Commercial Real Estate Investing From A-Z

Will interest rates come down in 2024? What is the economic outlook? What will happen with inventory by the time the rates go down? Should you buy real estate right now? Chad Zdenek, real estate investor, and owner of CSQ Properties, shares his knowledge.Read this entire interview here: http://tinyurl.com/8y6b9k57You are in tune with the economy and economics. We have some interesting news on interest rates recently; let's dive into that and see where your thoughts are for 2024 and 2025.The interest rates and how fast they increased have been a big shock to the real estate system. Any industry relying on borrowing has been challenged by the interest rate increases, and real estate has been hit particularly hard because we normally have 60 to 80% leverage on the commercial side, and that involves a lot of loans. Anyone on variable-rate loans has been feeling the pressure.At the Fed Funds meeting, they mentioned they're not planning on increasing rates. They didn't increase rates, shifting away from the narrative we've been hearing for a while, which was higher for longer, meaning these interest rates, which increased the fastest in 40 years, were expected to remain high. The Federal Reserve aimed to take some steam out of the economy, but they've seen that while unemployment is still low, inflation has come down. That's encouraging, and they indicated they are looking towards three interest rate decreases next year. The 10-Year treasury, on which many mortgages in the commercial world are based, has already been retreating, and that good news for investors with debt on their properties. It will also indirectly affect cap rates, correlated with interest rates. Cap rates, how we value properties, have expanded, meaning property values have gone down, and different real estate sectors have seen different decreases, but with interest rates coming down, we hope cap rates will compress, and values will go up.You started with multifamily and then moved to different asset classes; can you share your reasoning behind it? Why did you pick those asset classes?I'm investing in three asset classes: multifamily, medical office, and self-storage. For people newer to real estate, they might see real estate as an asset class, but within real estate, there are several different asset classes.I was heavily invested in multifamily and knew I should diversify because you never know what will happen. I diversified into self-storage properties, which has been great. I also invest in California and out of California. Living in LA, I'm one of the rare investors who invest in California and out of state. Diversifying within different asset classes has been a good way to spread out the risk, especially with tenant rules and regulations constantly evolving, they're a lot more strict with multifamily than with self storage. Migration patterns affect both asset classes similarly, but tenant laws and COVID restrictions apply only to multifamily, not self-storage. During COVID, seeing restrictions in multifamily, I realized my investors were exposed to legislative liabilities. Diversifying into self-storage, with less regulation but good returns, has worked well.The last 18 months have been crazy in the real estate world, and some people have a mutual fund or stock mindset, trying to time the market. A common saying in our world is that it's not about market timing; it's about time in the market. These should be long-term investments. Whether you buy at the bottom or 10% off the bottom, they should be viewed as long-term.Chad Zdenekwww.ihelpbizownersretire.com

What are some ways that real estate operators and syndicators could market themselves in today's world? What are the benefits of a mastermind? Kyle Wilson founder of Jim Rohn International, YourSuccessStore, and KyleWilson.com, shares his wisdom.Read this entire interview here: http://tinyurl.com/3z7wnnd2What are some ways that real estate operators and syndicators could market themselves in today's world with all the technology, and now even ChatGPT?After I sold my companies, I retired for seven years and when I decided to come back and create my mastermind, I had to put myself out there. And my first thoughts and observations were social media. I'm a big believer, in The Wheel which I started in 1993, you're the hub and each thing you do is a spoke. The big question is how to get people on the wheel, and then take them around, and I think a lot of people leave out is the getting them on the wheel part. And I thought social media had a couple of powerful components: 1) anyone in the world can find you and you can reach anyone else in the world and, for the most part, it's free. And so, I thought, "Okay, I'm going to have to get in the social media game." I didn't want to, I was still missing my story, and I was living a very almost private life. I wouldn't even do a Jim Rohn post, and not even mention that he was my business business partner and that I owned Jim Rohn International, the company that I'd sold. We have to be willing to put ourselves out there. It's our ego that doesn't want to be judged, I had to be content to say some people are going to judge me, they're going to say, "Oh, I'm bragging, or I'm whatever", versus the other people that say, "Kyle, I've been following you, you're making a difference in my life."If I can get them on the wheel, that's not a funnel, funnels have agendas, I'm not talking selling, everything I've ever taught is about attracting, it's about fishing versus hunting. I've always talked about marketing as principles and tactics and tactics change all the time. The tactics to fill a room in 1993 changed in 2004, and that changed 2010, and that changed 2016, and today is also different, but the principles haven't changed at all. The core principles are:1) Build a relationship with people, and build trust. To do that, you have to have a way to talk to them and social media is the first step, podcasts are great for that as well. And from there, getting people onto an email list that you have a little bit more control over.2) You have to show up where the people are. I'm a big proponent of events, especially specific types of events that are industry related and your avatar will be there. You have to show up sometimes whether it's groups or events, or that can be online. But again, anywhere I go, there is an intention, if I meet my avatar, is there something of value I can bring to them in the way of some resources. I have a bunch of free resources and that's how we became friends, you got on my email list, and we followed each other on social media, and we met at an event. I've done that 1000s of times but I also am not going to just hard sell them, it's the wheel. They go on the wheel, you put it out there, there's no agenda and when the customers are ready, that's when it happens. It's not about who, it's when the right person is ready, and taking the agenda out. But first, you have to get them on that social media's first step, or that email list.Kyle Wilsonkyle@kylewilson.comwww.KyleWilson.com

How do you approach requests from a national tenant that can hurt your property value? What do retail landlords care more about? How do you balance TI with free rent and how much to give of each? Bethany Babcock, Founder and Principal at Foresite Commercial Real Estate shares her insights.Read this entire interview here: http://tinyurl.com/mryukh4jThere's a lot of pushbacks that we need to give tenants, how do you approach that because when you're talking to a national tenant, they have a lot of the upper hand.I like to explain to them how it impacts the value of the property, because sometimes, especially if it's a national tenant, they're working from a real estate department, they've never had to think about it from a landlord's perspective. I like to show them how it's going to impact the landlord, and how do you propose we solve that? And put the burden back on them to come up with the solution. Once they understand that what they're asking for is a $100,000 ask, but they feel like it's a $10,000 ask, they start to weight their priorities a little bit differently because their goal is to get a deal done. Putting the weight back on them to be able to come up with solutions is important, some of these things are more important than others.Vague or generous assignment language: tenants are priced based on their risk in retail, and so, when you have a tenant that can assign their lease to another guarantor, if it's not clear that the guarantor is of equal or greater strength, it can impact the value of the building. That's been happening a lot. You see that in single-tenant properties where a large operator will set up all of these locations, guarantee the lease, but have the ability to assign the lease to another operator. And so, someone will buy it at a lower cap rate with this really strong credit and then later have it assigned to a tenant with a lower credit, that's an immediate reduction on the value of the building. Tenants need to know what they're asking for and understand that their credit is the value of that building.Retail landlords care more about the use more than they do about the rent: brokers will sometimes get frustrated when the first question the landlord asks, or the landlord rep asks is, what use? And they'll think, just tell me the price! No, it depends on what use, they want to know who are they, and how many locations they have, you can't just say I can't disclose. It wastes everyone's time because there might be an exclusive that prevents that use from being at that property. And that might keep them from doing a lease or waste everyone's time, but also, they might not like the use, or it might not fit with the overall feel of the center. There's a lot more psychology that goes into leasing out a shopping center than leasing an office building, for example.Not every landlord wants the longest lease term possible: Brokers are very much incentivized to do a very long-term lease and sometimes the landlord doesn't want that, and sometimes the tenant doesn't either, so it's important to make sure that everyone's asking the right questions. A landlord is assumed to want the longest lease term possible and that's not always the case. One of the reasons is because they might want to stagger the expirations so that you don't have more than 30% rolling over in a year. Or sometimes the conditions might throw off the deal and that's one way to get it back on track by shortening it a little bit, or they might have a different long-term plan for the property.Bethany Babcockwww.foresitecre.comwww.twitter.com/bethanyjbabcock

What are the top things that you should be aware of when negotiating a retail lease? Bethany Babcock, Founder and Principal at Foresite Commercial Real Estate, reviews some major points for landlords to negotiate with their prospective tenants, large and small.Read this entire interview here: http://tinyurl.com/y8cppmt8You represent both tenants and landlords, what are the main things we should be aware of when negotiating a lease, especially from a landlord's perspective?1. Fixed renewal options: in this world where now we're seeing rental rates increase dramatically, especially on retail properties in our area, when you're putting fixed renewal options, which give a tenant the right to renew at a specific price in the future, it's equivalent to putting a cap on the owner’s value. That's important because if the owner wants to sell or do anything, that's the cap, it doesn't get much better than that, so at that point, the value of their property is going to go up and down, subject to the market and the cap rates, but it's not going to go up and down based on rent anymore. That's a bigger ask that I think most tenants realize. A lot of times they'll ask for a five-year lease and then they'll want 20 years’ worth of rent options, that's never a good deal for the landlord.2. Free rent upfront versus lower overall base rent:how to maximize the value of the lease? It's really important if a tenant is saying, I need to be at $20 a square foot, and you're thinking, that's tough, I don't think I can make that work, it's not working on my pro forma. One of the better ways to do that and still be able to maximize the value is to tell the tenant, I can't give you $20/square foot, what if I gave you a year's worth of free rent, and the first year is at zero, and then your effective rent over the period will be about $20/sf. But in year two, or year three, it'll be $23/square foot. What that does for the landlord is that when you're capping the value of the property, you're doing it after the free rent period, and they get the benefit of the higher rent, whereas the tenant still gets the same effective rent. That's one way to get a win-win scenario for both parties.3. Buying up the rent to get more TI: Once you go over market rents, it doesn't help anybody. A really good example of this is Starbucks, back in 2006-2007, when they were expanding fast, they were buying up the rent high by getting a ton of TI and having their buildings just delivered to them. But in 2008, when the market adjusted, suddenly you had all of these little Starbucks that were closing, and the rents they were paying at that time were $50 a foot, and now it's even much higher. They couldn't replace or backfill those locations, even though it was a good real estate with those same rents and so a lot of landlords were in hardship. It matters because it's going to affect the value of their property. 4. HVAC and plumbing: If you're on the landlord side, make sure that it's a one-time event, or that it has an end date because if those issues go on indefinitely, that means every buyer or lender that underwrites that property is going to have to underwrite that possible event. If you have an end date, within one year or two years, they can put it in and once that period has passed, that risk subsides. But if it's ongoing, then it's going to diminish the value of the building, because it has to get underwritten each year, or conservatively, every few years, however often they think it might occur.Bethany Babcockwww.foresitecre.comwww.twitter.com/bethanyjbabcock

What went right and what went wrong in 2023? Which goals did I accomplish and what have I failed on? Since a lot of you have been following my career for a few years I thought it would be good to share the things that went right and wrong in 2023.My goals for 2023 were to purchase 6 properties worth $5M each and get one land ready for development in CA. My other goal was to sell or convert the car washes. Here is what I accomplished:I accomplished 3 properties worth $5M, and this was in a partnership with 2 different people that helped me get there, so this is a fractional ownership of these opportunities and not exactly what I had in mind, my goal was for me to have sourced, closed on and operated the deal, along with my investors. And this was a partnership with a couple of other parties.I also accomplished closing on another property that was part of my 2022 goals. This property took a long time to close because it was off market, and the seller was not organized, he hadn’t done his taxes for 3 years and it was like pulling teeth to get him to file his taxes. It took almost one year to close on this property and we are at least doubling the value of it in the next few months. The best way to describe the closing on this property is with two words: follow up. This is something I reiterate often in this podcast because nobody follows up. Only a few successful people follow up with me, and if you want to get something done, or a relationship built, you must follow up, period. Especially with someone that is busy, they get so many requests, emails and people trying to reach out to them. The only way to stand out is by following up. What went wrong in 2023:The car washes are not doing well because I am not a car wash operator nor do I want to be one. After my best employee had to leave due to personal issues, it went downhill, people started stealing, breaking in, things started to break and the list of things that needed fixing started to pile up. I am actually grateful for it because I learned quite a few things such as: don't ever invest in a new asset class that you know nothing about. If you find a property in a good city, make sure that the property is in a good part of town. This will save a lot of headache and potential issues.I am also still not making what I was making at my sales job. I fully expect to make what I was making in 2024. One of the ways I will be doing that is partnering up with someone that has build many properties before and we will get land in contract, get them entitled for building either storage or multi-family and sell the entitlement.Get a copy of my book here: http://tinyurl.com/52bak7thIf you'd like a PDF file of the book, please send me an email at admin@montecarlorei.com

How much have commercial real estate prices declined? Are the properties we are buying today discounted? Neal Bawa, CEO of MultifamilyU, shares his knowledge.Read the entire interview here: http://tinyurl.com/832h7ak6How were you investing in 2020, 2021, 2022?For that property, I must be honest and say there is no horror story to tell. The property did what it was supposed to do, we bumped rents by $175 from the very beginning to the end. On the last day, we had rents $176 dollars higher. So, the property did what it was supposed to, it also stayed highly occupied. You might say, it doesn't sound like a typical property, where are the horror stories? The answer is this, by stepping outside of the metro, we were able to buy the best property in this small market. We didn't have to be stingy; we didn't have to buy a really bad property in a bad area, we just bought a very nice property in a very nice area, it just wasn't in Atlanta. As a result, our process of actually running the property for years was fairly straightforward.What about today? Things have changed dramatically since COVID. In December 2019, probably three months before COVID, cap rates were low, but they weren't crazy low so we probably bought the property at around 4.7 cap or 4.6 cap but if you fast forward to six months, nine months after COVID, cap rates were completely insane. Many people don't know the answer to this question which is, when do you think cap rates in the United States for multifamily were the lowest, which means the highest prices? The answer is March 2022.How much have prices declined?Another question that I think everyone should be asking that I don't see enough is, how much have prices declined? When you ask that question, you have to go back to the first question, which is when was the peak because whenever you measure a decline, you have to always measure it from the peak. First, you have to know where the peak is so that you can say how much of a decline there is. In March or April 2022, the peak is well known because CBRE has published that and a bunch of other people have published articles around that peak. We looked at our underwriting from those days, and we were losing a lot of offers, we were still making offers because you have full-time employees, and their job is to make offers even if they're losing them. We looked at the going-in cap rate in that month for the offers that we made. None of them were offers we won and one can say that we were conservative because we didn't win any offers and we didn't even get into best and final so it's nice to look at that benchmark. And then we looked at the offers that we made in November of 2023 so now the gap between the two is about 20 months and the difference is the offers we are making today are 37% lower than the offers we were making in March. Does that mean that the market is discounted by 37%? No.What is the right price?In the absence of crazy interest rates, what is the right price for our properties? The right price is about 15% higher than it is today and at some point, we will return to that price, we are never going to go back to 37% higher, probably not for the next five to 10 years. The only thing banks know how to do when bad things happen is to cut interest rates to zero, so it will happen at some point, but until that next Black Swan event occurs, prices are about 15% above where they are today. What causes them to go to that level is simply interest rates dropping by about 150 basis points from where they are.Neal Bawawww.multifamilyu.com

How to find the next market? How to convince investors to invest in something that is new to them? Neal Bawa, CEO of MultifamilyU, shares his knowledge.Read the entire interview here: http://tinyurl.com/4vj3wyhrYou sold a deal today and you returned a huge amount to the investors. Let's go over the entire process from why were you analyzing that deal and what made you want to buy it.The name of the deal is Equinox at Night, which is a name that we gave it, it was called Weatherly Walk when we bought it. The property was sold today, which ended December 2023, and was purchased right about this time four years ago. We wanted to buy it in time and close in time for the depreciation benefits in 2019. The journey was one day short of four years.I wasn't looking for a property in this particular marketplace but back in 2019, I had started feeling that properties were getting too expensive inside city limits and I felt like it was a terrific market to be putting a lot of money into. As I was talking about Atlanta, I started seeing good things and then as the years went on 2017-2018, I found that I was seeing more negative things about Atlanta than positive things because inside of the city, I was starting to see pricing that was just unreasonable for the income levels. What was happening was that the incomes of the people living in Atlanta, were going up 4% a year, and the property prices were going up 20% a year when property prices go up that much, the new owner needs to raise rents, so they're forcing rents higher because everyone's buying at these new prices. And for a while that works but then what happens is that either you start seeing occupancy fall, or even worse, you start seeing delinquency increase, as you start forcing people into 40% of their income, 45% of their income going to rent and almost 50% go into rent, then you're going to see a lot of delinquency, the first time their car breaks down, they can't pay rent.How do you convince the investors that may have been used to keep investing in MSA itself?In many of our projects, you just send out an email, and all the shares are taken. We knew that we were buying a better property and were going to make a lot of money on it but first, we had to convince investors (you're not going to make any money if you can't close the property). We did a two-step approach: first, before we put the property in the contract, we were making offers and we had identified three cities not two, that were around. We started holding webinars about the true opportunity in Atlanta, and then another webinar about the true opportunity in Phoenix. "First, I'll tell you about the true opportunity webinars and then I'll tell you about how that transition into getting the property funded", this is something that every syndicator should do instead of telling everybody, "Fayetteville is the greatest city in the Atlanta metro" which never works, what we do is we started to rank some of these outside cities. We started comparing these cities and started talking about these different cities and why we felt that they were better than Atlanta itself, both for single-family and multifamily. We always tell our database, that if you want to buy single-family homes, go do it. You'll be back talking to us in one or two years once you realize you've turned into a landlord, you just wanted to be an investor. We always tell people that the single-family experience is worth it, you learn a lot, and you don't want to do it again.  Neal Bawawww.multifamilyu.com

How to approach due diligence on a new operator as a limited partner? How should investors decide if they should invest in a fund or not? How should you fundraise for deals that have not been determined what they are yet? When to say no to a potential investor? Dr. Joseph Ryan Smolarz, founder of STOR, shares his insights.Read the entire interview here: http://tinyurl.com/yph2892pWhat are some of the main topics that you want to pass to passive investors and how should they do due diligence?The basis of the whole interaction is trust, you're trying to build rapport with your investors from a sponsor's point of view. From an investor's point of view, you want to make sure that you're a good fit. You have ways of thinking about things and your risk tolerance needs to fit into the asset class and the investment strategy that you're trying to do because if you're in a very aggressive fund, and you have a low-risk tolerance, regardless of what happens, you're not going to be happy. Those are the questions that I would start with.When you're starting the due diligence as a sponsor, the number one goal is to make sure you're not in a Ponzi scheme or some sort of fraudulent group. There's a lot of good questions to ask to sort of drill down on that and if you're not comfortable at the beginning, you're probably not going to be comfortable at the middle or the end, as well.During an up market, how would you recommend doctors doing their best to find out if a sponsor is not legitimate?Having made several pretty bad mistakes as a limited partner, this is a topic that's near and dear to my heart. When I approach a deal as a limited partner, what I'm trying to do is understand that sponsor in such a way that we can build a 30, 40-year relationship. It's not about the first deal in its entirety, because I'm willing to put in the time, effort, and cost to get to a comfortable place knowing that when these guys or girls have a deal, and they send it to me, that I'm never going to have to go through this first step of due diligence again. I'm comfortable that they're not trying to push one past me, or whatever the case may be. And that's a gigantic step. I would personally say, and I know this is going to be shocking to your audience, but a lot of times, what I'll do is, I will hire a PI to go through and make sure that some of their previous deals have not been fraudulent.If I had a fund, and I knew that the economy was about to take a turn, for example, in 2024, we all know that it'll be even better for finding deals. However, there is a lot of fear that normal human beings think that that specific time will never end and it'll be doom and gloom for a very long time so they end up not putting the money. From a fund perspective, I would personally prefer to have that cash available right now in case people get cold feet, how would one go about that, in your experience?There are lots of sponsors out there that will do that, they'll get the capital, and hold on to it. It does add liability to to the fund. If you're going to do that, you would probably want to know how much E&O insurance they have, errors and omissions, and all the things to safeguard. Is there the ability for one person to be able to extract all of the cash and run, or is there a safety mechanism where it takes two people to sign off on it? There are lots of checks and balances, and systems out there that can be put in place for a reasonable cost if the sponsor hasn't thought about that, and what happens in those scenarios, and they very well should. But it's just personal preference.Dr. Joseph Ryan Smolarzwww.storpartners.comThe Medicine & Money Show

What are the top lessons learned over a very successful six decades of real estate investing? Tom Wilson, principal at Wilson Investment Properties, a seasoned investor in several asset classes including retail, office, multi-family, industrial and others, shares his wealth of knowledge.Read the entire interview here: https://tinyurl.com/38phajz2Major Lessons LearnedMy first tip of the day is to go to Fannie Mae's website and look for Doug Duncan's predictions around what's going on in the marketplace, and he has accurately called every single rate change in the last 20 years.Secondly, operations is indeed a critical element, Ken McElroy prides himself in having come into the real estate world from the operations standpoint, and he often emphasizes how important that is. The best underwriting, the best market, and product are only as good as you can execute it. You really need all the legs of the stool to be able to have something come off successful.We always want high cap rates, low risk, and high appreciation but it's very hard to find all three, so you have to decide what is the most important to you. California has been able to generate great appreciations in recent years, but not so good on cap rates, and Texas, Florida, and other places have other things that are strong so you need to realize it's very hard to get everything you want, you have to choose which is important.One of the most important things I've learned is how different sub-markets are and how different products are. It's incredible how different they are. You look at the curves of these markets and products. The general information will give you a general concept but you can always find products, you can always find portions of the market where it can be quite contrarian to what the general information is.Don't fall in love with a deal and try to make it happen. Saying no can be more valuable than saying yes. Almost every property I've bought, I've gone to see it myself, I don't do the level of detail I used to but when you scale, you have to delegate to others. Go look at the other stores around the area, retail, grocery, etc. Who is it that actually comes in there? Market studies from the listing agents show you the one-mile, three-mile, and five-mile, what the demographics are, that's not necessarily who's in your property. As you can tell by going at nighttime, park the car, and see what comes in and out. When you make a mistake, it's tough to grieve, and lick your wounds for a while but don't run from it forever. Go back with your team and analyze what is it that went wrong or what is it we can do better next time. Sometimes we learn more from the things that don't work, than the things that do.Change your model periodically. Switch from market to market to asset class to another, whatever it goes with the time so the market. One of the things I've done that has contributed to my success is to change the model. One of the things I haven't done so well is probably not change it as fast as I could have. It's hard to leave something that was working.What's the most valuable asset that you have?I think it's the 2,000 names that I have on my phone, because with those relationships you can start over if you have to rebuild. Relationships are critical, and character is more important than competence. It's nice to have both but character is number one.And, above all, enjoy the journey. It's so easy to get caught up on every day operations and finding more success. But along the way, give back and smell the roses.Tom Wilsonwww.wilsoninvest.com

What to do if your property is in trouble? If your interest rates are doubling? What will save your deals? This is a step by step guide on what to do if your property is in trouble, from managing your bank all the way to getting multiple bids from all of your vendors. Ken McElroy, CEO and founder of MC Companies, shares this golden guide with us.Read this entire episode here: https://tinyurl.com/mry4cbnvWhat are some of the things we should be doing if our properties are in trouble?The first I always look at is what's within your control. One of the things I've started to do is really dial in on my operations. Now, I have a massive advantage because I started in property management right out of college. For the first 10 years of my life, I managed 20-30,000 units. When I step on a project, I have a checklist in my mind that I've been through 100 times. The first thing I've done is scrubbing each one of my assets. I want to make sure that my expenses are completely in order, everything's been bid out multiple times, and that my market rents are exactly where they should be. I make sure that I have the right teams in place, that I'm maximizing my revenue, my other income, and my expenses. That requires a fairs amount of work. That's super important because no matter what, that is going to determine your next loan, your next investor, they're going to look at the operations.The second thing is you have to dig into your partnership agreement with your LP equity and your prefs, and all of that, and you need to take a look at your stress points. And then you can start to bring in other sources to top it up, whether that's asset management, it could be family office, institutional, or a number of things, you can give up GP equity, you can bring more LP equity, you can come up with a loan, all of that should be fully transparent to your existing deal. You can't just change things and tell them later. You have to paper up and make sure it's all correct. That's the area that people are going to be in trouble on, thinking that this will be short term, I only need this for six months, three months, one year, whatever. If they're right, they're probably going to be okay but if they're not, people are going to wonder how they got squeezed out.You need to go out and get other opinions from brokers, opinions of values, people are doing that all over the place. Brokers aren't listing deals right now, they're actually giving everybody BOV's. That's really important because that substantiates what the thing is worth. Then, you have to look at your debt, and see how much equity you have, and if you have equity, even if it's half, or 2/3 or 1/3, of what it was, that's still okay, you're in the money. Now, it doesn't really matter today because you're not selling, If you're selling today, that's exactly what would happen. You're playing the long game here so you need to have all that information and then you can go out and make good decisions on the asset, preserving the equity. I've been in a situation where we bought things and equities went down, probably everyone has, a car, a house, things depreciate, things go down in value, but over the long haul, especially with this inflation, you're on the right side of it, even though you might be feeling a little bit of pain. I want to be in hard assets during high inflationary times, because we all know, you can't build a home or apartments affordably right now, so if you own them, you're actually in that category. That's good, even though it might not feel good, if you can hold on to it, I truly believe that real estate is going to really skyrocket based on all these crazy things that are going on globally.Ken McElroywww.kenmcelroy.comwww.mccompanies.com