394 | The Insurance Crisis May Be Over, New "Good Cause" Evictions Legislation & Other NYAInsights

After making headlines for rapid increases in the past few years, home insurance rates are now making headlines for slowing down.

But are the rising rates completely in the rearview mirror?

We're diving into that story, plus other headlines in the latest edition on Not Your Average Insights!

JWB Real Estate Capital's co-founder, Gregg Cohen, and show host, Pablo Gonzalez, have picked out the most interesting economic news of the day, to talk about it from an investors lens, like:

- How insurance rate hikes slowed down in Q4 of 2023
- What NYC's new "Good Cause Eviction" legislation tells you about the future of real estate
- Why the Hottest Job Markets list from the Wall Street Journal can be a cheat sheet for real estate investors

Don't get lost in the headline sauce!  Join us for a lively discussion that will cut through the noise, reduce uncertainty, and make you feel like you have an edge in the investing world.

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https://jwbrealestatecapital.com/nyai/

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https://jwbrealestatecapital.com/turnkey/ 

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Transcript

GMT20240423-163127_Recording_1832x982: 0:00

Today, we're coming at you with a little flip mode for you. We were going to talk about construction prices, but, with a little oversight into Greg's schedule, we realized. It is better to hit you with some Not Your Average Insights. Everybody's favorite content pillar. We got three super de duper interesting stories, GC. Welcome everybody to the Tuesday edition of the Not Your Average Investor Show. Today, we're coming to hit you with some Not Your Average Insights. Everybody's favorite content pillar. We got three super de duper interesting stories, GC. What's number one? We gonna be talking a little bit about insurance today. Insurance. People love talking about insurance and you know what they love? They love good news about insurance. We haven't had much in a while. Haven't had much in a while. That's what the first article is about. Then what are we talking about, GC? We're gonna talk about Good cause evictions, which is an interesting topic and what's going on in other parts of the country that are leading to solutions for housing affordability. Yeah. Some lawmakers out there in the state of New York are doing good cause evictions going to be some interesting stuff. And last but not least, the wall street journal just released the 10. Honest job markets in the United States. And man, I'm burning my fingers when I, when I touched it, you see, what do you, what do you, are you going to tease something about it? Do you think, do you think maybe Jacksonville might be on there? Maybe, maybe, maybe. Stay tuned, stay tuned for the release, the list a little bit later on the show. Release the list, release the list. All right. It's let's release the show. She seen how did the golf tournament went yesterday, right? Like before before we talk about anything we had the 7th annual JWB cares golf tournament yesterday Massive turnout beautiful day out there. It's awesome. Tell me what do you want to share with us? You know, this was a special golf tournament for us this year. They're, they're all incredibly special, but each one has its own unique kind of special quality. And for this tournament, I think that special quality was, You know, seven years ago, we started this charity. We started these golf tournaments. We didn't know where we were going to land, but we wanted to do good in this community. And we've been able to do that each and every year. And we've donated, this year will be our sixth home that we all, you all have. had a part in donating because collectively we raise over 200, 000. Thank you very much. We raise over 200, 000 each and every year to build a brand new construction home and give it to a deserving member of the community. We've partnered with canines for warriors in the past and have donated five of those homes to veterans who needed a helping hand with affordable housing this year. It was about connecting the circle, connecting the dots. And we had the opportunity not just to have a wonderful golf tournament and raise over 200, 000 with all of your help, but we're going to be connecting the dots. You're connecting the circle because we're going to be gifting a home to one of JWB residents here in Jacksonville. And we couldn't be more proud of that opportunity. And it doesn't happen without all of you all of you who donated, all of you who took part in the 50, 50 raffle, all of you who are sponsors. We had an incredible group of sponsors who made the golf tournament possible. And to think about how we're not just changing somebody's life out there that we may or may not know. This is one of our residents. This is really, really incredible. So it was a beautiful day of golf. Everybody had a blast. But I think what, what meant the most to me was, you know, just connecting the dots here and seeing how we are all a part of raising people up in our community and no better way to solve the affordable housing crisis than help somebody. Have their very first home with all of your efforts. So thank you very much. It was cool, man. It was cool to see the support out there as usual. It's, it's cool to see this idea that you're doing so, you've been doing so much community development for so long. You've been doing so much economic development for so long. And now this like, congelation of the message of like, Plugging people into the economic flywheel that you've been spinning around. I thought it landed really well when a really wise man said it yesterday. So, um, you did a great job, really good, really good vibe out there. Yeah. And let me just bring you guys in. We've had some questions about how this gifting of the home is actually going to work. I'd say it's the first year, of course, that we're gifting a home to a resident. And we have this incredible partnership with our nonprofits here locally. So I thought I'd give you some insights. So every resident who is a resident of JWB at the time of submission which the, submission process ends, April 30th. So all of our residents are eligible. But there is a process. And so each resident is invited to let us know about their financial situation and let us know what they do to contribute to being a positive member of the Jacksonville community. And it's a robust application process that they take part in. So we've had over 260 entries so far. And we knew that we needed to partner with local nonprofits here to help us make sure that that the, the resident who is receiving the home is the right resident for this. So we've partnered with five local nonprofits and these nonprofits are all reading through those submissions. They're going to be narrowing down to a small number of those submissions. And then there will be a board who is hand selecting the resident from that very small number of submissions. So a, a complete community effort to bring this together. And you know, just knowing that we have over 260 folks who have put their heart and soul into this, and they know that one of them is going to walk away with, you know, with this gift of a brand new home is incredible. So thank you all for all of your support. You're making all of this happen. You're a part of all of this good, good stuff. And I think it goes well beyond just investing when you get to invest with JWB. Indeed, man, it feels good to just be a part of it. The little, the little role I play, the big role, the community plays. It's a great story. And speaking of 260 residents, we have 60 plus investors. Ready for the Tuesday edition of the Not Traverage Investor show. I am your host Pablo Gonzalez with me as always a man that I affectionately call GC because he's got these genius concepts because he knows how to generate cash flow. He's a great co host and his name is Hello, everybody. Great to be with you. And when we kick this thing off, we got a little tradition. GC, do you know what we call that? The roll call, baby. We got the mystery man kicking us off today. Danny Davies. We got the ringmaster in the house. Drew Barnhill. Drew Barnhill. We got Chris Lee from Fernandina Beach. Hi, Chris. We got Jeff Pettijohn is back from Missouri. Hi, Jeff. Welcome back. We got our regulars, Gary and Rosalyn Reilly from Marietta, California. We regard you. We regard you. We got the early bird in the house. Mr. Dean Curry, big pop on the house. We love it when he calls in big bops. How are you, my man? Co founder of the co founder Greg's dad. We got Misty and Troy Johnson from Denver stars of the show stars of the show, top 10 attendees. But you are there not like they're working on it this year. They're working on it this year. Yeah. They're making it happen. They got the shaman in the house. Good morning. Good afternoon. We're going to call her CSG charity. Saki Graham is back. She earned a nickname. I love that charity. Great to see you. We got the belly gray. Good morning from the serendipitously Sullivan mountains of Colorado. That's right. That's right at the peak level that I can do without tripping up Billy. Good work, buddy. We got Tony D's in the house. All right. Special day. Anthony did. We got the wonder kind. Jeffrey Wunder. Jeffrey Wunder from New Orleans. Not every day Jeffrey shows up. Good to have you. There we go. Buddy, we got Pamela Myers in the house. All right, Pamela. Nice to see you. I'd love to have Pamela Myers back. We got the mama bear in the house. Ms. Cody Adams. Ms. Cody Adams. We got Sir Jeffrey Bolton. Bolton. I love that. Jeff, great to see you, buddy. He says, great change in topic since, increased property costs, increased insurance costs, have erode a little bit of cash flow. So it's fun to be here. We got the better Greg in the house. Greg Stone. Greg Stone from New Jersey. We got the ringmaster. We already talked about the ringmaster, but his name is still Drew Barnum. All right. The Pedro Santorios. Michael Santorio. From Northern Virginia. We got Kevin O'Brien. All right, Kevin. From Rhode Island. Kevin, good to have you back in here. Who else? We got any? I know we got some more. We got Richard Hall's AI assistant checking in with us. Richard's AI assistant. Who else? We got Luis Olivares, my friend from Miami. Alright, Luis. Nice to see you. Wishing you all, I wish I would have known about the golf tournament next year. Next year, indeed. Who else? We got the amigo. The Amigo. The Amigo. You know who the, oh, the Amigo. Okay. and Amigo. Bill Shield, of course. Maybe it's because I didn't know the amigo. Bill Shields well, El Amigo is Spanish for the Amigo. Thank you. So you know, now that you know, you know who else we got in here? We got the first family a little bit late, but the patriarch and matriarch. Canon. Carolyn Meline, we salute you to And Joyce Ley in the house. All right. New name. New name. New name. Joy Joyce, the show. Welcome to the party, meet you. And of course you may have heard of him. The MVP, Mr. Lee Bishop. Everybody's heard of Mr. Lee Bishop and Laura Kby. Alright, Laura, good morning from Miami. She's in Miami now. I thought Laura's normally in Washington state. Was Justin Jaxx had an awesome time with JWB folks? All right, Loa. Fantastic. Good to have you. Good to have you. GC. Yes, sir. Let's kick this off, man. Let's do it. We are, are we floating? Is it not floating? All right. We've got this new, article from floridarealtors. org talking about the home insurance crisis nearing an end. And basically they're saying that home insurance has stabilized right after significant rate increases in Florida. Home insurance market is showing slight signs of slowing down. That's the big thing that they're leading with. And what they're saying is that. Even though premiums for single family homes have risen nearly 24 percent over the last 18 months, the growth rate has now decreased. It was only 2. 6 percent in the final quarter of 2023. There is an optimistic outlook happening right now in that industry insiders credit legislative reforms, which we have covered on the show in the past, and this competitive pricing from new insurers coming into the market, Are really, really going to help. So everybody has this like really hopeful outlook, eight new insurance companies have been approved to operate, potentially driving down the rates. Thanks to competition. No more citizens monopoly, right? Yeah, we, yeah, absolutely. Big deal. And, you know, still going to be dependent on different factors and whatnot, but it seems to be a very optimistic outlook of what's going on GC, any takeaways that you got from this article? Yeah, absolutely. This is, this is the one of the first articles where it had really solid data showing some of the things that we have been feeling and hearing for quite a while, right, for, geez, when did we have Whitney Ritchie on the show last talking about this? Maybe six, nine months ago, maybe six. And I know that for that long, Whitney and maybe a little bit longer, Whitney has been talking to us about how there was a stabilizing force happening in the insurance market. Yeah. And it was going to take some time for insurers to come back into the, into the marketplace. It was going to take some time for those insurers to actually make a profit in insurance, which is what we want because then more insurance options come to the state. But that she felt that it was going in this direction. And so that's what we have really been expecting for quite a while. So I thought this was some really good data. I liked the data from this article because it's, you know, of course, We like that. So we do like that. But you know, you've made a name for yourself of talking about data and putting a little bit of perspective in there. Do you see? Yeah. How much, how much weight does this. article carry in your head, right? Like, is this a, is this supporting everything you already knew? Do you think I mean, to me, the big eye opener is eight new insurers are coming into the state of Florida. I think that is, we talked about this like citizens monopoly. Do you want to explain what I just said there? Yes, because so citizens insurance is the state run insurance company, which nobody wants citizens to be the insurance provider of choice. It's not good for the state because it is. State run, but it was created as a backdrop in a emergency situation. Unfortunately, with what has happened in the insurance industry over the last few years, insurance companies have left the state largely due to legislation and litigation costs that came because Florida insurance just got sued at rates that were so much higher than any other state in the, in the country. And so all those costs came along with it on the heels of some storm activity as well. And that's what drove a lot of insurance companies out of the state of Florida. And then citizens insurance became the provider of insurance at a much higher rate than anybody wanted. So what the state has been hoping to do and what they were able to do through some legislative reforms to limit the litigation that was happening they have been able to do that. That leads to insurance companies. You know, coming into the state more. So this article said eight new insurance companies have been approved by the Office of Insurance Regulation to enter the state's insurance market. That's huge. We were just hearing articles about how many companies, insurance companies, were leaving the state for a while here. This article also talked about the profitability or even, or at least the, the limiting of the losses. of insurance companies. I think that's an important factor. There have been some articles that have talked about specific insurance companies in the state of Florida that are posting profits again, which is wonderful. This article says Florida domiciled insurers reported making a profit last year for the first time since 2016. So these foundational things that are starting to happen, profitability, more insurance companies coming into the state is a great thing. What it also talked about is how the citizens insurance policies counts have gone down. So it was 1. 4 million in September of 2023. Now, well, at the end of Feb, excuse me, at the end of February of 2024, it was down to 1. 17 million. So dropped by over 200, 000 policies. That means those policies were picked up by private insurance companies. And so. All of these metrics are pointing in a positive direction. What does this mean for you as an investor? There's hope that not just that insurance costs premiums have stabilized, but there is hope. And they talked about it in this article of those costs coming down in future years. And that's what the hope is. There is a lot behind this idea that cash flows and returns on investment from net rental income will improve in future years. Because when you think about interest rates coming down in future years, when you think about rent prices continuing to grow, and when you think about home price appreciation, it's You know, normalizing. We're not talking, you know, 15 20 percent home price appreciation like we saw in the past. Just normal home price appreciation. If you see interest rates go down, if you see rent rates continue to go up like we are seeing, and you see insurance costs come down, the assets that you buy today could have significantly better cash flow one year, two years from now. So nobody's really talking about that fact, that you could see a significant increase in your net rental income from some of these other factors. But as I'm sitting here in the seat of an investor as my, myself, and I'm thinking about over a billion dollars that we manage for our clients as well. Like, I'm really excited. I feel like we have weathered the cash flow storm as much as we possibly should have or could have over the last few years with interest rates going so much and the, you know, going up and insurance costs, you know, and property taxes going up so much. I'm really excited for the other side of this. And I think you all are going to be excited too. So you just dropped a whole bunch of like perspective to the data. I'm going to summarize some right. Number one is this idea that I think, I think that the key takeaway here is as rental property investors, we win over time because our greatest cost is our mortgage. And as long as that continues to happen, Rents continue to go up properties to continue to go up in value, which feeds this flywheel of net worth and also monthly cash flow that we really, really like is why we invest in rental properties. The idea that insurance rates were quoted or are quoted right now at the rate where they are. And if these trends continue, the idea that insurance rates could go down would add a beautiful little bump to that cash flow of what's going on, right? Beyond that, the reason why they could go down. We have been in a long period of time where Florida insurers were leaving the market. Up all the way till the point where like we were left with very limited options and those options were crying about Not well not crying complaining, right? You run a business, right? They are complaining that they could not be profitable now What is happening is insurance carriers in florida have become profitable Eight new insurers have been approved to enter the markets. As we all know, competition is good for the consumer. It means that people get competitive. There, this is why we believe that rates have the opportunity to drop. Because this is now going to happen. They're making money. They're competing with each other that allows us to have better options have encourages them to innovate And to deliver things better as opposed to what we know in America to be bad for the economy, which is monopolies That's why we have the antitrust legislation and all these kinds of things Did I miss anything there in that summary those those seem to me like the two big takeaways? Yeah, I think you nailed it there. I just wanted to add that being in Jacksonville is not like being in South Florida, like they're being in South Florida and being in Jacksonville and being in other parts of the state of Florida are almost like different countries when it comes to insurance. So we're talking about statewide averages here. But obviously, our friends in South Florida have a much greater risk of hurricanes and major storms being somewhat inland. As we are in Jacksonville, even though we do have a beautiful Atlantic coast here and beaches here, you know, your turnkey properties largely are 20, 30, 40 miles inland here. And so we certainly are not on the coast. We are not susceptible to storms at the rate that they are in South Florida or in other major cities. You know, and so those things lead us to having better insurance rates just as we are. So if, if there's somebody out there and you're interested in a JWB property and you go and you sit down with my team, we'll actually lay out what your insurance costs are, not assuming any of these good things happen in the future right now. And I think you'd be surprised, especially on a new construction home, your premium for the year for your insurance is still going to be well under a thousand dollars a year. Yep. You know, so you just don't see that in other parts of the state of Florida. So just even if none of this good stuff happens, investing in a place like Jacksonville, especially in the neighborhoods, we're going to put you in, which are inland neighborhoods and how we're sort of naturally protected in the Northeast part of the state here. insurance is not cost prohibitive as it is in other places. So, that's a good, good thing to keep in mind. Got it. Yes. Very big difference. Florida in itself is many different places at once. Miami is its own little ecosystem. Right. Um, and South Florida has a, and, and South Florida has a different hurricane risk, a different flooding risk, a different sea level rise risk than North Florida where we, where, where we sit, right? Like, There's coastal climates, there are inland climates, and then there is tropical versus not so tropical, prevailing winds, different things that have caused that. you know, a direct hit hasn't come to Jacksonville in over a hundred years, right? But, but I want to make the connection. Yeah. We really, really, really care about our friends in South Florida. We care about the, the, the hurricanes, not just from a humanitarian perspective, but when you're thinking about insurance companies coming into the state of Florida, if South Florida's rates are so high and it's cost prohibited for them, and they can't make a profit in South Florida, they're not going to come in and just serve the Jacksonville market. So that's why, you know, perspective, it's good to think a little bit more macro than beyond just Jacksonville. a light storm. Mark, we had very light storm activity last year in 2023. We hope and pray for the same thing in 2024 that would speed up and make it more likely to have some of these rate decreases come around. But you know, if, our friends in South Florida, unfortunately do fall victim to a storm, you know, that's going to slow down this process of hopefully some rate decreases coming our way in Jacksonville. Good stuff. Chat seems to like it. A couple of things coming from the chat. Number one, The green screen thing is probably not going to happen. No, we don't like that. There we go. It's a little confusing. It's a little confusing for everybody, but we try it. We're trying to innovate here on the show. Number two. We're hearing some, some really good things. Danny Davis, mystery man saying this is probably the greatest moment in the last 20 years when investor can say cash flows are extremely likely to go up from here. That's awesome. Pamela Myers saying this encouraging news because her insurance being higher has compressed her cash flows including being some negative Pete Inc. You name new name. Thank you for contributing. Thank you for asking the question. We love it. He's asking who are the eight insurance companies who have been approved? Pete. While you ask that question, while Greg was talking, I threw it into chat GPT and here's the response to chat. GPT says ovation home insurance exchange, manatee insurance exchange, maybe, maybe a friend of, from Homasasa, maybe out of Homasasa, Florida, friend of Merrily Cotterman condo. If you know, you know, condo owners, reciprocal exchange, orange insurance exchange, Orion one 80 select insurance company, Orion one 80 insurance company, main sale insurance company. Tail row insurance company are the a companies all I learned from that is insurance companies suck at marketing All that sounded the same thing I don't think I've ever been such an insurance fan in my life, by the way Maybe there's an opportunity for for some marketing Anyways, those are the companies for whatever it's worth and at the end of the day the good thing is Competition, breeze, good things for consumers. That's going to be good for us investors. It's going to be good for homeowners. I think it's going to be good for the state. So good. It's good for the soul. Good for the soul. Good for the soul. All right, here we go. Anything else on that? Not on that. You see what, uh, I'm looking through our notes. Okay, cool. That sounds good by the way. I just wanted to say that kind of like things tend to happen on the not your average investor show this article at this timing feels very appropriate to the update we got six, nine months ago, it was this idea of, Hey, you know, things are, things have changed. Things are still. You know, the future has changed. Things are still the way that they are, but we're going to start to seeing some good news happen in some time, right? Like, so it kind of like right on time with what we talked about when we had our insurance update six months, eight months later, competition is starting to happen. Tailwinds are showing that we haven't gone down yet in price, but the increases have slowed down and it's likely that we continue to see good things happening now that these companies are coming into the state. Now we can look forward to that. And think about your seat as an investor, how this is going to affect you. What a lot of people don't see is that six to nine month lead time. Like we're able to see through our network here. And then when a lot of people aren't able to put the connections together for how to make a great investment decision with that leading knowledge there. True. Think about this as insurance costs come down. This is a very similar topic to interest rates coming down. Eventually, they're going to come down. When that happens, think about what that does to your cash flow. So take that extra step and make good decisions to lock up assets right now, which are only going to increase in value when some of these things do happen over time. Good stuff. That being said, if you want to work with a partner that knows how to, like, talk about this stuff, future pace it, understand what your cash flows are going to be, go to chat with JWB. com or if you're here, just shoot Cody a DM. She's our community manager in the chat right now, or shoot her an email to Cody at JWBcompanies. com if you want that. Mama bear service. All right, GC, we've got another, we've got another slightly more nuanced, slightly further out of our comfort zone article here that we're going to talk about, but we thought it was really interesting to bring up. And it's this idea that, Oh, we're back on green screen again. I'm sorry, folks. Oh goodness. I've not changed that setting. New York has passed a big housing deal and everyone is grumbling is what the wall street journal says, but this doesn't seem all too bad. What it sounds like is that they they pass these good cause eviction protections. And essentially the, if this thing is passed, it is that they will only allow people to be evicted. Causes that have pre approved now these causes when I brought him up to you're like what other causes are It's like don't pay if people aren't paying rent on time if people if you know I can pull it up, but it's it's five very basic causes of like not paying rent on time not following the contract Owner wanted to occupy their own building repairs being needed to be made is very normal causes in exchange. What they will also do is limit rent increases to 5 percent plus inflation with a 10 percent cap upon lease renewal and give tenants a right to to lease renewals. And landlords can still evict for these like non payment illegal activities and significant disturbances. It also has, and this to me is the interesting piece, comes with development incentives. The deal includes tax breaks for developers and incentives for those converting office spaces into apartments alongside with the removal of certain zoning restrictions which are aimed to spur to the creation of around 200, 000 new housing units over the next decade. What do you take away from that? You see, well, you know, this just reinforces what a challenge we have as a country when it comes to housing affordability. Because, you know, many, many jurisdictions out there struggling with affordability and Some understand that it's a supply and demand issue. It's beyond just the demand part of it. It's really the supply issue. And there are different parts of the country where it's much harder to solve the problem. New York being one of those, because it's, it's built out. You don't have the opportunity to build a whole lot of new supply coming into the market, which is very different than a place like Jacksonville. So I think, you know, housing affordability is a much bigger problem in New York and it's a much harder problem to come up with a solution with the solution to because of the lack of availability to create new supply. So they're coming up with solutions to do this and they're coming up with things to do that kind of. cater to all sides. So I like it as a idea for for New York. When I stink, when I start to think about Jacksonville, it's a completely different ball game, right? We have a lower cost of living here than the national average which doesn't mean that we don't need to pay attention to housing affordability. It is a critical issue and one that I'm very passionate about. JWB. Is a part of the solution because we care so deeply about it, but it's a much easier solution to have here, right? In Jacksonville, we have so much land that can be developed that can become housing units. So just simple market dynamics are leading to the solution for more affordability as you're seeing. new housing units go up. You're seeing a ton of apartment construction going up. So we have a lot of built in solutions here where we don't have to change or create legislation in order to kind of accelerate it. At the same time, we get to create incentives Work because they work. We don't have to create incentives that have to There has to be like a winner and a loser. So the incentives that we have to create more affordable housing, you're starting to see like, for example the city just released a program where they dedicated an additional 2 million to use as down payment assistance that many of JWB's residents, many of our renters are able to use. They can use as a down payment to go and buy their first home. So it's just, I think what it reinforces is the nature and the scale of the problem for the economy for the entire country. And then I think it is a, it highlights how difficult the problem is to sell to solve in, in New York. And then I think about in Jacksonville, I'm empowered. I'm excited that it's, it's It is still a big problem, but we have paths to be able to solve that problem that are much easier with less red tape and I think more impact. So there you go. When I, when I, when I hear what you're saying and I'm like thinking about this article, I guess in my head I had already segmented the idea that New York is New York and, and you know, patron Santorius is talking about how Montgomery County, Maryland has rent stabilization and I'm used to hearing that in like Santa Monica, California, right? And so like, I guess in my head. I already have this like segmented piece of there are places that have been obnoxiously expensive for a really, really long time where this like rent stabilization regulations have already been Tried and putting in place and they're generally very, very dense areas with an overpopulated land where, where they're trying to push you know, real density and it's already densified to a certain extent. And then there is places like the rest of America, which is, which includes Jacksonville, where it isn't so much about rent controls as much as incentives to To start densifying some because it really hasn't happened very much and on top of that, there is these like different levers that developers can tap into in order to bring more housing stock and bring more of the housing stock, quite frankly, that is the most in demand, which is generally this workforce housing stock that happens in these rapidly growing cities, right? So that's the first place my place my head goes. It's not so much about Mhm. The caps on rent increases, because I'm so used to hearing that in New York, in Santa Monica, and like Pigeon Centauri says in Maryland, even though that's new to me, it's more about this idea that if New York is talking about the affordability crisis, then the bankers and all the people that, you know, like New York is kind of like this, like, Beacon of like the financial ecosystem. And if the financial ecosystem is like tapped into the affordability crisis, then those of us that are on the side of solving for affordability of bringing to market workforce, housing of creating fair places to live for the workforce, housing population, then we are going to be on the side of You know, on a central need that is coming down. And it should be easier. Like they're fighting the tough battle in New York because of the, it's, it's a tough thing to make everybody happy when you don't have the opportunity just to build ground up. It's a much needle to thread there. Here in Jacksonville, but if you know that they're coming up with solutions there, it's much easier in Jacksonville. Like Jacksonville, right, you don't have to worry about rent controls in Jacksonville. I've never heard that. I'm pretty tuned in, you know, we're not having conversations about rent controls in Jacksonville. We're having conversations of how do we create incentives for builders to go out and build more inventory because we have the land there. If we were land restricted like they are in New York, we might have to have conversations that are more difficult and maybe rent controls come in there. You know, I, I know ultimately what we want is housing affordability. There are certainly downsides to rent controls, right? You know, there's a reason that there are many apartment complexes that are in rent controlled situations in New York and other places of the country that give rental property investing a bad name. It's because they don't have the incentive. to make improvements to those properties so that they could increase the rents. And if you don't increase the rents, you're not going to have that level of commitment to keeping the living standards, what they should be. So there's, there's definitely downsides to rent controls, you know, others, you know, listen, we all want housing to be more affordable now, but my point is you don't have to get into that conversation when you're in a market like And that is, I think, a really important thing to keep in mind. as you're making investments, not just for today, but for 10 years, 20 year periods of time, you certainly are not on the precipice of rent controls where, you know, New York, and I didn't even know this, 40 percent of New York's 2. 4 million rental housing units are rent regulated. 40%. That's a lot. So, that's just a hidden benefit of being in a market like Jacksonville. Michael Santorios puts in the Q& A, My first investment properties were in Montgomery County, Maryland. I sold them because legally I was not able to increase rents to keep up with the increases in taxes, HOA. and maintenance costs, which brings up something that I can't believe you and I hadn't really thought of like placing here. But like, if this is freaking you out in New York, come invest in Jacksonville. Exactly, right? Exactly. You don't have to deal with that. I mean, thinking about, let's tie into insurance costs. Yeah. What, what would happen if you were in a market where you could not have rent increases go up, or they were regulated, and your insurance costs went up significantly. That wouldn't be a good thing for you. That's what Michael Santorius is talking about here. Or just property taxes. Like maybe you didn't have the insurance, you know, crisis that we had the last few years in Florida. Maybe you just have your property values going way up. Well, that's going to increase your property taxes. If you're not legally allowed to increase the rents, You're going to do one of two things. You're just going to sell it like Michael did, or you're going to hold on to it and you're going to save costs elsewhere. You're going to invest less in the building, which ultimately leads to lower quality of life. So there's not a simple solution there. And I don't mean to say that rent controls are great or bad or whatnot. I try to show both sides, especially in a forum like this. But my point is investing in a market where you don't have to thread the needle there is a hidden benefit. Good opportunity G. C. to just for you to kind of explain how J. W. B. handles property management and rent increases given that you signed two three year leases. How does that stuff kind of work? Well, I think it first starts with our relationship with the residents. And we want to make sure that we're creating a win, not just for the investor, but the resident is paramount here. And so when we bring a resident on board, we're already talking to them about how we're trying to find a good fit. And we want to work with residents that want to stay in our homes for a significant period of time. And that might be because it might take some time for them to build up their credit, save up a down payment. They might want to buy their own home. We want to help them do that as well. But regardless, we don't want transient residents. We don't want residents that are here one month or six months or one year and then move because we don't believe that For our ideal resident, that's what they want, because moving is not fun, right? Not being a part of your community is not fun and so we want residents that want to be here. So we sign longer term leases. We sign two and three year leases. And then of course, that is a big benefit for our investors as well, because it decreases maintenance costs and vacancy costs. So to get to your original question, how do we handle when we have renewal rates or what, how do we set the rent? Well, we're blessed to be able to just set the rent at the market. We don't have to you know, do what Michael Santorio has had to deal with with his property in Montgomery County. There's not a law that says we can rent for this amount or we have to restrict it to this amount. market rent is affordable in Jacksonville in our neighborhoods. And so we're able to be able to to rent for market rent when it comes up to a lease renewal. Well, actually, before we get to the lease renewal, let me talk about how we make it in. Yeah, how we, so if you're a resident, you're going to come on board. We're going to lay out, you know, either a two or a three year lease. We're going to talk about the rent increases that are a part of your standard lease. Those go between four to six percent per year for your rent increases. And then what we're going to do is to incentivize you to stay longer. So we're going to incentivize you to stay a third year. In that third year, what we're going to do is we're going to keep your rent the same. There's not going to be a rent increase there. Which is a great thing for that resident. Helps with affordability, of course. It's a great thing for you as an owner too, because it, if you have a great resident who takes care of your home and you don't have that maintenance and vacancy cost, then you're going to win as well. And so, now what happens after that third year, that resident is asked to renew. Assuming we have a great relationship with that resident, that resident is asked to renew. If they decide that they'd like to renew, their renewal is at the current market rent. So, they will be below market, let's say in this example, for one year, and then they're going to catch up. And then, we're going to have what the new market rent is for that home, and, you know, over 80 percent of our residents this year have chosen to renew at market rent. So, that number, I've never heard any other property management company get close to an 80 percent renewal rate. Historically we've been around 70 percent so our team is just doing a great job building that relationship with residents. So, long story short, it starts with finding the right match, folks that want to be in our homes for a long time, and being upfront with how lease renewals will work. That way our residents can build this into their plans for their budget, years in advance and then they get the opportunity to choose to renew with us and that's at market rent and we're not beholden to regulations when it comes to rent controls. As somebody that has been investing in JWB rental properties while not owning my own home, while still being a renter, I love the approach, right, because I know that my wife and I, for example. When we were renting every year three to four months before rent, you know, like our contract was up due It was always this uncertainty. I was like, is this the year that the landlord's gonna screw me? Mm hmm, you know like I would I would much rather have like baked in knowing how to budget knowing what's happening all these kinds of things also the idea that you are building the relationship proactively as a property manager and When it's time to renew you're saying hey listen Here are what comparable rates are elsewhere. This is what you're going to get if you go elsewhere. So we're just going to match that because you'd still go elsewhere, get the same rates that you don't want to get here, if that's what you're arguing, but you also have to pay 2, 000 in moving costs and like put your family through all that. To me, it seems like a really, really good way of doing it. I've never been treated that way as a renter, right? Like it's always just been like, eh, you got an option to do 10 percent or 12 percent or 40%, depending on what we feel like doing. It's interesting you bring up that timeline too, because we go to great lengths to set what the renewal rent is going to be five, six months in advance. Yep. Which is risky on our part, because you don't always know what the rental market is going to do at that point. But we care so much about the resident in that specific situation, where we say, Listen, it's worth it for us to create stability so they can think about this and have five or six months in theory to plan for it, make a well rounded decision. I think that's part of the reason why 80 percent choose to renew. with us, you know, purely from an investor hat, it would be better for you to wait until the very end and then figure out. Yeah. Like, but that's not how we operate because inherently we have to treat our residents with great respect in order for this whole thing to work. Yeah. And I think you said purely from an investor hat, meaning a short term mindset investor, that's just trying to maximize dollars as an investor. Right. So the other side of the equation is this idea that like, Man, if I'm thinking about my resident having a increase an extra hundred bucks a month, let's say I'm going to leave an extra hundred bucks a month on the table because it's a 10 percent increase, thousand dollars rent, you know, like, but instead I'm giving them a 5 percent increase, right? So it's not even a hundred. So anyways, call it that, right? If my resident were to leave, I know that I'm going to have to paint the walls. I know I'm going to have to, you know, lose. Probably about a month's rent, right? So like, so this idea of like leaving the extra cash on the table for the following year, because I have a long term lease in place and not having to be worried about that, not having to think about turn costs, not having to think about those little extra maintenance expenses that happen when that happens, not thinking about forgetting about, you know, not thinking about not having the mortgage being paid by my tenant, my, my resident in like that pay down and stuff like that. And it makes so much more sense for me to like sign that 232 be like happily resident in place to three year lease with a three year lease them having a break on the third year and not having that rent go up like I'm just so much happier to give that up for that peace of mind knowing that when it's time to renew, they're going to get this offer of. This is what's going to happen, right? And I say all these things because it almost feels like we're now just like pitching JWB services, but like, this is what you want your partner to think about. This is what you want the person that's managing my rental property to think like, right? Not just, don't worry, we can squeeze him and then they're either in or they're out. And on the next one, we're going to squeeze the next guy. You want, you want the team that is handling your rental property to be very mindful of the fact that like, When you are turning a property, when your resident is turning, you're probably in the most anxious state possible. So whether I'm going to go invest in rental properties elsewhere, or I'm going to try to invest in Jacksonville and think about not using JWB, I still want to hold people to that standard because at the end of the day, it benefits me as an investor. 100%, right? Simple things you can ask to find out if you have a property manager whose goals are aligned, ask them if they're willing to sign longer term leases. Yeah. For all the reasons that you just described there, it's better for the resident, it's better for the investor long term. The only argument that long term leases do not make sense for, unfortunately, is the standard property management company. When I say standard, let me, let me talk about just thinking about profitability of that property management company. So it's hard to find property management companies that want to sign longer term leases because they make less money and they have to work harder that way. So when we're talking about goals being aligned, you're hearing about some of these ideas and concepts that should be important to you if you're thinking about building a portfolio of properties and you want a manager to be there for you for a full market cycle. They need to be thinking this way. They need to be incentivized beyond just earning property management fees to make this a great investment for you. It's hard to do though. So, you got, ask these questions. How long of a lease are you willing to sign? Will you sign two and three year leases? How, you know, when, when I talk about how excited I am that we're re signing 80 percent of leases. Because I fully well know that if we sign a smaller percentage of lease renewals. J. W. B. property management would actually make more money, but I don't care about that because I know in the long run, the majority of our income comes from home sales, not tenant placement fees. So if there's a property management company you're thinking about working with, ask them what their lease renewal percentages are. They should be super excited. Yeah. And if you get anywhere close to 50 percent. That's a win. 60%, I haven't heard that anywhere. 70 and 80%, it's not too many. You're gonna, you're just not, you're probably not going to see it. Um, and whether or not 70, 80, 60, whatever, they should be as excited as I am about lease renewals and about signing long term leases. They should be pumped about knowing their statistics, tracking the statistics, and having plans to make that statistic improve. Absolutely. Okay, let's move on. By the way, if you want a property manager that works for you this way, and you want to invest in, whether you have a property in Jacksonville, Already, or you are looking to acquire a property in Jacksonville, chat with JWB. com. You guys take over other people's properties, but more than anything, you also bring to market. Properties are already ready to go for you. So, chat with JWB. com or shoot Cody an email. I keep pointing at Cody cause she's here, but people don't see that. So you just see my hand Cody with a T C O T Y at JWB companies. com. GC last final article. This one is a doozy, my friend. I'm going to, uh, you know what? Let's just do the last screen with it. Why not? Why not? Cause we are weird people. What they don't want space. We're in space. Wall street journal published an article with a headline that is not as interesting as what's inside of it, but it says Utah's tech hub powers. America's hottest job market saying salt Lake city, Utah is America's hottest job market. I think we've been hearing that for a long time on you, like texting, developing their super nice outdoor lifestyle. But if you scroll down a little bit. And we're in front of it here, scroll up and the top 10 ranking for hottest job markets are Salt Lake City, number one, Jacksonville, Florida, number two. Right here, baby. Not too bad. Followed up by Orlando, number three, Tampa, number four, Oklahoma City, number five, Miami, number six, Austin, Texas, number seven, Nashville, Tennessee, number seven, tied as well, Seattle. Can you make sure you pronounce it with the local jargon on each one, please? And Dallas number? Dallas number 10. gc, when you hear that list, what? What are you thinking about? Man? Man, there's so many great job related stats that Jacksonville has that I think are just under the radar. Yeah. I mean, some of these stats that have come out here lately are just, I think. They were very surprising for me, and I'm in this every single day. So to know that we are ranked by Wall Street Journal as the number two hottest job market, I think really matters. I think it means something. It's the Wall Street Journal we're talking about here. And then to know that Jacksonville had the highest net growth of corporate relocations of any major city in the United States in 2022, to 2023 was incredible. That's the highest amount of companies that have come into the city of Jacksonville and brought jobs, minus the ones that have left, which is a small number. That, that margin there. is the highest in the country. So, you know, I remember like 10, 15 years ago, especially as I was evangelizing Jacksonville and had to put it on, I didn't put it on the map, but I had to talk about it from an investment perspective a lot more. Nobody was talking about investing in rental properties in Jacksonville 15 years ago. I had to go and search for a whole lot of data and stats to help people see why this was a solid job market. Now they just show, like, you texted this to me and I feel like I see these. You know, once a week now, there's almost too many of them to really put them in the proper context. Yeah, but Greg, cool, but I'm a busy New York software salesperson. I'm a busy California film producer. I'm not trying to get a job in Jacksonville. I'm trying to invest in Jacksonville. Why is this important to you? It's because jobs and income and median income rising is what supports this beautiful investing model. We have to have a solid and diverse job base in order to have the job so that residents continue to pay those rents. And we want to make sure that we have a part in raising median incomes. Raising median incomes come from more and better jobs. And when we have median incomes raising, Rents can go up, home prices can go up, and people can afford it, right? What the problem is, is where housing affordability problems come into place, is that rents and home prices have been going up at a rate that's faster than median incomes. Over the last three years, for sure, because that was an anomaly, but we all should be really excited about Jacksonville's job base, the fortune 500 companies that we have here in Jacksonville, the type of companies that are moving to Jacksonville, the amount of jobs and, and, and the low unemployment rate, because ultimately what this does is it creates stability for the economy. to this beautiful rental property investing asset class that we have. I think about if we are being ranked the number two job market in the United States, that is going to attract more people to move here. More people moving here means that the demand for housing is going to exceed the supply since we're under, you know, under supplied right now, which means https: otter. ai Adding on rental properties what I want to bet the most on the biggest upside comes from home price appreciation over a long term So this idea that Jacksonville is a cash flowing real estate market with best in class home price appreciation What I'm reading in this thing is that home price appreciation good times are going to continue And maybe even go up a little higher than I thought Yeah, other thing that I think of when I think of this list Salt Lake City, Jacksonville, Orlando, Tampa, Oklahoma city, Miami, Austin, Texas, Nashville, Seattle, Dallas, all of that sounds expensive, except for Jacksonville. Thank you. Right. That's where I was going to go now. You know, like, like I look at those, I look at those job markets and I hear, Oh, I get it. Homes are too overpriced, blah, blah, blah, blah, blah. Whereas in Jacksonville, they are not, you can still invest in a home right now in Jacksonville, Florida for like in the 200, 000s. Yeah. You know, and that to me does not seem very doable in Salt Lake City, Orlando, Tampa, Miami, Austin, Texas, Nashville, Seattle, and Dallas. I wish, I wish they had put the average or the median home price in each of those markets. Mm-Hmm. It would make Jacksonville look even that much better on that list. Idea piece for a piece of content you see, oh, say this list and juxtapose it if you only, if you only knew how to use PowerPoint, Sounds good. I feel like you've done a lot better writing it down right now. Nailed it. Yeah, sweet. So yeah, so, so, so that idea of, you know, right now it's like all these markets to me. Hot job market means upside home price appreciation. Underpriced market means I can get in with a smaller amount of money and buy more stuff with as much upside. I can buy, you know, two for the price of one in Jacksonville than I can in Miami, for example, for sure. Right. Cause the median home price in Miami is like a million bucks nowadays. I'm not sure if that's accurate, but it's, it's way up there. Pablo curve. It's, it's close. It's the public Seattle. It is for sure. A hundred percent, you know? So, so that to me, that to me, the other thing that I think about is, There is four cities in Florida, you know, so tailwinds of Florida things that are happening really, really well in Florida and Jacksonville still the one underpriced market in Florida that, Oh, by the way, has the best weather. And I think the best lifestyle, you know? So anyways, all really, really good things. This list is pretty impressive to be. Number two is blows my mind. Yeah. Yeah. Really cool. Gerard Wendling has a question. Does JWB look at debt to rent ratio? Yeah. So what Gerard is talking about is just an easy way to understand if there's positive cashflow in your investments. And we do more than just look at the debt to rent ratio. We're going to look at all of the income sources and all of the expenses when it comes to a monthly. Pro forma for your property. So short answer, Gerard is sure we look at debt to rent ratio, but we're also looking at the other things that are going to come into play, like your insurance costs, your you know, your property taxes. If there's any HOA fees, if there's any other fees that come along with just ownership of the property, we're going to lay all those things out. I think one thing that people have done, especially over the last, listen, if we go back Five, 10 years ago, people wanted just an easy way to just say, okay, well, if it meets this certain percentage of debt to rent or debt to or rent to price ratio, then And this is a winner for a market and this is a loser for a market. And I think we've evolved from that. We're getting a lot less questions about that because that just doesn't work out well. It truthfully was never the best way to look at an investment property because what it failed to recognize was four of the five profit centers. It only talked about net rental income. So I see us evolving as a investor base. And so I just think you need to look beyond just debt to rent or debt to, or, or rent to price ratio. You got to look at the full picture and you got to look over a full market cycle to make sure that this is the right strategy for you. And so we do that with all of our new clients coming in and with our current clients. We have some incredible tools that make this really complex, like rental property, five profit center investing thing much simpler. And so teaser. Yeah. And, and we, Paulo and I were talking about that, like sharing some of these tools with you all to see what it looks like. So if you were a JWB client or you're thinking about it, you're going to be able to see what, what we would talk about with you in that onboarding process. So keep an eye out for future show where we're unveiling a brand new tool that Greg has invented here with the data flywheel of JWB and putting everything to use in order to understand how to. Invest better and make better decisions, more clarity, more, more peace of mind. Do you see as you're saying this stuff, man? You know, I I told I I touched on this briefly with you, but as you know Last week I had the biggest like speaking opportunity of my life. I got to keynote 600 person room on a Wednesday morning the opening keynote This was for NARPA National Association of residential property managers. The opening keynote the day prior is David Green the host of the bigger pockets podcast and because we were like the two big dog keynoters We got to have like this breakfast with like the NARPUM like ultra VIP crowd that has the highest designation and you know, we were in there with this breakfast and David is talking about, he's writing a new book. And he started just really, he went into this like 12 minute diatribe that I really wish I would have filmed with my phone because he just started talking about how investors these days are investing under for, for rental properties and for real estate, they're investing in this like old paradigm of, you know, really, really low debt, really, really like low price, You know, Holmes, because a lot of them got in there right after the right after the crisis, and really, the game has changed. He started talking about this idea that we need to look at assets that keep up with inflation. And if we're not doing that, we're losing like these ideas like Bitcoin and these other things. They're not guaranteed to keep up with inflation. It's just a thesis that it might be able to do it. And the stock market may or may not be keeping up with inflation either. But rental properties are and that's why he started going off about these five profit centers. And the fact that the name of the game when it comes to rental property investing is staying in for in it for a long time, just not focusing so much on cashflow, but focusing on breaking even in cashflow. And understanding that your cashflow is going to go up over time and you're going to gain equity. And you really win when you have home price appreciation. I was just like, Whoa, you know, like you literally went off about this for 12 minutes. And I was just like slow clapping in the background. And I gave him a standing ovation when he finished. But you're right. Like, I feel like this message that has been so normal to me and so normal to our community of not trapped investors is now starting to like permeate into like society. And once again, you're going to have the receipts to talk about, you've been talking about this for four or five years while the host of one of the biggest podcasts in the world just figured it out. He's writing a book about it. Well, you know, I know, I don't know David personally, but I know, I know he's, he does a great job with the BiggerPockets community. And I think that's a community that could really use some evolution when we're thinking about how to make great decisions on rental property investing. It's a microcosm of the old way. of thinking. It is, it is the way that it's, it's only active. I probably shouldn't say it's only active. There's a high preponderance of folks that look at the active way as the way to invest in rental properties. And that passive is somehow like losing some value if you, if you let somebody else do it for you. And there's a high preponderance of looking at like one metric, the 1 percent rule for rent to price ratio and anything below that. It's just not, but like, there's this evolution. And I'm so excited when you told me that story about how more and more thought leaders are getting vocal here because this asset class works at break even cash flows. And when I came out and said that, geez, I don't know, probably three, five years ago before I, because I knew that this was going to happen and cash flows were going to be harder to come by. People were just up in arms and said that I don't understand if you're not getting cash flow, why would you do this investment? So it is nice to see that this evolution is happening because ultimately what empowers people to do is to make much better decisions with their money. You know, so I'm excited about it, man. Agreed. I'm also working on getting him on the show. Let me know in the chat if you'd like to have a a show with David Green from BiggerPockets so that we can tell him that everybody's dying to meet him. And oh, Gerard has a clarification. He was talking about the debt to rent ratio. He was actually asking, do you look at the debt to rent ratio for the resident? Sorry, 10 minutes later. We can save that, you know, seven to 10 minute clip that I just gave you, Gerard. So, now what we're talking about is helping residents. See what's better for them to take out a loan to be able to buy the home or to be able to continue to rent the home. And Gerard, I'm even more glad that you asked in this context, because we do show our residents and many times owning the home is the best thing for our residents. And so we're all about empowering our residents to take part in this beautiful thing of home ownership and owning their primary home right off the bat. So we do look at the, the Mortgage costs, right? Their principal interest taxes and insurance. We look at what their rents are and we go a whole lot more beyond that too, because we facilitate down payment assistance programs for them. People are unaware, but you can get up to 75, 000 in Jacksonville right now that can go towards down payment assistance. Which means that our resident, we can help that resident become a homeowner. And take part in home ownership and all the beautiful things that come along with it. And they might not even have to bring a down payment. Even as home values have exploded to what they are today. So this, this wonderful opportunity that we have, we care deeply about helping our residents become homeowners. And the great thing is that this will only increase the rates of return for our clients, because if we help folks become homeowners it is great for that individual. It is great for generational wealth. It is great for the communities. It decreases maintenance costs and vacancy costs for the owner of the property. That's you. It decreases crime in the neighborhood. And it feels good. The average homeowner in our country has 300, 000 of net worth. The average renter in our country has 8, 000 in net worth. So you're all a part of that as well, whether or not you, you have thought about it or know about that. You know, 42 percent of all homes sold under 300, 000 last year that are new construction single family homes, those are JWB homes. So you're helping first time home buyers take part in that wealth accumulation for themselves and their future generations. Do you see we're going a little long here, but a really pertinent question here from Kristen Dickerson saying, I have a struggle, which is good. Of having tremendous amount of equity and it is just hard right now to get a HELOC or second mortgage to pull out that equity to grow in real estate investing. What do you say to that? Alright, Kristen, let's jump on the phone. Let's talk about that because we're experts at helping folks unlock capital sources to be able to increase or start that rental property portfolio for you. Because especially with some of the concepts we've talked about here. Buying before interest rates go down. Buying potentially before insurance costs may be going down in future years. Buying before downtown Jacksonville completely becomes online, which sees significant home price appreciation as well. Those are really important concepts and one reason why I think right now is a great time to buy. Also because we have incredible incentives that come along with buying right now that we don't always have. So Kristen, I would absolutely encourage you to I hear Cody typing right now. Cody's probably reaching out to or reach out to Cody here in the chat. And let's get up set up a time to talk because I know there's a lot we can do with it. Mystery man, Danny Davis said the same thing. Chris and JWB team may have some ideas for you regarding banks that can help with a heat lock and that can do it at rates where it makes sense for your situation. I know that. Even when I was buying my own personal residence, I was buying a duplex in January, and I was getting quoted certain rates. I was almost about ready to go until I thought, oh, you know what? I have access to this, like one guy that has access to a whole bunch of people. So I finally brought it to Greg. Greg's like, You know, that rate sounds a little bit high. Let me hook you up with one of our preferred lenders and knocked off 0. 8 percent of a point. So there is real truth in the fact that the JWB network has access to things and knows things that other people don't because of all the things that, you know, like you guys touch. So, Kristen says, thank you so much. I have six doors and I'm now doing this full time with a desire to grow. Very cool. Wonderful. Very cool. All right. And last but not least, Luis Olivares says, in Miami, I can increase rent But never as much to match the HOA insurance and special assessment increases. The only good part is that the price of the assets keep going up. Listen, as somebody that lived in Miami, those HOA costs are so real. Like I, you know, my HOA costs here are like 70 bucks a month in Miami. They're like 700, 1200, 1, 800 a month, and they go up exponentially. So Miami is this like rapidly increasing home price appreciation market. But again, it goes to show What we were talking about with New York, they're gonna, you know, New York versus Jacksonville, Miami versus Jacksonville. Yes. State of Florida might have increased. insurances that happen that seem to be going down, but it doesn't have this like insane amount of HOA doesn't have this like insane amount of like rent control things that also limit things, right? Like Jacksonville still an affordable market allows you to Increase rents, have home price appreciation, and not have to like slice off the, the target so closely because it's still largely affordable. Yeah, and if you are investing in a place where you're just relying on price increases to offset the additional costs that are coming through HOA, special assessments, things of that nature, you're speculating. You're speculating, and that's not the beauty of rental property investing. You don't have to speculate. You can have an asset that pays for itself every single month without the risk of a special assessment or an HOA going bonkers and killing your cash flow. Because when we talk about speculating, I mean you're going cash flow negative in hopes of higher appreciation down the line. You can invest in Jacksonville, Louise, and you can have it to where it pays for itself every single month. And you still get the upside. of home price appreciation. So, yeah, so that's true. And then Denny also asks, when will the Not Your Average Investor community get to see some of the new stuff you're working on since eliminating Thursday in NYA? Denny, this is not because we eliminated Thursday. This is because it's not ready for primetime yet. Greg has been working on this thing for years. still testing it. I estimate in the next two to three weeks, it'll be ready. So keep an ear out, keep an ear out. You got that. And we're, we're working on our next events that we're going to have. We're going to make sure we share it with the community as well. And so there will be some additional trainings, webinars, you know, events that we're going to be able to do. One of is Pablo's heading out to California this weekend. Los Angeles. Yeah. Yeah, that's right. So he's going to be speaking at the Real Success event, which I'm super excited about. He's got another keynote there. You're just locking up the keynote. I thought, now that I'm a real keynote speaker, I don't know if I'm just going to call every speech a keynote. Before, before I get like a room of 25 people, I'll be like, you know, there you go. There you go. There you go. Let's keep you, keep you humble. Please keep me humble. Yeah, I definitely a room full of people that are investing in themselves, educated, you know, like understanding real estate, super pumped to like go out there for the first time solo to represent JWB in a different state and just tell the message of the not your average investor show community. And, and this idea, I think this is going to, I think I'm going to take it back to like Pablo four years ago, right. Understanding the five profit centers, understanding the fact that to be in real estate for a long time. What you win is home price appreciation. Show them the Pac Man that we talk about. And then, you know, understand that like if this is the way that you make money, then your criteria and your buying decision is not go find a property. Luckily, it's in a market that you live in and then go find a property manager on Craigslist, but really just understand what markets have the best teams that you really, really want to work with. Understand that, you know, in those markets, which one of those fit your goals and your criteria, right? Like if you're looking for growth, if you're looking for cashflow, what you're looking for, and then property is third, right? Like that should be, you know, Kind of the last thing if you're working with the right team. So pumped to talk about that. It's gonna be awesome. Yeah, man Speaking of which we had over 90 people today on that. Yeah, good show. Thank you guys Community you are the ones that make this thing valuable you add in context You know helping each other out asking for extra piece of advice testing Greg's perspective on stuff is really what makes this show tick so we never take it for granted that you take an hour out of your day on a Tuesday to hang out with us. Really, really appreciate you. Next week we're having the show that we were going to have this week. A little schedule snafu, but we're having William, we call him big Willy style around here. Come in here and give us the 2024 state of construction costs of where construction is, where it's going, where it's been permits and timelines and all that good stuff. Plus these increasing capabilities that are allowing JWB to add even more value to their, to their investors. Ken says, how can we get to your event in California, Pablo? I think it's a closed door. Yeah. Yeah. It's a, it's a, it's a group of people. It's like a fortune builders type, right? Like it's a group of people that have invested already and this is their private event, Ken. So unfortunately, it is at the LAX Marriott though. Grab a drink over there. I'm sure I can swing that. So let me know, Ken, I'm happy to hang out with you, buddy. Any pieces of advice for people from here until the next show GC? Don't be average. See you next week.