borrowing it yes and
00:17:03
that's why our friend Dave Ramsey says
00:17:05
live debt free and that's good advice if
00:17:07
you don't know what you're doing I I
00:17:09
still remember putting deals together
00:17:10
interest rat were 12% you have to get
00:17:13
smarter that's all it means it's the
00:17:14
bubble went up now what's coming down
00:17:16
right the people that are in trouble the
00:17:17
people who jumped in late they were the
00:17:19
top of the market it's going to keep
00:17:20
going up that's a big lie Is that real
00:17:22
estate always goes up that's not true at
00:17:24
all no my gosh it's delusion it's that
00:17:26
herd mentality right everybody's jumping
00:17:28
on I'm going to miss out and next year
00:17:30
is going to be better than last year
00:17:31
that's not how real estate Works no we
00:17:33
also practice what we preach we study
00:17:34
also we we just in Dallas outset of
00:17:36
Dallas and we call the place called the
00:17:38
ranch and the instructor said that the
00:17:40
reason people are poor is because
00:17:42
they're farthest from the truth yeah
00:17:43
that really hit me the truth is what the
00:17:46
truth is period and then you got
00:17:48
people's realities which is typically
00:17:50
further from the truth not always but
00:17:52
the further from the truth you get the
00:17:55
poorer they are yeah so ever since the
00:17:57
last couple of weeks I see poor person I
00:17:59
said wonder what truth they're away from
00:18:01
there's something they're not seeing
00:18:03
when wrote Rich Dad Port 25 years ago
00:18:05
said your house is not an asset I know
00:18:06
got crucified on the cross for that one
00:18:08
yeah now everybody says it way ahead the
00:18:10
game do you know I mean there's nothing
00:18:11
worse than hang out with a toad no do
00:18:14
you know what I mean like oh I told you
00:18:15
real estate was better crashed oh I told
00:18:18
you know I don't want to buy real estate
00:18:19
cuz get the clean toilets and all this
00:18:21
stuff I hear all of that stuff but
00:18:22
that's what we learned last week in
00:18:24
Dallas the poorer you are is because
00:18:26
you're furthest from the truth and when
00:18:28
they tell you get out of debt that's
00:18:30
really not the truth but it was
00:18:31
interesting cuz remember we were down
00:18:33
there with Dr Nicole and she said you
00:18:35
know it's the same with health the
00:18:37
further you are from the truth around
00:18:38
Health the worse condition you're in so
00:18:41
the truth it's a very interesting thing
00:18:42
in the reality or your perspective or
00:18:44
even your opinion can be very far away
00:18:47
from the truth right and some of the
00:18:49
truths reason people are poor is well I
00:18:51
don't have any money I can't afford it
00:18:53
that is not true that's your opinion of
00:18:55
your measy little self y you have the
00:18:58
power to do what you want to do I
00:19:00
definitely don't think that we're going
00:19:01
to be able to fix inflation for a while
00:19:03
no so that's number one you got to be
00:19:05
really careful you know we never really
00:19:06
had to think about that too much right
00:19:08
inflation's been low and it slowly
00:19:11
eroded our purchasing power but now it's
00:19:13
different the gloves are off so you
00:19:15
can't just put your head in the sand
00:19:17
because if we're going to be at 5 6%
00:19:19
inflation I mean you're talking about 15
00:19:22
20 30% reduction of your purchasing
00:19:24
power in just a few years so you have to
00:19:26
figure out how can I hedge myself
00:19:28
against inflation and that could be lots
00:19:30
of things you know what's going to grow
00:19:32
with inflation it doesn't necessarily
00:19:33
have to be real estate it can be
00:19:35
anything thatt is certainly one of those
00:19:36
things I thought there was going to be a
00:19:38
big problem in real estate but Kim and I
00:19:39
had a property and we up for sale for
00:19:41
9.75 million realtor says it'll never
00:19:44
sell it's sold immediately and the
00:19:46
reason is is what happens with inflation
00:19:48
your cash becomes trash but also the
00:19:51
reason the realter finally said oh we
00:19:53
misjudged this Market you know $10
00:19:54
million it's a residential property it's
00:19:56
pretty nice one in Hawaii and there is
00:19:58
the person bought it is they'd rather
00:20:00
have their cash sitting in a piece of
00:20:02
real estate than in the bank you got it
00:20:04
what does that tell you yeah farther
00:20:06
from the truth you are the poorer you
00:20:07
were and the biggest lie ever told is it
00:20:10
takes money to make money that is not
00:20:12
true you know don't worry about being
00:20:14
the skipper of the Titanic I've been the
00:20:16
skipper a number of times but it's
00:20:17
always a good swimming experience that's
00:20:19
how you get smarter right and I W say
00:20:21
this much I've never lost money in real
00:20:22
estate I got in trouble but when you
00:20:24
scramble and you do what you have to do
00:20:26
you get smarter and smarter and smarter
00:20:28
and you go man I'm really glad I got
00:20:29
into this trouble cuz I got smarter the
00:20:31
reason I say that the average person is
00:20:34
drinking the Kool-Aid is just go to
00:20:35
school get a job save money get out of
00:20:37
debt and invest in a 401k or an IRA you
00:20:40
don't learn anything that way you don't
00:20:42
learn anything so by jumping in as an
00:20:45
idiot investor you get smarter pretty
00:20:47
quickly right keny I love Buffett's
00:20:49
quote you know he's like when the tide
00:20:50
goes out you see who's swimming naked
00:20:52
and the tide is going out right now my
00:20:54
friends and there's going to be a lot of
00:20:56
opportunity yep you can't Leverage gold
00:20:58
the same way you can leverage real
00:21:00
estate can you you're brilliant that I
00:21:01
use real estate as leverage to buy this
00:21:04
so what I do is I'll borrow let's say
00:21:06
$20 million the cash flow buys this
00:21:09
you're using government printed money
00:21:12
for your own assets buy this and then
00:21:14
the income from the assets you convert
00:21:16
into Golds this is God's M this to be
00:21:19
flushed on their toilet and that's what
00:21:21
they're doing with it but oh I made this
00:21:23
much this month new
