Look At Your House As An Investment

Look At Your House As An Investment

Episode Transcript

(00:00):
The following is a pie commercial programon ninety four three WSC. The views
expressed by the host of this programdo not necessarily reflect the views of iHeartMedia
ninety four three WSC, it's advertiser, sponsors or management. This is the
Real Estate Show with Rick Willis.I show about home sales, mortgage issues,
investing at everything about the American dream. And I mean to while as

(00:22):
someone who enjoys radio and really enjoysyour program and now The Real Estate Show
with Rick Willis on ninety four threein SC. Hello, Hello Charleston,
Welcome, Welcome to the Rick WillisReal Estate Show. Well, folks,
you're hearing us on Saturday from noonto one or you're hearing us on Sunday

(00:45):
morning from nine until ten am.And it's a pleasure to have you listening.
Since the title of the show isthe Rick Willis Real Estate Show,
guess what we talk about. That'sright, real estate. And there's a
little over sixty percent of the populationthat owns a home in the US,

(01:08):
and the other folks that don't owna home, thirty some percent probably wish
they did. And if they didn'twish they did, what's wrong with them?
I read an article this past weekthat had to do with do people

(01:30):
excuse me, would people prefer toown or rent? And the younger the
people are, the more they fallin the category of choosing to rent,
and the older people are, allthings being equal, the more they choose
to own. Well, that mighthave something to do with the fact that

(01:53):
the old timers and old timers couldbe relative to the young people today.
Anybody from age fifty on up.They got started years ago. Prices were
certainly much lower, but incomes andwages were certainly much lower. So for
those of you listening that are consideryourself a younger person. If you haven't

(02:17):
ever asked your parents how old wereyou when you bought your first property and
what did you pay for it?Make sure when you ask what did you
pay for it, you also askthem, well, what was your income
back in the day. And Iknow I can look back myself and the
first property that my wife and Ipurchased was in the nineteen seventies, a

(02:42):
long time ago, and I thinkour income at that time was under twenty
thousand dollars, and that would bea combined income probably for my wife and
I for the first house. Butwe only paid forty three thousand for the
house, so relative to what theprice of the home was, we didn't

(03:05):
have to make much money back then. And as I recall, the interest
rate back in the day when webought that first property was somewhere in the
vicinity of ten to twelve percent interest. So again times change. But right
now, folks, you want tobe a homeowner. And if you are

(03:28):
a homeowner and you don't plan onselling, you don't plan on moving,
then you want to look at investingin another property, could be a single
family home for a rental purpose.And if you are a homeowner and you're
looking to the future and you say, Okay, not now, but sometime

(03:51):
in the near future, I willbe retiring or will be downsizing, I'm
going to make a suggestion that youconsider buying that downsized property today and make
it a rental with the understanding thatat such time as you do downsize or

(04:13):
decide to relocate within the Greater Charlestonarea or even outside the Greater Charleston area,
that you think about, Okay,I've had it rented for a certain
number of years, and I'm goingto go in and I'm going to remodel
it, and you know you don'thave to look at it from the point
of view of the tenants are goingto mess it up, no wrong thinking.
Look at it from the point ofview of we're going to put money

(04:36):
back into the property. We're goingto fix it up the way we want,
and we're going to have some newappliances and new floor coverings and new
paint and who knows, but atleast lock in today's prices, Yes,
they are still rising. And ifyou have the ability, by the way,

(04:57):
to refinance your existing home. Youmay want to refinance your existing home
if you don't have the funds todo so otherwise, But refinance your existing
home and pay cash for the homethat you want to buy for the future.
Why because you get a better interestrate on a property that you live

(05:18):
in than one that is going tobe an investment property or one that you
don't live in. In fact,maybe you should even consider this. What
about using your retirement account and convertyour existing retirement account to a self directed

(05:38):
retirement account which you can go outand pay cash for a property that maybe
you're not going to live in nowbecause you can't use your retirement account for
a homeowner occupied property, but withoutpenalty of course. And then you go
out and you direct your retirement accountto buy a property that you rent,

(05:59):
and then when the right time comes, you move back into that respective property
as a homeowner occupant. Some creativeways to think about real estate if you're
already an existing home owner. Andby the way, I'll talk more about
using your retirement account as the showgoes on. But for those of you

(06:23):
that do not own a home,and it doesn't matter how young you are,
if you're eighteen or older, youcan buy a house. And you
might say, yeah, but I'mjust at an entry level job. Okay,
well there are entry level houses stillout there. See. I know
of two properties you can buy rightnow for under one hundred and fifty thousand

(06:47):
dollars. Yeah, it's a decentneighborhood and it gets you started. You
see. The key when you're youngis to get the snowball going as early
as possible. And when I usethe term snowball, well, when you're
just starting off, it's like aball rolling downhill or a snowball that you

(07:11):
have when there is snow, ittakes more effort. You've got to come
out of pocket for the cash tothe extent that you need cash. And
last week's show we talked about threedifferent ways you can buy a home to
live in without any down payment atall. But you get snowball going.
You get your initial cash, evenif you have to get a gift letter

(07:35):
from family or have somebody help youor assist you in the process of buying.
You're in the property. It's yourproperty. Yes, you might be
paying a higher monthly payment than whatshould be paying if you were renting.
But you're looking at the house thatyou're in as a savings account. You

(07:57):
see, some of you are sotuned into, well, here's my budget
and I contribute x amount every monthto my four oh one kira whatever it
happens to be. We'll look atthe house as if it is that retirement
account. Really, so, ifyou don't have room in your budget to

(08:20):
have a payment higher or significantly higherthan what you're paying right now in rent,
yeah, you buy. You mayvery well have a payment several hundred
dollars more than what you feel comfortablewith. But why not turn the faucet
off on putting money in your retirementaccount and make a higher payment than what

(08:41):
you're paying in rent and buy yourselfa house. You see, a part
of that payment that you're going topay to own a house is principal,
meaning it's paying down your mortgage.And depending upon your tax bracket, depending
upon your income, depending upon whetheryou take a standard deduction or itemize,

(09:03):
you might be able to write offthe interest in taxes. And we're going
to make the assumption that the propertyis going to appreciate. Can I promise
you it'll appreciate? Now, Ican't make a promise, but I can
tell you that historically, real estateappreciates, and I can tell you that
even with the great run up ofreal estate prices that we've had in the

(09:26):
last three years, real estate isstill rising. And you have to remember
one thing when you read articles onlinewherever you get your information from, and
that is real estate is local.The Charleston area of the state of South
Carolina high demand, more people relocatingto the state than are leaving the state,

(09:50):
and you can't build below a certainprice point. So there's a whole
bunch of houses out there that wecall resales, not construction, that can
never ever ever get built again.And as a first time buyer, if
you want to have what I callinsurance on your property, appreciating you make

(10:11):
sure you buy a home that couldnot be replaced today based on the cost
of land, sticks, bricks,labor, profit, and there will never
be any more of those respective properties. And it is basically the law of
supply and demand will compel and obligatethose properties to continue to rise in value.

(10:33):
It's an economic principle. Well,folks, I do this show one
hour a week. The rest ofthe time, I help people buy and
sell all kinds of real estate primaryhomes, secondary homes, investment property,
vacant land, commercial property, whateverkind of real estates you might be looking

(10:54):
for. Reach out to me.Call me directly, Rick Willis eight four
three three two seven three zero oneseven. Email me. Let's have a
conversation about how I can help you. Rick at Rickwillis dot com. And
folks, I have a website Rickwillisdot com. Read more of my bio
and you can directly access multiple listfrom my website. We'll be right back

(11:20):
after this break. If you havereal estate questions or if you need a
market analysis on your property, callRick right now at eight four three three
two seven three zero one seven,or you can email them at Rick at
Rickwillis dot com. Check out Rick'sbio and access all properties on the MLS
at Rickwillis dot com. Welcome back, Welcome back, Charleston, Welcome back

(11:43):
to the second segment of today's RickwillisReal Estate Show. Well, we we're
talking in the first segment about thefact that real estate is a good thing.
Whether you're an investor, whether you'relooking to downsize in the future and
buy something that you're going to renttemporarily until you move in it, or

(12:03):
if you're a first time buyer,or maybe you've owned three homes in the
past but circumstances have had you rentingand it's a good time to go buy.
Folks, When you compare it tothe long term keyword long term of
renting, you can't beat it byrenting. You have to own something that's

(12:26):
going up in value without you havingto work for it. That's called appreciation,
and in rental property it's called leverage. It's called cash flow. So
what most people never learn in life, they never learn it from their parents,

(12:46):
and they never learn it in school, is how to make money with
your money, as opposed to makingmoney by exchanging your time for money.
We get oriented as a young personfrequently to working at a set salary so
much per week, so much perhour, or we move up to so

(13:11):
much per year income for those ofyou that are not commission only or self
employed, and again we're exchanging ourtime for money. When you look at
the people that own the expensive housesaround town, you might say, well,

(13:31):
why would they spend so much?You know, here's just two people
that their kids have grown and they'reout here in a five six hundred thousand
dollars home, or young families thatare raising a family and they're in a
six seven, eight hundred thousand dollarproperty or more. You know, it

(13:54):
seems like two people that don't understandthat. You know, maybe they're just
trying to show off or wasting money. Why do they need to live in
such a location like that. Ihappen to live in Mount Pleasant. I
have a lot of friends in MountPleasant, and I deal with a lot
of people in Goose Creek and NorthCharleston and Summerville and Ladson and Hanahan and

(14:16):
places that are lesser price points.And oftentimes people go to those price points
if they're relocating here because they don'twant to pay the prices in the higher
price markets of Mount Pleasant or downtownor West Ashley or James Island. But
here's what's interesting. If you lookat your house as an investment. I

(14:43):
mean I know of a number ofpeople that have said that have bought in
Mount Pleasant for example, that youknow, in the last year I made
over a hundred thousand dollars in myhouse going up in value. And the
same person who could quote money andlive in North Charleston or Ladson or Hand

(15:05):
in Hand or Goose Creek that mighthave a payment that is half of what
it would be if they're in MountPleasant. Their appreciation also went up as
a percentage of their home value,and instead of it being one hundred thousand,
maybe it went up fifty grand.Okay, But who's ahead in the
long run. Who's ahead in thelong run the person whose house went up

(15:30):
fifty grand or the person whose housewent up one hundred thousand. So I
don't want you to confuse what youpay as a monthly payment as a cost.
I want you to look at thetotality of owning real estate. You
have a principle and an interest,Okay, Well, anywhere from twenty to

(15:52):
thirty percent of that payment based onyour interest rate and term, and could
be principal reduction, so it's notall cost. You've got money that's reducing
your principle. And again, dependingupon whether you itemize or take a standard
deduction, you may or may nothave a deduction for your interest in taxes.

(16:14):
And then you've got the appreciation factorworking. And again, appreciation is
a function of supply and demand.And quite frankly, we're still seeing multiple
offers own properties. I'm seeing itas a listing agent when I have a
listing, I'm seeing it when i'mrepresenting a buyer, whether it's an investor

(16:34):
buyer or a homeowner occupant buyer.There are still more buyers than there are
properties for sale. And again,let me update you with the exact numbers
so that I'm not just talking conceptshere. As of this morning, when
we cranked up the computer to preparefor the show, and we record this

(17:00):
show on a Thursday that you hearon Saturday and Sunday, respectfully, there
were two thousand, one hundred eightyfive active residential listings. Now, those
of you that listen each and everyweek have a context for that, but
I need to provide a context forthose of you that don't. Six thousand

(17:21):
active residential listings by the administrative expertsthat track this stuff, not me.
I just am a reporting that sixthousand active residential listings represents a balanced market
where neither the buyer nor the sellerhas a competitive advantage over the other.

(17:41):
When there is a shortage of listings, and there's a big gap between six
thousand and what we have active todaytwo and one eighty five. Less listings
there are, the more there areprice increases, the properties sell above asking,

(18:02):
more possibilities of multiple offers, andthe market is in favor of the
seller, not the buyer. That'sstill where we are in the marketplace today.
And yes, it does depend onwhat part of the Charleston area.
It does depend on what type ofproperty you have. It does depend on
the exact neighborhood or location or areathat you're in. Those variables are still

(18:27):
there. I've always been there.But the bottom line of the bottom line
is, as I report to youeach and every week when we do the
show, there are less and lessactive listings. Said differently, more people
are looking to buy than are puttingtheir properties on the market, and I
believe that is going to be withus for quite a while. Meaning you

(18:52):
don't need to listen to somebody onthe radio, I e. Me.
You don't need to read an articleonline. You don't need to read a
newspaper and to have someone tell youthat real estate is strong and real estate
is going to remain strong. Itis the strongest, safest place to have

(19:15):
your money. So even though unitemight not be excited to own more real
estate, you should be excited tokeep your money safe and growing more so
than it would be anywhere else withoutthe risk. Keyword is without the risk

(19:37):
by a property that is producing income, by a property that is in a
price point where the builders can't buildit anymore, it's below what is called
replacement cost. And you've got prettymuch all the odds in your favor that
your money will remain safe and itwill grow in value through a combination of

(20:03):
income if you're buying in the rightprice point, right type of property,
and growth in the form of appreciation. So I'm a believer in real estate,
And I might add be careful whoyou listen to. Some of you
are listening to your husband or wife, and what do they know. I

(20:25):
mean like, really, what dothey know? Most people act or react
out of fear with where they puttheir money. People listen to commercial about
gold and silver precious metals, andthey want to put their money there.
Well might be easy to do,just pick up the phone and make a

(20:48):
phone call or follow somebody else's advice. Don't confuse what's easy with what's best.
The safest place to have your money, be it for buying an asset
that is going to keep your moneysafe or growth. Is the right kind
of real estate in the right location, Folks, reach out to me.

(21:11):
Let's have a consultation over the telephonein person. Let's talk about how somebody
else can manage it for you.You don't have to manage it. You
just need to make a commitment toput your money in the safest place possible
where you're going to get the maximumgrowth and increase in value of your asset.
And I can help you with that. I've helped hundreds of people here

(21:33):
in the Greater Charleston area with that. Call me directly, folks, Rick
Willis eight four three three two seventhree zero one seven. Email me Rick
at Rickwillis dot com. Please visitmy website, read my bio. You
can access multiple lists there and Ilook forward to speaking with you and we'll

(21:55):
be right back after the break totalk more real estate. If you have
estate questions or if you need amarket analysis on your property, call Rick
right now at eight four three threetwo seven three zero one seven, or
you can email them at Rick atRickwillis dot com. Check out Rick's bio
and access all properties on the MLSat Rickwillis dot com. Welcome back,

(22:18):
Welcome back, Charleston, Welcome backto the third segment of today's Rick Willis
Real Estate Show. For those ofyou that don't know me, I do
this show one hour per week.I prerecord the show on a Thursday for
one hour. My producer is inthe studio. I'm sitting in my home

(22:38):
office and we start at nine thirtyand if everything goes just right, we
end at ten thirty and then heedits it accordingly and you hear it on
Saturday or Sunday. But when I'mnot recording my show, I'm out helping
people real estate, all different kindsof real estate. I'm a real estate

(23:03):
broker. I got into the businessin the nineteen seventies and I help people
sell real estate, all different kindsof real estate, vacant, land,
commercial, residential, multi family.What is it that I can help you
with? And you know what,there's six thousand, five hundred different real

(23:26):
estate agents licensed in the Greater Charlestonarea. Doesn't have to be me,
but you've got to be working withsomeone who's experienced. You don't want to
be the guinea pig for the neweragent, the person that you know from
church, the person that is afriend relative. You know, you're talking

(23:48):
about one of the if not themost expensive thing you'll ever purchase in your
life. And there's so many thingsthat the average agent doesn't know, and
the average home buyer or seller doesn'tknow, and they don't know what they
don't know that they don't know thatthey don't know. It only comes with
experience. I had a closing yesterdayand the buyer of the property that I

(24:18):
was at the closing with had purchaseda five hundred and fifty thousand dollars four
unit property in Summerville, four townhouses, and it's the second property that they
had purchased with me as they're buyinga buyer's agent and the two properties combined
that they have purchased or bringing themin six thousand a month in income.

(24:45):
Now, this individual heard me severalyears ago. They were not even here
living in the Charleston area. Theywere living in the New England area.
Happened to be down here looking atneighborhoods, looking for a place where they
were going to retire. But theywere a couple of years out and they

(25:07):
heard me on the radio while theywere down here and reached out to me,
and we developed a friendship as wellas a business relationship, and when
they did come down they used myadvice as to where to be and what
builder to use, and who touse an attorney, etc. Etc.

(25:30):
And then it became time when theywere listening to my show that they were
convinced that their best place they couldput their retirement money was not in the
stock market, and they converted themoney that they had in retirement accounts,
both IRA as well as four Oone K to a self directed four O

(25:53):
one K and a self directed IRA. Now what that means to you listening
is this, you probably have yourretirement assets in the stock market by way
of a mutual fund that has afacilitator, and it's probably some big company

(26:15):
that if you said who it was, I probably would know what it was.
And your money. You're not incontrol of your money. Somebody else's.
Somebody else is making decisions with whereyour money goes. And it doesn't
have to be that way. Yousee, if you have a choice of
having a third party that you don'tknow who's managing thousands of other people's money

(26:42):
and you're just a name or anumber on a Ledger, versus you making
decisions on behalf of your own money, where you can research and make sure
you're putting your money in the rightspot, both to keep it safe number
one priority, and number two,to have it grow. I'm going to

(27:03):
suggest you want to have your moneyin a self directed retirement account, be
that IRA four oh one K orsomething else. And I suggested to Greg
that he move his money to acompany in North Carolina that would facilitate moving

(27:26):
it from wherever he had it.I'm not sure if it was Van Guard
or some other entity, and setup an LLC and move it right here
to a local bank in the GreaterCharleston area. And then at his discretion,
he can still buy mutual funds,he can buy gold and silver,

(27:48):
he can buy cryptocurrency. He canbe a lender of money to other people,
or he could buy real estate withhis retirement account. And the good
news is that he had enough fundsin his retirement account that he has the
ability to pay cash for some property. He's bought two properties. Now what

(28:10):
his retirement account six thousand dollars permonth income coming in and at the same
time the money's coming in, theseproperties are going to be increasing in value
because he bought the right kind ofproperty in the right area, at the
right price, with all the fundamentalsin place. And how did he know

(28:33):
how to do that? Answer?I'm his buyer's agent. I've owned over
a hundred properties myself, income producingproperties in my life. I can advise
you. I have made lots ofmoney, i have lost lots of money.
I've made the mistakes for you tomake sure you don't make them.

(29:00):
Here's somebody that is not just hopingthe stock market goes up, but he's
taken action to ensure that he hasput his money in an asset, a
hard asset, hard asset sometimes it'scalled a physical asset, but something other

(29:22):
than paper. And that's the safestplace you can have your money in this
world economy. In fact, letme read you something here. Although I
focus primarily on real estate, Isubscribe to and receive a lot of blogs,

(29:42):
professional newsletters, etc. From peoplethat are in the gold sector and
the stock market sector and all kindsof other assets. And here's something that
I received this week, and it'scalled the Bob Livingston Letter from Bob Livingston,

(30:03):
and he's a guy that consults withpeople about what to do with their
money. Financial institutions have not stoppedbuilding more complex derivatives. Have you ever
heard that word derivative? I don'teven understand it, but I've heard the
word for decades to offset risk.Worse, they're offloading it to one another.

(30:26):
Or even worse, the European banksare surely relying on US banks as
counter parties to those derivatives. Thesecond largest bank failure in US history happened
within the last forty eight hours.Now this is a couple of days ago.
What happens if your bank shuts down? How safe are your hard earned

(30:48):
savings? A derivative is fundamentally somethingmade of nothing. The simplest example is
an options contract of a stock.Now I'm reading this from an article the
stock is the underlying asset, andby using the value of that asset and
then adding some fancy math to thatvaluation using time and volatility, you get

(31:11):
the value of various options. Hereare the top eight US banks ranked by
volume of derivatives, and what he'ssaying about derivatives is they're risky. Number
one riskiest bank for derivatives JP ChaseMorgan Bank fifty five trillion dollars of derivatives.

(31:37):
Next, Goldman Sacks fifty one trilliondollars, City Bank forty six trillion
dollars of derivatives. Bank of Americatwenty two trillion, Wells Fargo twelve trillion,
State Street Bank and Trust two billionto trillion of derivatives, HSBC Bank

(32:01):
one point five trillion, The Bankof New York Melon one point one trillion
of derivatives. That's over one hundredninety two trillion in derivatives exposure that we
know about, and just for thetop eight banks alone, not including others
not on the list. If youhave your money in a bank, you

(32:24):
should be thinking of Will Rogers,who famously said, I'm not so much
concerned about the return on my moneyas I am the return of my money.
Right now, you are in aperiod of manipulated financial assets and should
be switching to a period of physicalassets. Let me repeat that again.

(32:49):
This is some guy that advises peoplethat have a lot of money. Right
now, you're in a period ofmanipulated financial assets and should be switched to
a period of physical assets. Thosewho are aware will take action or have
taken action, to avoid the collapseof financial assets by replacing them with physical

(33:13):
assets. The advice is replace paperassets with physical assets. Now, I
don't know a whole lot of choicesand physical assets except gold and silver and
real estate, although I read aboutprecious art and things like that, but
you know that's for somebody else totalk about, not me. More and

(33:37):
more financial assets need to be transferredto physical assets before the crisis becomes acute.
We are in a crisis now,but it's not yet visible to the
people. It should be if they'redoing any reading. Yet, not more
than one in ten thousand know thedanger. Almost three hundred trillion in derivatives

(34:02):
poses alone. Government paper, teabills and T notes will be safer for
a little longer, but the publicsocial mood has been slowly going down over
the last year, from the peakstock market mania of late twenty twenty one
and last year and last New Yearwhen the Dow peaked at over thirty six

(34:25):
thousand, it is very obvious thatfinancial speculation is collapsing. Everything that the
Federal Reserve is doing is a feudaleffort to hold up financial speculation. Let
me slow down here to put thisin context. Let's just assume for the

(34:45):
sake of talking that this guy knowswhat he's talking about. It's over my
head, but he's a very wellrespected individual in the world of financial advice
to people that have paper assets.It's very obvious that financial speculation is collapsing.
Everything that the Federal Reserve is doingas a feudal effort to hold up

(35:08):
financial speculation. It will take focusand alertness to preserve our assets and our
quality of life. The financial system, good or bad, is at risk
survival for you. The individual hasnever been at greater risk. Wow,

(35:29):
folks, whether it's Rick Willis talkingabout real estate or a financial guru,
you want to move your money outof paper assets and move it into physical
assets. Everybody needs a house,everybody needs a place to live. You

(35:50):
will not have a problem of demand, there will be somebody wanting to rent
the property that you buy. So, folks, if you want to have
a candid conversation with me about howyou can quit worrying about we're speculating about
the future of your money, reachout to me and call me directly,

(36:10):
Rickwillis eight four three three two seventhree zero one seven. Email me Rick
at Rickwillis dot com. Please visitmy website Rickwillis dot com, read about
my background, access multiple listing,let's chat. Folks. Will be right
back for our final segment after thisbreak. If you have real estate questions,

(36:31):
or if you need a market analysison your property, call Rick right
now at eight four three three twoseven three zero one seven, or you
can email them at Rick at Rickwillisdot com. Check out Rick's bio and
access all properties on the MLS atRickwillis dot com. Welcome back, Welcome
back to the final segment of today'sRickwillis Real Estate Show. You know,

(36:57):
I look back on previous shows thatrecorded, previous shows that I have done
live and years past, and Ithink I include something about investing in real
estate and all of these and it'samazing for those of you that are listening.
How few people really, as apercentage of people that listen to the

(37:19):
show, it's amazing how few peopleeven inquire firsthand about investing in real estate.
And for every one person that inquires, and I spend an hour with
them educating them on why they wantto have a portion of their assets in
real estate, people can shake theirhead and say yes, I understand,

(37:45):
Yes I agree with you, andyes I'm going to do this, and
never follow through. And I reflectback, and I look at where the
stock market is now, and Ilook at people that have half a million,
a million and more money in thestock market, and people that have

(38:08):
lost one hundred thousand, two hundredthousand, three hundred thousand, and they
just stick to what they know,which is the stock market four oh one
k IRA mutual funds. And theykeep saying, well, yeah, but
I know it'll come back. It'salways comes back. My financial advisor tells

(38:31):
me that, you know, onthe long term average, the return on
investment is this eight percent, ninepercent, ten percent, whatever it might
be long term. But to seethat's a historical perspective looking backwards, isn't
it. And I challenge you inyour thinking, we're not in normal times.

(38:59):
The times that we had in thelast fifty years where people come up
with the average of an eight percent, nine percent or ten percent return on
average, those times are over withthose times. We didn't have thirty some

(39:19):
trillion dollars of debt. We didn'thave the China influence and the Soviet influence
and the Middle Eastern influence the waythey are today. There was not the
fear of artificial intelligence. There werenot all these sophisticated derivatives and other things.

(39:46):
Going back decades ago, the fundamentalswere far more sound. We are
printing money, printing money de valuesmoney. So I say to you,
for those of you sitting around saying, well, yeah, but I'm only

(40:07):
in my forties or fifties and I'mjust going to stay the course with keeping
my money in mutual funds or withmy financial advisor. You want your money
in a physical asset that is indemand. The housing sector is in demand,

(40:32):
will always be in demand, hasbeen in demand, and will continue
to be in demand. And thereason real estate values are increasing and for
most of the country will continue toincrease, particularly in the state of South
Carolina, the area around Charleston,is that more people want to be here

(40:57):
more people want to live here,then there is housing available for them.
Yes, the builders are building,but look at the price point that the
builders are building. In the worldof single family homes. How many homes
do you see out there under threehundred thousand? Huh can you find one?

(41:22):
How many townhouses can you find undertwo hundred and fifty thousand. What
you see being built are more expensivehomes. Why because there's a lot more
profit to the builder in the moreexpensive homes. But if we look at

(41:42):
what we call starter homes for thepeople that are the blue collar workers,
the people that don't own a homeand will never be living for their first
home in the half million dollars orsix hundred thousand, eight hundred thousand dollars
home, it's called bread and butterfundamentals. And when I work with an

(42:07):
investor that says, I want thesafest thing possible where there's no chance of
losing any money, and if thework, if it's a residential property,
we're looking under the price point whereyou can't build a house anymore. And

(42:28):
the security is in the fact thatyou're buying something that's in demand that can
never be replaced. Again. Itold you just recently in the show here
that I helped an investor buy aproperty for five hundred and fifty thousand and
four unit property four unit property.If you divide four into five fifty,

(42:54):
you end up with an individual perunit price of about one hundred and thirty
some thousand per unit per dwelling unit. Well, folks, guess what.
You can't build a house for that. There will never be one built.
And if long as there's a demandfor housing, which I believe there will

(43:15):
be, what we're going to findis it's going to increase in value.
The rents are going to increase,and you want to own all of that
you can. You see, there'sso many more investors today exchanging paper dollars
for hard assets or physical assets,and that's going to continue. So you
have two potential buyers. Whenever youdo decide to sell your property. You've

(43:40):
got an investor buyer and you've gota homeowner buyer trying to buy the same
property. And one other thing.On a personal note, I'm writing a
book on the subject of investing inreal estate, and my son and I
were golfing year in the last coupleof weeks and my son said to me,

(44:04):
Dad, why don't you write achapter addressed to your grandson Connor?
And I wondered where he was goingwith this. He says, yeah,
Connor's going to inherit a lot ofreal estate from me. And Connor's a
sharp guy. He'll get a joband have a retirement account. And god

(44:25):
forbid if what he decides to dois to sell the real estate that he
will inherit and decides to put itin the stock market. So Dad,
please write a chapter in your bookaddressed to my grandson cautioning him about converting

(44:45):
a hard asset to a paper asset. And of course, I said to
Chad, Chad, that's what trustsare for. You can set up a
trust to make sure that doesn't happen. He said, yeah, But I'd
like to have him educated on that, and I'd like to have him educated
in such a way that he wouldwant to buy more real estate in lieu

(45:08):
of putting all his money in apaper asset, whatever that might be when
he's in the working world. Fouroh one, k Ira. But probably
the stock market will always be thepreferred investment of choice because of ignorance on
the part of so many people.Well, I've been thinking about that since

(45:29):
my golf game with my son,and that will be a chapter in the
book, and it might be thepreface of the book called keep your Money
Safe. You don't have to manageit. You never have to deal with
a tenant. It's just like havingstocks. You'll get a monthly report.
The difference is you won't have toworry about the decline. You won't have

(45:53):
to worry about the stock going away. You won't have to worry because the
property that he'll inherit from you,Chad, will be paid for, so
it's only a question of how muchincome will be coming in. The safest
place to have your money is inlocal Charleston area real estate. Reach Out
to Rickwillis eight four three three twoseven three zero one seven. Email me

(46:19):
Rick at Rickwillis dot com. Visitmy website from Rickwillis dot com. See
you next week, and give mea holler.