Housing is SUDDENLY Flippening.

David, a max speed on new home sales,

800,000 seasonally adjusted annualized

rate in August. The street was looking

for 650. This is up 20.5% from July and

up 15.4%

from August of 2024. Now, we've been

talking about mortgage rates, of course,

uh, forever, and they didn't come down

in August. These numbers are based on

signed contracts. So, people out

shopping in August when the 30-year fix

had not started its steep drop that we

saw in September. Yeah, I mean that's

fair. These are August numbers. Uh and I

think what we're seeing in the market is

we're starting to see this absorption of

excess supply. This is a very normal

part of the real estate cycle. And so

what happens when you get an absorption

of excess supply is the next thing that

happens is you start getting uh you know

prices going up. And the reason for that

uh is people are realizing that Warren

Buffett is throwing money at real estate

right now. He's throwing money at uh

building stocks. He's throwing money at

home builders. This is an early tell

that people realize rates are either

going up uh or rates are either coming

down because of recession or they're

coming down uh coming down because of a

normalization of inflation. Either way,

you've got Powell who sees inflation as

point transitory. overtime transitory

here, not point transitory that is. Uh

so we expect in to see the return of

disinflation once we get through tariffs

or if we get a new president and a new

regime that ends up replacing tariffs,

we'll have deflation from that. Or we

have a recessionary environment, we get

deflation from that. All of that ends up

leading to this expectation that rates

are going to come down. And if you look

at the real estate cycle, I I really

need to find a higher quality version of

this, but this is actually the real

estate cycle that I made about 16 years

ago. So this is a graphic I slapped

together on Photoshop about 16 years

ago. And you'll find that the absorption

of excess supply portion or arrow is the

bottom of the cycle, which is really

exciting. This is what's leading to so

much enthusiasm around real estate plays

right now. It's leading to enthusiasm at

lenders. It's leading to enthusiasm at

Open Door. It's leading to enthusiasm at

house hack. People are throwing money at

house hack right now. I think I mean

we're raising over seven figures on on a

on a monthly basis. And I think one of

the reason is because people see the

real estate market is sort of like okay

wow yeah we're at an inflection point.

This is big. Uh now I mean maybe it's

because of the AI that we keep talking

about which frankly like in the even the

last 48 hours the AI training that we're

doing I'm looking I'm going wow we are

we are getting really close to this

being a product that uh that we can

sell. So it's really exciting and our

beta is launching in Q4 and and uh if we

can uh if we can sell this product in Q1

it's a it's a game changer for for what

houseack is we we we could explode the

valuation of the company which we're

really excited about. No guarantees

obviously. I'm just saying the I I'm not

sure when I say when I use Houseack, my

point is when I use Houseack as a

reference. I'm not sure if people are

plowing money into it right now because

they want to diversify or because they

want to bet on real estate or because

they want to bet on artificial

intelligence in real estate or they want

some kind of combination of all of that.

I don't know. Uh but it's what we're

seeing. So, it's interesting with these

numbers that Diana here is talking

about. She's talking about new home

sales from August. The expectation was

we were going to get 650. The prior

release was 652. The prior release got

revised up to 664 and this one beat

month overmonth by 20.5. Now, I

generally don't like looking at this

data because it tends to be lagging

data. Uh in the, you know, it's it's not

really impactful to traders either. You

know, if you're trading stocks or

whatever, nobody really cares about

these. But what it does is it sort of

reaffirms

that what Buffett was seeing back, for

example, in August is actually showing

up in the data. you know, maybe he was

getting phone calls, hey, we're clearing

out the shelves over here. Wouldn't be

surprised if there's some insider info

going on. Uh, that said, we also had

building permits that beat. Building

permits were expected at 1312 and they

came in at 1330. So, it was well over

6.5% in the high 6% range. Now, we're

down at the 6.3% range. So, this is a

surprise, but again, we've been talking

about the builders, their incentives.

Lenar's earnings last week, they said

they're doing price cuts. They're doing

uh all kinds of mortgage rate buys and

other incentives. Let's look at the

price today. Uh the price uh of a new

home sold was uh $413,500.

This is 4.7% above July. And it is uh

>> wow 4.7% above July. That's huge for the

price of new homes. Now be careful.

There can be some distortion with

distortions with new homes because they

throw so much money into incentives. So

it does sort of sometimes distort that

actual price level

>> above 1.9% above August 2024. So prices

going up on this. It's really

interesting that this is happening. I

guess people getting back into that

market before the fall season, which is

usually kind of the second most busy as

opposed to the spring season, but it is

>> that is the before fall season, like the

right before back to school. Uh and

that's true. August could have been like

people getting in, you know, right

before back to school. Another real

surprise to see prices go up as well as

sales go up. Inventories though, we're

looking at a 7.4 month supply. We had

been at a 9mon supply. Uh

>> inventory is falling in a lot of

different portions of the country. And

it's not it's like more than seasonal,

right? Because it's typical for

inventory to fall during this time of

year, but we're seeing a more than

seasonal decline in inventory. So,

there's just less available uh to be

picked up. uh fewer homes available uh

and as a result uh you could end up

seeing a squeeze in prices. I mean we

saw this in 202 to 23. Between the fall

of 22 and the spring of 23 we ended up

seeing prices jump something like 15%.

Because there was this sudden absorption

of inventory and then we had this lack

of inventory and just prices exploded

which is great for people who already

own real estate. It's not so great for

people who want to get into real estate,

but that's the age-old problem. Keep in

mind, it's mostly seniors that own their

homes and have the vast majority of

equity in their homes. And so, younger

people are getting screwed. I hate to

say that, but 54% of homes are owned by

seniors. 40 uh that that ratio is 44% in

2008. So, seniors have really like

gained the lead here. Uh 76% of those

seniors have no mortgages with uh 78% of

seniors not wanting to move or downsize

which means less supply uh a lower

available supply which isn't great. Uh

instead seniors focusing on home equity

lines with a loan to value average of

just 24%. This is how lenders like

Figure, which is a 99% HELOC lender,

mostly online, AI, blockchain, uh, is is

killing it. And then you've also,

especially post their IPO, they're

nicely up. But, u, you're finding that

people are tapping into their equity to

do whatever, spend, you know, some more

consumer spending or invest in the stock

market because home equity loans are

still cheaper than credit cards or

personal loans. So, it makes sense. in

July. So, inventories coming down.

Builders obviously making the push to

get in people in the door, but builder

sentiment again wasn't so great in

September. So, these numbers are really

quite something again. 800,000 up 20%

monthtomonth. Back to you.

>> Yeah, Diana.

>> Yeah, that it's it's great. So, I and I

get it. Like I understand why you have

these these HELOC lenders uh doing

really well right now. But I think it's

also worth mentioning that Maria Baroma,

she just had this Bessen interview and

there was a portion where she showed

Figures CEO an interview with Figure

CEO. I'm going to pull it up here. And

it's interesting because the Figure CEO,

he's talking about competing with Fanny

and Freddy. I know like I know they

already know this but he doesn't have to

compete with Fanny and Freddy. He could

compete with Fanny and Freddy and they

know this but the figure well I'll show

you the clip here. The figure CEO he

talks about competing with Fanny Freddy

getting into mortgages know this figure

it's in their financial statements 99%

helocks. So anything Figure does to

expand their reach into regular

mortgages, you know, whether they sell

the mortgages to Fanny Freddy or they

sell them to the private marketplace

gives Figure even more of an addressable

market substantially larger uh and any

sales that they do in regular mortgages

from HELOCs basically increases their

revenue base assuming I mean there could

be some cannibalization once rates

really fall But it's okay because I

think as an online lender, you know,

their goal is to make the process as

simple as possible, much like a rocket

mortgage now by Mr. Cooper. And these

online lenders are just going to boom

through this next refinance cycle. But

listen to the competition talk here with

Fanny.

Oops.

>> Another company. For example, I spoke

with the CEO of Figure, who's also a

mortgage originator. Here's what he

said. Watch this.

>> It took forever for them to hit play. In

terms of the the market that is

available to you right now, the

potential market, what would that look

like?

>> One of the big ones that we're going

after is First Lean Mortgage. So, we're

now competing directly with Fanny May

and Freddy M.

>> Yes. We're going after mortgage. Now,

understand for for a lot of people who

hear this. You don't have to compete to

f with Fanny and Freddy. Remember, you

can sell to them, right? You can

originate Fanny Freddy loans and just

sell the loans to them. But yes, you can

also compete with different products

against Fanny Freddy. That is what

happened in 200, you know, three and

four when we were starting to kind of

like build up the bubble. Uh what

happened was private lenders were

starting to say, you don't need the

government sponsored entities, which you

know were more more public then. Uh you

don't need them. You don't need the

Fanny Freddy's. We'll give you a better

deal. What I'm actually finding right

now, uh, and we're going to be talking

about this with, uh, not only our course

members, but our mastermind folks, is

I'm finding lenders that are literally

doing 40-year loans, 30 years, uh, 20

years interest only, I'm pretty sure

it's 20 years interest only, and then it

goes to a 20-year amortized period for a

combined 40-year period. I I have to

fact check the numbers. I wrote them

down, but I'm starting to see these

products come through now. and uh

they're they're full dock loans, you

know, fixed rate mortgages and it's

incredible, but they're private

mortgages. They're not Fanny Freddy's.

It's really interesting on rental

properties as well. So, there are some

really interesting, you know, new

private products coming out and this is

a space that figure can I think very

well compete in

>> um using blockchain technology as an

advantage and and for certainly loans

under $500,000, we're winning in that

competition right now. A and and Fanny

and Freddy are likely going to see their

own IPOs once again, right? President

Trump expected to take 5% of those

companies public. Does that sort of even

even pony up the the competition that

much further?

>> Well, we we like competing against them

as private enterprises. Uh they got a

little bit of an unfair advantage as a

governmentbacked entity, but uh so it

levels the playing field a little bit,

but but right now we're winning

irrespective. So broadly speaking, is it

an unfair advantage when government has

a stake in public?

>> Keep in mind this this like blockchain

argument that he has. It's really hard

to verify this right now. Uh this is,

you know, this promotion that Figure

uses. Uh and and like I want Figure to

do well. I think I I've I've seen people

use their lending products and people

really enjoy it, but I think that this

blockchain pitch is kind of mostly

fugazy.

uh you know they say they use it

regularly and that they're able to

streamline the mortgage process through

blockchain. I remain unconvinced with

that uh and and I don't know that we

really have independent data confirming

that at this point but it is something

that they do pitch

>> and you could look at Fanny May you

could look at Intel.

>> Well Maria there are decisions that the

US government makes that we believe is

good for society. We believe home

ownership is good. So there therefore uh

the government wants to be involved and

I can I can tell you like having come

into

>> that's another tailwind for the housing

market as well by the way is this idea

of hey the government like best and

wants lower rates to help mortgage

markets right and help the housing

market

>> from for the private sector that what we

have seen here is that there was a

breakdown in our supply chains and

whether during co whether it was

semiconductors whether we're seeing it

with the Chinese putting export controls

on rare earths. So there are some things

for national security or that we have

made the decision as a society we want

to do. But you know I I can tell you

like that the Intel stake you know is

now been validated that in Nvidia's come

in and taken a stake. you know, the the

big the biggest

>> uh anyway, that that just starts going

into a little bit more of sort of the

level of government intervention that

they're okay with. But, uh this is good

news for the housing market broadly. Uh

now, if we can also go to the uh Red

Fin, uh housing blog and get a little

bit of an update from them.

So, take a look at this. Let's see here.

Uh, we've got uh we want high housing

costs are pushing some Americans to make

major family sacrifices like delaying

having kids. Uh, wow. Which is kind of

sad, but it's getting worse by the fact

that home prices are now ticking up. Uh,

and you know, you're you're seeing, look

at this, housing supply drops the most

in 2 years. Now, the argument here is

that sluggish demand spooks sellers. But

what happens when this is this is the

leadin part is what happens when

inventory falls, you tend to ramp up for

the boom. And I think that's why you're

seeing the new construction level really

move. Look at this. Active listings of

homes for sale fell 1.4%. Look at this

over time here. We're down to the lows

of inventory that we saw in March,

February, March of 2023.

Uh and and we're sitting actually to

similar point here to this 2020 or 2012

level that I was talking about where we

saw this rocket in inventory or sorry

this rocket in prices at the beginning

of 2020 uh or 2013. Really interesting

home prices ticked up 2 in August.

That's despite this idea of hey like you

know how many buyers are there? It's

okay. We've got fewer sellers. That's

kind of the weird irony right now is

like you could have fewer buyers. Yes.

But because there are fewer sellers,

they're having to pay more because you

have it's almost like if you've lost

five buyers, you've lost eight sellers.

And so the net impact that we're seeing

to reconcile this data is prices up, new

home construction sales up, uh, and

inventory that continues to climb, which

is typically an early sign of a turning

point, uh, in the housing market. uh

doesn't mean that there aren't real

problems. I mean, look at this. Just

over one in 20 of the people who

struggle to afford housing said they

moved in with parents and 6% moved in

with other family members. Five moved in

5% moved in with roommates and 2.8%

moved in with grown children. So, people

consolidating. You're actually seeing

lower household formation because of the

challenges of unaffordability. Uh and

that's sad. And then I think that's why

Besson is pushing so hard for rate cuts.

All of the changes and sacrifices

Americans make to make housing more

affordable. They ate out at restaurants

less often. 41% 34% took no or fewer

vacations. 19% more hours. Uh 19%

borrowed money. Jeez. And it kind of

goes on here. Yikes.

Okay. All right. Well, it's a it's sort

of a two-tiered system, right? You get

the rich getting richer, uh the asset

owners getting wealthier, and uh

everybody else kind of getting left

behind. I'm just looking at some of your

comments here. One of you says, uh so

this is good for REITs. Yes, real estate

investment trust. Somebody says, uh the

if the housing market were allowed to

operate within a free market, the median

price would be around 250 and inventory

wouldn't be a problem. I think what

you're referencing is the uh lack of a

free market that you have in the way of

building, right? You have so much

government oversight in building. The

problem with that is if you have too

little government oversight in building,

you potentially end up having properties

that are built too cheaply and then you

end up having, you know, disasters uh in

in earthquakes or, you know, condos in

Miami or whatever, right? So, so there

is there is a balance there.

Uh, let's see here. You've got you got

to be a millionaire to buy a house in

the ghetto. It's tough. Yeah. What do

you think about home builders? Well,

like I said, Buffett is buying them. And

I get it. I get why he's doing it

because as resale inventory falls, you

basically have like it's kind of like,

think about it this way. Let's say you

want to go to prom. You really want a

prom date and like all the tens are

taken. you know, there's just no supply

left of tens. And so then you're like,

"All right." Like, you look around and

there's just this army of fives and

they're like, "We'll go." Those are kind

of like the new construction homes where

they're not the triedand-true

neighborhoods that are the 10 out of 10,

you know, best school districts, uh,

most established neighborhoods and

reputation for for quality and, you

know, whatever people want in a in a

neighborhood. Instead, you have this

sort of new untested,

you know, hey, like makes up really

nicely, but is it good? You know, that's

that's my analogy for for the new

construction because new construction,

you always have a risk when you buy new

construction. You're often buying new

neighborhoods and you don't know like

who are the neighbors going to be like

what's going to happen? What's how's

like is is is this going to end up being

a good neighborhood or not? Kind of

interesting. So, um,

somebody here says, uh, from Canada

says, I had a question. Why are home

prices in Texas so cheap while being so

good? Well, I don't know that there's a

comparison of so good. I think the

question is, why are prices so cheap in

Texas is exactly the reference to what

we talked about with home building

regulation. In Texas, you you can build

like crazy. I mean you have very uh

lzair conservative policies uh which

basically say hey let business decide

and so your government regulation is

very limited like you could really get

away with whatever you want in terms of

building in Texas and so you get massive

supply as a result of that you do also

have uh high property taxes so you have

to be careful that you're not you know

missing the boat on all the components

that go into housing costs housing costs

like anything else or a monthly payment

factor. So, when property taxes are

double in Texas than they are in

California or or other parts of the

country, you know, that's something you

have to factor in. You have to factor in

uh serious uh you know, weatherproofing

issues in Texas. You have to factor in

the fact that, you know, once a home is

like a 1970s home in Texas, you're

almost better off rebuilding the damn

home than you are renovating it, which

is crazy. It's it's almost like a mobile

home, right? So, when you factor in

property taxes, insurance, uh water, uh

uh issues, you know, moisture issues

from the humidity, uh and uh and the

fact that people tend to rebuild even

homes built in the '7s, you know, yeah,

you're going to have a different price

characteristic than, for example, a you

know, maybe in your case, a Canadian

home, depends on where it is, or a uh a

California home. You know, in

California, you you wouldn't catch

somebody dead rebuilding a 1970s home

unless it burned down. you're going to

end up finding, you know, people are are

uh remodeling because there's a lot of

residual value in the properties. You

also have property taxes that are well

half that of Texas, right? Uh still have

insurance issues, but you know, so there

are a lot of differences. California is

a very hard market to build in as well.

Permitting is very very challenging. So,

okay, good good qu good question there.

What SAS do you think is needed in the

building material construction industry?

says, "Max, donating$5 Canadian

dollars." A uh I have a lot of material

procurement software. You know, I I it

software as a service in material

building construction. The biggest thing

for people is uh I mean, in my opinion,

this is just sort of like on the spot

when it comes to uh doing renovations or

whatever. Typically,

people get frustrated with business's

capability of actually running inventory

management appropriately. The fact that

inventory still seems to be such that

websites could say something's in stock

and then it's not and your deliveries

get cancelled and your delivery time

frames are screwed up, that pisses a lot

of people off. So, you know, that's

really where I feel like AI logistics

can help. Uh, somebody says, "Hed funds

should not be able to own homes as

investment vehicles." You know, people

say this all the time and it's like the

most common thing that people say

because it's just like it's it's like a

popular thing to say, but it's just data

wise wrong. You know, companies that own

more than a thousand homes make up less

than 1% of the homes that are owned. Uh

so, so the vast majority of homes that

are rental properties are owned by

people who are momand pop investors

who've moved on from the first home they

bought and kept the other one as a

rental. and they, you know, they're

they're providing rental housing. You

know, the vast majority are not hedge

funds or Wall Street firms or whatever.

And even if they were like, good

companies providing more rental products

for you is good. The problem isn't more

people buying and providing rental

supply. The problem is a lack of built

supply. That's the problem in housing.

So usually when people make these these

arguments about oh you know it it's

hedge funds buying up all the homes

factually a wrong

institutional investors with over 100 or

with over 1,000 homes own less than 1%

of the single family homes in the United

States. Look it up urban institute. They

talk about this all the time and and

people don't don't consider that. They

just they rehash that argument because

it's not popular to say, "Hey, we need

to build more homes and lower building

standards or streamline building

standards would be the better way to put

it because it's too complicated. It's

much more easier to go, it's the shoots

that you're taking and making all the

homes unaffordable. It's the Chinese,

you know, it's like come on, man. It's

ridiculous." So, uh, you know, that's uh

that's important uh to remember. So, uh,

somebody here says, "Big institutions

want rental income. Single family sucks

for that." Uh, I disagree with that. I

highly disagree with that. I think

actually single family homes are, uh,

the the the best investments that you

can make in America. Uh, I'm I'm the

biggest fan of that. Great inflation

hedge. And really, you're providing

rental supply for people, right? So, uh,

and and remember, it's almost all small

mom and pop owners who own real estate.

and again seniors. So you would be

making a much stronger argument to go

the seniors are buying up all the homes

making it hard for Gen Z and millennials

to buy homes than uh than it would be to

say the hedge funds are causing the

problem. Blame the seniors. Now I don't

blame the seniors because I recognize

the market. I recognize the way it

works. I blame the lack of building.

That's that's my take, you know, and I'm

more than happy to point the finger at

the government because I think the more

the government gets involved, the more

they screw things up. Uh so big big big

big fan of that. Um

yeah and and this idea that you know

single families might not be a good you

know returning vehicle. Remember what

Warren Buffett said? Warren Buffett in

2012 he's like hey if I if I had the

ability to scale because it's hard to

scale single family real estate. I would

buy uh thousands of single family homes

right now. Totally agree with that.

So somebody here says Kevin get the

ultra watch. I did. It's actually right

here. I got it. It's going to give me a

step reminder here soon or stand

reminder. So, I'm going to have to get

uh I'm going to have to go get a cup of

coffee. Somebody says Trump needs to

pass an executive order on institutional

ownership. You're wrong. And if they

don't own that much, an executive order

won't hurt them too bad. So, you donated

$5 to just reiterate that there's like

some kind of like either mental

retardation going on here. Sorry. Or I

appreciate the $5, though. or you're

just like really biased, right? Like

that's the thing is usually when you get

people who who are so like well well

your facts you even if your facts are

true I still maintain that it's a

problem but the facts say it's not a

problem and and so there's some kind of

like mental bias that you have going on

that is blocking you from realizing that

how you're trying to solve the housing

problem is not how you solve the housing

problem. You solve the housing problem

by building more homes. It's very, very

simple. Austin, Texas is the perfect

example of that. When in 2022, we

started House Act. We looked at Austin,

uh, Colorado, Atlanta, Florida,

Manhattan, Brooklyn, uh, uh, you know,

Utah, St. George, Utah, Sacramento, uh,

Reading, you name it. We we flew like

400 trips to find the best markets to

invest in for house hack. And we

specifically chose not to invest in

Texas because we're like they are

tearing down 1970s homes and there's a

building boom coming here. What happened

in Texas? Prices plummeted about 25%

from peak because of an excess of

building. What happened in Brooklyn

where you have dumb building policies

that make it really hard to build extra

homes, right? We should we should not

have ownorous regulations on building uh

a anything over four building in

Brooklyn, right? We should make it easy

to build a 16-unit building. Instead,

builders prefer to build duplexes

because it's too hard to build a 16 unit

in the same footprint because the

regulations in Brooklyn are insane. So,

what happened in Brooklyn and

California? prices skyrocketed. San

Diego prices up. Brooklyn prices is up.

At the same time, Austin, Texas fell

25%. So, thank you for your $5. But

where's the data? You're not providing

data. You're providing emotion and bias.

When you provide and look at the data

and you understand how capitalism works,

you will finally recognize that what I

ran for, I ran for this on for as

governor. I tried in 2021 and got almost

a million votes doing this. I pitch that

what we need in California is

streamlined building regulation. Why do

I have different codes between cities

that are like 10 minutes apart? It's the

stupidest thing ever. All it does is

make things complicated for architects

and engineers that like the weather

doesn't change that much in 20 minutes.

Why don't we streamline building codes

between different cities and even across

the entire state so we could build more

homes or expand where we can build homes

and then interconnect cities with boring

tunnels so we don't have more traffic,

right? Those were some of the things

that we ran on and and like when we look

at the data, the data says this is

exactly what we need. But again, people

aren't data dependent

>> data dependent.

>> Instead, people are emotional. like they

will literally throw $5 to make

themselves look like a fool uh at at

like ignoring data. Like, yeah, we know

your data says that, but my bias says

this. Fine. Again, thanks for the $5. I

appreciate you being here listening to

the to the rant, but uh you know, it

it's also important to kind of like wake

up to the facts, man. It's crazy.

Somebody Ethan donated 10 bucks here to

say thoughts on buying commercial real

estate like office space in downtown

areas such as Chicago and remodeling

them into apartments. It's very

expensive. You have to be careful with

the type of property that you're buying.

So, if you're buying a high-rise, for

example, uh you know, an early 1920s

high-rise is going to be more desirable

to renovate into apartments, ironically,

than a 1960s property because in the

1960s, a lot of the 1960s buildings, you

you actually have to core them out in

the middle to get enough window space

for units because 1960s, you had so many

of these flat offices, and they're just

not really conducive to chopping up

inexpensively into homes, uh, apartments

basically. 1920 is a lot easier to do.

Some of the more modern buildings a

little easier to do. But yeah, I mean

the office in my opinion is mostly dead.

Like I would not make a bet on office.

But I would also be very cautious on my

ability to turn an office into uh you

know a home, especially in a you know

more blue city that's going to have

those ownerous building regulations. So

you really better know what you're

doing. So you know $10 there to to to

say uh you know you better know what

you're doing if you're going to get into

that. So, uh, yeah. Anyway, uh, somebody

says, "But Kevin, you failed to factor

that these investors hold a substantial

presence in specific markets."

Uh, I mean, like I said, you know,

institutional ownership, uh, of those

who own more than a thousand is less

than 1%. And and if you actually look at

where they've concentrated, they've

concentrated in high build markets like

sunb belt markets like Texas, like

Dallas, uh, or Florida. And uh compare

the price action of what's happened in

Dallas uh uh and Austin and parts of

Florida. Compare that price action where

you're going to have more of that

institutional concentration also having

more building. Compare that to what's

happened in New York and and California.

You'll actually find that where there's

lower institutional investment of real

estate, you have higher prices. So,

ironically, more institutional

investment is correlated with lower

prices because they're investing in high

build markets.

So, again, like the very argument you

are making doesn't fact out with reality

and the opposite is true. Look, this is

what I do for a living, okay? I started

House Act not just to buy uh and provide

rental properties to people, you know,

we buy fixtures that nobody's living in.

We literally all the time we're buying

properties that are vacant and they've

been vacant for years and we're bringing

them to the housing market. We're doing

a service. We're building on ADUs. We're

building more apartments. We're building

speck homes to provide more housing. Not

only are we doing that, but we're

developing real estate artificial

intelligence to help people skyrocket

their net worth with AI and real estate

that actually matters. Now, that's all

huge in my opinion, but you have to

remember that this is what I do. Like, I

love real estate and it's in my opinion

really hard to to to compete from the

data point of view uh when when people

leave comments because this is what I do

on a daily basis and it's pretty easy

for me to answer these questions. Uh but

anyway, that that's my take. Again, you

know, maybe I'm biased. I got a real

estate startup. It's called House Hack.

You can invest in it. read the

solicitation or the purchase uh the

private placement memorandum if you're

accredited or the offering circular if

not accredited you get a 5% yield

through conversion plus all of the

upside in the stock actually think it's

a pretty good deal uh but uh but yeah I

mean institutional investors are

regularly concentrated in sunb belt and

high build markets uh which have seen

much more moderate or or potentially

even negative price growth compared to

these these supply constrained markets

that I've been talking about. So I think

it's uh it's it's very interesting.

Uh so anyway, great great questions.

>> Tell us about this.

>> We'll we'll try a little advertising and

see how it goes. Congratulations, man.

You have done so much. People love you.

People look up to you.

>> Kevin Praath there, financial analyst

and YouTuber. Meet Kevin. Always great

to get your take.