Macro Disaster & Recession, Inflation, and Entrepreneurship | Mile High Podcast 1

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I'm building your wealth let's get

started welcome to the first ever Mile

High podcast we have absolutely no

expectations for this whatsoever but we

are so excited to share

real estate and macro with you today so

take care to kick us off I am going to

ask a question and then we'll get

insights so the first question is a

question that I get in the comments

every single day which is Kevin

why don't you just zoom for Real Estate

why are you traveling for it since y'all

have been with me for the last few days

I'd like your insights before I give any

of my insights how about we start with

you okay uh well it's one thing to see

the specs of a house but it's definitely

way different to see the whole

neighborhood in person and especially

with some of the older neighborhoods

that we saw how much it can change from

just one street to the next and to your

point like until you've been somewhere

three four five times in the exact same

neighborhood you don't know what you're

really signing up for

so I think just being in person is

invaluable

are you your turn yeah so I mean adding

on to that in-person experience

um talking with the local community talk

I mean the other day we were in Salt

Lake and we talked to that uh Barista

super nice guy he told us the lowdown

about every single little Community

every single facet of that of that

community and

um I mean we were in that sandwich shop

too I mean you you were talking with the

um the owner uh you know stopped the guy

who was buying a sandwich asking about

you know he told me there's some fault

line which she would have never you know

learned about it I mean it's probably

not you know a big deal or whatever but

you know you get like these these little

facets these little understandings that

you could not get online because you

wouldn't even know what to search for so

yeah uh yeah how about you guys back

here you haven't gone with us yet

welcome aboard by the way we'll have to

ask you after today go ahead

yeah building on what Tristan said it is

really cool how we can uh meet the

community like when we were in Gilbert

Arizona we were able to like meet with

uh McKay's family who's lived there for

a while and uh really just talked with

the father and understand the real

estate he was telling us about the

Airbnb rentals which was really

insightful so when you have

that over the course of like multiple

visits you can get a much better idea of

an area whether it's investable or not

um like Spring Valley glad we visited

because now we know that that's not

something new yeah that's it's a really

good point when we visit an area it's

easy to look at specs online and I think

that's what a lot of Institutions do is

oh let's do the macro survey let's get

the atom real estate data let's get the

median incomes and the median rents and

see where can we get the highest uh cash

on cash return but when you're actually

there we're like wait we want to be on

this street because that street might

appreciate more or might attract longer

tenants longer more longevity for our

tenants which that helps us operate more

efficiently one of the things I always

look for is how can we get a higher

quality tenant so that way one property

manager can manage 300 rentals instead

of maybe the average of 50 rentals at a

BlackRock or Invitation Homes baby so if

we can get that operational leverage

because we're buying higher quality and

we know what the locals desire that's a

lot easier to do in person because

you're seeing it you're understanding

why so when deals come up you can act

faster I see a lot of out of area folks

they study everything they can online

and then when it comes time to finally

pull the trigger they also don't have

the confidence so they miss on deals

after deal after deal and they're always

frustrated why didn't I get a deal why

can't I buy a deal in real estate well

you're not there you don't know the

market and the people don't know you see

when you're there all the time the

listing agents know you the buyer's

agents know you they're like that guy's

always here they know this is a good

deal and when they know

that you know it's a good deal you get

ripped off no I'm just kidding

no no I mean in competitive environments

on good deals you want to have

everything going for you that they're

confident in your ability to close the

deal what do you think back here are you

working on something else you want to be

part of the mile high podcast

you want to keep working he doesn't want

to be part of the mile high podcast okay

works out fine fine then back in the

toilet for you

so uh okay so

what about uh so that's that's for

exploring real estate uh what are y'all

what are some of your initial

perceptions of uh the real estate market

so I I know some of us have been

studying it but I'm curious uh even even

I'd like to start with you sort of your

thoughts you just bought uh when did you

just buy real estate maybe you could

tell us when you just bought real estate

uh the airbnbs you're doing tell us tell

us a little bit about uh your situation

kind of what you think about the real

estate market and your long-term plans

uh you don't want to ask me I bought at

the peak I'm just kidding yeah we I just

bought a property back in October and uh

that property now we worked on and we

just got it up and running in December

so very uh little data at this point but

so far it's been pretty good and I mean

we bought in Las Vegas it's uh

definitely high traffic area everybody's

coming to Vegas still I don't think

that's gonna stop anytime soon people

like to gamble people like to party so

uh yeah that's definitely going well we

also bought impossible Springs that's

another place that you know we we really

like the desert area

um you know it's cold everywhere so

people are definitely wanting to go

somewhere where it's a lot nicer in

weather so that's primarily what I've

been looking at it's just places that

people will always want to go to no

matter what time of year and you know

that's just kind of how we're focusing

right now but yeah I mean I'm happy to

join you guys I didn't even consider

Washington prior to this so

um this is going to be a cool experience

what uh what kind of uh returns were you

expecting when you went into the

properties that you bought is it

something where you saw okay we're going

to pay X dollars for the property and uh

X down what kind of rents are you

thinking you're looking at if let's say

you have that 50 vacancy factor for

Airbnb or what are some of those numbers

that you're at least projecting and

thinking about outside of what actual

prices do for for macro

um okay so I guess that's where it's

like you know like more of like a

personal thing like everybody kind of

decides what's the best fit for them

yeah

um and since I've been watching you know

Kevin and I definitely follow along I

kind of wanted to use the whole wedge

deal as like kind of like a like a basis

point if you get a wedge deal and you

have a good deal on the property and

your mortgage isn't something too

outrageous especially right now with

interest rates

um you have a little bit of room there

so like you said you have room for that

50 vacancy potentially you just never

know and so you can kind of protect

yourself a little bit have a little bit

of insulation and that's kind of what we

did with ours it's like for me I I'm

okay as long as the place is producing

enough to take care of itself I'm not

coming out of pocket and then you know

when things pick up again you know

hopefully that'll that'll help out

that's awesome yeah I think one of the

the big things that I always Advocate

wedge deals for is this this idea that

you have insulation so even if the

market doesn't almost really matter that

you try to time the market at the top or

the bottom or what what just matters is

that whenever you are buying on that

cycle you're buying maybe 10 20 below

whatever that line is that's your

insulation so if you've got fluctuations

big deal the the odds of you going

upside down especially with a down

payment very very little in that case

we'd have to see something catastrophic

and in that case uh we'll probably have

bigger problems that's what I always say

people always come to me they're like oh

Kevin yeah you know well what if what if

the world ends then I'm like that I

don't care about my real estate anyway

you know what if we go it's world war

three and we got nuclear war I got

bigger problems I'm worrying about my

real estate values at that point so uh

earlier we were talking about macro tell

me a little bit about your thoughts on

the macro cycle so for the macro stuff

relating to real estate I mean I think

it's it's without a shadow of a doubt

that there's been a change in the

secular Trend up to more of a trend down

I mean essentially yes a trend down um

you know all throughout the country talk

to I mean already a bunch of agents that

we visited and stuff

um uh you know from Little Rock to uh uh

Salt Lake you know here to here in

California prices are yeah yeah all

saying the same thing prices are going

down we'll probably continue to go down

the question is how much the magnitude

at which they go down in the specific

area and I mean that's why we're you

know flying everywhere to really trying

to find the the good sustainable markets

that we see growth and you know

potential in and we see value like a a

wedge deal with it of a city itself you

know essentially so

um but I mean the derivative of all of

this secular change is I mean macro the

meme or whatever right um but it comes

down to interest rates uh I mean

whatever Powell has said he has done

since fall of 21 he said he was going to

raise it you know there's a lot of fed

speak but you know eventually he

actually did it people we're saying he's

gonna pivot but uh he kept on sticking

with it uh you know it becomes a Hot

Topic and I guess the big debate over

the like the big big macro like we were

talking about earlier is you know will

he actually pivot and if he does what'll

happen with raids do they go negative

like we see in Europe and Germany like

you mentioned I mean what would you say

the other or what you say about Germany

recently yeah

yeah well before the covet pandemic

Germany went to negative rates on

savings and we we were talking about wow

there is the possibility that the world

goes negative again with it certainly

within our lifetimes I think honestly

within the next decade uh which is wild

but uh yeah earlier before we started

the mile high podcast to catch everyone

up we had this uh this this thesis that

the bond Market's already pricing in

based on the depth of the inverted yield

curve is already pricing in 500 basis

points of cuts uh through this cutting

cycle we're we might not even get to

five percent right now the the yield

curve uh the the projected

rate Peak is sitting at 4.82 from from

what uh at least the terminal showed

this morning 500 off of that we're

already negative just based off what the

bond Mark is showing and I mean that

could fluctuate Bond Market's not

perfect but boy I would rather watch the

bond market than the stock market over

the last year yeah if I could add on to

that I mean essentially the bond market

is that's where the money is that's the

most money I mean uh factors times

bigger than the equity markets and these

are the guys who are managing pensions

you know all that money all the money

that you know that you know 401K is

going to and everything well it's

managed it all gets funneled eventually

into the bond market and the guys

there's a small number of guy not small

but I mean proportionally small number

of people uh who really you know trade

the markets manage the bond markets and

these are smart people you have someone

like you know Jeffrey gunlock uh

billionaire uh a bond market uh fun guy

I mean if if you're interested in

learning about the bond market that's

the that that he posted stuff on YouTube

like his thoughts straight up um but um

yeah you have people like that really

saying you know inflation is going to

come down dramatically and he's not only

talking to talk he's walking the walk by

you know the way he's managing the money

and bond like the bond market itself

shows what the consensus Bond managers

believe and what they are pricing in

right now is you know that invert that's

a definition of an inverted yield curve

they think it's going to eventually

pivot so what do you think the the

long-term effects on more like Society

political things would be if you know

rates do go negative and how do you like

first the problems Kevin that you think

would arise from that and also some

solutions to those problems you know I

think the first thing that we

immediately think is oh that's it the

fed's gonna collapse the dollar is going

to collapse it's over U.S dominance is

over U.S dominance isn't going anywhere

it's we're twice the size of China China

is probably in a depression uh dollar

strength might weaken and ebb and flow

over time but but for at least the next

20 years I think the United States is a

dominant economy to invest in it's so

what I do think

is a risk is that we face more of a

Japan problem eventually maybe yeah

maybe not not soon but maybe our 30s are

like their 90s right so I I do believe

after this recession

we will return to growth and substantial

growth but there is that possibility

that in the 30s we move into that that

Japan 90s and what that really was was

uh such low growth and negative growth

that you had a Fed at the bank of Japan

lowering rates uh to to negative levels

and not causing inflation and I think

that's why our Fed so much so thought

wow inflation rates have been coming

down for 40 years

a little bit of money printing won't

hurt no clearly we learned that in the

short term we could definitely print our

way to inflation so I actually think

that's good news the reason I think

that's good news which sounds crazy

right now is it delays when we would

ever face the Japan problem see Japan

has printed money for decades and has

not created inflation that's the problem

they they have it's almost like they've

lost their sex drive to relate it to

that you pump them up with more and more

Viagra just doesn't work if they can't

get the pp up you know the pricing power

doesn't go up it just stays small and

that's a sad life when there's no growth

so the fact that we were able to pump it

a little bit and we got a big explosion

of of inflation it was actually a good

sign that we're still healthy and human

so like we still have that's why I think

we've got another big boom cycle ahead

of us for the next decade you know then

we wonder okay is there a risk where now

we slowly start are trending back to

that great moderation uh now we go

negative which we never quite were right

I mean mortgage yields fell to a low on

the 30 year of 2.7 Germany at the time

had gotten to I think 0.9 or 1.2

somewhere around there really incredible

I always try I was calling my family in

Europe and Germany asking them can can

you borrow and I borrow from you and we

Arbitrage this this is this is too good

to be true you know

then covert hit at that point yeah yeah

and it was Game Over You know it's like

do we even want to buy you know I

remember the Panic for that but uh yeah

it was just remarkable how I mean they

were starting to charge I was going to

say earlier charge for deposits uh on uh

on on Savings in Germany and so I

actually think this is great uh in in as

terrible as it is there is a silver

lining to it I shouldn't say it's great

it's it's more of a silver lining that

we did have this inflation because it

gets us away from that Japan for a

little longer it keeps that dominance

that U.S growth for uh quite a while

longer so uh I think the the stories of

the fed's gonna collapse the dollar is

going to collapse way down the line and

therefore the problems are really way

down the line I think for now let's let

inflation cycle down which a lot of

folks don't recognize how that works

that's another thing we were talking

about earlier is this idea that

look inflation's at six and a half

percent now and you have people all over

social media saying well my food's not

getting cheaper right well that's and

they're like my food's not getting

cheaper how is inflation gonna go to two

percent well that's actually the point

if your food stays the same price

inflation is zero it's you just need

that year-over-year roll-off and and so

I there is a very large fundamental

misunderstanding of what inflation is

from retail and from investors and the

problem with that is when people

fundamentally misunderstand inflation

their pension fund managers and their

hedge funds and their financial advisors

position for their clients desires so

you actually have this weird effect

where people of course are tactically

moving out of growth and Innovation

because that's what their clients are

demanding because of course inflation is

never going to go away but the reality

is it's a herd yeah it's like the retail

gets spooked now all the institution

institutions freak out which freaks out

the retail more which freaks out the

institution it's all self-fulfilling so

you got to get that cycle happening in

reverse and that it's it's not going to

be like the covered pandemic it's gonna

be slower

between like the downturn with you know

Japan you know not having enough just a

true real economy they didn't like the

growth there and you're saying that the

babies being born yes so so do you think

it's that that's what I was going to go

into like you know is that because of

population Trends what what do you I

mean I know the population in the U.S I

mean everywhere has been declining but

we still have relatively you know higher

population uh levels and I mean growth

we're still I want to be clear we're

growing but not as much as we used to so

I want to make that clear the rate of

growth is decreasing yes so it's

inflating yes exactly so are what other

factors do you think there are other

than uh population and also going into

population is that just societal is that

like you know values what like I mean

this is like you know big big macro

stuff or whatever right but um yeah what

do you think yeah so well eventually I

think what will happen is you'll you'll

actually have less of a fear of

immigration uh see one of the big things

uh now is yes we have a declining birth

rate but people are so worried about

overpopulation oh they're more cars

there's more traffic but at the same

time as we get more Innovation around

travel like self-driving taxis less

parking lots we actually catch up with

constructing enough Apartments over the

next decade to two decades we build

enough supply of homes and we have

faster Transportation or we have jobs

that can capitalize on being remote more

we're going to be less worried about

overcrowding and we're going to be more

worried about

we have a labor shortage and and which

we've already experienced now but that's

going to get worse

right now right yeah yeah exactly you

you can catch up on that it's just uh

but uh I think then you'll finally get

and I ran for governor on this idea that

we need more legal immigration the idea

is just too early right the idea of more

legal immigration is too soon I'm a big

fan of we should have future schools

where we actually invite people to come

to America we will educate them and put

them in our Workforce so they could be

trades people plumbers Carpenters

contractors programmers whatever now we

actually provide much more economic

growth right every every person getting

a hundred thousand dollar salary is not

just a hundred thousand dollars first of

all it's probably somewhere around 150

000 because of workers comp and taxes

and all that well that tax money goes

somewhere to more schools or whatever

property taxes goes to that but to more

government services the workers comp

goes to insurance companies which then

gets invested into guess what real

estate which builds more housing it's

the velocity of money at work right just

more payrolls is literally the velocity

of money uh so uh I I'm a big fan of

government policy doing whatever it

needs to do to build growth uh and to

drive economic growth because that's

politically positive one of the things

that you don't have in Japan that in my

opinion that the United States has is

that this is America and people want to

live here from around the world not

saying people don't want to live in

Japan but ask people in Japan a lot of

people would love the opportunity to

pack everything and go to the United

States that's true around the world and

I'm not saying that's true for everybody

but I believe that in the vast majority

of cases you go to Germany you go to

France you go to Italy you go to Japan

China I don't really care what country

it is people want to be in America

there's a reason we're the number one

economy now again I'm not saying

everyone but if if we opened up the

doors tomorrow and said anybody's

allowed to come I guarantee you though

we will we will double our population

almost overnight because so many people

would love to be here anyway go ahead

with the blue collars oh no I just

wanted to no I mean exactly exactly what

you're saying uh you know there's

shortage of Labor we're already starting

to see that I mean you get into Ubi and

that type of thing but um with

immigration I I totally agree if you are

able like there's nothing inherently

wrong with immigration I mean America

was founded on immigration and that's

why I mean arguably you were saying

there are problems with immigration

policy Yes except the way that yes yeah

the the the fundamental nature of

immigration there's nothing wrong with

that it's it's the way in which it's

being handled in the way uh that you

know it's the stigma some stigma behind

it the way yeah that's being managed

essentially you know I mean if you can

kind of think of the us as I mean any

country it's kind of like a company

essentially right and you need good

management right you need you need to

have that you know fundamental

I I mean ideals and values to not have

biases but I I anyway sorry

um with the blue color thing I didn't

have to go everywhere but with the blue

color thing uh and the trade schools

essentially as you're saying you know

you know wages will increase over time

but as we were talking about earlier I

mean money is it doesn't matter what the

currency is what matters is the goods

and the services that you know GDP we're

growing exactly I mean 200 years ago you

know standards living has have gone up

for everybody and that's because of

capitalism that's because of yesterday

yes we did and I mean if you are able to

bring in more blue color or bring in

anybody and be able to train them to you

know be white color or blue color and

you you create value and it everybody

grows and I I mean yeah so I totally

agree with that uh what do you think no

no ask your question

so yeah I mean I I wanted to touch on

that because they interjected that

yesterday we talked about that idea

about how in the 1940s regarding the

standard of living you were talking

about in the 1940s you're lucky if you

had one TV in one car you were lucky and

that's because we saw so many

neighborhoods built in the 40s it's all

one car garages or no garage and uh you

know now even people in poverty they've

all got iPhones everybody's got a TV uh

Everybody's Got a Car it could be an old

car

it's a lot safer than it was in the 50s

uh a lot safer than it was even in the

70s people always tell me in real estate

they're like oh but Kevin they don't

build homes like they used to you know

and that's often because they they think

like oh back in the 50s we used Redwood

to build homes which was like termite

resistant out in California that's true

that's great they'll tell you the way we

build homes today to code not shoddy

Builder work because there are shoddy

Builders but too code a hundred times

better than the crap we built in the 50s

and that's because when you tear these

uh down or or you you renovate these

properties you see what's behind the

walls you look behind the walls of a 50s

home which I've owned plenty of open it

up there's no insulation you're looking

right at the stucco the other side of

the stucco you have almost no structural

Hardware hammered in Nails that's it you

look at a home now you have insulation

you have foam sealant you have sheathing

and then stucco you have a structural

hardware for earthquakes these are

things that you just didn't have 50

years ago and of course over degrees

over time you've seen these slowly come

in but they make homes so insulatively

tight today I was talking I think to you

the other day about how we actually have

to bring in fresh air to new

construction homes right I mean you have

a hole in a new construction property

usually next to the return on the second

story but goes through the attic and it

just brings in fresh air from the

outside because the homes are built so

insulatively tight which is so much more

high quality than the Leaky homes that

you used to have in really up to the

2000s where they started getting a

little bit more airtight so uh all of

that by the way contributing not just to

the standard of living but also to uh in

the longer term disinflationary

pressures that technology is reducing I

mean we can have a more comfortable home

enabling us to do more productive work

and be more productive at home while

spending less money

because you're spending Less on air

conditioning because you're keeping more

of it inside so you're spending us on

energy now you have more to spend on

something else maybe that's an

investment into your business or an

employee and now you grow the economy

even more so the standard living thing a

lot of people today say oh everything's

worse today than it was that so much

better so much better yeah please yeah

I mean

so we agree Stan and I mean the essence

of what you just said is the standards

living have gone up and that's a great

thing and I think we all agree with that

um

exactly and that's what I wanted to get

into and the the that value is I mean

Envy essentially right because I I mean

and this is what I how I wanted to kind

of relate like out of all the successful

people you've met

like you think that it's that of Envy or

that of something else because out of

everybody I've never seen the like

the people who I admire most don't

really bag on others they they at least

look at the good side and they see what

they can value from so I mean I kind of

look at like the whole capitalist and I

don't want to get to whatever political

or whatever but like essentially

if you don't the things stopping from

continued standards of living is going

up I mean even like I mean communism you

know during the the 20th century

um was I mean do you think that

fundamental factor that value is is Envy

well I mean what is is that the

difference because people yes or or like

is it the fact that

simply even if our standards have gone

up

people some people just don't like the

fact that you know there's a difference

instant in standards among individuals

in the entire Society I mean what do you

and do you want to go Kevin or no yeah

uh yeah so there are two things here

one is oh actually there are three

things one is just straight up inflation

well you know we look at the cost of

milk now compared to what it was in the

70s obviously everything's much more

expensive but of course incomes are

higher and and that does drive a higher

standard of living now that doesn't mean

there's not poverty today that doesn't

mean there's not uh there aren't people

who are struggling today uh and there

are probably more opportunities today

than there ever have been the fact that

you can download uh University lectures

from as we were talking about the other

day MIT Harvard Stanford what do you

want to learn programming you want to

learn neural Nets and artificial

intelligence free online uh I mean these

are incredible opportunities to learn

and really build your resume or build

your ability to succeed I one of the

things I tell folks is

you want to be a productive worker you

want to get paid more money figure out

how to provide more value and then I see

them typing on a keyboard and and

they're like this and I'm thinking to

myself

you're typing 20 words a minute

is somebody next to you typing 100 words

per minute 5x is your output

this is something where I think we get

to the second problem of encouraging

folks to realize the best way to build

wealth and make more money is providing

more value and the more you teach

yourself about being able to provide

more value the more efficient you become

yourself the more you get so it always

starts with what do you give and then

you get more and in America

unfortunately we have the opposite

mentality the mentality is what can you

give me and then I will work harder for

you that's the wrong way and that I

think is why most folks get trapped into

the idea or or the the problem of

paycheck to paycheckism so to speak

because it's always

what can I take and then I'll think

about working harder but then you really

don't and you always have that

misaligned jaded element and that's

where the Envy comes in sort of the

third part of oh well they're the rich

capitalist they they should they owe me

more a lot of people have that oh me

attitude and so I think when somebody

who probably is watching this video who

wants to get ahead is able to look and

say Yes things are more expensive now

than they used to be inflation has a lot

to do with that yes the dollar has lost

purchasing power this is why we don't

sit around holding cash all the time we

hold assets over the long term we buy

real estate we buy stocks so that we we

preserve our purchasing power but then

when we also switch our mindset from one

of envy and switch it to well let me

give now all of a sudden Envy starts

going away what can I give a value and

then oh my gosh the more I give the

luckier I get and the harder I work the

luckier I get all of a sudden the world

changes for people so they're always

going to be folks upset with the idea of

capitalism because

of course it's easier to just say hey

here's 400 a week on unemployment and

what a surprise people got 400 a week of

unemployment nobody wanted to work

of course not it was it was like the

best Ubi experience experiment ever

don't get me wrong I think there are for

certain demos there is a case for Ubi uh

mentally ill age uh you know like look a

a 14 year old who has no parents needs

to be supported an 80 year old who can't

work needs to be supported this is why

we have social safety net somebody who's

uh you know fallen off uh uh uh like

somebody we met the paraplegic uh and

he's an inspiration from from yesterday

but uh uh working as a lineman falls off

uh and uh becomes a paraplegic for 10

years wheelchair for 10 years paraplegic

I think for two of those either way

those people need to be supported but uh

but for anyone capable there's so many

opportunities today the opportunities

are so much better than ever before do

y'all want do you want to add anything

yeah go ahead

so you were talking about how adding

value can it's it's like a a give and

then take relationship right and that's

how it's supposed to be that also

benefits like the actual individual

who's who's giving like if you're if

you're working harder for somebody else

you're going to learn a skill that

inadvertently ends up helping you in the

long term and probably makes that person

be like hey this person's going out of

his way going above and beyond for me so

I should give him more so it's it's like

a a double-edged sword in that regard

yeah yeah yeah uh that is in a good way

if you if you do the work if you don't

yeah but McKay why don't you chime in on

this I think you'd have an interesting

perspective so the idea of

what what experiences have you gained in

the how many weeks have you been working

here counting today is your last

[Laughter]

I think over the last few months

interacting with people and more than

anything Kevin has really emphasized

that we underestimate how much we can do

personally so if you don't know how to

do something don't pay someone to do it

learn it yourself like you can create so

much value with what you can give that

don't go pay some attorney to do some

small paper that and pay them like what

did we pay like 200 an hour when you can

write that document yourself with Tate

watch a couple YouTube videos and figure

it out and you just did it and you

created that much more value for the

company that you're in so instead of

like going to your boss and like hey can

you help me with this or like hey can

you do this for me find a way to do it

and create that value within yourself

and then Kevin frequently says the first

time doing something is always the most

difficult so the next time your boss

says hey I need this paperwork again you

already know how to do it you know how

to fill out a DocuSign you know how to

do everything so instead of deferring to

someone else or giving to somebody

else's responsibility you want the

responsibility Kevin Austin says you get

to pay the more you the more difficult

problems you solve the more you get paid

I like that's just how business is the

more if you can figure out how to make

a bad house into a good house you're

going to be rewarded for that you're

going to have to put hard work in your

first time is gonna be the most

difficult but then more houses you do

after that the more value you create and

it gets easier and easier every time you

do it and you learn more and more so

like these trips it's a learning

experience all along the way yesterday

we had a great learning experience we

learned a lot about a lot about areas

that we didn't know about and we learned

exactly what how stock is looking for

some things that house like wants to

stay away from but we're also learning a

lot about the people that we're going to

work with so it's really important to

Kevin frequently says real estate's all

about the people and so he talked about

no we're not doing Zoom calls is because

when we want to be like if Joe from

Arkansas calls us like hey I just found

this great property we found a very

similar property when he came down to

visit us we know Joe We Trust Joe we

know he wants the best interest for

house hack that's why we can't get that

over Zoom right this is business

handshake eye to eye and so those two

things is really one how much value can

you create meaning how many problems can

you solve on your own and two the

relationships you can create with people

you will be go Miles and Miles Ahead of

the competition that are just doing Zoom

meetings oh are you free now and they're

like we're gonna fly we're gonna come

see you we're gonna take you out to

dinner that chemistry is invaluable you

cannot pay for chemistry so those two

things is creating chemistry with other

people and just finding how much value

you can create those are like some of

the two biggest things that I've learned

there are two things that you said that

were kind of really inspiring and

motivating

um but one of them have to do with you

said you know you solve harder problems

you're going to get paid more like

there's it's the hardest the first time

the truth is like growth and discomfort

it's the same thing it's the it's the

literal exact same feeling so anytime

you feel like this is scary this is new

I don't know if I could do it that's the

thing that you should be pursuing

because that's the only way you're

you're basically going to grow the other

thing is I know a lot of people they

feel like luck is a huge element and

luck is an element like there's no

denying that you could be the hardest

worker in the world and just be in the

wrong place at the wrong time and vice

versa you get shot and you get shot you

get shot

knock on wood knock on wood

I don't think it's a coincidence that

the hardest workers tend to be the

luckiest people I just I don't think

that's a coincidence I think it's the

people that put themselves out there try

to provide value for other people uh

just the people who are go-getters they

inherently put themselves in more

opportunity they get more of those

opportunities so yes luck is an element

and you know it's kind of a wild card

but again I don't think it's a

coincidence that some of the hardest

workers end up being some of the

luckiest people

I think what Mikey said is 100 correct

and one of the reasons that Kevin is as

successful as he is it's not because

every project he does is a home run it's

because when he knows something doesn't

work he cuts it and moves on he calls it

flip-flopping but in reality that's his

greatest superpowers because he may be

like all right Market open market close

Okay that's not helping the business I

can be more valuable doing something

else for the business okay hey I miss

Market open Marcos he changes things

quickly and if it doesn't work he

doesn't do it he finds things that work

so if it's not creating

more value for the company she's not

going to do it so again flip-flopping is

Kevin's greatest superpower and he he

makes fun of himself for it but in

reality it's when he flip-flops it's

usually for the better it's usually

something better comes out of it than

his original idea so don't be afraid to

flip-flop don't think that's like you

told your families you can do this and

this but something better came over

don't go like yes your words important

but ideas and opportunities arise and

like Mikey said the harder you work the

luckier you get it's those things go

hand in hand for sure

yeah so this morning I was really

inspired actually listening to your

story you told me that you started a

business at age 19 uh I you know I was

just wondering if you could share that

in how you developed relationships over

time I know

um you had a relationship with Peloton

uh so I mean this guy like I like if you

could give some advice because I mean

you are a business owner you are an

entrepreneur

um and just over your all you know your

thoughts on what you've you know heard

yeah well I mean

every angle get my good side at least

um so yeah I mean honestly the the whole

you know idea of being in the right

place at the right time hardworking

people tend to get you know luckier

um I was just happened to be really

young when an opportunity presented

itself it wasn't like I was actively

looking for it I was offered a job by a

relative I went to go work and it just

so happened they were firing everybody

as I was starting and so they were

restructuring and uh they told everybody

hey look so we're going to be letting

everybody go however we're going to be

hiring contractors so if you're

interested in starting a business we'd

be happy to hire some of you back on

however you would be your own contractor

and that was an opportunity I was pretty

young I but even I knew it was like Hey

I mean this is better than not having a

job so you know I asked a couple

questions they pointed me in the right

direction told me how to start a company

I didn't know anything about starting

your

but they gave me the right info I

started it up and it was extremely

difficult uh just you know going little

by little and that kind of just led me

from one place to another you know going

into the business and and uh and

eventually I was able to hire people on

to help me and and grow it from there

and uh yeah so that initially we started

with a small furniture company and we

were away from there and I'm sure Kevin

would enjoy this we did over the

pandemic work with Peloton we were the

ones doing all their deliveries and

everything so that was fun

um so you do the assembly that not that

as much as heavily but you did that too

yeah so we did all their white glove

service

um that was something that we were able

to work on with them which was really

fun

um and yeah I mean we were able to grow

our business and do everything from

there and and I really think that like

you said it's it's just kind of learning

how to how to provide value and that's

just kind of how you you can grow a

business or you can grow yourself

personally

um there's a lot of resources online

like you said nowadays you could just go

on YouTube find out a lot of information

I never would have gone into real estate

I think if had I not seen a me Kevin

video to be honest so it's just

Gathering that information seeing what's

valuable and applying it you know and

it's not always going to work right away

people get so hung up on like okay I'm

gonna try it it fails and it might not

work right away but you just gotta kind

of try again Brewster view do it again

but there's just so many resources

nowadays that you can tap into like just

the other day I was on a Twitter and I

heard about something called I don't

know it's chat GPT I think

man

I I downloaded it onto my computer and I

typed a few things in and the responses

I was getting were like so crazy and the

information I got from that was so crazy

so I mean I see people on Twitter now

like doing whole threads on like you

know hey I can help you make money with

this new tool you know so it's just it's

just really what you know what you look

into and the value you get from things

you know that's awesome yeah yeah thank

you for that yeah and I've got to add a

little bit of clarity to McKay's line

there about the lawyer I really like

that I just want to clarify McKay is not

doing all of our contracts

uh but what what McKay's referring to is

actually a really good point so what I

like doing is we we have a lot of

creative things that go on so for

example when we started the shadowing

experience uh we thought okay well we

should make sure we should hire a retain

an attorney well I could hire a retain

and retain an attorney to to draft the

whole shadowing experience document

but they're six weeks out because

they're starting from scratch and

they're gonna charge me a lot of money

to do that so what did we do we wrote it

and then said all right now that we've

written the outline can you go through

and now read it so we gave them probably

five hours of a head start that saves

money but it also gets your own wheels

turning of how do attorneys think and

then when you get that revision back you

go oh that was a good ad from the

attorney now the next time you go do the

prep you're doing more and so every time

we go through back and forth with

negotiations with attorneys the more we

can contribute the more we actually

reduce costs and we increase operating

leverage so it's a great example uh and

and it also it comes down to real estate

contracts as well a lot of real estate

contracts need legalese that in in

non-attorney States you just don't have

an attorney for immediately so us as

real estate brokers we need to be able

to to write contracts very very quickly

and efficiency and efficiently but the

more I work with attorneys the better I

get the more I do it the better I get

and the better I get the more value I

can provide at any job I ever have in

the future so it's kind of incredible

and and the chemistry thing what I

thought was neat is

when when I was buying this plane when I

was first buying it the seller was super

skeptical like there's no there's no 30

year old that's coming to buy my 13

million dollar plan no that it did not

want to do the deal because of fear that

this person's not going to perform and

then I'm going to lose an end of the

year sale and uh when I met him in

person

and I told him I wanted to buy his plane

definitely yeah definitely not happening

now yeah uh and we had negotiated on the

price uh uh beforehand

but I shook his hand and said

I look forward to closing the deal with

you and after he shook my hand he looked

at me said you know I'm not gonna fly

the plane now anymore I'm not gonna put

any more hours on it I'm gonna keep it

safe for you here we're gonna fill it up

I'm gonna pay for a whole and he's

adding these things on that he was it

didn't originally agree to add on uh and

he's just throw showering me with this

uh and I think it was the difference of

being in person kind of like we were

talking about with that Zoom uh uh

situation for Real Estate I've seen that

a lot in real estate deals where sellers

initially all these buyers all these

greedy buyers buyers are liars right

then they meet the buyers they meet the

couple they meet the person in person

they're like no I I would love to do the

deal with them in fact I'll take less

money if I could do the deal with those

people because I trust them I believe

them I shook their hand real estate's an

in-person game so well does anybody else

want to add anything given that now we

are descending

it is time to wrap up the mile high

podcast does anybody else have any final

comments

do do our Pilots have any comments

so

they're adding value

just throw it on autopilot yeah

press the Auto Land button

we are about to go into the cause yeah

well with that said thank you so much

for watching the first episode of the

mile high podcast if you'd like to see

more of this make sure to leave some

support down below because if you don't

we won't

thanks so much bye