Trump to Declare Housing Market Emergency Bailout

Well, Donald Trump is considering a

national emergency on housing. We've got

to talk about what that means and what

areas of the country could potentially

benefit and when people might actually

benefit from any kind of Trump declared

housing emergency. Keep in mind, housing

stocks lately have been doing pretty

well. Part of this has to do, in my

opinion, with Warren Buffett increasing

his allocation to home builders and

Pool, which is a pool supply company for

distributors who allow contractors to

buy pavers, pool pumps, and equipment,

implying potentially a refinancing or

housing boom coming. That in the minds

of of course of Warren Buffett, at least

based on what we can imply based on his

recent purchases. But if you look at

markets like what we see today, you can

actually see housing stocks doing quite

well. Uh you've got, you know, Fanny

May, Freddy Mack continue to boom. Uh

and the boom has been going on since

election on the hope uh since even just

right before the election under the

hopes that these companies will go

private. These are quasi governmental

entities right now and they collect a

lot of money from servicing and uh

interest on Fanny Freddy guaranteed

loans, home loans, your typical 30-year

conventional loans. Uh and a lot of

those profits right now go to the

Treasury Department, which a lot of

people expect will transition to public

shareholders should they go private.

Sure if Donald Trump wants to give up on

that revenue, though, but anyway, uh

it's nice Treasury revenue, right? Uh

but you can see pool stock up on the day

3%. Lenar's up 2%. Dr. Horton's 1.8,

Lowe's is up 1.1, Home Depot's up 1.1.

This is while a lot of software

companies and maybe even some crypto

plays not doing so well. Salesforce down

five, right? AMD slipping. Uh you've got

uh Palanteer, I mean basically flat.

Tesla up a quarter, you know? So a

little bit of a mixed day, but you

really got some enthusiasm around

housing. Now, could that have to do with

Donald Trump's enthusiasm for a national

housing emergency? Well, Besset says

that they may end up declaring a

national housing emergency this fall.

Now, what's remarkable about this is

when I and we're going to go through the

details about this, but if you remember

when I ran for governor in 2021, I had a

20point plan. One of my 20point plans

was to deploy the National Guard in

California to end the homeless crisis.

And I had a complete plan in terms of

how we were going to utilize the

National Guard to build not only the

shelters and the mental health services

that homeless folks needs, but to make

sure that nobody's sleeping on our

streets. And we would deploy the

National Guard to make sure our streets

are safe and we could have tourism in

California. Interestingly, that's

exactly what Donald Trump is now doing

in areas not only like LA, but also

Washington DC and potentially now

utilizing the military to help

immigration and customs enforcement

deployment into Chicago. So, very

similar, but another item on my 20point

plan is somebody from a real estate

background with a real estate startup,

houseack.com. You can invest in it.

Learn more at houseack.com. This video

is not solicitation. But in 2021 in my

20point plan, I said that what we really

needed was to address the massive

housing shortage that we have. And the

way to do that is by streamlining,

building, permitting, and building more

homes. It's currently estimated that

over the next 7 years, we are going to

build or have a housing shortage rather.

So, we're not going to build enough.

We're gonna have a housing shortage of

an additional 5.2 million homes. That's

a massive housing shortage. That's

likely just going to make homes more

expensive. And I'm not talking about

more expensive because rates are coming

down because inflation is normalizing or

if there's a recession, rates will come

down rapidly, which will probably boost

asset prices up. Basically, the rich

will get richer, right? the people with

real estate assets that they could turn

around and refinance to invest in more

pools or furniture or whatever they're

spending money in and they're remodeling

or whatever, they're the ones who are

going to get richer. Everybody who

doesn't have access to housing gets left

behind. It's usually how it works. The

rich get richer in America. That's a

feature of capitalism. It's great if

you're rich, sucks if you're not. You

really got to get on the train of

building wealth, right? This is, by the

way, what we teach in the courses on

building your wealth at me.com. But you

already know that we've got coupon code

>> catalyst

>> expiring this Friday. But what actually

matters is that we have such a housing

shortage and one of the issues you have

the reasons you have such a housing

shortage and we identified this in 2021

is because you have such complicated

building procedures. Why is it that if I

want to build a home in San Diego or

Newport Beach or uh Hermosa or Ventura

or Santa Barbara, I have to go through

five different building departments with

totally different plans, different

energy requirements, different rules,

different regulations, different what I

can and can't do, different setbacks,

when the reality is they're all

basically in Southern California.

They've got essentially the same

climate. They're going to use the same

windows and furnaces and roofs. They're

going to use the same products. Maybe

we're gonna have slight differences for

design elements. But what we really need

is a standard for regions of building

permits so that not every damn city has

stupid overlays. Like why can I add one

ADU in Ventura, but I can add three ADUs

in Kenoga Park? It doesn't make sense.

Well, take a look at what Scott Besson

is saying Trump might do. Bessant says,

"We're trying to figure out what we can

do, and we don't want to step into the

business of states, counties, and munis.

We may declare a national housing

emergency in the fall." Besson declined

to list any specifics, but he suggested

the administration officials are working

directly at studying ways to standardize

local building and zoning codes and

decrease closing costs. Let's freaking

go. This is exactly what politicians

should do. Now, you know me, my goal on

this channel is to piss everybody off.

Why the hell else would I be wearing a

Luigi's

uh tank top here? You know, Luigi tank

top with a festual jacket. It is solely

to piss people off. And short shorts.

Short shorts. Okay. Who Who does this?

Who does this? Okay, I'm telling you the

goal is to piss people off. vest tool

jacket. Very nice, very functional. I

got a lot of pockets, pouches. I can put

stuff in here. You know, it's great. But

then we got short short, okay? It's just

designed to piss you off. So, it's the

same thing with politics. I'm going to

on Trump and then I'm also going to

tell you what he's doing right. And this

right here is something that they're

doing right. This is exactly what should

be done. And frankly, my goal when I ran

for governor was that if I didn't make

it, which I didn't make it, obviously. I

don't know. Blame the short shorts.

Obviously didn't make it. Uh, you know,

it could also be, you know, just my my

choice of style.

I don't know what it is, but my goal was

if I didn't make it that people would

take the ideas that we came up with and

actually implement them in the best ways

possible. And I think this is fantastic

because this is exactly what I ran for

governor on. We have these policies as

videos on my channel. So it's not like

I'm making this up with hindsight 2020.

Like we were one of the first people to

mention this and here we are now four

years later and like politicians are

picking this up which is great. This is

fantastic. We need this. Now what does

this potentially mean in the longer

term? Well, it's going to take a long

time. First of all, to standardize the

building process and then actually get

building, it's going to take four years.

It's going to take probably two years,

even if you declared the national

housing emergency, it'll take two years

to actually come up with some kind of,

you know, streamlining of building codes

and then it'll take another two years on

top of that to actually build. So,

you're talking about at least four years

before this makes a difference. But this

is what should be done. So between now

and four years, housing is still going

to get more expensive. It's still going

to suck in harder to build areas.

Understand this duality.

In 2020 and 2023, when we were exploring

where to invest for house hack, we

correctly identified that the places not

to invest in were Texas and Florida in

2022 and 2023 or in Airbnb markets

because they were overbuilding.

And sure enough, that's what happened.

Overbuilding has led to price declines

in those areas. But that's what humans

want. People want cheaper housing. So if

you want cheaper housing, you should be

in areas like Texas or Florida where

it's easier to build. And those areas

will probably win even more under some

kind of standardized building codes.

Now, if you want more expensive housing,

which is exactly what you want if you

are an investor in housing, if you're an

investor in housing and you own housing,

uh, and and you're providing rental

property, you want to invest in areas

where the politicians are dumb, where

they don't understand how to generate

more housing. Places like California,

ironically, great places to invest for

real estate because they're so dumb and

they have all these complicated policies

that make it so hard to have more

housing and so housing just gets more

expensive. So, this is great. Now, one

of the downsides of Donald Trump's

actions here is that he generally uses

emergency declarations as opposed to

sending legislation to Congress. The

problem with that is you end up getting

held up in courts. So, like best case

scenario, even if they do this, it'll

take four years. If you end up having

courts that push this back even more,

it's going to make it even worse. It's

going to take even longer. But who

knows? There's also this possibility of,

you know, maybe some kind of emergency

action for like tax credits for

builders, but that was more of a Kla

Harris plan. Uh, so I think a lot of

people think that this emergency action

will have to do with Fanny Freddy, which

is possible, but uh I think it'll like I

don't think they want to get rid of this

revenue. I think it's more likely that

they're going to want to promote

building and it's good for real estate

stocks. Even though fundamentally Open

Door is a bad stock, in our alpha

report, we called out this rally coming

to Open Door since it was in the 60 cent

range. It's now almost up 10x from

there. you would have that analysis and

by entries and exit uh uh you know point

outs if you're part of the alpha report

which remember you get every single

morning if you use coupon code

>> foolish catalyst

>> over at mekevin.com you get lifetime

access you also get access to all the u

property management courses the real

estate sales courses the real estate

investing courses the stock investing

courses the trumpics tax benefit courses

we've got a lot of new lectures coming

out by the way probably at the end of

this month for renovation

what renovations to do, what not to do,

what products to use, what not to use.

We're doing a big update on that course

along with the tax benefit Trump course.

So, that'll uh that'll have a lot of new

lectures as well. That's all coming out

later this month. We'll have uh probably

at least two price increases before

those lectures come out, just because

we're adding more value for existing

members as usual, just constantly adding

more value for existing members in add

membership over at meetc.com. And then

keep in mind, you know, one of the

reasons I pay attention to all this real

estate stuff as well is because, you

know, obviously we have a real estate

startup. We've got, you know, somewhere

around 76ish million dollars in assets,

maybe more now. Uh we just had a seven

figure money raised month in August. Uh

we raised another over six figures in

just the last 48 hours. I think that's

because people want to diversify to real

estate. They're like, "All right, stock

market's at all-time highs here. I can

invest into a real estate company at,

you know, what I think is a reasonable

valuation. Uh, a buck 40 a share, which

is roughly somewhere around 1.5

or 1.5 times our asset, you know, book

value basically. Uh, but that depends on

how you value book value. So, you got to

really just kind of like look and

understand the financials. Don't take my

word for it. Just read all the paperwork

on it. Uh but uh you know there we think

there's like no valuation premium to

what we're doing with artificial

intelligence which we expect to have a

limited release for people in the meet

Kevin uh membership. Uh we'll do some

kind of limited AI release beta in the

fourth quarter for our real estate AI

software. That'll be huge for

identifying deals and valuation

features. We're coming to that as well

which is great. It's basically our wedge

finder that we can license across the

country to other people because you know

there's no shortage of deals. It's a

shortage of people identifying the deals

which our AI will help with and then

there's a shortage of capital to buy the

deals. But if you have capital buy the

deals, you just need a little bit of

boost. You know, use you could spend a

little bit of money on AI and and

probably make a lot of money. That's the

goal, right? It's kind of like the

Palunteer strategy. Like we want people

to use our AI and make a hundred grand

and you know maybe they spend $2,000 on

us to make a hundred grand like that's a

win for us and it's a win for you. You

know we license software and hopefully

you make go big big big money. We don't

know if it how much that'll scale or if

people will like it but that's sort of

our vision. So if every customer can pay

us to license our AI software that's

great. Uh, and so, you know, we're using

our machine learning that we've built

out and combining that now with LLMs.

Uh, and you know, we've hit a

breakthrough recently in in our AI

ratings and it's incredible what what

we're able to pull off. But, uh, I mean,

we're going hard on this and it's great

because, you know, we don't see AI as

part of our valuation. We see us as a

housing company that buys fixer uppers

and rents them out.

uh and uh the AI is like this icing on

the cake that you don't pay in my

opinion any valuation premium for right

now. That'll probably change in the

future once we actually release the

product unless the product flops.

Obviously, there's like I say, there's a

risk with everything. But I I couldn't

be more excited about it. But then

again, I'm biased. You know, I'm the

CEO. So, uh but anyway, that's just sort

of where my mindset is. But yeah, I

mean, when it comes to Trump, I mean,

this is what we're paying attention to.

We're watching these sort of policies

and uh and I recognize how long it's

going to take for them to pull this off,

but I'm going to be watching very

closely what their plans are with

building because you know how side also

develops and then like all of this is

related, right? Like we use our AI to

find wedge deals, to find below market

value deals, and we buy and hold the

stuff, but we also develop our

properties. You know, we add accessory

dwelling units or we build from land.

And so, you know, if they streamline

building permitting processes, that's

great because then we can build like

Lenor Dr. Horton or whatever. So, it's

fun. It's uh I really like real estate.

You know, me, I'm a real estate guy uh

and uh I love construction. I love real

estate and and we hope we can keep

crushing it. But uh gives you a little

bit of an update on what's going on with

housing, baby. Housing and real estate.

Uh so let's see what some of you have in

in um in California, real estate taxes

could be more than your mortgage pay. I

don't think you realize that California

actually has some of the best property

tax laws ever. See, to most people, they

say stuff like this and they have no

clue what they're talking about. And

it's okay. I'm not trying to make fun of

you. I'm just trying to say you have no

clue what you're talking about. If you

go to Texas, you're going to pay

somewhere around 2.4% of your purchase

value on property taxes. And very common

as well in Florida. Let's not even get

started with insurance costs in Florida.

I could still get reasonable insurance

rates in California. And thanks to

Proposition 13, I am limited at paying

property taxes at 1% of the value of the

acquisition price of the property, able

to go up no more than CPI per year. You

know what that means? That means when

you buy real estate, your property taxes

stay here as your property values go up

exponentially. Your pro like or or your

property value goes up exponentially

over time. Uh especially if you

appropriately use leverage, which House

Act doesn't right now. We don't use any

bank leverage right now. We got zero

bank leverage at all. No debt other

than, you know, some convertible bonds.

Um,

the property taxes go up linearly, but

not necessarily because if there's ever

a point where values go down, you can

actually put a request in to the

assessor's office. I've done it before

successfully. It's great. You send a

request to the assessor's office for a

decrease in your property tax valuation

by providing them comps. You basically

just do a market analysis. You send them

the comps. you're like, "Yo, property

value went down." They'll lower your

property taxes. Then when prices

rebound, which they always do,

especially in low build areas, your

property taxes are now assessed to the

lower value despite the value going back

up. And they can't catch up because

they're limited. They are ceiling by law

how much they can increase your property

taxes. Like there's so many like when

you actually know the game. You know how

to make money in real estate. Uh and and

we'll just leave it at that. That's

That's enough of that. But when I

Sometimes I see people say these things

like, "Man, you're just wrong."

Uh anyway, Kevin, what is the offer

ending? I got 30K, but I want to buy

60,000 more of house.

The It depends really what the Fed does,

right? Like we're offering a 5% yield

right now on top of upside in the stock

until the until it converts obviously

because it's a convertible offering. you

know, you get 5%. It's paid out to you

on a monthly basis through conversion.

But the thing is when you look at, you

know, if the Fed comes in, like if the

Fed panics this September and they're

like, we're cutting rates 50 or 100

basis points, it might make sense to end

our offering. So, I don't know if we're

going to. It kind of depends on like if

the Fed does something crazy and, you

know, Waller gets them to cut like 200

basis points in the next three or four

months, you know, I'm going to be having

a meeting with the board. I'm going to

be like, "Hey, why are we paying this

much?" I mean, the board will probably

call me be like, "Kevin, why are we

paying so much yield when the Fed just

cut rates a bunch?" So, we're kind of

just waiting and seeing what the Fed's

going to be up to. That's that's my

opinion. Uh, and so we'll see. Uh,

you know, that's that's a big deal. Uh,

you know, I I don't see competition. I

see your comments here about competition

for what we're doing. I don't see

competition at all for what we're doing

with AI. uh you know we're not we're not

a data analytics platform we're we're a

wedge deal uh AI product that's very

different uh than than data we don't do

da d d d d d d d d d d d d d d d d d d d

d d d d d d d d d d d d d d d d d d d d

da analytics. Somebody here says one and

a quarter of the purchase price. One and

a quarter of the purchase price is

usually what people use as a ballpark

for estimating uh your property taxes

because property taxes are limited at 1%

in California, but we add a quarter for

the local assessments and it just gives

you a quick ballpark. I live in Germany.

Can I invest in House Act? Yes. Uh we've

got people from Japan, China, uh the

Middle East, the UAE, Canada, the UK,

Sweden, you know, we've got investors

from from all across the world. Uh and

uh it's kind of cool. So, um live in

Germany.

Thanks, Kevin. I'm from Taiwan and I

took your courses since co times. I've

literally watched every live stream

you've had since Dr. Prof. That's

awesome. That's so cool. I want to

visit. That's really cool. Uh anyway,

thanks for saying that. That's really

cool.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows 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.