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Episode 047 – Lessons from the California Exodus

 

 

SHOW NOTES & LESSONS

OVER 5 MILLION PEOPLE HAVE LEFT CALIFORNIA NOW DUBBED "THE CALIFORNIA EXODUS"

Although people are moving into the state while others are moving out, Cali has still lost more than 1 million people and the population continues to shrink.

 

Who's moving in?

Those making $200,000 plus per year with higher education from tax-burdened states like New Jersey, New York, and Illinois (also seeing massive Exoduses).

 

Who's moving out?

Those making $55,000 and below with no college education.

 

Where are they moving to?

States with much more affordable housing like Texas, Arizona, Nevada, and Oregon.

 

CALIFORNIA HAS 5 OF THE TOP 10 MOST EXPENSIVE RENTAL MARKETS

 

What a One Bedroom Rents for in:

Los Angeles $2249 month

San Francisco $3400 month

Las Vegas $925 month

Phoenix $945 month

 

What a Two Bedroom Rents for in:

Los Angeles $3200 month

San Francisco $4500 month

Las Vegas $1122 month

Phoenix $1137 month

 

Median Home Prices in California $550,990 while the rest of the nation averages $247,800.

 

WHAT TEACHERS ARE MAKING PER YEAR IN:

New Jersey $49,000

New York $44,000

California $41,000

Compared to:

Texas $38,000

Nevada $35,000

Arizona $32,000

 

The Pros of Living in Arizona

  • Lower Taxes
  • Lower Crime
  • Affordable Housing
  • Right to Work State (which attracts Businesses)

 

The Cons of Teaching in Arizona (or is it?). Let's Do The Math...

A Two Bedroom will cost you $2,000 a month less in Phoenix than LA and $3,300 less than San Francisco.

That means, in one year, you'll save $24,000 just living in Phoenix instead of Los Angeles and over $40,000 instead of San Francisco.

So making $9,000 less a year as a teacher in Arizona will still add about $15,000 to your annual income compared to living in Los Angeles and over $30,000 of income compared to San Francisco.

 

Average Daily Rates, Occupancy, & Revenue

WHAT BOOKS WERE MENTIONED...

Please use our Affiliate Links whenever possible and help support the show.  Thank you!

 

Get This Episode's Show Notes in a pdf form...

Go To Our Download Page 

Show Transcript

[00:01] Over the last two centuries, nearly 90 percent of the world's millionaires have created their wealth through real estate. Here to tell you how you can ride this wave with less risk and less capital while creating greater income, is your host, best selling author and Speaker, Michelle Russell.

[00:21] Hi, this is Michelle, the Master of Money Mindset, and you are listening to the Short Term Rental Revenue Podcast...

and in today's episode,  Speaker 1: (00:29)
we're going to be talking about the lessons that we can get from the California exodus. But first I want to remind you that today's podcast is brought to you by Audible. You can get your first audiobook free by going to audible trial.com forward slash s t r revenue. Audible has hundred and 80,000 titles plus they add titles every single day. So many books on audio and audible books are the absolutely most fantastic way to listen to books and read books. I've been an audible member since 2006 I have over 700 books in my audible library. I listen to audio books all the time. I listened to them on fast speed. I listened to them when I'm in the shower, when I'm driving and going places, when I'm vacuuming and cleaning, when I'm doing anything online, there's always an put going.

Speaker 1: (01:27)
And the reason why is guys, you need to expand your mind and there's so many amazing books out there. Honestly it would take a lifetime to read. Actually one of my favorite Romcoms is a movie called about time. And in the movie the men in this family can travel through time. And when the young man learns that he can go back in time and stuff, he asked his dad, what did you do? And His dad just answered books. Books are amazing guys and they will improve your life vastly. And there is subjects, I mean Galore. And when you get the audible try, you actually get 30 days membership into audible and they have an app and there are a ton of different what they call channels. So you can go to mystery channels and all kinds of things. So you get free audio books every single month. You're going to love having audible.

Speaker 1: (02:20)
So go to audible trial.com forward slash s t r revenue. Get your free audible book and a Free 30 Day membership into audible. And your guys are going to love this. Okay, so here we are. We're talking about the California exit is if you don't know what the California exodus is over the past, like 10 years over the past decade, over 5 million people, well over 5 million people now they say have left the state of California. Now, while people leave a state, there's always people coming into a state, but the weirdness is the California has actually lost more people than they've gained. They've lost over a million people. So those stats are actually growing more and more people are leaving every single year. Now, what's really strange about this exodus is they're starting to see and recognize what is exactly going on and what's going on is it's really expensive to live in California.

Speaker 1: (03:24)
It's not just the taxes. I think they're, their state taxes are well over 13% but that's not it. Or should I say that's not the only thing contributing to this massive exodus. Now, there are other states that are having massive exodus is to, if you don't know an exodus is it's people who even, they're just leaving the state in droves. New York has a bunch of people leaving. New Jersey has a bunch of people leaving. Illinois has a bunch of people leaving. Do you see a trend here, la? Yeah. You've got all these states where the taxes are extremely, extremely high and a lot of people are leaving, but there's a difference between the people who are leaving in states like Illinois and states like California. The majority of people leaving the state of Illinois because of their high taxes are the wealthy, but in California that's not necessarily the case.

Speaker 1: (04:23)
So really quickly, I want to give you a warning. This is the episode where I'm coming out of the closet. I'm really coming out. If you didn't know this about me, you're going to know a little bit more about me in this episode and I'm coming out for a couple of reasons because I have a had some the haters. Oh my God, this is so great. It's so funny because most people would be extremely shocked to learn that you don't know, you have a fan base until you get letters of people who don't like you. And I'm like, I got a letter that I'm somebody who doesn't like me. They actually disagreed more with the legal advice that we gave when we had Caroletta on the show. But remember it wasn't legal advice. It was just for educational purposes, which is what I said. So take it or leave it and they weren't happy with my answer.

Speaker 1: (05:14)
And so anyways, I had like this whole conversation and somebody didn't agree and I was like, dude, that's totally okay that you don't agree because it's not my job to make you agree with me. It's my job to just be out there and give my opinions and what I think and try to educate people with the lessons that I've learned. They can take it or leave it. It's just advice. It's just experience. It's not something, and they have to do and they can absolutely do whatever the heck they want because we live in a free country and a free society. But the education should be out there for them. So that's pretty much what I put out there and the guy wasn't happy, so I decided, do you know what? I'm going to come out all the way because I've kind of dabbled in it.

Speaker 1: (05:58)
You probably know how I feel about stuff, but in this episode you're going to learn a little bit more and I might come out a lot. So I'm stepping out of a closet for you right now and if you like me and you like me, just the way I am, turned this off now, but I'm coming out of the closet. You're going to hear it. Let's talk real quick about who is coming into California. Who is coming in those people fleeing states like New York, Elenoire New Jersey, right? With a high income taxes and they're making over 200,000 a year or higher, they can afford to move into California. Who's leaving the lower income, lower education. People are leaving the state of California, their average income is actually less than 55,000 a year and they're moving to states like Texas, Arizona, Nevada, and Oregon. Pretty much in that order that California has five of the top 10 most expensive rental markets in the entire United States.

Speaker 1: (07:04)
And that's not just rental markets, that actually includes the home prices, the median home prices, that is part of the problem for them. So let's put this into perspective, and this really has a lot to do with why a lot of airbnb or B and B short term rental owners are leaving the state because a one bedroom in la right now is going for 2149 a month in San Francisco, a one bedroom is going for $3,400 a month. And that's incredible guys, if you compare that to Phoenix where I live, the majority of year Phoenix are one bedrooms, go for about $945 so you're talking a $1,300 a month difference for a one bedroom place. And in Vegas it's about nine 25 a month when you go over to Nevada and they have no state tax in Nevada. So that's even nicer for most people. But here's the difference.

Speaker 1: (08:09)
I mean, you can't make a living. What are you going to do in states like this? It's so funny because we talk about this all the time in our family, we don't go full time in Florida anymore, a lot less. And my son lives here because he is just in college, right? He started college when he was 15 but he has been working at a fast food restaurant. He just turned 18 and he makes bo 1350 an hour working at a chick-fil-a here. He's one of those very clean cut. And when you say thank you to him, he'll always say my pleasure, which is always a lot of fun. But he makes 1350 an hour. Now, if we were to live full time in Florida, the minimum wage in is less than eight 50 an hour, I believe it's $8 and 48 cents an hour. So can you imagine getting paid $5 an hour less to live someplace?

Speaker 1: (09:07)
There's just no way he wouldn't have the amount of money that he makes. So they employ a lot more people. So if you go to Disney world, Disney employs a ton of people. But even like the Disney princesses, they just had a big thing online that said a Disney princess only makes about $10 an hour. You're like, dude, my kid works at Chick-Filet and makes more than that and he looks like a Disney prince. So why put the costume on? It's not worth it. It's like it's just not worth it to make that little money and to have to pay a higher cost of living when you get someplace. So you need to think about all aspects before you just jump in, right? So all these people are leaving the state of California and I'm going to tell you all the reasons why when it comes to the rents and the income properties and just owning a property.

Speaker 1: (10:01)
Okay, so let's take, like I said, for instance, the one bedroom, one bedroom in La, 2149 a one bedroom in San Francisco, 3,400 this is an average. This is absolutely crazy. Let's compare him to Phoenix, $945 a month and Las Vegas, $925 a month. What about a two bedroom? Because a lot of us use two bedrooms for a bunch of things. Well, if you go to La, it's $3,200 a month to rent a two bedroom in San Francisco, $4,500 a month. I think that's absolutely crazy. I am renting a house in Phoenix right now. They're paying 4,500 a month for a two bedroom. I am renting a house right now in Arizona for $2,500 a month. It is 5,200 square feet and five bedrooms and it's huge. And I am only paying 2,500 a month in rent. So like this floor's me. When I see these prices, I'm like, oh my gosh.

Speaker 1: (11:03)
The last house I sold my mortgage was about $2,000 a month. We picked up a huge property back in the day, but still guys, I mean come on, $4,500 a month. Las Vegas, 1122 a month for a two bedroom and Phoenix 1137 a month. So our prices are incredibly low compared to the neighbors, which is why they like to come across here where there's second favorite state next to Texas and you can tell why because they couldn't afford to make a living over there and afford the housing. So they decide to come here, but when they come here, lots of lots of trouble goes on because people don't like Californians coming over and then trying to change the laws that come with them. Right? So they bring their politics with them and you're like, dude, if your politics worked so great, why didn't you stay there? And California or Illinois.

Speaker 1: (12:03)
It's like, don't bring that stuff over here. We're doing okay. So I'm going to give you the pros and cons of living in a state like Arizona. Now, one of the things when you live in a state like Arizona and taxes and stuff, we have much lower taxes when you're in the red states. Lots of low taxes. We like to keep the taxes low and the business pay most of our taxes. We also have affordable housing. We keep our housing affordable. We also, our right to work states, the majority of us, our right to work states, so we attract more businesses. When businesses are looking for a state to call home, they will pass over the states that are high union states like California and Illinois, and they'll go across the state lines because they actually, I think I'm Wisconsin believer night for a long time they were a unionized states and now I believe a couple of years ago they went to a right to work state.

Speaker 1: (12:59)
So what happens when you're a right to work state is they saw basically the corruption in a lot of the unions. Not all the unions, but a lot of the unions were, I mean, come on, you've seen the movies, you can tell what starts off as a good thing can always get corrupted. And that's what happens when it came to unions in a lot of different states, especially being brought up in Chicago. I can tell you for sure. A lot of the unions were crooked in Chicago. A lot of politics in Chicago were dirty and crooked and it was run that way for many, many years. Actually people, there's a guy who just wrote this awesome book that I was reading about Al Capone and the mafia in the big cities like New York and Chicago. Why people loved being under the Mafia. They would pay money, but it was less than paying taxes and they were more protected than the police.

Speaker 1: (13:56)
So actually there's a lot of people who didn't mind being mafia controlled. So this book was really, really interesting when it came to that because they were getting exactly what they wanted. Nobody would bother their stores. No one would even think about robbing a store that was protected by Al Capone. Would you heck no. Right. And people knew too, they were like, oh, do you don't want to touch that corner? That's owls, that's L's area. And if you touch any of his stores or any of his people, his guys will come after you. And so imagine if you could run a city that way. We have the police officers going, no, no, no, no. You don't want to rob these people because the police will find you. And that will be the end. They just didn't have the same reach, the government and the police didn't have the same reach or knowledge of what was going on in the same areas.

Speaker 1: (14:49)
And same with the Gestapo you when you went to Germany, right? They were talking about, they were comparing that because what the Gestapo did in Germany was get other people to tell on people. So it was, you know, those big posters of the eye. If you see something, say something, that's definitely a gestapo tactic. And that worked really, really well because they could bride people into telling on their neighbors. And it was basically like, you know, now what Facebook and Google are doing for the government. It's like they know everything about as, because of what's going on. So that's how the political parties move forward so quickly. Now when things went away from the mafia, they moved into the unions and into the governments of the city of Chicago. And so this guy talks about the corruption of Chicago, but basically it was just a movement from one area into a more legalized area, but doing illegal tactics.

Speaker 1: (15:55)
So once these big governments started getting, you know, crooked and bringing that crookedness and the Gestapo leg tactics into the branches of government, people moved away and they started moving and recognizing different parties and their tactics. And so they went to other states like Arizona and Texas and they started moving into these areas and implementing rules and laws that would protect the people and limit the government and limit the government and what they could do. Because remember, the majority of the government at that time was very cricket from where most of these people were. So they realized that the less the government did, the better off the people usually were. The less government control and the less amount of government there was, the better off the people were, the better their comments worked, the better the city ran itself. They basically found out that less government equals better commerce, better communities, and less crime.

Speaker 1: (17:04)
So they kept their guns. That's why you'll see a lot of them have guns. But when you go down in the south and you're in the south eastern part of the United States, you had the Jim crow laws. They really backed away from gun laws. They didn't want people to be able to protect themselves, nor did they. In cities like Chicago, the government's really push people against gun ownership and tried to ban gun ownership and then did, but then look what happens to the crime rates in those cities. If law abiding citizens don't have guns, then only criminals and lawmakers do, and if the lawmakers are crooked, then you've got criminals and criminals on both sides. It doesn't really matter. It's just a bunch of criminals with the guns and you can't protect yourself. So these people decided, they changed their mind because of the things that were going on in their areas and moved to these different states.

Speaker 1: (17:56)
Now there are still bad stuff. There's still cons to these areas. So when you live in a state like Arizona, the cons are things like education. Our teachers are paid less than, I mean we're not at the bottom of the scale, but we're close to it. We pay our teachers about 32,000 a year in the state of Arizona, Nevada, about 35,000 a year in Texas, 38,000 a year. Now let me just say and add to that, the cost of living in those other states. So if you're talking about states like New Jersey, where they paid teachers 49,000 a year, which is about 11,000 a year, more than most teachers around the country, right? New York, 44,000 California, 41,000 so they're getting paid more, but the cost of living is so much more. So let's say for instance, you're renting a two bedroom house as a teacher in the state of California as opposed to Arizona, you're making 41,000 a year.

Speaker 1: (18:57)
In California, you're only making 32,000 a year in Arizona. So there's about a $9,000 difference in your pay. Wow. You're getting paid almost $10,000 less a year to be a teacher in the state of Arizona. But if you're renting a two bedroom house in La, you're paying $2,000 a month more. And if you're renting a house, a two bedroom house in San Francisco, you're paying $3,300 a month more. So that means you are paying a whopping $24,000 a year more for living in California, or $39,600 more for living in San Francisco. So yeah, you're getting paid about $10,000 less a year, but you're saving so much more because your cost of living is lower. So you have to weigh the pros and the cons of living in a, what would we say, a left or a right state. What's also unique and cool about states like Arizona and Texas and Nevada is you'll find that although we tend to be what people call red states, we're actually very nice people.

Speaker 1: (20:15)
So the LGBT community, there's actually been a bunch of articles when I was looking up the articles about the mass acts, it is of the BMB owners in California. There is a bunch of LGBT moving into the red states. They're loving it because they're finding out that guess what? We're not nearly as unfriendly as people portray us to be on CNN. We're actually a bunch of Nice people. We just want to live and let live and we honestly don't care what you do in your bedrooms or any else. The majority of my friends are actually gay because when I grew up, I went to school to be a mathematical major and a Phys ed minor, so having a physical education minor, I had a lot of lesbian friends and I still do and my best friend is actually gay. And guess what? All of them.

Speaker 1: (21:06)
Yeah, all of them voted conservatively. We're not the monsters you think we are. We're really not. We're actually really nice people. We just, we just want to live and let live. That's what we want. We want our businesses to thrive. We want to pay people fair wages, we want to thrive and we don't want the government involved in our stuff. So it's like, just leave us alone and we'll leave you alone. That's pretty much how we function in states like this. So we've got our medium prices compared to California now. California median home prices across the entire state are about $550,990 for a starter home in California, the national average is less than half of that. So it's about $247,000. So that's a big difference. That's, that's almost a $300,000 difference. It's about twice as much, twice as expensive as any place else to get your first time starter home there.

Speaker 1: (22:14)
So yeah, that's why people making over 200,000 a year are moving to California. They're the only ones who can afford it, right? They're like, okay, I'll go there. I'll deal with all the taxes and I'll deal with all the traffic and the pollution and the politics and all the garbage in the roads and the homeless people and the, uh, what right now, what do they got the hepatitis scare going on in San Francisco because of the, uh, feces that they're eliminating. It's kind of scary, but okay, they'll go deal with that and everybody else is moving to our states. But we don't want our state to look like that state and watch your states people, if you're complaining about your politics and then you want to move to another state and bring your politics with you. Look at how your state was run with your politics and how our states are running without it.

Speaker 1: (23:07)
And why would you want to live here? Because it looks so nice. Well it won't look nice if you change it to your politics. So let's keep it. That's why there's bumper stickers everywhere. I've seen them in every state cause we go to Vegas a lot and you'll see the don't California, my Nevada and here you see don't California, my Arizona and Texas, you see don't California my taxes, they're like all this. This exit isn't people cause remember 5 million people and plus because that number is actually growing and growing every single year have left the state of California. That's 5 million people who walked away from that state. Yes, the population has grown again with new people going in. But 5 million people have dispersed themselves to these other states and they're saying like, look, you're welcome here. Just don't bring your politics with you. Let us show you how we do it and why our roads look the way they do and why our neighborhoods are nice and clean and how we're able to attract businesses and pay people a higher minimum wage and offer people a better quality of life because our government doesn't get in our business all the time and we'd like it that way.

Speaker 1: (24:19)
So we've got a state that is extremely airbnb friendly. They're extremely short term rental friendly and why? Because we bring in a bunch of tourists. Tourists love coming here. Same with Texas. Texas gets a bunch of tourists and winter visitors. It's a great state for that. Nevada, same thing. Florida, same thing. We'd get a lot of winter visitors and Florida and Texas, they actually keep their summertime visitors too, so they have tourists a bunch of different times of the year. It's a great place to be because it doesn't matter there. They've got that nice weather pretty much all the time. Not Too hot. Not too cold. Although San Antonio in the summertime can be a little sweaty, but it's not merely as miserable as 118 in Phoenix. Although this year has really been, honestly one of the coolest years in 30 years. This summer has been the nicest summer we've had on record in well over three decades.

Speaker 1: (25:24)
So I don't know what's going on out there, but I am loving the Arizona summer this year. We went for a bike ride early this morning and it was phenomenal, but we had to go at like five 30 in the morning because still gets about 103 and you don't want to be out there when it's 103 in the middle of the afternoon, but 103 way better than 118 but let's get back to the cost of living in these places. Now, here's where the rubber meets the road people. Because honestly, if you can not afford to live in a place or afford to rent a place, then you can't afford to run a business out of there and you are running a business out of someone else's property or out of your own. So let's say you wanted that little starter home so you could rent it out somewhere. That little starter home in California will cost you $540,000 on average, maybe more depending on the location.

Speaker 1: (26:25)
So you're going to spend a lot of money, which means your mortgage is going to be high, which means your expenses are going to be high. Now, the same type of property, like I said, the House that we sold in Gilbert, we pick that house up for less than $400,000 I'm trying to remember the year, maybe 2010 a 5,000 square foot house with, you know, granite counter tops all decked out. Super Awesome. Love that house. Five bedrooms, five baths, nice big yard and a pool. So that house was just under 400,000 in 2010 and when we sold it, it hadn't grown that much. It had grown to about 500,000 just over 500,000 in five years or whatever it was. But we had put a lot, a lot of work because the house had been foreclosed on and had been sitting empty and they had torn it apart.

Speaker 1: (27:27)
So they had taken all the light fixtures and they had taken plumbing and cabinets and you know, there were no ceiling fans or anything. So we had to replace and repair, Oh, the pool pump was stolen. There's a bunch of stuff that we had to do. So we had to do a lot of repairs and fix that house up. But it was a nice house. It was a great house. We loved the house. We couldn't buy that house. I mean, that house would be millions of dollars. I can't even imagine what it would cost in la. Even when I go to places like Colorado or up to Washington and Oregon, I'm like looking at the cost of the houses going, this is incredible. And yet it's beautiful. But I'm like, dude, I cannot see paying that much for stuff. I really can't. I couldn't cash flow it.

Speaker 1: (28:15)
I couldn't make up the difference and I can't see spending that much for a house. I'm not going to be able to cashflow well for a long, long time where a house that's going to take me a long time to pay off. So I would rather invest in states like Arizona, Texas, and Florida because I know at least in those states I'm getting the price for the House that I can actually cashflow that house for. So that's why I'll invest there because the prices work out and I can actually make a little bit of a profit and have enough in my pocket to be able to fix any major thing that happens. So if the AC goes out or something major, you know, has to be repaired. I've actually got the money and not going to lose my shirt. Not only that, but the laws in these states protect landlords too.

Speaker 1: (29:07)
Now, obviously we have tenant rights in our state, so there are a lot of things that you can not do to attendant. You can't just go into a house and look around or whatever you want when somebody is renting it from you, but as a landlord in the state of Arizona, if someone doesn't pay your rent, you can have them evicted from your house in three days. Try that. In California, it takes years in some of those other states to get a tenant out and in that matter of time you will go broke. You will be paying two mortgages or you'll lose that property because you can't afford to pay for somebody else living there. We don't allow squatters in our state. We get the sheriff and they bust down the door and they dragged their little butts out. They'll haul their butts to jail and they'll throw all their shit in the yard and you've got a few hours to get rid of it or the owner of the place can just throw it all away in the trash bin.

Speaker 1: (30:05)
You have no rights if you're not paying your rent in the state of Arizona. And the same thing. There's a lot of states that were like that. So I honestly think that I want to be in this state where I can take care of my property and take care of my tenants in such a way that we both have rights and my rights as an owner are protected. I'm not going to have to have, you know, one of those horror stories like that. You know, Pacific Heights movie, that's not gonna happen in the state of Arizona when it definitely could in the state of California. So my rights are more important and I think my rights as a United States citizen are more important because I live here, I pay my taxes and that's my house. So why should I have to pay for somebody to squat there?

Speaker 1: (30:56)
That doesn't work for me. So I like the states I live in actually the states that I live in, and I like the states that I've invested in because those laws protect everybody, not just one side. So as I say to my kids all the time, it's not about you. It's not all about you. Sorry guys. There are other people in this world and we all are doing our best to make a living. So we have to be compassionate towards everyone. And that includes business owners because business owners have a hard time to making ends meet. We work a lot of hours for no money because most of the time when you're getting started, you pay you last and you pay everyone else before you. That's just being a business owner and an investor. You get your money way at the end. So a lot of lessons in real estate and business come from these states and you'll get to decide.

Speaker 1: (31:50)
I mean that's why there's 50 states to choose from. You get to choose where you want to live, but don't go to another state and expect to change everybody's mind because they've been doing it the way they do it. And they may like it a lot. And if your place was so great, then why didn't you stay there? So it's like, just go back to Illinois, man. Go back to California if you liked it so much. Otherwise stay here and we can show you how we've been doing it and why it works so well. And maybe you'll learn something and we'll take you over to the dark side because we have cookies. I've been on the capitalism side for a while now since I started working for Kiyosaki. But you've guys got to remember, I wasn't at first, remember I was raised in Eleanor, I was raised with those politics of Chicago and stuff.

Speaker 1: (32:40)
So my mom was a huge Democrat and when I moved out here, you know, I brought those values and everything and I had a lot to learn. But I got a lot of really great lessons from Robert Kiyosaki and from all the people that surrounded me in, in Tony Robbins organization as well. And in a bunch of different groups. I mean, once I started to realize and I opened my mind and looked at how real business is run and real politics and what really works for people and that, you know, people don't need handouts, they need hand ups, and it was amazing. Like my, my whole mindset changed and shifted and I think everybody's does. Specially when you start to be a business owner, you will see a huge shift in yourself and if you're going, oh no, I don't want that. It's okay. It's not so bad honestly, because you'll find out that you've been lied to on a lot of fronts because the majority of people I know are good people and I know good people and bad people on both sides and I know good politicians and bad politicians on both sides.

Speaker 1: (33:53)
There's never any one cut and dry with anything. You can never put all the people of one certain thing in a basket and say, these people are all good or all bad. There's going to be bad and good in every single group. There are going to be people who take advantage of rules and laws and regulations in every single group and on every single side. But here's the deal. There are some people playing for you and some people playing against you. And when you learn who those people are, you will be quite quite surprised because those agendas are very different than what we've been taught in our past. And when I started to really look into things, you know, and I started showing my mom and she was like, no, no, I don't even want to see this. I can't even watch it. And it's like, but mom, I just need you to, and she was like, no, no, no, no.

Speaker 1: (34:43)
I'm going to be happy. I understand now you're wealthy, you have to be a republican. And I'm like, that's not how it works. We've been lied to, we've been lied to. And she just did not want to hear it. And I could show her anything. I could Jord, tons of proof. She didn't want to see it. So it was like, it's okay. What's really cool about it is I love my family and I wasn't offended by who they were, but holy cow men, when I started coming out as a Republican, I actually, I wasn't even a Republican back then. I was a libertarian because I was a huge Ron Paul Fan, so I voted for him when he ran the first time as a libertarian and then he turned to the Republican Party and ran twice as a Republican. So I turned into a Republican to vote for him. But just being more conservative and having those types of views when I did, I can't tell you how many friends I lost.

Speaker 1: (35:44)
It was incredible and I didn't change. Like I still am the same person. I still see the same jokes. I still, everything about me is the same. I still have the same compassion for people. I still want to help people. I still, there's like literally pretty much nothing changed. None of my values or core beliefs changed. I still love people that much and want to make a difference in that many people's lives. But what's really crazy is the stories around what other people have been told. Just really shut them down from everything that I stood for. I guess a lot had to do too with working for rich dad seminars for those seven years. So the people I surrounded myself with and Kia Saki really had a lot to do with educating me and showing me both sides. And I remember also, I've been a fan of Donald Trump for a long time because he wrote a book with Robert Kiyosaki.

Speaker 1: (36:41)
I don't know if you guys know, but it was called why we want you to be rich. If you haven't read that book yet, it's a great book. You need to read it. But not only is it a great book, we got to meet Donald Trump's staff and we got to meet his personal assistant and we all went out drinking afterwards in Scottsdale. And I'm telling you that man loves his people and they love him. His personal assistant, a woman had worked for him for decades, like 30 some years. I mean, she had been with him from the get go and she told us stories about how he brought people from the very bottom all the way up through his company. Like if you started there, they always did their promotions from the inside of the companies. So you were promoted from the inside. They didn't hire outside hardly ever.

Speaker 1: (37:29)
They wanted to take people and build them up and Trump knew everybody. He knew their family, he knew their kids, he knew the stories about them. The man really, really cared. He was actually best friends with JFK junior, which was very cool to hear all the stories about JFK jr because being raised Catholic and Irish, we were huge fans. I mean they, when I was growing up as an Irish Catholic child, the Kennedys were like our kings and Queens. They were like the royalty of the United States to people like us because being raised Irish and Irish Catholic, we heard all the stories from our grandpa. And so here was this Irish Catholic. Of course, Joe Kennedy was a big bootlegger, broke a lot of laws and probably paid a lot of guys. You know, but, uh, but still the story is pretty good. And He, right. So you're like, oh, here's, here's one of our own, making it up through the ranks, you know, all the way to the president of the United States.

Speaker 1: (38:29)
How cool is that? So the Kennedys were really big for us, and the fact that Trump was a friend of John Junior, that was so cool. I was just so enthralled with it and I got to learn more and more about everything. I mean, it was, it was pretty cool. And Kiyosaki, like I said before, on a couple of other episodes, kiss hockey was one of the guys, one of the people who introduced me into the conspiracy theory realm. So I remember after nine 11, you know, thinking and believing every story that was put on there. And [inaudible] was the one who said, you know, another building went down, right. And started showing me videos and all this other stuff, and just really opening my eyes, even showing me the footage. You can go to youtube right now and see the footage of the secret servicemen being pulled away from John f Kennedy's car.

Speaker 1: (39:20)
So that, you know, just the proof that our government itself was involved in the assassination of Kennedy, not what we've been told. But you can see that secret service men being pulled away from JFK, his car before he went around the corner and was shot. So he was like, look at this and look at this. And I really loved all this stuff. I got to look. And he was like, you don't, nobody knows. It could be this way or this way, but what about this? And just opening my mind to other things. So that was a, that was a big part of my life. And it was honestly one of, one of the funnest times I ever had because I felt like I was just expanding, like my knowledge and everything was expanding, not just about real estate and investing and so much more. But I was seeing things that I never saw before and seeing things in a different way.

Speaker 1: (40:14)
And I could see people manipulating people way different. So have you ever walked into a room and there's somebody selling something? So you walk in and you know you're going to be sold to, but there's a big difference between listening to their story and hearing what they want to sell you and watching them as a sales person and seeing how they sell. And I love doing that. So it's really funny because I'll sit there and I'll, I'll tell my husband, it's like going to a movie for me because you know how when you're sitting at the movie or like, Oh, this person's going to do it. Oh, they just took a close up shot of this. So that's going to come in into the story later on or whatever. You know, they're doing those foreshadowing. But here's the really cool thing is when you go into one of those sales shows, you're like, oh, here it comes.

Speaker 1: (41:02)
I'm going to walk to the back of the room. I'm only going to have enough for the first 10 people who get back here. So everybody rushes to the back of the room. I'm going to make an executive decision right now and we're going to open it up to the next 20 people who come in in the next five minutes. And so you're just sitting there going, this is so awesome. You can see the whole thing playing out. So that's, that was the difference from being in the audience and a part of being sold to, to being outside of it, looking into it as an observer and really seen how the workings worked, how everything worked. And I felt like that was a big, huge part of my life. I loved it. I loved being a part I loved. I loved being more aware and what they say.

Speaker 1: (41:46)
What more awake. Right? More awake. Not that we know everything. Not that all the conspiracies are through, but there's a lot of fun to look at because some of them kind of make you question some things you're like, hm, I wonder. That is kind of strange that only two people in history, two civilians have been buried at sea. And one of them is JFK jr and the other is a, some of in Lauden. Hmm. What does that mean? So I mean it's kind of fun, kind of fun to look at stuff and see why some people believe this is this way or this is that way. You know, first it was like nobody had gone to the moon from here and then it was people are living on the moon and you want me to be your like so which is it? Nobody's gone there. Or there's a bunch of people living there, let's say.

Speaker 1: (42:32)
You know it's like okay, but it's kind of fun to look at, right? It's a lot of fun to look at. Same thing with these. Same thing with these because I want you guys to look at the things that are going on around the places where you are buying, where you are renting and look at the entire picture because going in and seeing something that says, okay, so let's take for instance, let's go on to air DNA and take a look at what an average place makes on an average daily rate in La makes is about $158 a month. Now I did not sign into my air DNA account. What I did was read one of Air DNAs articles cause I don't want to give away any of the stuff that I buy into because that is air DNAs, you know that's their property and I pay for that.

Speaker 1: (43:28)
And if you want all the information for your place, you have to get a two. So this is the public stuff that they have, right? This is the public stuff that any free account can give you. I'm not going to give you the paid stuff because you have to pay air DNA. That's their property. So let's take for instance La and the average daily rate in La is $158 and that ranges from like one 51 to one 71 between January and July, right? Those are their, their low ones are January and they're high months or July. They've got about a 77% occupancy rate most of the time, which is ranging between 65% and 84% and the revenue that they make per month is 27 90. Now guys, if the average is $2,790 a month, right? And the high on that is 32 and the low is 21 five, um, $2,150 right?

Speaker 1: (44:28)
So if they're making 27 90, let's go back and look. What is the average one bedroom? The average one bedroom is $2,249 a month. Are you going to be able to rent a property there? How much money are you going to make? If you're only pulling in 2,700 a month on average and you are renting that property, you might not have a lot of room for hardly anything because you're going to have, remember you're gonna have all your, all your expenses goal on top of that. So you've got your utilities and your insurance and all those other things. How those people are cashflowing those properties. I don't know. Now if it's a two bedroom, there's not a snowball's chance in, you know where that you could do it on 2,700 because in la it's going to cost you 3,200 for a two bedroom. So that had to be a one bedroom.

Speaker 1: (45:24)
Do you understand what I'm saying? I'm going to have all these numbers listed out on the show notes for you so you can see them. But I want you to see them and make sense because that is not your net, that is your gross income for that property. Meaning that is what you will take in and all your expenses including a rent or mortgage have to come out of that. And if you are buying a property for $550,000 heck this house I'm in doesn't cost $550,000 and it's a big house. And if I had to get a mortgage on that, I would assume a $550,000 house would be roughly in the, you know, well over 3000 a month with taxes and insurance, PMI and things like that. Plus, I mean, I mean there's more and more expenses. What about [inaudible] and all the other things and all the rules and regulations that they love to throw on you when you live in California.

Speaker 1: (46:23)
So all those things cost money, the taxes and the permits and things like that. So this doesn't sound nearly as good as most people think it sounds not at all right. Now let's take that and put that into Phoenix. Remember Phoenix, the average rental is about nine 45 for the same property. And actually you could even go to, let's just say it's 1100 a month because 1137 is for a two bedrooms. So if you're renting and two bedroom for 1100 a month in Phoenix, then go to phoenixes annual. Okay. Their, their average daily rate is about $127 which ranges from about $184 at the top of this season. A night down to $108 in this slow season, 50% occupancy. But that range is two 87 in March. 87% occupancy in March and December is 55 which I don't get that because our December rates are pretty darn high.

Speaker 1: (47:28)
Those are some of our highest are in December. But this was for Phoenix, so I don't know. But their income was 1645 now that's weird. But I was, I thought, okay, that's just weird. But then I remembered, oh, it's Phoenix, who the hell wants to same Phoenix, right? Where do you want to say Tempe or Scottsdale? So then I moved over to Tempe. That wasn't much different than Phoenix, but Scottsdale to 12 a night was their average daily rate, which is even more than Las guys. So you go from two 12 and night, you know, compare that to la is one 58 a night. And Scottsdale had a three Oh eight at the top of, there's three Oh eight was the top of the range. One 83 was the bottom 52% occupancy. You know, average right now, 81% during peak season, 48% during non peak season, and the average income was 24 25 but get this, that average income, the top of it was $5,600 a month.

Speaker 1: (48:38)
Way more than the top of the range for la. The top of the range for la was 30 to 46 and the top of the range for Scottsdale was 56 11 and your rents are less and the prices of the homes are less. Do you get it? Why do I love this date of mine? Right? Because I can get the properties for way less. I can rent the properties for way less than I can make way more money. Right? With not a lot of regulation with rules that protect not only the people who are renting from me, right? That's not only protecting them, but it's protecting me too. So if somebody doesn't pay me, their little butt is out. I don't have to worry about it. So why would I go over to California for that? I'm not going to but get this. What's really cool is I did North Las Vegas too because I love going over to Las Vegas and I like to stay at places over there now and North Las Vegas.

Speaker 1: (49:43)
Why North Las Vegas guys? Because remember Las Vegas has outlawed, the BNB is right in that Las Vegas area. They don't want to come, they don't want you guys competing with the strips with all the casinos and stuff like that. But North Las Vegas has quite a few B and B properties. Quite a few short term rentals. And when you look there averages $234 a night. Now that's actually that they're high, but they're low is only one 82 a night. So it ranges between one 82 and two 34 I mean that's only like a $50 difference, but in that whole entire range, not bad, but what's really not bad is their percentage is 61% on average, 77 at the top, 53 at the bottom for if you're getting 53% occupancy at $182 a night in one of the cheapest places to buy. And rent a house. Hello? Hello Las Vegas. Oh my gosh.

Speaker 1: (50:44)
That's why if you go over and look at what they're making, oh my gosh. The average person is pulling in 36 54 in north Las Vegas right now, $3,654 a month. Now, let's see, you're renting a really nice house in North Las Vegas. Even if you were paying, let's say, $2,000 a month, you'd still be bringing in $1,654 a month in income. The low end of that is 2,400 and the high end is 37 76 so guys, Vegas is where we should all be. Let's go to Vegas. Let's let's go play some craps and have some fun in Vegas because they guess their rents are comparable to Arizona's. They're actually a little bit less than Arizona. So hello, that's a no brainer right there. What you have to look at is not just what you can make guys. It's going to be what are your expenses and that is why there's a massive exodus from California because people can't afford to pay rents there.

Speaker 1: (51:58)
People can't afford to buy homes. They're the, one of the biggest reasons people are leaving is not just the high taxes. Obviously it can't be the taxes because they're bringing in a bunch of high income people. It's not just the high taxes. It's definitely the housing crisis because when you're average families cannot afford to buy a house or rent a house, you're going to lose them and it's your middle-class. You always have to protect. It's the middleclass who has to be protected, not your very poor, not your very wealthy. It's definitely your middle class because they are the consumers in every single area. When you lose the middle class, you'll see what happens and that's why you know when everybody says, oh well, everybody's going to have everything the same. They give you that ideology that everybody's going to be the same and want the same and work the same.

Speaker 1: (52:53)
That's not true. That's not true. That's why this socialism dream doesn't work for everybody because the majority of people won't work for it. Look what's happening in Sweden. They've got perpetual students, people who are not graduating simply so they can stay on a state paid income, right? Because their school is being paid for. So you're going to have people who just will suck off the system. And that's a majority of people with a poor mentality, with a poor mentality, not necessarily a poor pocket book. There's a big difference. I was raised super poor and a bunch of my friends and I have lifted ourselves up out of the bootstraps. But um, [inaudible] he made a video about it, talking about the ladder and the rope and the difference between, you know, both parties, both political parties. I climbed the ladder and so can you and so could most of us, we don't want to be on a rope waiting for people to pull this up.

Speaker 1: (53:59)
It just doesn't work for us. They control that rope and they can let you dangle there for a long time. But when you've got a ladder, you can climb the ladder, how fast you climb the ladder is totally and completely up to you. That's the difference. So I want you to take and learn these lessons from this mass exodus from California and then put it into perspective and then work with it. When you go someplace, you have to know how much a house is going to cost you if you're buying, how much it's going to cost you if you're renting. And then look at the income because that's gonna make a big, big difference in your pocketbook at the end. You've got to be able to make money and you've got to be able to make it work. There's a big difference between being a landlord and being a short term rental owner because you are putting in a lot of work and if you aren't doing it yourself, you are paying somebody else to do it.

Speaker 1: (54:52)
There's a lot more work involved in a short term rental because you're running another type of business, a hotel type of business. So there's gotta be enough money in there to be dispersed amongst everybody. So you have to make sure that you're making that money and not just making it by because then it's not worth your time. Might as well buy it and rent it out. And if you can't do that, then it's definitely not worth your time. Okay? So I want you to learn these lessons. I want you to be nice and embrace the people who are on the right because they love you too and they're nice and good people. There might be some idiots out there, but guess what? There's idiots on every side, but there's mostly good people on both sides and mostly people who just want to have a nice happy life.

Speaker 1: (55:40)
Don't judge either side. I would look at my sister's on the other side and I know they just, they don't know what I know. They haven't experienced what I experienced and I don't judge them for that. I really don't. I'm constantly trying to educate them about it. Probably drives them nuts, but God bless them. They still love me and embrace me. How cool is that? And I still love them and embrace them every inch of them because who they are is who they are and I love who they are, so let's love and embrace everyone for who they are. Let's stop watching TV because they're just teaching hate, but I'm going to put all these prices on here for you guys so you can take an look at them and work them out in different areas. I really encourage you to look at the rents and look at the housing prices.

Speaker 1: (56:30)
Like I said, compare those prices with air DNA before you buy into it because there's enough information there for free that can get you into a really good area. And then once you buy that area, then pay that monthly price and get into the air DNA of it all and you can really narrow it down and niche it down to the areas and the neighborhoods that you want to be in. Boom, boom, boom. One, two, three properties right there. Get that money rolling in for you right away. Okay? I want you to do that because honestly everybody in American can be wealthy. There's no pie. You guys, that's a bullshit story. There is no fairness about it because wealth is created every single day. More and more wealth. There is enough for everyone, and they're doing that in China right now. What are they creating? A billionaire every three days, they're kicking our butts on the millionaire side too, but they're creating billionaires more and more money. More and more businesses open. More and more money has created more and more money that is created, more wealth that can be distributed to everybody. There is not a limited supply. You just have to go out there and work your ass off and get your piece of the American dream. That's not a pie. That's a reality. You just have to make it real. Okay, so I love you guys. God bless you. Have a great day. Go and grow.

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