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So your expectation is that within about 3 years, the market will not be as attractive
to us as, say, Australian investors; however, the opportunity will be there. For then other
strategies within that space for us to kind of sell property, flip property and all those
kinds of strategies coming in to play. Absolutely.
The next 3 years, you know, scared the Jesus out of me, for supply. I want to
get everything at the rock bottom. However, when the market changes, your clients have
to change with it. If it's time to sell the properties, you need to sell the properties.
If it's time to look at... there's homeowners out there who maybe don't qualify for mortgage
today and they can't get through the underwriting guidelines or there's issues with them personally.
Now that the investors have the full hold on the asset, they own the tangible property.
So they can't go on anywhere. They continue to collect the rents and it could create the
passive income. However, then they have an opportunity to maybe sell that property in
some sort of financial terms. Become the bank, have the note, take the passive income. Remove
the liabilities. Start talking about collecting true interest in creating wealth for generations
to come not just...well, let's create some quick cash flow for the next 5 years. That isn't
what's kept me in business for 20 years. We don't think so short term. We think long term.
At the end of the day, it's kind of a monopoly. Have you ever played monopoly as a kid?
Love it.
The more properties you have, the more chances somebody else landed on your spot or your
card. And what happens when they landed, they owed you money.
Yep.
The beautiful thing. But when the banker, at the beginning of the game, gave you only
x-amount of dollars; you had to place your bets. And it's important you have to place
the bets. You have to spend the money to get the property in order to realize the game.
If you spent all your money and you buy all the properties, you usually did well. That
maybe went to jail and you didn't get to get out of a free card. That happens. But for
the most part, you know, it's if you bought it at the height of the market and today it's
at the bottom, let's go ahead and leverage that back. Let's buy some more so that if
you did overpay back in all 7 or 6; now all of a sudden your property values are going
to, what's the word I'm looking for?
An average out.
In your end, you're the accountant. You have all the terminal, technological words for
this. And they're going to average out. And as you're going to hedge your bet... Is it the
word you hedge your bet?
Yep. Hedge your bets.
You're hedging your bets.
Yep. Ensuring against, yes.
You're ensuring against. You're hedging your bet. So they're used to creating cash flow
and now at the end of the day when you get past the emotional issue of "I bought that
house. I paid too much. I want to get rid of it." No! I bought that house, I paid too
much and you've got 3 more to write. So that overall when we sell the whole package, I
did good.
Yeah.
This is a good day.
Yeah.
And they made a whole bunch of money back.