Video Closed Captioning:
often imitated never duplicated matt the
lumberjack landlord and mike zuber from
one rental at a time michael how’s it
going my friend i actually
can breathe
well every day is saturday and uh today
is a particularly good day even though
it’s friday so i’m i’m very happy but we
will save that for episode three yeah
you shared something that was pretty
cool but that will be on episode three
yeah very exciting news very exciting
news we’re really we’re super excited to
be able to share that uh with you and
with your viewers and my viewers it’s
it’s awesome but what i wanted to talk
about first today was
um we were talking a little bit about uh
you know we we continuously consume data
from other content creators right
absolutely we’re trying to vet it you
know kind of see where people are at get
their thoughts get their feelings
ken mcelroy
[Music]
[Laughter]
your favorite guy
honest to god i really don’t like this
guy yeah
ken mcelroy is my revenge consultant
yeah i don’t like that guy either it’s
not hard to get on my list it really i’m
not i’m not nearly as nice of a person
as you are
so uh so i’m watching this video from
ken that you sent over and and uh
you know blah blah blah jump cut jump
cut jump cut because he loses track of
what he’s saying i think other people
put his stuff together for him this is
one of the things that i will never have
a team that puts stuff together for me
everything that you share you put
together everything that i share i put
together it’s experiential yes right
we’ve lived it we’re going through it we
saw that hurdle today
again just another area that differs
from us and so many others
but i’m watching ken all over the place
in this video and then all of a sudden
he ends up with
rent control because no one can afford
rent and because wages haven’t kept up
yeah
yeah so again but he got there out of
nowhere
like
like it was like line you know so so
walk me through it as you see it because
i know you’ll connect the dots for us so
there there’s a couple of things so
first and foremost unlike reventure
consulting which i refuse to follow
anymore because he he has a stick now
yeah everything is 50
everything is crash
i mean
i i don’t even bother right i get sent
videos from him that i don’t even bother
looking at anymore because they’re all
the same i’m like let me guess something
bad and it’s gonna crash well here
here’s the deal folks
uh if you want to know when murders rise
look when ice cream sales go up yeah
there is there is correlation and
causation yeah exactly they are
something that he doesn’t understand but
anyways ken mcroy is still on my list of
stuff i watch
i put out a video this morning that i
watched
it was called just a full disclosure the
fate of the u.s housing market
i’m like interesting i consider myself
residential a housing
i consider ken apartments
i clicked it not knowing which way we
were going to go and now watching this
eight minute video i don’t think ken
knew which way he was going to go
because
he brought up data about housing like
let’s be clear residential housing yes
he talked about inventory being record
lows pretty chart he talked about uh
prices pretty chart yes and then
somewhere in the middle
he kind of reverts to this
unaffordability and rent control
and
again uh knowing
his experience having oh having owned
some of these much smaller but some
he starts basically talking about be
careful of rent control it’s coming to
apartments now he never said apartments
but the language and his experience you
could tell that’s what he was thinking
correct
and
it was um
an interesting leap
it was interestingly to go from
again the data that he shows us and
you’re absolutely right he’s clearly
having some admin or some temp yes pull
charts together and go ken talk about
this and he has so much experience i bet
you he looks at these things for five
seconds he goes i can talk about that
yeah i can talk about that and then
again he knows what he wants the
punchline to be right when ken started
recording this video the punch line was
always going to be red control bad
that’s right not even red control rain
control back that was that was his zing
he starts with houses he starts with
inventory and then he goes here and like
whoa
where does where does that go so
um
that was
yeah that was
and i get it and that was an interesting
leap
yeah i’m i’m watching it and i got an
ice cream headache at like four minutes
and 37 seconds because
the two
ideas were like passing in the night and
now all of a sudden rent control and
single family homes and lack of building
and extra legislation by the way we all
know this you’re building an adu i’m
built tried to build an adu
we’ve been through this we know that
there’s extra legislation we know
there’s extra layers
right yeah but we also know there’s
actually a statute in my state
up for voting this i think it’s this
month
that actually allows for
uh for it to be very very very easy
to create an adu yeah very easy
and so what i would caution people on is
watching these pundits and these people
that don’t do what we do every single
day
the last time he built an adu
it was it probably had to go through you
know noah’s ark
i mean it’s he’s completely disjointed
from what’s occurring in today’s market
and the zoning and the rules need him
to build a 200
unit multi-family differ only slightly
from having to build an adu in a
residential neighborhood yeah
again you gotta you gotta
you always
everybody has an opinion experience and
a point of view right ken is an
apartment guy he is probably has 10 000
units or he has some number that i will
never have never even fathom happy he’s
far richer far smarter blah blah blah
blah blah than me i get it i get it
but we’re talking residential which is
where one rental at a time plays the
last time he looked at a house is a
rental
20 years ago no 25 years ago i mean
whatever yeah and the other thing to
realize is we have rent control in
california but single-family homes is
actually exempt
right right people don’t realize ken is
concerned about rent control because it
will hurt his apartments that’s right
that’s this needs to be very very clear
about that right that’s right um that is
a big concern if you’re a multi-family
guy if you’re a residential single
family good news you got lots of options
right because apartments you only got
one option it’s to be a rental that’s
right if you have a single family home
and you don’t like it you kick them out
clean it up and sell it to owner rock
there’s so many other options so
i get where he’s coming from
and then the last thing i will say about
rent control because i do like him
believe it is bad there’s actually a
well-known economist i wish i had his
name he said there’s only thing
only one thing worse
than rent control for a city for
destruction of housing in this city
think about that one thing that’s worse
than rent control to destroy a city do
you have any guess what that one thing
is
no
bombing it
think about what i just said
the only thing worse than rent control
for a city
is bombing it
that should tell you all you need to
know about how good rent control is
well i mean we’ve so in new hampshire we
don’t have rent control we don’t have it
anywhere we don’t have it single
families multis nothing
and what’s really great what’s been
really great about that is that when a
landlord buys something
he doesn’t you can unearth value there
because you can raise rents but you can
also make a much nicer unit
and start on that track and so what you
find here is a lot of stuff will be kept
up but
it actually allows
for affordable housing to exist and
remain
because there’s plenty of landlords that
just say you know what i’ve owned the
thing for 20 years my mortgage is
exactly what it was i’m getting 1100
bucks a month even though the market’s
1500 or 1600 or 1700 a month but you
know what
whatever it’s fine i’ve got a tenant
that’s happy i’m not going to make that
change
when you institute rent control that’s
exactly what you do you basically make
every proposition where every landlord
has to say i’ve gotta max out my rent
every single year in that place because
if i miss a year i’m never gonna get
that six four five six seven eight
percent back ever yeah there’s there’s a
couple i hope people hear that and i’ll
just give you real practical advice yeah
so my my uh california’s only had rent
control i think for two or three years i
forget what year it actually came in uh
but much of my career didn’t exist so if
you were one of my tenants and you paid
rent on time for 12 months you would not
get a rent bump i just wouldn’t do it
now
gavin newsom says i have to raise your
rent every month or i’m sorry every year
right so
you know my letter to them says gavin
newsom says i have to raise your rent
every year so if you like that vote for
gavin
now i don’t really send that letter but
i really wish i could
well so it was really funny because we
just had somebody move out they’ve been
with us for eight years
and we never raised their rent they were
a fantastic tenant they never had issues
when something would come up they
treated the place like it was their own
and they’d fix it or get it fixed and so
this is something that because we don’t
have rent control here
this is something where for me i was
just like you know what it’s fine let it
roll it’s yeah exactly the numbers work
it’s 30-year fixed-rate debt we’ve got
good tenants there they’ve been there
for eight years the tenants on the other
side of the duplex have been there for
coming this is gonna be their fifth year
so again when you allow the free market
to operate as the free market and allow
business people that have made the
decision to make an investment in a home
and then rent it out
when you just let that
that process play out you’ll end up with
far better results because she even said
matt i was literally waiting for you to
raise the rent every single year because
i knew that if you raised it the 10 or
15 percent i knew that it was gonna be
out of my stretch like we didn’t we just
haven’t made that much more money over
the last eight years
so i think that it’s something that
people really need to consider and most
importantly is people need to understand
that real estate is hyper local hyper
local hyper local so not only are there
states that can make that decision but
there’s
towns and counties that can make that
decision so when you’re evaluating a
market you should really be looking at
is that market
something that a landlord can be
successful in because there’s landlords
successful in every market in the
country
like doing fresno still blows my mind to
this day with the level of success that
you’ve had there but what you do is you
understand what the rules are and you
understand getting into it this is where
i have to play by the rules and be
disciplined to make sure that i get the
return on the other side talk about that
just a little bit mike no you’re
absolutely right right it is so hyper
local for example california is often
thought of as like the thou shall not
invest it is a state right but fresno is
in in california it’s done just fine for
us uh but back to being hyper local
would it shock you that there’s a large
county i think it’s actually the largest
county by geography
uh that has uh eviction moratorium still
in effect yeah it’s lake county right la
county has eviction moratorium in effect
still even though there are calls to end
the emergency order all of that our
governor of course will not do that
because we now call him king newsom
because he has he’s exacted emergency
control and doesn’t have to follow
legislation process and the like so king
newsom
will never give up that power and um
well we got what we got but yeah l.a
county still has an eviction moratorium
i can’t believe it
it’s amazing and i think one of the
things again that everybody really has
to learn when we’re when and and see
what mike and i are constantly talking
about is
rent control sure could it happen here’s
a down paul here’s the downfalls here’s
here’s the things that that it gets you
and here’s the subsequent experiences
that you’ll likely have
but looking at the pundits looking at
these other fee people that are out
there talking their talking points make
sure that you’re aligning yourself with
people that are doing what you’re trying
to go do and also trying to understand
how they look at their market because i
think it’s funny when people think that
they think oh well you’re new hampshire
so that’s kind of red market and so
you’d never invest in a blue market i
think red markets and blue markets both
have positives
yeah i actually yeah it’s amazing prop
13 i do i don’t i love props
i bet you do tell people what prop 13 is
prop 13 is something i believe was
enacted in the late 70s it might have
been the early 80s that basically says
uh you can raise property taxes uh only
one i think it’s 1.3 percent a year uh
and of course in california it’s done at
point of sale so if you own something
say say you bought a house in 2011
after the market fell 75
and you got a discount let’s just
pretend you bought a house for 28 000
that’s worth i don’t know 320 000 today
your property taxes is uh based on the
28 000 purchase price so
your property taxes might be 300 bucks
where somebody down the street’s
property taxes might be five grand
i like prop 13. i bet so to give
everybody an idea of how that works in
new hampshire
in the 21 years i’ve been investing in
new hampshire guess how many times my
taxes have only gone up 1.3 percent
once oh zero
never 1.3 ever
it’s always
three four five all the way up to i’ve
had some properties jump 13 in one year
so they i’ve had more years at zero than
i’ve had at 1.3 percent unbelievable so
again guys these are the details this is
why there’s never too much content to
absorb
this is what you guys have to be putting
together when you’re making your plans
to understanding what’s the likelihood
of rent control is there something like
prop 13 that exists
what are the rules in that area where
you’re looking to invest so you know
going into it these are the things that
i must consider these are things that i
think far too many people
make a mistake on and miss in the
beginning and it costs them big time
because if you’re at eight percent
margin
and something like this exists it brings
you to four guess what that’s not that
good of a deal anymore right no you got
to do your market got to do the work god
it’s just
there’s never an excuse not to do the
work so sure do the work it’s true so
michael how can everybody find you my
friend uh go to your google search bar
type in one retail at a time you should
see a youtube channel a books
instagram website all this stuff uh and
i will go live tomorrow saturday or i’ll
go live saturday depending on when you
watch this 8 a.m for 60 minutes of
questions and then if you’re one of my
students we do another half hour in our
private facebook group it is always a
good time so as i always say we try and
create great content for you please hit
that like button and subscribe and check
mike out on his 11 a.m eastern time 8
a.m pacific time live stream tomorrow
it’s a good time we’re always there in
attendance and there’s usually over 100
people hanging out so yeah we’ve been
we’ve been we’ve gotten over 100 last
couple of times it’s been fun it’s been
a good time so mike thanks so much for
the time look forward to segment number
two got it