October 3, 2025 • 35 mins
In this episode of The Jon Sanchez Show, the team reviews the current economic climate with a focus on how the government shutdown has influenced market performance and investor sentiment. The discussion highlights key labor market data and what it may signal for broader economic conditions. Beyond the headlines, the conversation explores creative real estate investment strategies and alternative cash flow opportunities—including billboards, solar energy leases, and data centers—as potential ways to diversify. The episode also examines updates in credit scoring, emerging real estate technology, and how innovation continues to shape long-term decision-making for investors.
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Good Thursday afternoon to you.
Speaker 2 (00:03):
Welcome to the John Sanchez Show on News Talk seven
to eighty k which it's a pleasure to be with
you and a pleasure to be with my co host
around the horn. We shall trouble. He is a busy
man right now, folks. And what does he have some
news to share with us today? Dwight Mollard Headland's mortgage?
How are you, my friend?
Speaker 3 (00:17):
I'm doing fantastic, John, How are you today?
Speaker 1 (00:19):
I'm great?
Speaker 2 (00:20):
Like you said, live in the dream, brother, living the dream.
Speaker 3 (00:24):
Ready to move on.
Speaker 1 (00:25):
That's right, that's right, Corey.
Speaker 2 (00:26):
Individuality, always nice and calm, always laid back, not influenced
by daily stuff like da White and I Corey, did
you even know there's a government shutdown?
Speaker 1 (00:36):
Because you're you know, your industry doesn't even care about
that right now?
Speaker 4 (00:39):
I mean, I guess that's the whole point of the shutdown,
right Has anybody been affecting? I mean, I'm sure there's
a couple of people, but yeah, is anybody really complaining
other than if you live in New York? Apparently?
Speaker 1 (00:51):
Yeah?
Speaker 2 (00:51):
Right right, yep, yep, imagine that mess over there. Billion
dollars all of a sudden withheld from him and so
on and so forth.
Speaker 1 (00:58):
But yeah, oh yeah, there's there's a lot of things impacted.
I'll tell you what.
Speaker 2 (01:01):
The hardest problem that I'm having right now is not
having any economic reports to talk about, either on the
show or the morning with the stock up dates, because
let me tell you, it's you don't realize that they
like become a part of your life, right And this
morning I had them, you know, all written down as
I always do before I had my first update with
Ross at five twenty three, and then the news came
out that they weren't going to be releasing anything.
Speaker 1 (01:23):
And it's like, okay, now what you know?
Speaker 2 (01:26):
Because you trade off of that bad data, right and
you don't have it, You're like, okay, well, what are
we going to trade off of it?
Speaker 4 (01:31):
And if I heard right, I thought they said the
the jobs report for tomorrow, which won't be announced, that
the data is already compiled, Like there already is a
report compiled a week ago, so you know who somebody
has that information?
Speaker 2 (01:46):
Absolutely yeah, yeah, and I guarantee it's it's in some
hands that we probably don't even know whose hands it's in.
Speaker 1 (01:52):
These these uh, I don't even go down that path.
Speaker 2 (01:56):
You know, I'm going, yeah, you're right, Cord, Yeah, because
they I remember when you know, when they fired the
Gallo was in charge that when Trump fired her, and
she's like, look.
Speaker 1 (02:05):
I can't manipulate the data.
Speaker 2 (02:06):
That data is viewed by thousands of people up until
the final week and then and then it's like basically
sealed at.
Speaker 1 (02:12):
That point, right, the data is all done.
Speaker 2 (02:14):
And so yeah, to your point, yeah, I'm sure that
data was done probably last Fridays the way I understand it.
Speaker 1 (02:19):
So anyways, we will see.
Speaker 2 (02:21):
But yeah, it's very bizarre not to have any any
economic reports to like I said, the trade off of
or or as important to talk about.
Speaker 4 (02:28):
So well, hey listen, your market seems to be doing
just fine without it.
Speaker 1 (02:32):
It really does.
Speaker 3 (02:34):
Yeah, yeah, right right.
Speaker 2 (02:36):
Well, you know, as Jason and I shared on the
show yesterday, because remember on Tuesday, the three of us,
we talked about how the government shutdowns affecting or could
affect the real estate market. Yesterday we talked about how
it affects the stock market in our personal lives. And
you know, again I'll bring out that stat that we
shared both of those shows, and that is, you know,
the last government shut down lasted thirty five days.
Speaker 1 (02:56):
That was twenty two trading days.
Speaker 2 (02:58):
And the SMP gain just dismissed of ten percent averaged
almost half a percent game per day, almost a half
a percent, zero point four to seven percent.
Speaker 1 (03:06):
And so to your point, Corey, you're absolutely right.
Speaker 2 (03:09):
Yeah, market doesn't care about it, so until it does, right,
until it does.
Speaker 3 (03:13):
Yeah, but exactly, Yeah, John, I had a meeting last night,
but I'm sure you covered the horrific numbers of the
job at least what we got from ADP. On the ADP,
I mean, come on, I think if I remember, right, John,
you always say that a healthy economy is somewhere between
two hundred and two hundred twenty five thousand jobs per month.
Speaker 2 (03:32):
That was the old days, my friend here ot okay,
I mean, but now now economists are pretty happy with,
say sixty to eighty thousand average, even know, if you
average that, because now we get these massive revisions. You know,
remember the nine hundred thousand fewer jobs they told us
about a couple of weeks ago, and so that's lowered
all the expectations. So yeah, you know, sixty to eighty
(03:53):
is really on fire. Forty thousand, Yeah, everybody's you know,
okay with it. But yeah, negative thirty two thousand. I
remember that's the private sector.
Speaker 1 (04:02):
Yeah, yeah, that's not the.
Speaker 3 (04:04):
Well, the government's only gonna if Trump has his wife,
that's just gonna add.
Speaker 1 (04:08):
Right, Yeah, that one's good.
Speaker 2 (04:09):
The overall number. You're absolutely right. Yeah, there was no
news on that. That's a very good point to bring up.
Do I remember, folks? President Trump announced yesterday a couple
of little comments today, nothing really worthwhile talking about that
He's gonna essentially use this government shut down as the
opportunity to permanently eliminate you know, I've seen projections as
high as a couple hundred thousand government jobs, Democrat jobs
(04:32):
as he calls them. And I joke yesterday it's like,
how do you identify them as government jobs?
Speaker 1 (04:38):
I don't know.
Speaker 2 (04:39):
I don't know, but I'm not going to get into that.
But but yeah, that could be interesting. So Carolyn Lovett,
the Press secretary, today said the news is imminent.
Speaker 1 (04:47):
That's what she said today. It's imminent as to what
they're gonna announce on that side.
Speaker 3 (04:51):
I mean, he's the master of marketing the Schumer shut
down that, I mean, he just tags everything right, I
mean it's just quite amazing.
Speaker 1 (05:00):
Yeah, I I.
Speaker 3 (05:02):
The latest I saw is there that looks like there
may be something coming around maybe middle of next week.
They've just got to get three or four more Democrats
in the Senate.
Speaker 1 (05:11):
To as far as the vote to get it pass
the middle.
Speaker 3 (05:15):
Of next week. It gets longer than that, John, then
everybody's a bad guy.
Speaker 1 (05:19):
Yeah.
Speaker 2 (05:19):
Yeah, Well remember every day that this government has closed,
it cost the economy one tenth of a percent of
GDP each and every week. So yeah, I said yesterday,
you know, and then Corey, I want to thank you.
You brought up that original idea when we were, you know,
kind of looking at some unique circumstances to the government shutdown.
We met some other people came out yesterday to validate
(05:40):
your point, core that you said on Tuesday. And then
is Trump should be in no hurry right to shut
the government or to open the government back up, because
again it's more pressure on the FED. Maybe not a
quarter percent cut in October, maybe a half a percent.
So if these jobs numbers just tink when they finally
do open, and the economy slows and get economists coming
out and go, look at the government was closed for
whatever to four weeks whatever it is, and our g
(06:02):
we're revising our gd GDP figures and all this bottom
line negative news.
Speaker 1 (06:06):
That's what he wants to pressure the Fed.
Speaker 2 (06:08):
So you know, maybe, like I said, he maybe he's
in absolutely no hurry to do it.
Speaker 4 (06:14):
Well, he's a stock market guy, right, so as long
as that thing, as long as this thing levitates, yep,
tell what he can do? No wrong?
Speaker 2 (06:20):
Right, right, that's exactly right. And I want to go
back to the point I just made a second ago,
and that is until it doesn't right. This is typically
what happens if I remember correctly, you know that last
one again that late twenty eighteen, early twenty nineteen, you
kind of get to a point where you go, okay,
this isn't healthy, right, where we can't see what's going on,
and all these people you know that are furload and
(06:41):
so on and so.
Speaker 1 (06:42):
Forth, because remember another point on that.
Speaker 2 (06:44):
But before I forget these government workers, to my understanding,
it takes them a month to get caught up on
their pay. So yes, they're getting paid while they're a furload,
but it's going to take them a month to see
that paycheck in their bank account.
Speaker 3 (06:56):
So well, it'd be interesting John to see you know,
delinquencies have just slowly creeped up in the mortgage and autos,
so it'll be interesting if if it goes a month
or so.
Speaker 2 (07:07):
Right, But that's I was reading some just horrific statistics, Dwight.
I thought about you yesterday when when that government shut
down did last the thirty three days, and yeah, people were, uh,
you know, missing mortgage payments and so on and so forth,
and you know, the credit burias don't care about that.
Speaker 1 (07:24):
They don't know whatsoever.
Speaker 2 (07:25):
Matter of fact, when I logged into my bank account today,
there was a notice at the top that said, if
you are a government employee affected by the shutdown, call us.
So you may start to see some of these Lunders
Dwight and Corey that are going to give a little
bit of a grace period or something, which, hey, you
know that's not the not the government workers fault of
what our politicians do. And yeah, like I said yesterday,
(07:48):
well these politicians are still collecting their paychecks though, even
though you know they're saying we're going to donate it back.
Yet we'll see, all right, Speaking of ficos and and
debt and all that stuff, we're going to share with
you here when we come back from the break. A
really interesting story today that came out regarding fair Isaac,
which of course is the parent of Fico, produces the
(08:08):
Fyco score trades into the symbol. Fyco stock shot up
two hundred and seventy one dollars and ninety seven cents.
That was a seventeen point nine to eight percent gain,
closing a one thousand, seven hundred and eighty four dollars
and sixty eight cents a share. So in Dwight's world,
Fico of course is the big ten thousand pound gorilla.
But they're changing the way Fyco Scores in Dwight's world
(08:30):
are purchased and so on. So Broker and I guess
as we're learning. So it's gonna be a really interesting
story to want to miss that. But in meantime, let
me tell you what we have lined up for you,
you know, here we are sitting with you know, mortgage
rates crept back up after the Fed interest rate cut. Again,
we'll see what the impact of the government shut down
and so on and so forth is on real estate
(08:50):
as time goes on. But I get a lot of
questions guys about you know, look at I. How do
I create cash flow without physically being involved in the
real ESTs, in other words, without being the landlord. So
this is what we're going to be talking about today.
I mean, all of you know about rentals, all of
you know about airbnbs, but there are some very very
interesting ways that we can get cash flow without physically
(09:13):
being the landlord. So what the guys will put together
today is basically seven fresh strategies.
Speaker 1 (09:18):
These are fresh. I don't think we've ever really covered
these before. And it's going to be from crazy things.
Speaker 2 (09:23):
I don't mean that in a negative sense, but from
leasing land solar companies, sell towers. I mean, there's a
lot of things that you can do again still having
the real estate ownership title, but without really being that landlord. So, guys,
I'm really excited to go over this topic when we
get to it here momentarily. But first let's turn it
over to Christen Snow. She's in the right nut traffic center. Hello,
(09:44):
Kristen nineteen, Welcome back to the John Sanchez Show on
Newstalk seven eighty koah with Corey's vigrility to white malart
of Highlands mortgage. All right, record, but wait, wait, let
me back up. It's been a while doing what kind
of day was it?
Speaker 1 (09:59):
Today?
Speaker 4 (09:59):
Another record setting day? There you go a while, it's
been every single day.
Speaker 2 (10:06):
I just haven't been on every day, but today, Corey,
it's the trifecta.
Speaker 1 (10:10):
It's all three major averages. See. I didn't get a
chance to finish there. It was a trifecta. Records. There
you go, and it doesn't take much.
Speaker 2 (10:20):
Right, Like you said, we just keep setting records day
after date.
Speaker 1 (10:22):
So here's how we finished up for the day.
Speaker 2 (10:24):
Seventy nine point game on the DOW to a close
of forty six five nineteen as that rose eighty nine
points point thirty nine percent, closing at twenty twenty eight
forty four, and just a four point game on the
SMP five hundred. Finished the day at six thy seven
hundred and fifteen, well back a buck thirty one on
oil sixty forty eight at barrel EH gold finally started
to slip a little bit after in the small lard
does the bond market bond market feels lost white? I mean, man,
(10:46):
oh man, watch we're all lost hours.
Speaker 1 (10:49):
It was like unchanged. It just doesn't again.
Speaker 2 (10:51):
These bond traders, they trade off of economic data when
there's none. Yeah, shoot, most.
Speaker 3 (10:55):
John has taken me back to the eighties, right, right,
slow and right, you know, it's just yawners, you know.
But yeah, I the thirty or fix today six point
three six, which is just down one basis points, you know.
I mean we're just right in that six point three
range again, the fifteen year five point eighty seven, and
then the government's six point zero five six point zero
(11:16):
seven right in that range. So I don't know what's
going to break this, you know, other than I still
think John, and correct me if I'm wrong. I still
think the market quasi has a October rate cut in
the bank already.
Speaker 1 (11:31):
Absolutely. It might even have a December in there too.
Speaker 3 (11:34):
Yeah, yeah, it might even have the December in there.
Speaker 1 (11:36):
So absolutely, So you need, to your point, what's going
to break it?
Speaker 2 (11:40):
You need economic data, right, yeah, data good impact on
the rates and vice versa.
Speaker 1 (11:45):
Yeah, absolutely right.
Speaker 3 (11:46):
I just don't know, you know, And maybe maybe I'm
not explain it right, But I don't know what it
takes to get a bond trader back in the buying game.
Why would you want to buy a Joe? Why would
you want.
Speaker 1 (11:58):
To buy a bond?
Speaker 3 (11:59):
I mean this sleepy little thing over here. Yeah, just yeah,
four grudges along that there's a shiny object.
Speaker 2 (12:05):
Well, but that's the reason why you just answered your
own question, right, that's the reason why. So I can
get a you know, as of the close today, a
four h nine year, four point zero nine percent on
the tenure. Right, So I go, okay, I want to
give the government my money for ten years. I'm going
to collect four percent. Wells round it down each and
every year. I don't have to worry about a dog.
One thing I don't have to you know.
Speaker 1 (12:23):
Now.
Speaker 2 (12:23):
The worry, Dwight is, of course, as we discussed many
times on the show, stock market valuations. Can this AI
momentum continue. There's some concerns about the accounty and all
those things. We talked about it each and every day.
So that's one reason you go, okay, yeah, you know,
let's just say inflation's high twos, so I'm netting a
little over one percent. Well, if you've got a bunch
of money, that one percent net net yield, you know
(12:47):
what we call risk free where you had net out
the inflation rate.
Speaker 1 (12:50):
It's not bad, it's not great, it's not bad. But
let me let me.
Speaker 2 (12:54):
Let me give you a great reminder, my friend and
everybody else, there are institutions that have to buy the bonds. Right,
So let's use an example. If you're a pension plan,
maybe an insurance company, anything that you have to have
a portion of your money in bonds. They've got to
buy it. They gotta plug their nose, no matter what
(13:14):
it's doing, they got to buy it. So if I'm
a big institution and my investment policy statement says I
can only have a maximum, say sixty percent stock market exposure,
what I got to do that forty percent?
Speaker 1 (13:25):
I've got to buy bonds.
Speaker 2 (13:26):
Now, some plans will say in that investment policy statement,
which is the guiding light, you can have a certain
percentage in corporates, and a certain percentage has to be
in governments and different matureis.
Speaker 1 (13:35):
I mean, they can get very very specific.
Speaker 2 (13:37):
But they will always always have someone always will have
to be buying bonds. And you know, we always we
always tend to forget that, right because to your exact point,
you're one hundred percent correct. If I'm a growth investor, yeah,
why do I want to go into the bond market
right now?
Speaker 3 (13:51):
Do you see do you think that if Trump gets
his wish in terms of the FEDS next year, do
you see any possibility they start buying mortgage backed securities again?
Speaker 1 (14:04):
Why would they that just drive rates down?
Speaker 3 (14:07):
That drive rates down.
Speaker 1 (14:09):
That's an emergency play though.
Speaker 3 (14:11):
Well, operation twister, operations, whatever.
Speaker 2 (14:15):
And if they cut rates and if if, if the
stock market in the economy continue to do well, there
would be no incentive to me. I look at it
as do I want to keep a little bit of
a rainy day fund, meaning if things did get bad,
then I could come in and start buying mortgage backed
securities and artificially drive mortgage rates down as they did
in the past and the various economic cycles. Or do
(14:37):
I want to keep that in my back pocket? Is
again a kind of a rainy day type of strategy.
I think I'd lean towards the ladder.
Speaker 3 (14:42):
But if but if you're going with that rationale, then
it's going to be very hard for these rates to
break inside of six percent going to the fives.
Speaker 1 (14:53):
Yeah, no, I I and I've said that all five.
Speaker 3 (14:55):
And a half almost looks like a distance.
Speaker 2 (14:57):
I think I think I think you think you're lucky
stars if you're five and a half or anything between
five and a half to six, right, I think you're
going to settle in probably in the low sixes by
the end of this year. I doubt we were going
to break six percent. Really, I just don't see any
catalysts at this point. There can always be a black
Swan event to do that. But you're absolutely right, do
I It's the way things are set up, the way
(15:21):
all the systems are set up, and the way the
economy is set up, and on and on and on.
I just don't see anything that would drive us that low.
Right again, unless there is something that happens negatively in
the economy. Let's go back to your original point. Let's
say the jobs market just starts to tank. That could
be one of those quote outlier black Swan type of events.
Right if we get when we finally get non farm
(15:42):
payroll numbers, Let's say they go, oh, my god, you know,
we lost two hundred thousand jobs, and then the next month, oh,
we lost one hundred and fifty. Next month we lost
three hundred thousand. That's going to get everybody's attention. Then
you could start to see some emergency type of strategies.
Speaker 1 (15:54):
From the FED to do that, because you would stop.
Speaker 2 (15:56):
I mean, obviously we would know we would see everything,
not only the equity market, the housing market, everything would
start to go down. So now they go, okay, let's
start buying the mortgage backed securities, not letting them mature
off the balance sheet, to artificially stimulate that.
Speaker 3 (16:09):
So in one year, we started at six point one
seven September of last year, we went almost all the
way up to eight. We've come down. We're going to
end a year later at six points six.
Speaker 1 (16:20):
All that, all that, all that, Yeah.
Speaker 3 (16:23):
For a reduction of fifteen bases point.
Speaker 2 (16:25):
That's right, that's right, exactly. Yeah, that's the that's the
point to it. All right, great questions, my friend, great questions.
Now I'm gonna squeeze this in. We got a couple
of minutes for we've got to go to break. But
I want to squeeze this in, guys, because Dwight, this
is right up your alley, and you deal with credit
scores each and every day as a mortgage lender. So
I want to I think this is the easiest way.
I instead of you paraphrase and said relatively short story.
(16:47):
It's from the Wall Street Journal. And then Dwight, when
we come back from the break if you can kind
of put it in English for people to understand how
important this is. So I told you what fair Isaac
stock did again today. It was just a massive mover
of eighteen percent. So here there's what happened. Here's why
the stock shot up. So according to the article, so
fair Isaac is up ending the credit scoring industry by
giving mortgage lenders a company like Dwight a way to
(17:09):
get its credit scores without buying them excuse me, without
buying them from Experience, Equifix or TransUnion. The changes among
the biggest shakeup in the credit coring system credits coring
system in decades, reflecting the regulatory scrutiny in the second
Trump administration.
Speaker 1 (17:25):
Okay, so he's behind this.
Speaker 2 (17:27):
Earlier this year, Dwight's favorite organization, the Federal Housing Finance
Agency FHFA. Here I'm talking about it all the time,
authorized lenders to use fiico rival Vantage Score, which was
built by the three credit bureaus for government backed mortgages,
challenging Fiico's monopoly over the thirteen trillion dollars mortgage market
(17:49):
for the first time until now. The mortgage credit specialist
known as that's the term I was looking for to
I try merge. You've used that term, yeah, so, mortgage
credit specialists known as tri merge resellers had to purchase
the FICO score through Experience, trans Union, and Equifax to
provide a lender with a combined score drawing from all three.
(18:09):
These resellers exist because federal guidelines require mortgage lenders to
evaluate scores from each bureau, let lenders prefer to work
with one single company. Fyco sells algorithms that generate the
three digital credit score based on data compiled by the
credit bureaus, and doesn't have access to the same type
of customer data on its own. That means resellers will
still have to pay bureaus for credit reports even if
(18:31):
they opt to buy the scores directly from Fyco. Bico's
new programs streamlines the process by letting resellers by scores
straight from the company for four dollars and ninety five cents,
the same price it charges credit bureaus, and an additional.
Speaker 1 (18:44):
Thirty three dollars once the loan closes. Under the new program, both.
Speaker 2 (18:48):
Fees are charged for scores from each credit bureau after
the credit bureau markups. The average cost for resellers and
other mortgage companies is about ten dollars a score. Dan Smouth,
president of the credit data industry that represents the three bureaus,
said the direct licensed program amounts to quote another price
increase by Fiico and Dwight shaking his head.
Speaker 1 (19:08):
Yes.
Speaker 2 (19:08):
So I'll stop right there and doight make sense of us.
It take us behind the scenes with try score and
so on and so forth. What really happens when you
come in You go, okay, we got to run your
credit how this program works because your cost is even
significantly more than this. Right, you're as a mortgage lender,
you're having to pay much higher costs, et cetera. So
I want to get your input on that. But first
let's turn it over to Jack Saban. He's got news
(19:30):
trafficking weather. Hello, Jack, Welcome back to the John Sanchish
Show on News Talk seven eighty k H. Dwight Mallarta
Highlands Mortgage Corrias of Edgebility once again a record setting
trifect today with all three major averages closing in record territory.
The Dow rose seventy seven, NaSTA Cup eighty nine, and
the S and P higher by four. All Right, Before
we get to our real estate topic, how to create
real estate cash flow without the landlord, Let's get Dwight's
(19:53):
opinion on this big shake up in the credit bureau
reporting world.
Speaker 1 (19:57):
So put this in English, do I what the heck
happened today?
Speaker 3 (20:00):
Well, so, over the course of probably the last four
or five years, John, I've noticed credit reporting fees from
the companies that we use have gone up. I mean, John,
they're well over two hundred dollars right now, and in
the old days they were twenty five thirty dollars. Remember that, Corey,
they were they were you know, for two borrowers it
(20:20):
was sixty bucks. Now it can be three hundred dollars plus.
I think what happens so fair Isaac is the algorithm
that each you know, bureau uses to generate their scoring model.
And the reason why you get different scores is because
some will report an item and some don't.
Speaker 1 (20:40):
I mean, it just that's the way it goes.
Speaker 3 (20:43):
And so that's why we always choose the middle score
of the lowest borrowers what we run.
Speaker 1 (20:47):
With, and that's between and experience and equifect.
Speaker 3 (20:52):
And so you can go directly to them. And you know,
remember we had credit karma on here about a few
years ago. Remember, and remember they said that they're just
a tool, and when you start throwing a risk factor
in it and things like that, it starts to tighten down. Well,
so I think what's happened now because the lending industry
(21:12):
has been complaining about the exorbitant fees. How I pass
on to two hundred and ninety five.
Speaker 1 (21:16):
Credit report fee, right, you know?
Speaker 3 (21:18):
So I think this is that effort to say, hey,
we're done. You guys can come directly to us, you know,
and we'll give you those scores. That and that's why
I think the credit buriall stocks went down because we're
just talking. I would hope that we all go to them.
The integrity is the same, right, I don't know why
we would use a third party vendor to go get
(21:40):
it and distribute it to us at a premium.
Speaker 2 (21:42):
Yeah, you had TransUnion to day down ten point zero
five percent, eight twenty seven cent loss, nine and a
half percent loss on Equifax down twenty one dollars or.
Speaker 1 (21:52):
Fourth in sense.
Speaker 3 (21:53):
Yeah, I think there's good.
Speaker 4 (21:56):
No, I was just gonna say, I wonder in the
future do it if you go straight to them, you'll
get one score per person, right, like a score score.
Speaker 3 (22:02):
Yeah, well you'll get all the three scores. You'll get
the try merge. At John's talk, we require a try merge.
Matter of fact, John, if I if I do only
get two scores, there are certain loan programs that require
me to go find that third score.
Speaker 1 (22:15):
Yeah, I mean if the JFA requires the use.
Speaker 3 (22:18):
Of three the three scores. Yeah, so it's not And
now can you imagine in today's world, everybody has their
scoring model lockdown right right, everybody's got it frozen, so
we have to go back.
Speaker 1 (22:29):
It's so, what's the probblem line? What's this going to
mean for you? Another?
Speaker 3 (22:33):
Like, I think savings directly to the consumer. I'm not
going to have to charge you as much as I've
been having to charge you over the past few years. Yeah,
I think absolutely absolutely.
Speaker 2 (22:42):
Okay, good, all right, yep, things are always changing.
Speaker 1 (22:47):
That's for sure. Great.
Speaker 2 (22:47):
All right, let's get to our talk, guys, how to
create real estate cash flow without being a landlord.
Speaker 1 (22:52):
So the boys put together again a really great Listen.
Speaker 2 (22:55):
Again, these are things that you may or may not
have ever even thought about.
Speaker 1 (22:59):
But I like this because again we're thinking outside the box.
Speaker 4 (23:02):
Right.
Speaker 1 (23:02):
We don't want to be like everybody else.
Speaker 2 (23:04):
So when we talk about we're gonna call this our
alternative real estate cast flow. Okay, so the boys put
together five of these ideas. So let me start with
the first one, Corey, and then let you explain this
a little bit more. Billboards, cell towers, and EV chargers.
How you can take a small slice of land, you
can take a rooftop, and you can generate some very
(23:27):
nice long term lease income.
Speaker 4 (23:29):
Yeah, and this usually happens if you're in a high well.
Cell phone towers can happen if you are not in
a high you know, group of people, if you're out
in the stick.
Speaker 1 (23:40):
Farms are famous for doing st farms are so.
Speaker 4 (23:44):
My family has a couple of ranchers, or had a
ranch in South Carolina. I always remember because down in
the corner of the neighbor's farm was the most beautiful
pine tree you've ever seen a pine tree Cromiles and
I go, that's a cell phone tower. But they had
come to my grandfather years ago, and you know, he
was an old timers, like, I don't want any of
that stuff on my bread. But I know I could
have inherited. I could have been giving you guys all
(24:06):
your message.
Speaker 1 (24:06):
There you go.
Speaker 4 (24:08):
So those are good as far as the billboards, then
obviously they want a lot of traffic freeways different parts
of town, this and that. But the premise is great.
Once they put them up, then there's really nothing there.
They don't have toilets, they don't have heaters, they don't
have you know, they're up. You collect a check. Usually
it's going to go up with inflation.
Speaker 1 (24:27):
You know.
Speaker 4 (24:27):
It's it's just really it's.
Speaker 1 (24:30):
Well, generally, let's let's use the billboard for example.
Speaker 2 (24:32):
Right, we have a lot of billboards, you know, going
down five eighty, you know, right through I'll kind of
say the moana lane, plumb lane quarter right, that traffic
really builds up there. Sure, so, so the landlord has
that piece of property. Then you get a company, you know,
one of the one of the major billboard companies. They
(24:52):
come to that landlord and say, all right, we got
a deal for you. We want to lease a piece
of this land to put a billboard. They signed the
regular commercial lease. I'm this speculating correction. It's not a
long term you know, commercial lease. And like you said,
escalating clauses, et cetera. Then they go to Dwight and go, hey, Dwight,
we've got you know, eight hundred thousand cars that go
(25:13):
by us here. So therefore, well, we'll leaseh you this
billboard for five thousand dollars a month. Use it's gonna
be less or more than what they're paying on their lease,
of course, and they pocket that spread.
Speaker 4 (25:23):
Yeah, they're basically a billboard company middleman, if you will,
right like you and I could, if we knew the
minutia and we knew how to get in and out,
we could probably build our own billboard. But we don't
have the setup to go get the clients. So or
they do, you're going to sign a very long term
lease with them for whatever money they're going to charge,
probably double or more than what they're giving you. The
(25:47):
thing to be careful of. And I don't know anything
about billboards, so you know, I'm no expert by any means,
but I know that, like, for instance, Reno and sparksment
through this big billboard issue a few years ago, where
can they have lights? How big can they be? They
actually took down a few, They made people take down
a few billboards that weren't permitted properly. So it's not
like you just go throw it in your driveway and
(26:07):
start charging your neighbor, you know, but it is if
you have the right piece of property, they are profitable.
Speaker 2 (26:14):
Do you mind sharing that you don't have to go
to do any details about the relative of the Vegas billboard.
Speaker 4 (26:20):
Yeah. So he was part of a big commercial kind
of conglomerate and one of their holdings was a very
large billboard right on the strip. And he always told
me it was the most profitable billboard he said in
the world. I don't know, but he said at one
point they got a five hundred million dollar loan against it.
(26:42):
That's how much.
Speaker 1 (26:42):
That means it's worth more than five hundred million. Yeah,
that'll probably worth a billion maybe, I mean.
Speaker 4 (26:49):
Loan, Well, what is think of like times square? What
is what is times square worth? And as far so
you can imagine the strip. But yeah, and like I
told you another story off there, we had a client
they had a billboard which I thought was a great
spot on a to east. It was make like two
thousand dollars a year.
Speaker 1 (27:04):
So yeah, it's all location, location, location negotiation skills.
Speaker 2 (27:09):
Yes, all right, along those same lines will quickly sell
towers now there are companies out there, publicly traded companies
that do nothing but build and acquire cell towers. Right.
There are actually some funds and things that have nothing
but a portfolio of cell towers. Those are very lucrative,
Like I said in the in the farm space that
I know, again, I'll just say, very lucrative.
Speaker 1 (27:29):
EV chargers. I love this one, Corey and Dwight.
Speaker 2 (27:32):
Obviously as electric vehicles if they continue to grow, and
you know, as far as a demand, et cetera, Yeah,
we all know there's a shortage of EV charging station.
Speaker 1 (27:42):
So that's another great I love that idea. Corey, love that.
Speaker 4 (27:45):
Yeah. And again I don't know anything about those. I
have a very good friend of mine that installs those.
He did them all. Remember that big Volvo lawsuit they
had a few years ago, and they had to put
a bunch of money into EV chargers because they were
lying on their mission standards.
Speaker 1 (28:00):
Oh that's right, that's right.
Speaker 4 (28:01):
And so he was the company that was hired to
go put him all over Nevada. But he's and I go,
He's like, man, you should look at this because everybody's
using them. He goes, but they don't charge people that
charge their car. So I'm like, well, how do you
make the money? Iazach, I have no idea. They pay
me to put them in, but they don't charge people
to do the actual charge of the people. Yeah. Again,
(28:23):
how I don't know?
Speaker 3 (28:25):
Yeah, hey, John, that reminds me though, California at once
was talking about you know, they weren't getting taxed dollars
off gasoline. Have they found a way to California?
Speaker 1 (28:36):
Remember, if you haven't up a gasoline, if you have.
Speaker 3 (28:38):
An electric car, you don't need gas. You don't get
to tax the road dollars. Have they got around that?
Now they figured out?
Speaker 2 (28:44):
That's a great question. I haven't need that up at
the break. Yeah, that's a great point. I know in California.
I am sure somehow.
Speaker 3 (28:50):
Somebody have they found a way?
Speaker 2 (28:51):
Yes, yeah, the supplier of the electricity has got to
be paying them something California doesn't do provide anything for free.
Speaker 1 (28:58):
We know that real quick.
Speaker 2 (28:59):
Before we coiler ship on this this next one point
number two solar and energy leases.
Speaker 1 (29:04):
This is another grey one.
Speaker 2 (29:05):
I mean, drive down three ninety five head into southern California.
You're gonna see a massive slough out in the middle.
I remember as a kid going through there nothing but
sage brush. Now it looks like an ocean because there's
so much reflection off of thousands of solar panels, and
there's unusable firm land before.
Speaker 4 (29:20):
And you can get eighty east just out by you know,
east of Sparks a little bit and you can see
the big solar panels they have there. So again this
all goes back to if you have there's a lot
of people, believe it or not, that have a lot
of land, or they have access to a lot of land,
but it doesn't generate anything. Well, now these kind of
things billboards, sotel are solar energy leases. They can all
(29:41):
generate things, mineral rights, water, I mean there, there's That's
a reason real estate is what it is. There's always
value in some space. It just depends what you're imagination.
Speaker 1 (29:51):
Quickly, did I ever tell you a story?
Speaker 2 (29:52):
I was meaning, you know, confidentially with my representative from
from IBAPY. I shouldn't say they company one of the
largest Wall Street firms.
Speaker 1 (29:59):
This is same of that.
Speaker 2 (30:01):
And he said they have a private equity division like
all these firms do.
Speaker 1 (30:05):
And we start talking about different things.
Speaker 2 (30:06):
He said, one of the most profitable investments the firm
has ever made in this alternative division.
Speaker 1 (30:11):
He said, we have a fund so people can invest
into it.
Speaker 2 (30:15):
But this fund goes out and puts They have a
contract to go out and put solar panels on Walmart buildings.
Speaker 4 (30:22):
Across the unsure.
Speaker 2 (30:23):
He said, you have no idea. The cash flow that
this thing spits out is unreal, unreal. No, it's all
about creativity, no doubt. All right, let's wrap it up
with Christen Snow right now traffic center. Hello, Christen, m HM,
welcome back to the John Sanchez Show. One News Talk
seven eighty qh Mster Millard your phone number.
Speaker 3 (30:43):
Server, Yes, sir seven seven five two four zero two
zero two.
Speaker 4 (30:47):
Two, thank you, mister edge six seven three six seven
zero zero.
Speaker 1 (30:51):
Alrighty, thank you friend. All Right, here we go. Alternative
real estate cash flow.
Speaker 2 (30:54):
So we talked about, Okay, one idea billboard, cell towers
and EV charges wrapped up with solar and energy leases,
turning unused land and warehouse rooftops, et cetera.
Speaker 1 (31:05):
Corey, let's go to the next one. Digital real estate.
Speaker 2 (31:07):
So warehouses and properties converted into data centers and server storage.
Speaker 1 (31:12):
There's those two words everyone's talking about.
Speaker 4 (31:14):
Everybody's talking about it, and I'm not I'm not an
expert on this at all, but I can only imagine
the amount of space they needed. So if you're blessed
to have a lot of space, access to good power,
they need water for cooling. If you have all those
things on your land, then you should probably look into
the into something like that, because the amount that they're
(31:36):
building and the amount that they say they're going to
need in the future is astronomical.
Speaker 2 (31:43):
Yeah, the average starting price of a data storage facility
starts at about two billion dollars.
Speaker 1 (31:49):
Wow, it just goes up from there. Have you heard
of any being.
Speaker 2 (31:53):
Proposed, let's say, you know, out in Trick or any
place like that.
Speaker 4 (31:59):
Yeah, I think they have them out and Trick they
have Switch. Does that don't they? Switch is a big one.
Speaker 1 (32:05):
They're more Internet, Yeah they're not really.
Speaker 2 (32:09):
Yeah, quasi data center, but I'm I'm talking these pure
data centers like for AI that anything locally.
Speaker 4 (32:16):
Yeah, that I do not know. It would not surprise
me because they're always talking about the need for the
water and the power sources, and so they have the
infrastructure for it.
Speaker 1 (32:25):
So I just gave you the best real estate here around.
Speaker 4 (32:30):
You create another trick. I just need I just need
one hundred million acres. If anybody has.
Speaker 3 (32:36):
John, you gave it to me. I just texted my dad,
you need to turn the Empire Ranch into a data center.
Speaker 1 (32:42):
There you go.
Speaker 3 (32:43):
You get all the water out there, Yeah yeah, exactly,
cool it down.
Speaker 1 (32:47):
Then the prettiest datus center around with all that.
Speaker 2 (32:50):
Yeah yeah, all right, Corey. Let's run to the second
one or second to the last one. Specialty storage. These
are high margin things. I love these ideas. R V
and boat store is climate control, wine lockers, classics, car garages.
Those are really popular, like in Los Angeles, et cetera.
Speaker 4 (33:06):
Those are popular. The Harvey and boat storage up here
and do I can attest to it is very popular,
very limited they have out here now. I don't know
if you guys probably.
Speaker 1 (33:15):
Know about it.
Speaker 4 (33:15):
About these lockers where you buy the space so you
can buy.
Speaker 1 (33:19):
Yours those years ago in Silver Springs.
Speaker 4 (33:21):
And people make money and people own multiple of them,
and so you can if you don't want to build
the whole thing, you can say, well, I'm gonna go
buy five of these lockers and I'm going to lease
it out and then do all these things. My partner
and I a few years ago were going to do
storage container storage because the business model was awesome. You
could add to it. But you know, with the city
(33:42):
a reno, good luck doing anything outside the box because
they don't think outside the box.
Speaker 2 (33:46):
All right, the boys, last point, don't we can't get
to and we have a couple.
Speaker 1 (33:49):
Of minutes or seconds left Senior co living. This is
where you convert a single family home into.
Speaker 2 (33:53):
A licensed cash flowing machine, so for senior living space.
So bottom line, I love your point, Corey. That's gonna
think about realist always. An idea just got to be great.
I have a great team. Excellent job.
Speaker 1 (34:03):
Boys. That was a lot of fun. We'll do it
again tomorrow on The John Sanchez Show.
Speaker 2 (34:05):
Goudless dwait Malar nmlsid Number two four one two five
nine a license Mortgage Loan Officer with Highlands Residential Mortgage
Limited and Equal Housing Lender nmlsid Number one three four
eight seven one. The information shared on this live broadcast
is for general information purposes only and does not constitute
(34:27):
financial or mortgage advice. Listeners should consult directly with a
license mortgage professional for guidance tailored to their specific situation.
All loans are subject to credit approval and program guidelines.
Speaker 1 (34:38):
Not all applicants will qualify.
Speaker 2 (34:39):
Loan terms and availability may vary by state and are
subject to change without notice. Highlands Residential Mortgage Limited is
licensed in multiple states. For a full list of state
licenses and disclosures, please visit https slash slash www dot
Highlandsmortgage dot com backslash licenses backslash.
Speaker 1 (34:58):
The views express during this program are their own and
do
Speaker 2 (35:01):
Not necessarily reflect those of Highland's Residential Mortgage Limited.
Good Thursday afternoon to you.
Speaker 2 (00:03):
Welcome to the John Sanchez Show on News Talk seven
to eighty k which it's a pleasure to be with
you and a pleasure to be with my co host
around the horn. We shall trouble. He is a busy
man right now, folks. And what does he have some
news to share with us today? Dwight Mollard Headland's mortgage?
How are you, my friend?
Speaker 3 (00:17):
I'm doing fantastic, John, How are you today?
Speaker 1 (00:19):
I'm great?
Speaker 2 (00:20):
Like you said, live in the dream, brother, living the dream.
Speaker 3 (00:24):
Ready to move on.
Speaker 1 (00:25):
That's right, that's right, Corey.
Speaker 2 (00:26):
Individuality, always nice and calm, always laid back, not influenced
by daily stuff like da White and I Corey, did
you even know there's a government shutdown?
Speaker 1 (00:36):
Because you're you know, your industry doesn't even care about
that right now?
Speaker 4 (00:39):
I mean, I guess that's the whole point of the shutdown,
right Has anybody been affecting? I mean, I'm sure there's
a couple of people, but yeah, is anybody really complaining
other than if you live in New York? Apparently?
Speaker 1 (00:51):
Yeah?
Speaker 2 (00:51):
Right right, yep, yep, imagine that mess over there. Billion
dollars all of a sudden withheld from him and so
on and so forth.
Speaker 1 (00:58):
But yeah, oh yeah, there's there's a lot of things impacted.
I'll tell you what.
Speaker 2 (01:01):
The hardest problem that I'm having right now is not
having any economic reports to talk about, either on the
show or the morning with the stock up dates, because
let me tell you, it's you don't realize that they
like become a part of your life, right And this
morning I had them, you know, all written down as
I always do before I had my first update with
Ross at five twenty three, and then the news came
out that they weren't going to be releasing anything.
Speaker 1 (01:23):
And it's like, okay, now what you know?
Speaker 2 (01:26):
Because you trade off of that bad data, right and
you don't have it, You're like, okay, well, what are
we going to trade off of it?
Speaker 4 (01:31):
And if I heard right, I thought they said the
the jobs report for tomorrow, which won't be announced, that
the data is already compiled, Like there already is a
report compiled a week ago, so you know who somebody
has that information?
Speaker 2 (01:46):
Absolutely yeah, yeah, and I guarantee it's it's in some
hands that we probably don't even know whose hands it's in.
Speaker 1 (01:52):
These these uh, I don't even go down that path.
Speaker 2 (01:56):
You know, I'm going, yeah, you're right, Cord, Yeah, because
they I remember when you know, when they fired the
Gallo was in charge that when Trump fired her, and
she's like, look.
Speaker 1 (02:05):
I can't manipulate the data.
Speaker 2 (02:06):
That data is viewed by thousands of people up until
the final week and then and then it's like basically
sealed at.
Speaker 1 (02:12):
That point, right, the data is all done.
Speaker 2 (02:14):
And so yeah, to your point, yeah, I'm sure that
data was done probably last Fridays the way I understand it.
Speaker 1 (02:19):
So anyways, we will see.
Speaker 2 (02:21):
But yeah, it's very bizarre not to have any any
economic reports to like I said, the trade off of
or or as important to talk about.
Speaker 4 (02:28):
So well, hey listen, your market seems to be doing
just fine without it.
Speaker 1 (02:32):
It really does.
Speaker 3 (02:34):
Yeah, yeah, right right.
Speaker 2 (02:36):
Well, you know, as Jason and I shared on the
show yesterday, because remember on Tuesday, the three of us,
we talked about how the government shutdowns affecting or could
affect the real estate market. Yesterday we talked about how
it affects the stock market in our personal lives. And
you know, again I'll bring out that stat that we
shared both of those shows, and that is, you know,
the last government shut down lasted thirty five days.
Speaker 1 (02:56):
That was twenty two trading days.
Speaker 2 (02:58):
And the SMP gain just dismissed of ten percent averaged
almost half a percent game per day, almost a half
a percent, zero point four to seven percent.
Speaker 1 (03:06):
And so to your point, Corey, you're absolutely right.
Speaker 2 (03:09):
Yeah, market doesn't care about it, so until it does, right,
until it does.
Speaker 3 (03:13):
Yeah, but exactly, Yeah, John, I had a meeting last night,
but I'm sure you covered the horrific numbers of the
job at least what we got from ADP. On the ADP,
I mean, come on, I think if I remember, right, John,
you always say that a healthy economy is somewhere between
two hundred and two hundred twenty five thousand jobs per month.
Speaker 2 (03:32):
That was the old days, my friend here ot okay,
I mean, but now now economists are pretty happy with,
say sixty to eighty thousand average, even know, if you
average that, because now we get these massive revisions. You know,
remember the nine hundred thousand fewer jobs they told us
about a couple of weeks ago, and so that's lowered
all the expectations. So yeah, you know, sixty to eighty
(03:53):
is really on fire. Forty thousand, Yeah, everybody's you know,
okay with it. But yeah, negative thirty two thousand. I
remember that's the private sector.
Speaker 1 (04:02):
Yeah, yeah, that's not the.
Speaker 3 (04:04):
Well, the government's only gonna if Trump has his wife,
that's just gonna add.
Speaker 1 (04:08):
Right, Yeah, that one's good.
Speaker 2 (04:09):
The overall number. You're absolutely right. Yeah, there was no
news on that. That's a very good point to bring up.
Do I remember, folks? President Trump announced yesterday a couple
of little comments today, nothing really worthwhile talking about that
He's gonna essentially use this government shut down as the
opportunity to permanently eliminate you know, I've seen projections as
high as a couple hundred thousand government jobs, Democrat jobs
(04:32):
as he calls them. And I joke yesterday it's like,
how do you identify them as government jobs?
Speaker 1 (04:38):
I don't know.
Speaker 2 (04:39):
I don't know, but I'm not going to get into that.
But but yeah, that could be interesting. So Carolyn Lovett,
the Press secretary, today said the news is imminent.
Speaker 1 (04:47):
That's what she said today. It's imminent as to what
they're gonna announce on that side.
Speaker 3 (04:51):
I mean, he's the master of marketing the Schumer shut
down that, I mean, he just tags everything right, I
mean it's just quite amazing.
Speaker 1 (05:00):
Yeah, I I.
Speaker 3 (05:02):
The latest I saw is there that looks like there
may be something coming around maybe middle of next week.
They've just got to get three or four more Democrats
in the Senate.
Speaker 1 (05:11):
To as far as the vote to get it pass
the middle.
Speaker 3 (05:15):
Of next week. It gets longer than that, John, then
everybody's a bad guy.
Speaker 1 (05:19):
Yeah.
Speaker 2 (05:19):
Yeah, Well remember every day that this government has closed,
it cost the economy one tenth of a percent of
GDP each and every week. So yeah, I said yesterday,
you know, and then Corey, I want to thank you.
You brought up that original idea when we were, you know,
kind of looking at some unique circumstances to the government shutdown.
We met some other people came out yesterday to validate
(05:40):
your point, core that you said on Tuesday. And then
is Trump should be in no hurry right to shut
the government or to open the government back up, because
again it's more pressure on the FED. Maybe not a
quarter percent cut in October, maybe a half a percent.
So if these jobs numbers just tink when they finally
do open, and the economy slows and get economists coming
out and go, look at the government was closed for
whatever to four weeks whatever it is, and our g
(06:02):
we're revising our gd GDP figures and all this bottom
line negative news.
Speaker 1 (06:06):
That's what he wants to pressure the Fed.
Speaker 2 (06:08):
So you know, maybe, like I said, he maybe he's
in absolutely no hurry to do it.
Speaker 4 (06:14):
Well, he's a stock market guy, right, so as long
as that thing, as long as this thing levitates, yep,
tell what he can do? No wrong?
Speaker 2 (06:20):
Right, right, that's exactly right. And I want to go
back to the point I just made a second ago,
and that is until it doesn't right. This is typically
what happens if I remember correctly, you know that last
one again that late twenty eighteen, early twenty nineteen, you
kind of get to a point where you go, okay,
this isn't healthy, right, where we can't see what's going on,
and all these people you know that are furload and
(06:41):
so on and so.
Speaker 1 (06:42):
Forth, because remember another point on that.
Speaker 2 (06:44):
But before I forget these government workers, to my understanding,
it takes them a month to get caught up on
their pay. So yes, they're getting paid while they're a furload,
but it's going to take them a month to see
that paycheck in their bank account.
Speaker 3 (06:56):
So well, it'd be interesting John to see you know,
delinquencies have just slowly creeped up in the mortgage and autos,
so it'll be interesting if if it goes a month
or so.
Speaker 2 (07:07):
Right, But that's I was reading some just horrific statistics, Dwight.
I thought about you yesterday when when that government shut
down did last the thirty three days, and yeah, people were, uh,
you know, missing mortgage payments and so on and so forth,
and you know, the credit burias don't care about that.
Speaker 1 (07:24):
They don't know whatsoever.
Speaker 2 (07:25):
Matter of fact, when I logged into my bank account today,
there was a notice at the top that said, if
you are a government employee affected by the shutdown, call us.
So you may start to see some of these Lunders
Dwight and Corey that are going to give a little
bit of a grace period or something, which, hey, you
know that's not the not the government workers fault of
what our politicians do. And yeah, like I said yesterday,
(07:48):
well these politicians are still collecting their paychecks though, even
though you know they're saying we're going to donate it back.
Yet we'll see, all right, Speaking of ficos and and
debt and all that stuff, we're going to share with
you here when we come back from the break. A
really interesting story today that came out regarding fair Isaac,
which of course is the parent of Fico, produces the
(08:08):
Fyco score trades into the symbol. Fyco stock shot up
two hundred and seventy one dollars and ninety seven cents.
That was a seventeen point nine to eight percent gain,
closing a one thousand, seven hundred and eighty four dollars
and sixty eight cents a share. So in Dwight's world,
Fico of course is the big ten thousand pound gorilla.
But they're changing the way Fyco Scores in Dwight's world
(08:30):
are purchased and so on. So Broker and I guess
as we're learning. So it's gonna be a really interesting
story to want to miss that. But in meantime, let
me tell you what we have lined up for you,
you know, here we are sitting with you know, mortgage
rates crept back up after the Fed interest rate cut. Again,
we'll see what the impact of the government shut down
and so on and so forth is on real estate
(08:50):
as time goes on. But I get a lot of
questions guys about you know, look at I. How do
I create cash flow without physically being involved in the
real ESTs, in other words, without being the landlord. So
this is what we're going to be talking about today.
I mean, all of you know about rentals, all of
you know about airbnbs, but there are some very very
interesting ways that we can get cash flow without physically
(09:13):
being the landlord. So what the guys will put together
today is basically seven fresh strategies.
Speaker 1 (09:18):
These are fresh. I don't think we've ever really covered
these before. And it's going to be from crazy things.
Speaker 2 (09:23):
I don't mean that in a negative sense, but from
leasing land solar companies, sell towers. I mean, there's a
lot of things that you can do again still having
the real estate ownership title, but without really being that landlord. So, guys,
I'm really excited to go over this topic when we
get to it here momentarily. But first let's turn it
over to Christen Snow. She's in the right nut traffic center. Hello,
(09:44):
Kristen nineteen, Welcome back to the John Sanchez Show on
Newstalk seven eighty koah with Corey's vigrility to white malart
of Highlands mortgage. All right, record, but wait, wait, let
me back up. It's been a while doing what kind
of day was it?
Speaker 1 (09:59):
Today?
Speaker 4 (09:59):
Another record setting day? There you go a while, it's
been every single day.
Speaker 2 (10:06):
I just haven't been on every day, but today, Corey,
it's the trifecta.
Speaker 1 (10:10):
It's all three major averages. See. I didn't get a
chance to finish there. It was a trifecta. Records. There
you go, and it doesn't take much.
Speaker 2 (10:20):
Right, Like you said, we just keep setting records day
after date.
Speaker 1 (10:22):
So here's how we finished up for the day.
Speaker 2 (10:24):
Seventy nine point game on the DOW to a close
of forty six five nineteen as that rose eighty nine
points point thirty nine percent, closing at twenty twenty eight
forty four, and just a four point game on the
SMP five hundred. Finished the day at six thy seven
hundred and fifteen, well back a buck thirty one on
oil sixty forty eight at barrel EH gold finally started
to slip a little bit after in the small lard
does the bond market bond market feels lost white? I mean, man,
(10:46):
oh man, watch we're all lost hours.
Speaker 1 (10:49):
It was like unchanged. It just doesn't again.
Speaker 2 (10:51):
These bond traders, they trade off of economic data when
there's none. Yeah, shoot, most.
Speaker 3 (10:55):
John has taken me back to the eighties, right, right,
slow and right, you know, it's just yawners, you know.
But yeah, I the thirty or fix today six point
three six, which is just down one basis points, you know.
I mean we're just right in that six point three
range again, the fifteen year five point eighty seven, and
then the government's six point zero five six point zero
(11:16):
seven right in that range. So I don't know what's
going to break this, you know, other than I still
think John, and correct me if I'm wrong. I still
think the market quasi has a October rate cut in
the bank already.
Speaker 1 (11:31):
Absolutely. It might even have a December in there too.
Speaker 3 (11:34):
Yeah, yeah, it might even have the December in there.
Speaker 1 (11:36):
So absolutely, So you need, to your point, what's going
to break it?
Speaker 2 (11:40):
You need economic data, right, yeah, data good impact on
the rates and vice versa.
Speaker 1 (11:45):
Yeah, absolutely right.
Speaker 3 (11:46):
I just don't know, you know, And maybe maybe I'm
not explain it right, But I don't know what it
takes to get a bond trader back in the buying game.
Why would you want to buy a Joe? Why would
you want.
Speaker 1 (11:58):
To buy a bond?
Speaker 3 (11:59):
I mean this sleepy little thing over here. Yeah, just yeah,
four grudges along that there's a shiny object.
Speaker 2 (12:05):
Well, but that's the reason why you just answered your
own question, right, that's the reason why. So I can
get a you know, as of the close today, a
four h nine year, four point zero nine percent on
the tenure. Right, So I go, okay, I want to
give the government my money for ten years. I'm going
to collect four percent. Wells round it down each and
every year. I don't have to worry about a dog.
One thing I don't have to you know.
Speaker 1 (12:23):
Now.
Speaker 2 (12:23):
The worry, Dwight is, of course, as we discussed many
times on the show, stock market valuations. Can this AI
momentum continue. There's some concerns about the accounty and all
those things. We talked about it each and every day.
So that's one reason you go, okay, yeah, you know,
let's just say inflation's high twos, so I'm netting a
little over one percent. Well, if you've got a bunch
of money, that one percent net net yield, you know
(12:47):
what we call risk free where you had net out
the inflation rate.
Speaker 1 (12:50):
It's not bad, it's not great, it's not bad. But
let me let me.
Speaker 2 (12:54):
Let me give you a great reminder, my friend and
everybody else, there are institutions that have to buy the bonds. Right,
So let's use an example. If you're a pension plan,
maybe an insurance company, anything that you have to have
a portion of your money in bonds. They've got to
buy it. They gotta plug their nose, no matter what
(13:14):
it's doing, they got to buy it. So if I'm
a big institution and my investment policy statement says I
can only have a maximum, say sixty percent stock market exposure,
what I got to do that forty percent?
Speaker 1 (13:25):
I've got to buy bonds.
Speaker 2 (13:26):
Now, some plans will say in that investment policy statement,
which is the guiding light, you can have a certain
percentage in corporates, and a certain percentage has to be
in governments and different matureis.
Speaker 1 (13:35):
I mean, they can get very very specific.
Speaker 2 (13:37):
But they will always always have someone always will have
to be buying bonds. And you know, we always we
always tend to forget that, right because to your exact point,
you're one hundred percent correct. If I'm a growth investor, yeah,
why do I want to go into the bond market
right now?
Speaker 3 (13:51):
Do you see do you think that if Trump gets
his wish in terms of the FEDS next year, do
you see any possibility they start buying mortgage backed securities again?
Speaker 1 (14:04):
Why would they that just drive rates down?
Speaker 3 (14:07):
That drive rates down.
Speaker 1 (14:09):
That's an emergency play though.
Speaker 3 (14:11):
Well, operation twister, operations, whatever.
Speaker 2 (14:15):
And if they cut rates and if if, if the
stock market in the economy continue to do well, there
would be no incentive to me. I look at it
as do I want to keep a little bit of
a rainy day fund, meaning if things did get bad,
then I could come in and start buying mortgage backed
securities and artificially drive mortgage rates down as they did
in the past and the various economic cycles. Or do
(14:37):
I want to keep that in my back pocket? Is
again a kind of a rainy day type of strategy.
I think I'd lean towards the ladder.
Speaker 3 (14:42):
But if but if you're going with that rationale, then
it's going to be very hard for these rates to
break inside of six percent going to the fives.
Speaker 1 (14:53):
Yeah, no, I I and I've said that all five.
Speaker 3 (14:55):
And a half almost looks like a distance.
Speaker 2 (14:57):
I think I think I think you think you're lucky
stars if you're five and a half or anything between
five and a half to six, right, I think you're
going to settle in probably in the low sixes by
the end of this year. I doubt we were going
to break six percent. Really, I just don't see any
catalysts at this point. There can always be a black
Swan event to do that. But you're absolutely right, do
I It's the way things are set up, the way
(15:21):
all the systems are set up, and the way the
economy is set up, and on and on and on.
I just don't see anything that would drive us that low.
Right again, unless there is something that happens negatively in
the economy. Let's go back to your original point. Let's
say the jobs market just starts to tank. That could
be one of those quote outlier black Swan type of events.
Right if we get when we finally get non farm
(15:42):
payroll numbers, Let's say they go, oh, my god, you know,
we lost two hundred thousand jobs, and then the next month, oh,
we lost one hundred and fifty. Next month we lost
three hundred thousand. That's going to get everybody's attention. Then
you could start to see some emergency type of strategies.
Speaker 1 (15:54):
From the FED to do that, because you would stop.
Speaker 2 (15:56):
I mean, obviously we would know we would see everything,
not only the equity market, the housing market, everything would
start to go down. So now they go, okay, let's
start buying the mortgage backed securities, not letting them mature
off the balance sheet, to artificially stimulate that.
Speaker 3 (16:09):
So in one year, we started at six point one
seven September of last year, we went almost all the
way up to eight. We've come down. We're going to
end a year later at six points six.
Speaker 1 (16:20):
All that, all that, all that, Yeah.
Speaker 3 (16:23):
For a reduction of fifteen bases point.
Speaker 2 (16:25):
That's right, that's right, exactly. Yeah, that's the that's the
point to it. All right, great questions, my friend, great questions.
Now I'm gonna squeeze this in. We got a couple
of minutes for we've got to go to break. But
I want to squeeze this in, guys, because Dwight, this
is right up your alley, and you deal with credit
scores each and every day as a mortgage lender. So
I want to I think this is the easiest way.
I instead of you paraphrase and said relatively short story.
(16:47):
It's from the Wall Street Journal. And then Dwight, when
we come back from the break if you can kind
of put it in English for people to understand how
important this is. So I told you what fair Isaac
stock did again today. It was just a massive mover
of eighteen percent. So here there's what happened. Here's why
the stock shot up. So according to the article, so
fair Isaac is up ending the credit scoring industry by
giving mortgage lenders a company like Dwight a way to
(17:09):
get its credit scores without buying them excuse me, without
buying them from Experience, Equifix or TransUnion. The changes among
the biggest shakeup in the credit coring system credits coring
system in decades, reflecting the regulatory scrutiny in the second
Trump administration.
Speaker 1 (17:25):
Okay, so he's behind this.
Speaker 2 (17:27):
Earlier this year, Dwight's favorite organization, the Federal Housing Finance
Agency FHFA. Here I'm talking about it all the time,
authorized lenders to use fiico rival Vantage Score, which was
built by the three credit bureaus for government backed mortgages,
challenging Fiico's monopoly over the thirteen trillion dollars mortgage market
(17:49):
for the first time until now. The mortgage credit specialist
known as that's the term I was looking for to
I try merge. You've used that term, yeah, so, mortgage
credit specialists known as tri merge resellers had to purchase
the FICO score through Experience, trans Union, and Equifax to
provide a lender with a combined score drawing from all three.
(18:09):
These resellers exist because federal guidelines require mortgage lenders to
evaluate scores from each bureau, let lenders prefer to work
with one single company. Fyco sells algorithms that generate the
three digital credit score based on data compiled by the
credit bureaus, and doesn't have access to the same type
of customer data on its own. That means resellers will
still have to pay bureaus for credit reports even if
(18:31):
they opt to buy the scores directly from Fyco. Bico's
new programs streamlines the process by letting resellers by scores
straight from the company for four dollars and ninety five cents,
the same price it charges credit bureaus, and an additional.
Speaker 1 (18:44):
Thirty three dollars once the loan closes. Under the new program, both.
Speaker 2 (18:48):
Fees are charged for scores from each credit bureau after
the credit bureau markups. The average cost for resellers and
other mortgage companies is about ten dollars a score. Dan Smouth,
president of the credit data industry that represents the three bureaus,
said the direct licensed program amounts to quote another price
increase by Fiico and Dwight shaking his head.
Speaker 1 (19:08):
Yes.
Speaker 2 (19:08):
So I'll stop right there and doight make sense of us.
It take us behind the scenes with try score and
so on and so forth. What really happens when you
come in You go, okay, we got to run your
credit how this program works because your cost is even
significantly more than this. Right, you're as a mortgage lender,
you're having to pay much higher costs, et cetera. So
I want to get your input on that. But first
let's turn it over to Jack Saban. He's got news
(19:30):
trafficking weather. Hello, Jack, Welcome back to the John Sanchish
Show on News Talk seven eighty k H. Dwight Mallarta
Highlands Mortgage Corrias of Edgebility once again a record setting
trifect today with all three major averages closing in record territory.
The Dow rose seventy seven, NaSTA Cup eighty nine, and
the S and P higher by four. All Right, Before
we get to our real estate topic, how to create
real estate cash flow without the landlord, Let's get Dwight's
(19:53):
opinion on this big shake up in the credit bureau
reporting world.
Speaker 1 (19:57):
So put this in English, do I what the heck
happened today?
Speaker 3 (20:00):
Well, so, over the course of probably the last four
or five years, John, I've noticed credit reporting fees from
the companies that we use have gone up. I mean, John,
they're well over two hundred dollars right now, and in
the old days they were twenty five thirty dollars. Remember that, Corey,
they were they were you know, for two borrowers it
(20:20):
was sixty bucks. Now it can be three hundred dollars plus.
I think what happens so fair Isaac is the algorithm
that each you know, bureau uses to generate their scoring model.
And the reason why you get different scores is because
some will report an item and some don't.
Speaker 1 (20:40):
I mean, it just that's the way it goes.
Speaker 3 (20:43):
And so that's why we always choose the middle score
of the lowest borrowers what we run.
Speaker 1 (20:47):
With, and that's between and experience and equifect.
Speaker 3 (20:52):
And so you can go directly to them. And you know,
remember we had credit karma on here about a few
years ago. Remember, and remember they said that they're just
a tool, and when you start throwing a risk factor
in it and things like that, it starts to tighten down. Well,
so I think what's happened now because the lending industry
(21:12):
has been complaining about the exorbitant fees. How I pass
on to two hundred and ninety five.
Speaker 1 (21:16):
Credit report fee, right, you know?
Speaker 3 (21:18):
So I think this is that effort to say, hey,
we're done. You guys can come directly to us, you know,
and we'll give you those scores. That and that's why
I think the credit buriall stocks went down because we're
just talking. I would hope that we all go to them.
The integrity is the same, right, I don't know why
we would use a third party vendor to go get
(21:40):
it and distribute it to us at a premium.
Speaker 2 (21:42):
Yeah, you had TransUnion to day down ten point zero
five percent, eight twenty seven cent loss, nine and a
half percent loss on Equifax down twenty one dollars or.
Speaker 1 (21:52):
Fourth in sense.
Speaker 3 (21:53):
Yeah, I think there's good.
Speaker 4 (21:56):
No, I was just gonna say, I wonder in the
future do it if you go straight to them, you'll
get one score per person, right, like a score score.
Speaker 3 (22:02):
Yeah, well you'll get all the three scores. You'll get
the try merge. At John's talk, we require a try merge.
Matter of fact, John, if I if I do only
get two scores, there are certain loan programs that require
me to go find that third score.
Speaker 1 (22:15):
Yeah, I mean if the JFA requires the use.
Speaker 3 (22:18):
Of three the three scores. Yeah, so it's not And
now can you imagine in today's world, everybody has their
scoring model lockdown right right, everybody's got it frozen, so
we have to go back.
Speaker 1 (22:29):
It's so, what's the probblem line? What's this going to
mean for you? Another?
Speaker 3 (22:33):
Like, I think savings directly to the consumer. I'm not
going to have to charge you as much as I've
been having to charge you over the past few years. Yeah,
I think absolutely absolutely.
Speaker 2 (22:42):
Okay, good, all right, yep, things are always changing.
Speaker 1 (22:47):
That's for sure. Great.
Speaker 2 (22:47):
All right, let's get to our talk, guys, how to
create real estate cash flow without being a landlord.
Speaker 1 (22:52):
So the boys put together again a really great Listen.
Speaker 2 (22:55):
Again, these are things that you may or may not
have ever even thought about.
Speaker 1 (22:59):
But I like this because again we're thinking outside the box.
Speaker 4 (23:02):
Right.
Speaker 1 (23:02):
We don't want to be like everybody else.
Speaker 2 (23:04):
So when we talk about we're gonna call this our
alternative real estate cast flow. Okay, so the boys put
together five of these ideas. So let me start with
the first one, Corey, and then let you explain this
a little bit more. Billboards, cell towers, and EV chargers.
How you can take a small slice of land, you
can take a rooftop, and you can generate some very
(23:27):
nice long term lease income.
Speaker 4 (23:29):
Yeah, and this usually happens if you're in a high well.
Cell phone towers can happen if you are not in
a high you know, group of people, if you're out
in the stick.
Speaker 1 (23:40):
Farms are famous for doing st farms are so.
Speaker 4 (23:44):
My family has a couple of ranchers, or had a
ranch in South Carolina. I always remember because down in
the corner of the neighbor's farm was the most beautiful
pine tree you've ever seen a pine tree Cromiles and
I go, that's a cell phone tower. But they had
come to my grandfather years ago, and you know, he
was an old timers, like, I don't want any of
that stuff on my bread. But I know I could
have inherited. I could have been giving you guys all
(24:06):
your message.
Speaker 1 (24:06):
There you go.
Speaker 4 (24:08):
So those are good as far as the billboards, then
obviously they want a lot of traffic freeways different parts
of town, this and that. But the premise is great.
Once they put them up, then there's really nothing there.
They don't have toilets, they don't have heaters, they don't
have you know, they're up. You collect a check. Usually
it's going to go up with inflation.
Speaker 1 (24:27):
You know.
Speaker 4 (24:27):
It's it's just really it's.
Speaker 1 (24:30):
Well, generally, let's let's use the billboard for example.
Speaker 2 (24:32):
Right, we have a lot of billboards, you know, going
down five eighty, you know, right through I'll kind of
say the moana lane, plumb lane quarter right, that traffic
really builds up there. Sure, so, so the landlord has
that piece of property. Then you get a company, you know,
one of the one of the major billboard companies. They
(24:52):
come to that landlord and say, all right, we got
a deal for you. We want to lease a piece
of this land to put a billboard. They signed the
regular commercial lease. I'm this speculating correction. It's not a
long term you know, commercial lease. And like you said,
escalating clauses, et cetera. Then they go to Dwight and go, hey, Dwight,
we've got you know, eight hundred thousand cars that go
(25:13):
by us here. So therefore, well, we'll leaseh you this
billboard for five thousand dollars a month. Use it's gonna
be less or more than what they're paying on their lease,
of course, and they pocket that spread.
Speaker 4 (25:23):
Yeah, they're basically a billboard company middleman, if you will,
right like you and I could, if we knew the
minutia and we knew how to get in and out,
we could probably build our own billboard. But we don't
have the setup to go get the clients. So or
they do, you're going to sign a very long term
lease with them for whatever money they're going to charge,
probably double or more than what they're giving you. The
(25:47):
thing to be careful of. And I don't know anything
about billboards, so you know, I'm no expert by any means,
but I know that, like, for instance, Reno and sparksment
through this big billboard issue a few years ago, where
can they have lights? How big can they be? They
actually took down a few, They made people take down
a few billboards that weren't permitted properly. So it's not
like you just go throw it in your driveway and
(26:07):
start charging your neighbor, you know, but it is if
you have the right piece of property, they are profitable.
Speaker 2 (26:14):
Do you mind sharing that you don't have to go
to do any details about the relative of the Vegas billboard.
Speaker 4 (26:20):
Yeah. So he was part of a big commercial kind
of conglomerate and one of their holdings was a very
large billboard right on the strip. And he always told
me it was the most profitable billboard he said in
the world. I don't know, but he said at one
point they got a five hundred million dollar loan against it.
(26:42):
That's how much.
Speaker 1 (26:42):
That means it's worth more than five hundred million. Yeah,
that'll probably worth a billion maybe, I mean.
Speaker 4 (26:49):
Loan, Well, what is think of like times square? What
is what is times square worth? And as far so
you can imagine the strip. But yeah, and like I
told you another story off there, we had a client
they had a billboard which I thought was a great
spot on a to east. It was make like two
thousand dollars a year.
Speaker 1 (27:04):
So yeah, it's all location, location, location negotiation skills.
Speaker 2 (27:09):
Yes, all right, along those same lines will quickly sell
towers now there are companies out there, publicly traded companies
that do nothing but build and acquire cell towers. Right.
There are actually some funds and things that have nothing
but a portfolio of cell towers. Those are very lucrative,
Like I said in the in the farm space that
I know, again, I'll just say, very lucrative.
Speaker 1 (27:29):
EV chargers. I love this one, Corey and Dwight.
Speaker 2 (27:32):
Obviously as electric vehicles if they continue to grow, and
you know, as far as a demand, et cetera, Yeah,
we all know there's a shortage of EV charging station.
Speaker 1 (27:42):
So that's another great I love that idea. Corey, love that.
Speaker 4 (27:45):
Yeah. And again I don't know anything about those. I
have a very good friend of mine that installs those.
He did them all. Remember that big Volvo lawsuit they
had a few years ago, and they had to put
a bunch of money into EV chargers because they were
lying on their mission standards.
Speaker 1 (28:00):
Oh that's right, that's right.
Speaker 4 (28:01):
And so he was the company that was hired to
go put him all over Nevada. But he's and I go,
He's like, man, you should look at this because everybody's
using them. He goes, but they don't charge people that
charge their car. So I'm like, well, how do you
make the money? Iazach, I have no idea. They pay
me to put them in, but they don't charge people
to do the actual charge of the people. Yeah. Again,
(28:23):
how I don't know?
Speaker 3 (28:25):
Yeah, hey, John, that reminds me though, California at once
was talking about you know, they weren't getting taxed dollars
off gasoline. Have they found a way to California?
Speaker 1 (28:36):
Remember, if you haven't up a gasoline, if you have.
Speaker 3 (28:38):
An electric car, you don't need gas. You don't get
to tax the road dollars. Have they got around that?
Now they figured out?
Speaker 2 (28:44):
That's a great question. I haven't need that up at
the break. Yeah, that's a great point. I know in California.
I am sure somehow.
Speaker 3 (28:50):
Somebody have they found a way?
Speaker 2 (28:51):
Yes, yeah, the supplier of the electricity has got to
be paying them something California doesn't do provide anything for free.
Speaker 1 (28:58):
We know that real quick.
Speaker 2 (28:59):
Before we coiler ship on this this next one point
number two solar and energy leases.
Speaker 1 (29:04):
This is another grey one.
Speaker 2 (29:05):
I mean, drive down three ninety five head into southern California.
You're gonna see a massive slough out in the middle.
I remember as a kid going through there nothing but
sage brush. Now it looks like an ocean because there's
so much reflection off of thousands of solar panels, and
there's unusable firm land before.
Speaker 4 (29:20):
And you can get eighty east just out by you know,
east of Sparks a little bit and you can see
the big solar panels they have there. So again this
all goes back to if you have there's a lot
of people, believe it or not, that have a lot
of land, or they have access to a lot of land,
but it doesn't generate anything. Well, now these kind of
things billboards, sotel are solar energy leases. They can all
(29:41):
generate things, mineral rights, water, I mean there, there's That's
a reason real estate is what it is. There's always
value in some space. It just depends what you're imagination.
Speaker 1 (29:51):
Quickly, did I ever tell you a story?
Speaker 2 (29:52):
I was meaning, you know, confidentially with my representative from
from IBAPY. I shouldn't say they company one of the
largest Wall Street firms.
Speaker 1 (29:59):
This is same of that.
Speaker 2 (30:01):
And he said they have a private equity division like
all these firms do.
Speaker 1 (30:05):
And we start talking about different things.
Speaker 2 (30:06):
He said, one of the most profitable investments the firm
has ever made in this alternative division.
Speaker 1 (30:11):
He said, we have a fund so people can invest
into it.
Speaker 2 (30:15):
But this fund goes out and puts They have a
contract to go out and put solar panels on Walmart buildings.
Speaker 4 (30:22):
Across the unsure.
Speaker 2 (30:23):
He said, you have no idea. The cash flow that
this thing spits out is unreal, unreal. No, it's all
about creativity, no doubt. All right, let's wrap it up
with Christen Snow right now traffic center. Hello, Christen, m HM,
welcome back to the John Sanchez Show. One News Talk
seven eighty qh Mster Millard your phone number.
Speaker 3 (30:43):
Server, Yes, sir seven seven five two four zero two
zero two.
Speaker 4 (30:47):
Two, thank you, mister edge six seven three six seven
zero zero.
Speaker 1 (30:51):
Alrighty, thank you friend. All Right, here we go. Alternative
real estate cash flow.
Speaker 2 (30:54):
So we talked about, Okay, one idea billboard, cell towers
and EV charges wrapped up with solar and energy leases,
turning unused land and warehouse rooftops, et cetera.
Speaker 1 (31:05):
Corey, let's go to the next one. Digital real estate.
Speaker 2 (31:07):
So warehouses and properties converted into data centers and server storage.
Speaker 1 (31:12):
There's those two words everyone's talking about.
Speaker 4 (31:14):
Everybody's talking about it, and I'm not I'm not an
expert on this at all, but I can only imagine
the amount of space they needed. So if you're blessed
to have a lot of space, access to good power,
they need water for cooling. If you have all those
things on your land, then you should probably look into
the into something like that, because the amount that they're
(31:36):
building and the amount that they say they're going to
need in the future is astronomical.
Speaker 2 (31:43):
Yeah, the average starting price of a data storage facility
starts at about two billion dollars.
Speaker 1 (31:49):
Wow, it just goes up from there. Have you heard
of any being.
Speaker 2 (31:53):
Proposed, let's say, you know, out in Trick or any
place like that.
Speaker 4 (31:59):
Yeah, I think they have them out and Trick they
have Switch. Does that don't they? Switch is a big one.
Speaker 1 (32:05):
They're more Internet, Yeah they're not really.
Speaker 2 (32:09):
Yeah, quasi data center, but I'm I'm talking these pure
data centers like for AI that anything locally.
Speaker 4 (32:16):
Yeah, that I do not know. It would not surprise
me because they're always talking about the need for the
water and the power sources, and so they have the
infrastructure for it.
Speaker 1 (32:25):
So I just gave you the best real estate here around.
Speaker 4 (32:30):
You create another trick. I just need I just need
one hundred million acres. If anybody has.
Speaker 3 (32:36):
John, you gave it to me. I just texted my dad,
you need to turn the Empire Ranch into a data center.
Speaker 1 (32:42):
There you go.
Speaker 3 (32:43):
You get all the water out there, Yeah yeah, exactly,
cool it down.
Speaker 1 (32:47):
Then the prettiest datus center around with all that.
Speaker 2 (32:50):
Yeah yeah, all right, Corey. Let's run to the second
one or second to the last one. Specialty storage. These
are high margin things. I love these ideas. R V
and boat store is climate control, wine lockers, classics, car garages.
Those are really popular, like in Los Angeles, et cetera.
Speaker 4 (33:06):
Those are popular. The Harvey and boat storage up here
and do I can attest to it is very popular,
very limited they have out here now. I don't know
if you guys probably.
Speaker 1 (33:15):
Know about it.
Speaker 4 (33:15):
About these lockers where you buy the space so you
can buy.
Speaker 1 (33:19):
Yours those years ago in Silver Springs.
Speaker 4 (33:21):
And people make money and people own multiple of them,
and so you can if you don't want to build
the whole thing, you can say, well, I'm gonna go
buy five of these lockers and I'm going to lease
it out and then do all these things. My partner
and I a few years ago were going to do
storage container storage because the business model was awesome. You
could add to it. But you know, with the city
(33:42):
a reno, good luck doing anything outside the box because
they don't think outside the box.
Speaker 2 (33:46):
All right, the boys, last point, don't we can't get
to and we have a couple.
Speaker 1 (33:49):
Of minutes or seconds left Senior co living. This is
where you convert a single family home into.
Speaker 2 (33:53):
A licensed cash flowing machine, so for senior living space.
So bottom line, I love your point, Corey. That's gonna
think about realist always. An idea just got to be great.
I have a great team. Excellent job.
Speaker 1 (34:03):
Boys. That was a lot of fun. We'll do it
again tomorrow on The John Sanchez Show.
Speaker 2 (34:05):
Goudless dwait Malar nmlsid Number two four one two five
nine a license Mortgage Loan Officer with Highlands Residential Mortgage
Limited and Equal Housing Lender nmlsid Number one three four
eight seven one. The information shared on this live broadcast
is for general information purposes only and does not constitute
(34:27):
financial or mortgage advice. Listeners should consult directly with a
license mortgage professional for guidance tailored to their specific situation.
All loans are subject to credit approval and program guidelines.
Speaker 1 (34:38):
Not all applicants will qualify.
Speaker 2 (34:39):
Loan terms and availability may vary by state and are
subject to change without notice. Highlands Residential Mortgage Limited is
licensed in multiple states. For a full list of state
licenses and disclosures, please visit https slash slash www dot
Highlandsmortgage dot com backslash licenses backslash.
Speaker 1 (34:58):
The views express during this program are their own and
do
Speaker 2 (35:01):
Not necessarily reflect those of Highland's Residential Mortgage Limited.
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