What you're about to watch is an experiment of a podcast while flying to a destination. What I would love for you to do is leave me a comment down below if you liked what you saw, Should we do it again, and if you want to join me and potentially be on the jet when we go, travel to look for real estate, check out the first link in the description down below as well. right next to that expiring coupon code for the programs. 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. 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.