June 13, 2024 • 26 mins
Host of ‘How to Money’ on KFI Joel Larsgaard joins the program to talk about investing in real estate vs stock market and paying with CASH. Elon Musk and SpaceX sued by former employees alleging sexual harassment and retaliation. Host of ‘Later with Mo Kelly’ closes the Bill Handel Show talking about AMC selling $3 movie tickets this Summer
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You're listening to bill Handle on demandfrom KFI AM six forty. You are
listening to the bill handle show Money, Money, And this is KFI AM
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six forty Bill Handle here on aThursday morning, June thirteenth. Some of
the stories we are looking at theCourt of Arbitration for Sports rule this week.
The transgender swimmer Leah Thomas, shewon the NCAA and visual title,
will not be allowed to compete inthe women's races, including the twenty twenty
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four Olympics. Why because she istransgender and they don't want Leah who used
to be a Leonard. And it'sjust and there's a lot of controversy there,
medical controversy. Does she have anadvantage? Does she not? And
is that fair? Is it not? So? The NCAA says yes,
The NCAA says yes, she's fine. The Olympics say no, she's not.
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Okay, it's time for Joel LarsgardHow to Money, every Sunday twelve
to two pm right here on KFIand his social address at how to Money.
Joel Morning, Joel Morning, Bill. All right, I want to
throw something at you, and thisis a it's not a stat per se,
but it is sort of a statementof fact, and that is that
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amongst the millionaires out there, thevast majority of millionaires, not billionaires,
the vast majority of millionaires do itwith real estate. So it's real estate
the best investment I've already I've alwaysdone well with real estate. And if
you look at the best stuff Ihave ever done, it's been real estate,
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going from home to home and upgradingand upgrading, stretching like crazy,
buying stuff that I couldn't afford andstretched five years, ten years later as
the best deal I ever had.So that is the question. Is real
estate the best investment out there?Oh? Man, that is such a
good question. And I too havedone well with real estate, have a
few rental properties that have done reallywell for me over the years, and
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they've helped grow my net worth morethan just investing in the stock market.
And you and I are not alone. There was a new Gallup poll and
it found that most Americans they thinkthat buying rental real estate is the best
ticket to wealth as well. Andso I think this is like a really
complex sort of discussion because when youinvest in the stock market, you're typically
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just like dollar cost averaging through yourpaycheck into a four to oh one k,
or you're sticking money regularly into aroth ira like through just automatic ACCH
payments or something like that, andso it's easy to build wealth that way.
The thing about real estate is it'sa lot harder to pull off because
you need to save up a lotmore money. Typically, especially like if
you're buying something as an investment,the lenders typically want you to put twenty
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five percent down and then it's all. So it's not as laxadaisical as investing
in the stock market. Because whenyou own a rental property, you now
have a part time job on yourhands. You have to manage and find
good tenants. You have to keepthe house up so that your investment doesn't
go to pot. So there's allsorts of things you have to do as
a real estate investor. I lovereal estate as an investment, but it's
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you're just kind of comparing apples andcucumbers here, I guess when you're talking
about the differences between the two.Yeah, when I talk about doing well,
to me, it was all housing, and the few properties I had
as rentals, I unloaded them acouple of years ago because renters are legally
and I get this on handle onthe law all the time, are legally
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defined as pains in the asses.Well, yeah, exactly. That is
a huge part of it. Alot of people think, oh, real
estate, best way to build wealth. I'm going to do whatever I can
to make sure I get that firstrental property, and then they don't realize
the massive pain that can be.I've talked to so many landlords who weren't
thoroughly prepared mentally for taking on Maybethey were prepared financially and they learned a
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little bit about what it takes tobuy a rental property, but then when
it comes to, you know,actually managing that thing over the years,
finding good tenants, that is thatis actually the place where I think most
landlords screwed up is in trying tovet tenants. And they don't do it
thoroughly enough. So when the toilet'sbroken, you have to go out there,
you get the call at midnight thatthe water heater is out, unless
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you hire a management company and youpay them, and you know, the
real estate is you know, peoplethink you get rich. Real estate when
you sell is when you get rich, and that is appreciation. Now,
if you're talking about the return,it's probably negative return for the first few
years, and then over the lifetimeis probably five six percent. Now you
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sell, you make buckets money.But guys, just on that note,
we have a rental property in BigBear and we use a man management service.
Twenty seven percent that's what we pay. Yeah. Yeah, So the
thing is, if you don't wantto be the managing at day to day,
you hire somebody else to do it, and then guess what those profits
get cut even further. So,Bill, you're right, like you have
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to think long and hard about whetheror not you want to be a real
estate investor. The other thing thatmakes real estate a more attractive investment is
leverage. You make more money becauseof the leverage involved with financing that property.
So the fact that when you investin the market, every dollar is
going towards investments. Well, whenyou buy a home, you're putting if
you buy a primary, you maybeputting five or ten percent down. And
that's part of what makes the numberslook even more significant for you in the
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end, is because hey, Ionly had to put down, you know,
fifty thousand dollars to buy this fivehundred thousand dollars home. Now it's
worth nine hundred thousand dollars fifty grandto make four hundred grand is one thing,
but when you invest fifty grand inthe market, you're not getting leveraged
in the same way. And sothat's what makes real estate attractive. But
leverage can also be a double edgedsword. The market's been pretty hot lately,
so if the market sees any sortof decline, well you might find
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some of that profit being at risk, and that real estate isn't as great
of an investment. The market matterstoo. Not only do your personal finance,
you know, bona fides matter,but also where the market's at that's
going to have a big impact onwhether or not real estate investing makes sense
for you as well. Yeah,I just bought a home and it's pretty
pricey right now homes. And Iwent through it a couple of days ago
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because I'm remodeling it, and Ibroke it down room by room. Kitchens
too expensive, that bedroom is tooexpensive, my outdoor area is too expensive.
Now it's a tough time to sellyour house. And I paid market
and I was stunned at how muchit was. However, and I go,
how can this actually appreciate and value. But I've said that every single
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time in the last what forty yearsthat I've been buying houses, And again
I want to point out, youknow, you think it's worth four hundred
thousand dollars, it's when you sellit, that's when you get them.
Yeah, And that's again the carryingcosts of real estate, Like you have
to factor that and you mentioned youmight lose money year after year after year,
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but you have to have that kindof long term mindset of like,
well but ten years down the road, this thing's going to sell for a
whole lot more. And that's whatI'm banking on. But you have to
be able to stomach financially losing moneyyear after year after year. Two.
Yeah, So there are the investments. We'll talk about those is some other
time. Because you can own realestate through reads, for example, investment
trust. There's a bunch of syndicationsand you you pool money with other people.
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So there's a bunch of different waysof doing it. But we'll do
that some other time. All right, So let's go to the concept of
paying cash actually can cost you more. And you go, wait a minute,
that that doesn't make sense. That'skind of counterintuitive. So let's talk
about that. Yeah, I mean, typically it's been the opposite, right,
you you want to pay with acredit card, and every once in
a while, you'll you're the placeyou're trying to buy something, they'll say,
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oh, we actually have a creditcard, searcharge. And that's because
credit cards. Taking credit cards comeswith merchant processing fees, and those eat
into the profits of the business,and so the business is saying, yeah,
I don't know, like if we'regoing to take your credit cards.
And by the way, these creditcards, they rewards proliferate, they get
better and better, and the feesget higher and higher for merchants, and
so it's become this like escalating terriblething that really does, especially for restaurants,
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just hammered them. And interestingly enough, though, because of labor costs
and because it's become more and moreonerous to hold on to cash and to
deposit that cash and stuff for smallbusinesses, they're saying, you know what,
maybe it's actually worth the fees andmaybe cash is actually the problem here.
And so they are more and morebusinesses that are going digital only.
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So whether you're paying with your phone, paying with your credit card, the
tap on the screen, they're like, hey, you know what this is.
Yeah, sure it costs us money, but it's frictionless, and so
maybe it's actually saving us money inother ways. And so you're having to
decide, like maybe you pull outcash, and then they're saying they're turning
you away as a customer. Theydon't want your money if you're paying with
greenbacks. I know. So thatis interesting because that's fairly controversial because you
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do have retailers that all want todon't want to deal with cash. I
mean, cash is a hassle forthem. They have to go to the
bank and deliver it. Uh,they have to do a You've got you've
got theft issues going on, andso electronic happens instantly, boom done,
money is in, You're finished,goodbye. Security is one hundred percent for
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the most part. But then thereare some people who would say, hey,
only accepting digital payments is discriminating againstcertain That's exactly where I was going
to go, Right, what dopoor people do? Exactly? Yeah,
there's a there's still a huge segmentof people in the United States who are
unbanked and who maybe in thinking abouthold on, hold on, un banked,
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Yeah, is Uh, that likeundocumented, right, I mean exactly,
they're bank lists, right. Theydon't have a relationship with the bank,
and so they don't have a debitcard. They certainly don't have a
credit card, and so they goin wanting to buy the thing, and
they think that their cash dollars arejust going to be just fine there,
because we live in America after all, And then it turns out the retailer
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says, no, I don't thinkso. But I understand both sides of
the spectrum. I get as abusiness saying, actually, digital only is
going to be better for us,and so I don't want to the hassle
of handling physical dollar bills, becauseyou're right, there's all sorts of ways
to lose money in that transaction,having to handle the money and the potential
theft of dollar bills, Like it'sharder to steal money from the company when
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payments are digital only. So yeah, I get why the small businesses are
going in that direction. We're goingto see more and more of it,
but it is going to put turnthe screws on some people who don't have
a relationship with the bank. Andthere and goes a lawsuit, and I
don't know what the courts have saidso far, because I don't know if
the lawsuits have yet been filed.Yeah, two things. Discrimination on its
face, although I don't think poorpeople are a protected class, so I
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don't know where that's going to go. But the entire concept of on your
paper money this is legal tender.And does that mean their argument is it's
really not legal tender? Right?Yeah. And by the way, atheists
have a big problem with money andGod we trust. That's a real problem.
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Yeah. Well, the othertion hereon this bill as well is that
eight reverse ATMs are popping up,so it's kind of crazy. Typically,
you put in the debit card,it spits out cash that you can use
cash wherever you're going. Now,the opposite is true. You can turn
your cash into plastic, but youpay a fee to do that. So
if you came ill prepared to let'ssay a music venue or to a sporting
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event, well, reverse ATMs arelike proliferating like crazy, and so you
can like tosh a couple hundred bucksin. It spits out a piece of
plastic, but instead of getting twohundred bucks back that you put in,
you get maybe, like I don'tknow, one hundred and ninety two dollars
or something like that, and that'show the ATM makes money. But who
would have ever thought be in sortof some sort of like reverse ATM territory.
But the last here we are.It's a whole different world out there,
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it really has. I mean,all of us have seen this thing
change not only the entire world,but our financial system and how we deal
with things. We're in the middleof some very very very big changes.
And so my kids, God blessyou. You know, you guys can
suck up the pollution. I'm donewith that, you know. That's Yeah's
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all right, Joel as always,thank you This Sunday, twelve to two
pm. How to Money or athow to Money? Joel? Thanks Bill?
All right, take care. Iwant to do a segment with you
about Elon Musk. Okay, weknow that Elon Musk is just a little
bit nuts. It's also visionary andas Neil said, the line between crazy
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and genius is very thin, andElon Musk is straddling that line. There
is no question about it. Sohe is one of those guys that just
doesn't care. I mean, youtalk about doing weird stuff, you have
to go to the supermarket and theyhave point of purchase. You know,
you see the packs of gum orthe you know, candy bars or whatever,
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or the magazine's national a choir andinterested in their winning, so you
just grab it. Now, ElonMusk life, he was on his Twitter
feed and he goes, you knowwhat, I just I'll buy Twitter.
And he spends sixty five billion dollarsfor Twitter and turns out or forty five
billion. It turns out it's worthhalf of what he paid for it.
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Okay, so he overpaid and thatwas almost point of purchase, and so
he is now being sued. Nowhe has a very interesting way of running
his company. Now, he's prettyloose with it all. I mean he
is. He's just a kind ofguy that just rolls along. And so
now you have eight former SpaceX employeesare suing SpaceX and Elon Musk individually alleging
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that must personally order their firing afterthey accused SpaceX of tolerating sexual harassment in
the workplace. Okay, I meanthat's legitimate. I mean that's a legitimate
lawsuit. Whether it pans out ornot, I don't know the facts.
And they were all fired in twentytwenty two after they circulated an open letter
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within SpaceX alleging that Musk quote behaviorin the public sphere is a frequent source
of distraction and embarrassment. All right, so they complain and they say they
were fired because of it, thenwe're going to tell that really is the
definition of what sexual harassment is.They alleged that Musk runs this company in
the dark ages, treating women assexual objects to be evaluated on their brass
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sides, bombarding the workplace with ludesexual banter, and he has an animal
house environment and he says if youdon't like it, you can leave,
and they're suing him. So hereis sexual harassment in their lives, right,
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going to the company and complaining aboutit. Complain about anything you shouldn't
be fired for unless it's completely crazy. You know, if you're offended by
someone, you tell someone, hey, you've offended me, or you go
to management say this person's offending me. Now, defining sexual harassment, and
this is where Elon Musk is beingnailed on is that he makes innuendos in
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his emails. He may sexual banterin his emails that by definition is sexual
harassment and therefore we can sue forthat. It's defining what sexual harassment in
and is anything. Teachers can't hugtheir kids anymore. Kindergarten teachers can't hug
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their kids. I cannot say,you know what, you look great this
morning. You know, that's reallya nice outfit. Amy come in,
came in this morning, and shehas this really neat outfit. And I
said to Amy, you know what, you really look nice that way.
I mean, you're a you know, this is a great outfit you have.
And then I had to think,and I turned around, and what
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did I say, Neil? Whatdid I say? Amy? You said,
because normally you look rightly? Yeah? Like yeah, Actually he doesn't
know how to give a compliment.Yeah, that was the problem is it
was, hey, sweetheart, whydon't you do a spin for me so
I can see the whole thing.That's really where you crossed the line.
So let me ask you something.And I have to look this up because
I don't know this answer, eventhough I'll pretend I do and handle on
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the laws. Sexual harassment is lookingat a woman and saying you look great,
that's a nice outfit. That isconsidered sexual harassment, certainly around here.
I mean, it's it's wild howcorporate America looks a sexual harassment.
What if you say you look likecrap, just walk down the wall and
go, you know what you looklike crap today? That could be a
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hostile environment, exactly, hostile workenvironment. So I really you know the
answer, and I should have knownthe answer. That's the point. You're
a walking I just hostile environment.I am, I am. And we
were talking about this when we wereputting this this segment together. And you
know, obviously I make a lotof sexual innuendo, clearly. I make
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a lot of depraved jokes here onthe air, clearly, and someone is
going to complain at some point herein the building. Actually I've had a
couple of complaints here in the building. And I apologize. No an HR
shut no, an HR shut itdown. I mean, it was,
first of all, what I said, yeah, yeah, yeah, I
can't tell you exactly what it isbecause it was pretty offensive, but uh
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it was HR said. You know, factually, it wasn't. It wasn't
what I was accused of saying.But the point I'm making is that if
if I'm ever sued, if thiscompany is ever sued by an employee here
on the floor because I have quoteA harassed them sexually, not even referring
to them. I'm just saying ageneral joke. I will be asked by
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iHeart the iHeart attorneys to make astatement and to defend, and I'm going
to go, here's the problem.My statement is going to be in favor
of the plaintiffs and go, yeah, of course I said that. The
point I'm making is, does itever stop? Is harassment is a joke,
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not even referring to someone a generaljoke. Is that a hostile work
environment? Is that sexual harassment?That is? You know, is there
such a thing anymore as get alife, Get a life, Just get
a life. Okay, you lookgreat today. No, No, that's
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sexual harassment on its face. It'snot like let's jump in the sack.
It's not like, okay, ifyou don't put out and you're a subordinate,
I'm going to fire you are goingto make your life miserable. Different
issue. It's just I told youi'd think about it. I really enjoyed
being on the show. But Ithink that's what this lawsuit is about.
So half of it makes sense.I'll buy that they went to hr and
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complained and they were fired or weretold you don't you know what we're told,
you don't like it, work someplaceelse that is considered inappropriate. And
I got to tell you that goestoo far. That goes too far.
Can you have a company that Imean not sexual harassment and the horrible stuff,
but can you have a company thatjust has a I don't know,
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a ryebald atmospheremore? Not anymore tosay, hey, this is how we
do it. Nope, not anymore. I mean I can't say anything I
want about the higher ups here,you know, without getting I mean,
even if it wasn't about I had. There was a friend of mine who
I went to law school with,and he there was a just one all
of this started and he had afirm and that and people had to be
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warned. You know, we doprocedures manual sexual harassment, et cetera.
You have to write out today withany company. And he told employees,
let me tell you something. Webonk everybody in this office. This is
the way we work. Management willhit up on you. We do jokes,
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and if you don't like it,you don't come to work here.
And he said that worked if youknow that it's going to happen. If
you know that Elon Musk is goingto send emails, If you know there's
going to be sexual innuendo and youaccept it, you know what, that
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may be wrong. By the way, I'm sure there'll be a lawyers specialize
in discrimination harassment are going to sayyou're crazy. But that's not the first
time anybody said I'm crazy. Youknow I handled it well then in general,
just with my vast legal knowledge.There's a reason the law school I
went to is out of business,that it went defunct. They tried to
have the fact that you graduated fromthere redacted. Yeah, well there's nothing
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anymore to redact, all right,because we finished the show and it's time
for Earlier with mo Kelly, whois host of Later with Mo Kelly Monday
through Friday at from seven to tenpm. Is social address at mister mo
Kelly. Mo you you know,we just did a story about what's considered
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sexual harassment today and anything anything referencingany indie innuendo is considered some kind of
sexual harassment that can you can getin trouble with it. You know their
consequences absolutely. I guess what keepmy mouth shut. Yeah. By the
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way, have I ever noticed HaveI ever told you what a food package
you have? And how impressive thatis? Yes? You have many times.
How's the matter with you? I'mappreciative, though, I do see
there you go? All right?Mo? Where we go from here?
Where do we go from here?I know you? Wherever we go,
it's going downhill, I promise you. Okay, here's something. And I
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have not been to a movie inso long because number one, of course,
I stream. We've been talking alot about that, and the cost
of movies is just gotten really expensive. AMC is offering three dollars movie tickets
during the summer. I mean,is that there is that level of desperation
out there. Well, it's nota new program, but it's one that
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they've expanded. It's going to benationwide, across two hundred and fifty AMC
locations, and they're showing movies thatwe can get on streaming, but they
want to get you in the theater. They have to compensate for the fact
that there aren't people in the theatersall week longer all summer long. So
if we charge three dollars tickets,you get it, and you'll probably spend
some twenty in food concessions because honestly, that's where they make the money and
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they don't have to share that moneywith the movie studios. So you know,
from June to August, you cango in and see movies like Minions,
The Rise of Groove, Doctor SEUs, The Lorax, Sing and so
forth for three dollars. The bottomline is they are bleeding. They are
hemorrhaging because people are not going tothe movies like they used to five and
six years ago, all right,so they just once you get into concessions
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and that's it, any excuse toget you. So it's just it's basically
a food store, you know,fast food outlet. They want you to
line up, and they do itwith a three dollars movie. It's come
to that at this point, it'scome to that they want to make it
like a community meeting point, likealmost like you go to Starbucks. You're
not going for the coffee. Oftentimes, you're going there to hang out,
You're going for the ambounce, you'regoing there to write your term paper,
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what have you. And movies aretrying desperately to have some of the same.
They'll have movies with restaurants. They'llhave movies, theaters with bars and
personal service conciergee, that kind ofthing. They need you in the environment.
You will spend money. Yeah,And the cost of a coke is
completely insane. Bucket of popcorn,large bucket with a soda, I mean
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just completely nuts. I mean,you know, you can't. I don't
understand how people do that, especiallywhen the movie's going to come out anyway.
And I mean there's ways around that, I know, if you know
what I've done is, for example, I've taken a catheter bag and a
catheter tube and just fill it upto die a coke I mean obviously an
unused one and just have a littletube coming up. Well, how about
(24:30):
this take your colostomy bag as well, so you don't have to go to
the bathroom. Uh yeah, that'sthe other thing. Real quickly. I
mean, with all the jokes andthank you, we've hit new levels of
depravity. Good. No, Iam glad I brought you into our rim.
But I drink a lot when Igo to the movies, and so
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I have to go pee and iptwo three times during the course of a
two hour movie. And you can'tpause it like you can't at home.
So with the fact you've got thebig screen at home. You know,
you got the eighty five inch TV, and you have that soundbar and the
sound is unbelievable. Uh, andyou can posit and the movie, your
first run movie comes out three orfour weeks later. Why would I even
(25:15):
be Why would you even pay threedollars for a movie you got? Some
people want the communal experience. Theywant to see the movie in the presence
of friends and strangers. I don'tneed that all the time. But that's
the only thing which is keeping alot of these movie theaters in business.
Yeah, I've never understood that.And the floors are sticky at these movies,
the seats too. Just that's becauseone theater you guys going clear.
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Wow is that pee wee herman?All right? MO, it was fun.
Thank you Neil for bringing that up. And MO, thank you for
being part of the festivities. Areyou sexy? Oh wow, there's a
that's a lawsuit. Thank you forsomething you've never heard. Tonight later with
MO seven to ten PM. Allthrough the week MO, thank you,
(26:03):
We'll catch you again. I'll catchyou tonight and over the weekend. No,
you're not on over the weekend,tonight or tonight, yeah, today
and tomorrow. All right, MO, have a good one. See so
all right, here we go.We're done another day, another eighty cents
because we work at iHeart after taxestwenty five, that's correct. Tomorrow,
Amy, wake up call at fiveo'clock and then the rest of us come
aboard here at six and off atnine. Catch you tomorrow, Handle and
(26:29):
the morning crew. This is KFIAM six forty live everywhere on the iHeartRadio
app. You've been listening to theBill Handle Show. Catch my show Monday
through Friday, six am to nineam, and anytime on demand on the iHeartRadio app
You're listening to bill Handle on demandfrom KFI AM six forty. You are
listening to the bill handle show Money, Money, And this is KFI AM
(00:21):
six forty Bill Handle here on aThursday morning, June thirteenth. Some of
the stories we are looking at theCourt of Arbitration for Sports rule this week.
The transgender swimmer Leah Thomas, shewon the NCAA and visual title,
will not be allowed to compete inthe women's races, including the twenty twenty
(00:42):
four Olympics. Why because she istransgender and they don't want Leah who used
to be a Leonard. And it'sjust and there's a lot of controversy there,
medical controversy. Does she have anadvantage? Does she not? And
is that fair? Is it not? So? The NCAA says yes,
The NCAA says yes, she's fine. The Olympics say no, she's not.
(01:07):
Okay, it's time for Joel LarsgardHow to Money, every Sunday twelve
to two pm right here on KFIand his social address at how to Money.
Joel Morning, Joel Morning, Bill. All right, I want to
throw something at you, and thisis a it's not a stat per se,
but it is sort of a statementof fact, and that is that
(01:30):
amongst the millionaires out there, thevast majority of millionaires, not billionaires,
the vast majority of millionaires do itwith real estate. So it's real estate
the best investment I've already I've alwaysdone well with real estate. And if
you look at the best stuff Ihave ever done, it's been real estate,
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going from home to home and upgradingand upgrading, stretching like crazy,
buying stuff that I couldn't afford andstretched five years, ten years later as
the best deal I ever had.So that is the question. Is real
estate the best investment out there?Oh? Man, that is such a
good question. And I too havedone well with real estate, have a
few rental properties that have done reallywell for me over the years, and
(02:15):
they've helped grow my net worth morethan just investing in the stock market.
And you and I are not alone. There was a new Gallup poll and
it found that most Americans they thinkthat buying rental real estate is the best
ticket to wealth as well. Andso I think this is like a really
complex sort of discussion because when youinvest in the stock market, you're typically
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just like dollar cost averaging through yourpaycheck into a four to oh one k,
or you're sticking money regularly into aroth ira like through just automatic ACCH
payments or something like that, andso it's easy to build wealth that way.
The thing about real estate is it'sa lot harder to pull off because
you need to save up a lotmore money. Typically, especially like if
you're buying something as an investment,the lenders typically want you to put twenty
(02:58):
five percent down and then it's all. So it's not as laxadaisical as investing
in the stock market. Because whenyou own a rental property, you now
have a part time job on yourhands. You have to manage and find
good tenants. You have to keepthe house up so that your investment doesn't
go to pot. So there's allsorts of things you have to do as
a real estate investor. I lovereal estate as an investment, but it's
(03:21):
you're just kind of comparing apples andcucumbers here, I guess when you're talking
about the differences between the two.Yeah, when I talk about doing well,
to me, it was all housing, and the few properties I had
as rentals, I unloaded them acouple of years ago because renters are legally
and I get this on handle onthe law all the time, are legally
(03:46):
defined as pains in the asses.Well, yeah, exactly. That is
a huge part of it. Alot of people think, oh, real
estate, best way to build wealth. I'm going to do whatever I can
to make sure I get that firstrental property, and then they don't realize
the massive pain that can be.I've talked to so many landlords who weren't
thoroughly prepared mentally for taking on Maybethey were prepared financially and they learned a
(04:08):
little bit about what it takes tobuy a rental property, but then when
it comes to, you know,actually managing that thing over the years,
finding good tenants, that is thatis actually the place where I think most
landlords screwed up is in trying tovet tenants. And they don't do it
thoroughly enough. So when the toilet'sbroken, you have to go out there,
you get the call at midnight thatthe water heater is out, unless
(04:30):
you hire a management company and youpay them, and you know, the
real estate is you know, peoplethink you get rich. Real estate when
you sell is when you get rich, and that is appreciation. Now,
if you're talking about the return,it's probably negative return for the first few
years, and then over the lifetimeis probably five six percent. Now you
(04:53):
sell, you make buckets money.But guys, just on that note,
we have a rental property in BigBear and we use a man management service.
Twenty seven percent that's what we pay. Yeah. Yeah, So the
thing is, if you don't wantto be the managing at day to day,
you hire somebody else to do it, and then guess what those profits
get cut even further. So,Bill, you're right, like you have
(05:14):
to think long and hard about whetheror not you want to be a real
estate investor. The other thing thatmakes real estate a more attractive investment is
leverage. You make more money becauseof the leverage involved with financing that property.
So the fact that when you investin the market, every dollar is
going towards investments. Well, whenyou buy a home, you're putting if
you buy a primary, you maybeputting five or ten percent down. And
that's part of what makes the numberslook even more significant for you in the
(05:38):
end, is because hey, Ionly had to put down, you know,
fifty thousand dollars to buy this fivehundred thousand dollars home. Now it's
worth nine hundred thousand dollars fifty grandto make four hundred grand is one thing,
but when you invest fifty grand inthe market, you're not getting leveraged
in the same way. And sothat's what makes real estate attractive. But
leverage can also be a double edgedsword. The market's been pretty hot lately,
so if the market sees any sortof decline, well you might find
(06:00):
some of that profit being at risk, and that real estate isn't as great
of an investment. The market matterstoo. Not only do your personal finance,
you know, bona fides matter,but also where the market's at that's
going to have a big impact onwhether or not real estate investing makes sense
for you as well. Yeah,I just bought a home and it's pretty
pricey right now homes. And Iwent through it a couple of days ago
(06:24):
because I'm remodeling it, and Ibroke it down room by room. Kitchens
too expensive, that bedroom is tooexpensive, my outdoor area is too expensive.
Now it's a tough time to sellyour house. And I paid market
and I was stunned at how muchit was. However, and I go,
how can this actually appreciate and value. But I've said that every single
(06:47):
time in the last what forty yearsthat I've been buying houses, And again
I want to point out, youknow, you think it's worth four hundred
thousand dollars, it's when you sellit, that's when you get them.
Yeah, And that's again the carryingcosts of real estate, Like you have
to factor that and you mentioned youmight lose money year after year after year,
(07:08):
but you have to have that kindof long term mindset of like,
well but ten years down the road, this thing's going to sell for a
whole lot more. And that's whatI'm banking on. But you have to
be able to stomach financially losing moneyyear after year after year. Two.
Yeah, So there are the investments. We'll talk about those is some other
time. Because you can own realestate through reads, for example, investment
trust. There's a bunch of syndicationsand you you pool money with other people.
(07:30):
So there's a bunch of different waysof doing it. But we'll do
that some other time. All right, So let's go to the concept of
paying cash actually can cost you more. And you go, wait a minute,
that that doesn't make sense. That'skind of counterintuitive. So let's talk
about that. Yeah, I mean, typically it's been the opposite, right,
you you want to pay with acredit card, and every once in
a while, you'll you're the placeyou're trying to buy something, they'll say,
(07:53):
oh, we actually have a creditcard, searcharge. And that's because
credit cards. Taking credit cards comeswith merchant processing fees, and those eat
into the profits of the business,and so the business is saying, yeah,
I don't know, like if we'regoing to take your credit cards.
And by the way, these creditcards, they rewards proliferate, they get
better and better, and the feesget higher and higher for merchants, and
so it's become this like escalating terriblething that really does, especially for restaurants,
(08:18):
just hammered them. And interestingly enough, though, because of labor costs
and because it's become more and moreonerous to hold on to cash and to
deposit that cash and stuff for smallbusinesses, they're saying, you know what,
maybe it's actually worth the fees andmaybe cash is actually the problem here.
And so they are more and morebusinesses that are going digital only.
(08:39):
So whether you're paying with your phone, paying with your credit card, the
tap on the screen, they're like, hey, you know what this is.
Yeah, sure it costs us money, but it's frictionless, and so
maybe it's actually saving us money inother ways. And so you're having to
decide, like maybe you pull outcash, and then they're saying they're turning
you away as a customer. Theydon't want your money if you're paying with
greenbacks. I know. So thatis interesting because that's fairly controversial because you
(09:03):
do have retailers that all want todon't want to deal with cash. I
mean, cash is a hassle forthem. They have to go to the
bank and deliver it. Uh,they have to do a You've got you've
got theft issues going on, andso electronic happens instantly, boom done,
money is in, You're finished,goodbye. Security is one hundred percent for
(09:26):
the most part. But then thereare some people who would say, hey,
only accepting digital payments is discriminating againstcertain That's exactly where I was going
to go, Right, what dopoor people do? Exactly? Yeah,
there's a there's still a huge segmentof people in the United States who are
unbanked and who maybe in thinking abouthold on, hold on, un banked,
(09:52):
Yeah, is Uh, that likeundocumented, right, I mean exactly,
they're bank lists, right. Theydon't have a relationship with the bank,
and so they don't have a debitcard. They certainly don't have a
credit card, and so they goin wanting to buy the thing, and
they think that their cash dollars arejust going to be just fine there,
because we live in America after all, And then it turns out the retailer
(10:15):
says, no, I don't thinkso. But I understand both sides of
the spectrum. I get as abusiness saying, actually, digital only is
going to be better for us,and so I don't want to the hassle
of handling physical dollar bills, becauseyou're right, there's all sorts of ways
to lose money in that transaction,having to handle the money and the potential
theft of dollar bills, Like it'sharder to steal money from the company when
(10:37):
payments are digital only. So yeah, I get why the small businesses are
going in that direction. We're goingto see more and more of it,
but it is going to put turnthe screws on some people who don't have
a relationship with the bank. Andthere and goes a lawsuit, and I
don't know what the courts have saidso far, because I don't know if
the lawsuits have yet been filed.Yeah, two things. Discrimination on its
face, although I don't think poorpeople are a protected class, so I
(11:01):
don't know where that's going to go. But the entire concept of on your
paper money this is legal tender.And does that mean their argument is it's
really not legal tender? Right?Yeah. And by the way, atheists
have a big problem with money andGod we trust. That's a real problem.
(11:22):
Yeah. Well, the othertion hereon this bill as well is that
eight reverse ATMs are popping up,so it's kind of crazy. Typically,
you put in the debit card,it spits out cash that you can use
cash wherever you're going. Now,the opposite is true. You can turn
your cash into plastic, but youpay a fee to do that. So
if you came ill prepared to let'ssay a music venue or to a sporting
(11:43):
event, well, reverse ATMs arelike proliferating like crazy, and so you
can like tosh a couple hundred bucksin. It spits out a piece of
plastic, but instead of getting twohundred bucks back that you put in,
you get maybe, like I don'tknow, one hundred and ninety two dollars
or something like that, and that'show the ATM makes money. But who
would have ever thought be in sortof some sort of like reverse ATM territory.
But the last here we are.It's a whole different world out there,
(12:07):
it really has. I mean,all of us have seen this thing
change not only the entire world,but our financial system and how we deal
with things. We're in the middleof some very very very big changes.
And so my kids, God blessyou. You know, you guys can
suck up the pollution. I'm donewith that, you know. That's Yeah's
(12:28):
all right, Joel as always,thank you This Sunday, twelve to two
pm. How to Money or athow to Money? Joel? Thanks Bill?
All right, take care. Iwant to do a segment with you
about Elon Musk. Okay, weknow that Elon Musk is just a little
bit nuts. It's also visionary andas Neil said, the line between crazy
(12:52):
and genius is very thin, andElon Musk is straddling that line. There
is no question about it. Sohe is one of those guys that just
doesn't care. I mean, youtalk about doing weird stuff, you have
to go to the supermarket and theyhave point of purchase. You know,
you see the packs of gum orthe you know, candy bars or whatever,
(13:13):
or the magazine's national a choir andinterested in their winning, so you
just grab it. Now, ElonMusk life, he was on his Twitter
feed and he goes, you knowwhat, I just I'll buy Twitter.
And he spends sixty five billion dollarsfor Twitter and turns out or forty five
billion. It turns out it's worthhalf of what he paid for it.
(13:37):
Okay, so he overpaid and thatwas almost point of purchase, and so
he is now being sued. Nowhe has a very interesting way of running
his company. Now, he's prettyloose with it all. I mean he
is. He's just a kind ofguy that just rolls along. And so
now you have eight former SpaceX employeesare suing SpaceX and Elon Musk individually alleging
(14:01):
that must personally order their firing afterthey accused SpaceX of tolerating sexual harassment in
the workplace. Okay, I meanthat's legitimate. I mean that's a legitimate
lawsuit. Whether it pans out ornot, I don't know the facts.
And they were all fired in twentytwenty two after they circulated an open letter
(14:22):
within SpaceX alleging that Musk quote behaviorin the public sphere is a frequent source
of distraction and embarrassment. All right, so they complain and they say they
were fired because of it, thenwe're going to tell that really is the
definition of what sexual harassment is.They alleged that Musk runs this company in
the dark ages, treating women assexual objects to be evaluated on their brass
(14:48):
sides, bombarding the workplace with ludesexual banter, and he has an animal
house environment and he says if youdon't like it, you can leave,
and they're suing him. So hereis sexual harassment in their lives, right,
(15:09):
going to the company and complaining aboutit. Complain about anything you shouldn't
be fired for unless it's completely crazy. You know, if you're offended by
someone, you tell someone, hey, you've offended me, or you go
to management say this person's offending me. Now, defining sexual harassment, and
this is where Elon Musk is beingnailed on is that he makes innuendos in
(15:33):
his emails. He may sexual banterin his emails that by definition is sexual
harassment and therefore we can sue forthat. It's defining what sexual harassment in
and is anything. Teachers can't hugtheir kids anymore. Kindergarten teachers can't hug
(15:58):
their kids. I cannot say,you know what, you look great this
morning. You know, that's reallya nice outfit. Amy come in,
came in this morning, and shehas this really neat outfit. And I
said to Amy, you know what, you really look nice that way.
I mean, you're a you know, this is a great outfit you have.
And then I had to think,and I turned around, and what
(16:18):
did I say, Neil? Whatdid I say? Amy? You said,
because normally you look rightly? Yeah? Like yeah, Actually he doesn't
know how to give a compliment.Yeah, that was the problem is it
was, hey, sweetheart, whydon't you do a spin for me so
I can see the whole thing.That's really where you crossed the line.
So let me ask you something.And I have to look this up because
I don't know this answer, eventhough I'll pretend I do and handle on
(16:41):
the laws. Sexual harassment is lookingat a woman and saying you look great,
that's a nice outfit. That isconsidered sexual harassment, certainly around here.
I mean, it's it's wild howcorporate America looks a sexual harassment.
What if you say you look likecrap, just walk down the wall and
go, you know what you looklike crap today? That could be a
(17:03):
hostile environment, exactly, hostile workenvironment. So I really you know the
answer, and I should have knownthe answer. That's the point. You're
a walking I just hostile environment.I am, I am. And we
were talking about this when we wereputting this this segment together. And you
know, obviously I make a lotof sexual innuendo, clearly. I make
(17:25):
a lot of depraved jokes here onthe air, clearly, and someone is
going to complain at some point herein the building. Actually I've had a
couple of complaints here in the building. And I apologize. No an HR
shut no, an HR shut itdown. I mean, it was,
first of all, what I said, yeah, yeah, yeah, I
can't tell you exactly what it isbecause it was pretty offensive, but uh
(17:47):
it was HR said. You know, factually, it wasn't. It wasn't
what I was accused of saying.But the point I'm making is that if
if I'm ever sued, if thiscompany is ever sued by an employee here
on the floor because I have quoteA harassed them sexually, not even referring
to them. I'm just saying ageneral joke. I will be asked by
(18:11):
iHeart the iHeart attorneys to make astatement and to defend, and I'm going
to go, here's the problem.My statement is going to be in favor
of the plaintiffs and go, yeah, of course I said that. The
point I'm making is, does itever stop? Is harassment is a joke,
(18:32):
not even referring to someone a generaljoke. Is that a hostile work
environment? Is that sexual harassment?That is? You know, is there
such a thing anymore as get alife, Get a life, Just get
a life. Okay, you lookgreat today. No, No, that's
(18:55):
sexual harassment on its face. It'snot like let's jump in the sack.
It's not like, okay, ifyou don't put out and you're a subordinate,
I'm going to fire you are goingto make your life miserable. Different
issue. It's just I told youi'd think about it. I really enjoyed
being on the show. But Ithink that's what this lawsuit is about.
So half of it makes sense.I'll buy that they went to hr and
(19:17):
complained and they were fired or weretold you don't you know what we're told,
you don't like it, work someplaceelse that is considered inappropriate. And
I got to tell you that goestoo far. That goes too far.
Can you have a company that Imean not sexual harassment and the horrible stuff,
but can you have a company thatjust has a I don't know,
(19:40):
a ryebald atmospheremore? Not anymore tosay, hey, this is how we
do it. Nope, not anymore. I mean I can't say anything I
want about the higher ups here,you know, without getting I mean,
even if it wasn't about I had. There was a friend of mine who
I went to law school with,and he there was a just one all
of this started and he had afirm and that and people had to be
(20:03):
warned. You know, we doprocedures manual sexual harassment, et cetera.
You have to write out today withany company. And he told employees,
let me tell you something. Webonk everybody in this office. This is
the way we work. Management willhit up on you. We do jokes,
(20:26):
and if you don't like it,you don't come to work here.
And he said that worked if youknow that it's going to happen. If
you know that Elon Musk is goingto send emails, If you know there's
going to be sexual innuendo and youaccept it, you know what, that
(20:47):
may be wrong. By the way, I'm sure there'll be a lawyers specialize
in discrimination harassment are going to sayyou're crazy. But that's not the first
time anybody said I'm crazy. Youknow I handled it well then in general,
just with my vast legal knowledge.There's a reason the law school I
went to is out of business,that it went defunct. They tried to
have the fact that you graduated fromthere redacted. Yeah, well there's nothing
(21:14):
anymore to redact, all right,because we finished the show and it's time
for Earlier with mo Kelly, whois host of Later with Mo Kelly Monday
through Friday at from seven to tenpm. Is social address at mister mo
Kelly. Mo you you know,we just did a story about what's considered
(21:34):
sexual harassment today and anything anything referencingany indie innuendo is considered some kind of
sexual harassment that can you can getin trouble with it. You know their
consequences absolutely. I guess what keepmy mouth shut. Yeah. By the
(21:55):
way, have I ever noticed HaveI ever told you what a food package
you have? And how impressive thatis? Yes? You have many times.
How's the matter with you? I'mappreciative, though, I do see
there you go? All right?Mo? Where we go from here?
Where do we go from here?I know you? Wherever we go,
it's going downhill, I promise you. Okay, here's something. And I
(22:19):
have not been to a movie inso long because number one, of course,
I stream. We've been talking alot about that, and the cost
of movies is just gotten really expensive. AMC is offering three dollars movie tickets
during the summer. I mean,is that there is that level of desperation
out there. Well, it's nota new program, but it's one that
(22:41):
they've expanded. It's going to benationwide, across two hundred and fifty AMC
locations, and they're showing movies thatwe can get on streaming, but they
want to get you in the theater. They have to compensate for the fact
that there aren't people in the theatersall week longer all summer long. So
if we charge three dollars tickets,you get it, and you'll probably spend
some twenty in food concessions because honestly, that's where they make the money and
(23:03):
they don't have to share that moneywith the movie studios. So you know,
from June to August, you cango in and see movies like Minions,
The Rise of Groove, Doctor SEUs, The Lorax, Sing and so
forth for three dollars. The bottomline is they are bleeding. They are
hemorrhaging because people are not going tothe movies like they used to five and
six years ago, all right,so they just once you get into concessions
(23:25):
and that's it, any excuse toget you. So it's just it's basically
a food store, you know,fast food outlet. They want you to
line up, and they do itwith a three dollars movie. It's come
to that at this point, it'scome to that they want to make it
like a community meeting point, likealmost like you go to Starbucks. You're
not going for the coffee. Oftentimes, you're going there to hang out,
You're going for the ambounce, you'regoing there to write your term paper,
(23:47):
what have you. And movies aretrying desperately to have some of the same.
They'll have movies with restaurants. They'llhave movies, theaters with bars and
personal service conciergee, that kind ofthing. They need you in the environment.
You will spend money. Yeah,And the cost of a coke is
completely insane. Bucket of popcorn,large bucket with a soda, I mean
(24:10):
just completely nuts. I mean,you know, you can't. I don't
understand how people do that, especiallywhen the movie's going to come out anyway.
And I mean there's ways around that, I know, if you know
what I've done is, for example, I've taken a catheter bag and a
catheter tube and just fill it upto die a coke I mean obviously an
unused one and just have a littletube coming up. Well, how about
(24:30):
this take your colostomy bag as well, so you don't have to go to
the bathroom. Uh yeah, that'sthe other thing. Real quickly. I
mean, with all the jokes andthank you, we've hit new levels of
depravity. Good. No, Iam glad I brought you into our rim.
But I drink a lot when Igo to the movies, and so
(24:51):
I have to go pee and iptwo three times during the course of a
two hour movie. And you can'tpause it like you can't at home.
So with the fact you've got thebig screen at home. You know,
you got the eighty five inch TV, and you have that soundbar and the
sound is unbelievable. Uh, andyou can posit and the movie, your
first run movie comes out three orfour weeks later. Why would I even
(25:15):
be Why would you even pay threedollars for a movie you got? Some
people want the communal experience. Theywant to see the movie in the presence
of friends and strangers. I don'tneed that all the time. But that's
the only thing which is keeping alot of these movie theaters in business.
Yeah, I've never understood that.And the floors are sticky at these movies,
the seats too. Just that's becauseone theater you guys going clear.
(25:40):
Wow is that pee wee herman?All right? MO, it was fun.
Thank you Neil for bringing that up. And MO, thank you for
being part of the festivities. Areyou sexy? Oh wow, there's a
that's a lawsuit. Thank you forsomething you've never heard. Tonight later with
MO seven to ten PM. Allthrough the week MO, thank you,
(26:03):
We'll catch you again. I'll catchyou tonight and over the weekend. No,
you're not on over the weekend,tonight or tonight, yeah, today
and tomorrow. All right, MO, have a good one. See so
all right, here we go.We're done another day, another eighty cents
because we work at iHeart after taxestwenty five, that's correct. Tomorrow,
Amy, wake up call at fiveo'clock and then the rest of us come
aboard here at six and off atnine. Catch you tomorrow, Handle and
(26:29):
the morning crew. This is KFIAM six forty live everywhere on the iHeartRadio
app. You've been listening to theBill Handle Show. Catch my show Monday
through Friday, six am to nineam, and anytime on demand on the iHeartRadio app
The Bill Handel Show News
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