This podcast reveals an intriguing real estate success story. But it’s not just about the daughter of immigrants who knew that real estate was the key to wealth, or the steps she took to create a $5,000,000 portfolio from just $10,000. It’s also about how she dealt with the downturns of real estate and the stress and worry that can haunt an investor. Moneeka Sawyer describes herself as a “blissful millionaire” who worked just 5 to 10 hours a month building her real estate wealth. She’s now on a mission to help other women do what she has done with her podcast, “Real Estate Investing for Women.” She’s also a TEDx speaker, has shared the stage with well-known female entrepreneurs, and has appeared on major broadcast channels to share her message about blissful real estate investing. If you’d like to learn more about how you can build real wealth with cash flowing rentals, go to realwealthshow.com and sign up for free. As a member, you’ll get access to the Investor Portal where you can see sample properties and connect with our network of resources. That includes experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.And please remember to subscribe to our podcast and leave a review! Thank you!

Real Wealth Show: Real Estate Investing Podcast

Building a $5M Real Estate Portfolio without Stress!

The housing market meltdown in 2007 dealt a rough blow to many developers. In this episode, you’ll hear from someone who lost a lot of money back then, but he managed to stage a successful comeback. He did that by discovering a backdoor into the real estate development business. Instead of developing the land, Cody Bjugan arranged to have it approved or entitled for development, which is often one of the toughest parts of any big project. Cody is now a full-fledged developer with 30 projects and 2,300 residential units under his belt. But he also founded a company called VestRight to teach people how to do entitlements. He says it’s a simple way to create 5- to 7-figure paydays from off-market land deals, without owning or developing the land, without debt, and with very little cash at risk.If you’d like to learn more about the real estate business and how you can buy cash flowing rentals, go to realwealthshow.com and sign up for free. As a member, you’ll get access to the Investor Portal where you can see sample properties and connect with our network of resources. That includes experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more. And please remember to subscribe to our podcast and leave a review! Thank you!

Investing in Raw Land With Little Cash & No Debt!

If you like to dream big, you'll love this podcast. In this episode, Kathy and Rich Fettke celebrate their 25th wedding anniversary with a conversation about their marriage and their investing experience. They were supposed to be skiing down some wild terrain in Utah after getting dropped off by helicopter on a snowy mountaintop, but weather conditions delayed those plans. Instead, they are safely inside their hotel room, with some amazing memories and stories about where they’ve been, where they are now, and where they are going next!Rich and Kathy are the co-founders of the real estate investing company RealWealth, as well as the creators of this podcast, The Real Wealth Show! They launched the company in 2003 which currently has almost 63,000 members. It’s free to join and you'll gain access to hundreds of free webinars, articles, and podcasts. You will also get access to the Investor Portal where you can make an appointment with an investment counselor and connect with our network of property teams nationwide.Please join RealWealth at realwealthshow.com, and remember to subscribe to the podcast and please leave us a review!Links: Rich mentions taking a RealWealth Assessment in the podcast, which you can access here.Kathy mentions a Couples’ Adventure Weekend which you can inquire about by emailing her assistant Tonya at: tonya@realwealth.com.

The Fettkes: Celebrating 25 Years of Marriage and Real Estate Investing!

In this episode, you’ll hear the amazing story of a 12-year-old boy who wanted to upgrade his family home, so he called a real estate agent and said: "I want to buy a house!" He did the legwork, and closed on a home that put his family on a path to financial freedom. And today, he's helping others do the same.Our guest, Larry Taylor, has been a real estate investor for more than four decades. He’s now the CEO of a Malibu-based investing company called Christina, which focuses on the Westside region of Los Angeles. He shares his personal story in this interview, along with his experience as an investor who’s lived through various political and economic cycles, and can explain how they relate to investor concerns today – concerns like inflation, asset values, rent growth, where people want to live and work, and finding a good deal as an investor.If you’d like to learn how to invest in cash flow rental properties in the fastest growing metros in the U.S., go to realwealthshow.com and sign up, for free. Once you're there, you can set an appointment with one of our very experienced investment counselors who can help you find the best market and property teams to help you with for your investing goals. And please remember to subscribe to our podcast and leave a review! Thank you!

Buying Your First Home at 12-Years-Old!

When I started investing in real estate, I didn't run into a lot of women on the job sites. And, I certainly didn't see very many women doing the renovation work themselves. But that's exactly how today's guest got started and her hard work has paid off because she's now a big-time real estate boss-lady. As a single mom, Kelly Stumphauzer bought a fixer upper for $46,000 and moved in with her three young kids. She was making about $13,000 at the time. Now, just a decade later, she runs a large renovation and property management company and has been featured on the front page of the Wall Street Journal for her success. She shares her story in this episode.If you’d like to learn more about how you can buy cash flowing rentals, go to realwealthshow.com and sign up, for free. As a member, you’ll get access to the Investor Portal where you can see sample properties and connect with our network of resources. That includes experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.And please remember to subscribe to our podcast and leave a review! Thank you!

From DIY Single Mom to Real Estate Boss!

Some people get stuck in analysis paralysis, meaning no matter how much they study, they just can't take the plunge. Meanwhile, others jump right in. In this episode, you’ll hear from someone who couldn't wait to get started in real estate, so he made his first acquisition while he was in high school!Kyle Nott wasted no time. He attended what he calls “Windshield University” to educate himself about real estate. That’s the time he’s spent driving from one construction job site to another listening to podcasts, and learning from other investors. And here he is now, educating others on my podcast. He shares the ups and downs of his journey in this interview, which is both inspirational and educational.Thank you for joining me here on the Real Wealth show. I want to let you know I'm giving my 2022 Housing Forecast during the first week of January. If you want to get my take on where real estate is headed, considering that rate hikes are on the way, just visit realwealthshow.com. You can join for free and get access to the upcoming webinar, or the replay, along with recordings of all our past webinars. You’ll also have access to the Investor Portal where you can see sample properties and connect with our network of resources. That includes experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.And please remember to subscribe to our podcast and leave a review! Thank you!

Why Buy One Rental Home When You Can Buy 16?

This is a Real Wealth Story about focus, discipline, connection, and working together with your partner! Our guests started off with nothing when they got married, but were determined to get rid of their student debt, and work toward a financial strategy that gave them as much free time as possible. They are now in their early 30’s, own several investment properties, and recently hit the one million dollar net worth milestone. In this episode, Rich and Kathy interview their good friends, Dusty and Cecily Breeding, who share their secrets for a successful marriage and the building of wealth together toward a common goal.They met at Pepperdine University, graduated in 2010, and were married in a village outside of Nairobi, where they spent their first year of marriage working with homeless teenagers. After returning from Kenya, the Breedings spent the last decade paying off their student loan debt. Dusty worked as a minister and Cecily, as a photographer. They bought their first property through RealWealth in January of 2019 and currently own five properties with a total of nine doors in two states. They have both become job optional, and recently launched the Skull and Bones Society, which is a life coaching practice that helps others intentionally live well. Link for Skull and Bones Society: https://www.skullandbonessociety.coJoin Real Wealth for free: https://tinyurl.com/joinrealwealthSubscribe to the podcast: https://tinyurl.com/RWSsubscribe

From Newly Married and Broke to Millionaires with a Great Marriage!

If you’re interested in becoming a landlord and would like to avoid some of the mistakes that other investors have made, you’ll learn a lot from this interview. Our guest became an accidental landlord and found out the hard way that active management of rentals can be a lot of work. He quickly learned that having good property managers that send you checks every month is the way to go. In this episode, Jim Pfeifer tells some interesting stories about the mistakes he’s made so you don’t have to repeat them.Jim is a former financial advisor and stock market investor who has turned his attention to real assets. It wasn’t his choice to become a landlord at first, but after he saw the potential for passive wealth, he was hooked. He’s been involved with single-family and multi-family rental units as a landlord, but is currently focused on syndications. He has more than 45 passive syndications under his belt including apartments, mobile homes, self-storage, private lending and notes, ATM’s, commercial and industrial triple net leases, assisted living facilities and international coffee farms and cacao producers. As the founder of Left Field Investors, he also helps other people get started in passive real estate syndications. And, he’s the host of the podcast: Passive Investing from Left Field.You can learn more about the ins and outs of passive real estate investing with good property management at our website, RealWealthShow.com. Sign up for free, and get access to the Investor Portal where you can see sample properties and connect with our network of resources. That includes experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.And please remember to subscribe to our podcast and leave a review! Thank you!

The Property Management Mistakes You Don't Want to Make!

Billions of dollars are being poured into build-to-rent communities and the industry is booming! Are developers able to keep up with demand for new rental homes? How long will it take to balance demand with supply? Is “now” the time to invest in this kind of rental property? Or maybe developers are overestimating future demand for this kind of rental and will end up flooding the market?In this episode, you’ll hear from housing market economist Brad Hunter on this mushrooming segment of the real estate industry. Brad has been doing market analysis for 35 years and has conducted hundreds of housing demand studies at national and local levels. His market insights are available for builders, developers, investors, and lenders through his company, Hunter Housing Economics, in West Palm Beach, Florida. His opinions and forecasts are also widely covered in the media. Past positions include chief economist and national director of consulting at Metrostudy, managing director at RCLCO, and chief economist for HomeAdvisor.Brad was recently quoted in the following articles:Building and Renting Single-Family Homes Is Top-Performing Investment - WSJBuilt-to-Rent Suburbs Are Poised to Spread Across the U.S. - WSJThis is a piece he wrote as a special contribution to Forbes:Ten Billion Reasons Why There Is A Built-For-Rent Land Rush - ForbesYou can also follow him on Twitter: @bradleyhunterThanks for listening to the Real Wealth Show! Like what you hear? Subscribe to the Real Wealth Show on Apple Podcasts (or all other major platforms) and leave a rating and review, we really appreciate it!And if you haven't yet, join RealWealth for free today at www.realwealthshow.com. As a member, you have access to the Investor Portal where you can view sample property pro-formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.

Housing Market Economist, Brad Hunter, on the Build-to-Rent Boom!

Congress is tinkering with the rules for IRA accounts. It’s part of a crackdown on individuals with millions in their retirement accounts, tax free. According to the Senate Finance Committee, the number of mega IRAs has grown substantially in the last decade. In 2011, there were about 8,000 taxpayers with $5 million or more in their accounts. In 2019, the data shows more than 28,000 taxpayers had that much in their accounts, and another 500 taxpayers with much more than that. (1) The legislation has set off alarm bells among investors who use self-directed IRAs to buy real estate.In this episode, Kaaren Hall joins me to talk about the proposed legislation and the changes that lawmakers are likely to adopt. She is the founder and CEO of UDirect IRA Services which provides self-directed account management. She started the company in the midst of the Great Recession after the stock market crashed. She's been helping people move their retirement funds into self-directed IRAs since then, so they can invest in things like real estate, land, startups, and more. Before that, she spent 20 years in mortgage banking, real estate, and property management.If you’d like to learn more about self-directed IRAs and real estate investing, you’ll find articles on our website at realwealthshow.com. While you are there, please sign up. It’s free and will give you access to our Investor Portal where you can view sample properties and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.And please remember to subscribe to our podcast and leave a review if you like what you hear! Thank you!

What is Congress Doing to Our Retirement Accounts?

What Demographics Can Tell Us About Our Cultural, Economic & Political Future

My daughter Krista is living in Barcelona as Part II of a study abroad program that was interrupted last year by the pandemic. She’s doing it all on her own, financially, by her own choice. I'm visiting her right now and am so impressed with her independence at such a young age, I grabbed a mic and asked if I could interview her for The Real Wealth Show!It’s confusing as a parent to know when to give and when to say “no.” We want to be loved by our children, and sometimes think that our constant stream of giving will earn that love. But perhaps it’s not the financial gifting that matters as much as the gift of belief -- that they can have whatever their heart desires -- if they commit to it.In this episode, you’ll hear more about Krista’s experience being raised in our family during a time, initially, when we had very little financial resources but tremendous wealth nonetheless. And how witnessing the growth of Real Wealth Network over the years, from the inside, has had a great impact on her wealth mindset.And please remember to subscribe to our podcast and leave a review if you like what you hear! You can also find out more about improving your financial world through real estate by joining our network at realwealth.com. It's free to join, with free educational materials on real estate investing. As a member, you also get access to the Investor Portal where you can view sample properties and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.

Krista Fettke: On How to Raise Financially Independent Children

What is Virtual Real Estate and Why Do I Care?

The housing market has been running up against a lot of obstacles, but nothing seems to slow it down. Prices have continued to rise while buyers clamor after a tight supply of homes, and builders struggle with supply chain issues and construction costs. Today’s guest will talk about the crazy demand for housing, and how that might play out in the coming year.Danushka Nanayakkara-Skillington is the Assistant Vice President of Forecasting and Analysis for the National Association of Home Builders. She oversees research into the housing market including industry surveys and various forecasts for national, regional, long-term, and remodeling expenditures.Danushka shares her thoughts on 2022 in this episode. You can also check out new trends for real estate investors by joining our network RealWealth, for free, at realwealthshow.com. As a member, you'll have access to the Investor Portal where you can view sample property pro-formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.And please remember to subscribe to our podcast and leave a review if you like what you hear! Thank you!TRANSCRIPT[music]Speaker 1: You're listening to the Real Wealth Show with Kathy Fettke, the real estate investors resource.Kathy Fettke: The housing market has been running up against a lot of obstacles, but nothing seems to be slowing this wild real estate market. Prices have continued to rise while buyers clamor after a tight supply of homes. Today's guest will talk about the crazy demand for housing and how that might play out in the coming year. I'm Kathy Fettke and welcome to the Real Wealth Show. Danushka Nanayakkara-Skillington is the assistant vice president of forecasting and analysis for the National Association of Homebuilders. She oversees research into the housing market, including industry surveys and various forecasts for national, regional, long-term, and remodeling expenditures.She's here with us on the Real wealth show to share her insights. Danushka, welcome to the real wealth show.Danushka Nanayakkara-Skillington: Thank you much, Kathy. Thank you for having me.Kathy: What an interesting time to be in the home building business. It's crazy out there. What is going on? We knew that there were lumber shortages, but now it seems there are shortages of all kinds of things. Can you give your input on that, your perspective on what's going on with the supply chain?Danushka: Yes, lumber was a big issue last year, and even this year. I think it peaked in July, and lumber prices were adding, like $36,000 to a single-family home and $10,000 to an apartment. Prices were insane. It went down actually. It's the other stuff that goes into residential construction. Input to residential construction is up 22% year over year. Steel and wood products are driving up the prices. Not only that, the builders are seeing these shortages in appliances, [00:02:00] every type of pretty much building construction, and also, everything that goes into a house. There is so much of wait time, long delivery times. In a nutshell, it's fair to say that the supply chains are a mess.The builders are really feeling it because 2022 was a crazy year with this renewed interest in housing, so the demand skyrocketed. The builders are trying to meet that demand, but the supply side is the biggest obstacle to it right now.Kathy Fettke: Yes. Now we're hearing about all these shipping containers sitting on the ocean not being able to unload, add another issue here. I don't expect you to have the answers to everything. I'm wondering if, you know why are all these shipping containers sitting there with the things that we need?Danushka: I also read that article last week that came out 70-something ships in LA, 20-something ships in Georgia, and they've never seen that happen before. I have no idea why. All I read was that we need to get Christmas shopping done ASAP. [unintelligible 00:03:19]Kathy Fettke: Yes, it says something about the lack of workers or increased demand. We all need to get-- The bottom line is those materials and supplies, it may not be a shortage so much as an ability to get it to who needs it at this time. What a challenging time for builders who have never had much demand. Where are we now in demand? Is demand today as high as it has been over the past year, or is it starting to wane?Danushka: The demand is there. [00:04:00] I think the buyers are pulling back a little bit because of the high house prices. The demand is coming from the demographic shifts that we have seen. The Millennials are in their peak homebuyer years. You know we define peak home-buying years as 25 to 45. They're in the peak home-buying years. Also, the housing deficit. The chronic underbuilding that we've seen in the last decade is also what's contributing to this demand for housing. They are pulling back a little bit right now simply because of the [unintelligible 00:04:40] mentioned the high house price, but there's not a lack of demand right now.Kathy Fettke: That's really a challenge, right, to bring in affordable housing at this time when material costs have gone up so much and labor costs and permit fees and the delay time. When a project is delayed, that is not a free deal for the builder. They usually have debts to pay during that time and the profits margins get squeezed anyway. Then if pricing hits a cap of affordability, people just can't afford the cost of a home because it's become so expensive to build it. What do you do? It's a catch 22. We need more housing. We need it to be affordable, but costs are simply really high.Danushka: Yes, exactly. On the supply side, we covered the building materials, the lack of skilled labor. [unintelligible 00:05:36] is driving up labor cost. Regulatory cost, you just mentioned, makes up almost a quarter of a house price right now. Then, the lending issues, also especially for small builders, that makes the majority of home builders. If the lending conditions are tight, it's hard for them to get financing. Yes, it's a [00:06:00] big-- The lot shortage, too, the availability of lots. When there is a shortage of lots, what happens is the lot value increase. Because of all these, the cost of construction has gone up.Affordability is at the lowest point right now in a decade. At NHB we measure that by the NHB WellsFargo housing opportunity index. That's at 57. What 57 means is only 57% of the new and existing homes are affordable to a typical family, and a typical family makes a median income of $80,000. Affordability is in the forefront for sure.Kathy: Are you seeing builders succeed at supplying affordable housing at this point?Danushka: Entry-level housing is hard to measure. An interesting stat to look at is that a house that the price below $30,000 for new construction. In August, it was around 30% of new home sales were priced below $30,000. Compared to 2019, there were 43% of new home sales were priced below $300,000. You can see that we don't have much affordable stuff right now.Kathy: Which is just going to maybe drive the price of existing homes up even more since new homes can't be built affordably. With all that in mind, the difficulty with builders getting homes complete, they might have some of the materials but not all the materials, and they can't get their CO until they have everything, including the appliances that they can't get. Sometimes the appliances [00:08:00] come and there's one little piece missing, and that's going to be another six weeks before that piece shows up. Delays, delays, delays. Again, builders have holding costs that cuts into their profits. What do you see the inventory situation looking like in 2022?Danushka: We are thinking for this year, single-family start to be around 1.1 million. Currently, existing home sales are only at 2.6 months supply. New home sales are at a balance at 6.1 months supply right now, but we have a deficit, a housing deficit. At NHB were estimated about 1 million. Plus, we calculate the 1.5 million [unintelligible 00:08:47] as well. Then [unintelligible 00:08:51] estimated to be 3.8 million housing deficit. NAR estimated to be 5 million. Regardless, everybody agrees that there is a housing deficit. Inventory is low simply because of that mismatch of the supply and the demand.The issues in the supply side is not going to be fixed right away. There's going to be a mismatch for demand-supply next year, too.Kathy: That could drive prices up further, do you think?Danushka: Yes. This year, we expect the home price is going to be around 15%. It's going to stabilize next year, around 5% growth simply because of the pullback from demand a little bit. Hopefully, there will be more turnover, essentially. Some people like move-up buyers, they're selling their starter homes and going to a bigger home. Hopefully, there'll be a little bit better inventory next [00:10:00] year and that should help stabilize the prices.Kathy: Again, it's so funny because it was just a few years ago that there was headline news that all these Baby Boomers were going to be downsizing and there would be this flood of homes on the market. I remember scratching my head and thinking these Baby Boomers aren't like seniors in the past. They're very athletic. Not all of them, but they have some savings, they want to stay at home. Especially after the last few years, they're not keen on going into nursing homes. We see people living longer. How did economists miss this? In other words, there was this concern that there would be a flood of homes on the market and it's just the opposite.Danushka: I think that shows you that we are not perfect in quantifying human behavior. [chuckles] I think the COVID-19 pandemic was really different to any economic situation that we've seen before. It was really hard to grasp what the economy is going to look like and also what the consumers and then the buyers and home buyers, what we really want, what everybody wants. You're right. Baby Boomers are not downsizing. We are seeing a demand for multi-generational homes now, so bigger homes and people are using their homes for more purposes right now.Young people are living with their parents longer and also on the remodeling expenditure side, I think our surveys are showing too that they demand for aging in place work as well. That shows that the Baby Boomers are actually staying in their houses without selling it and [00:12:00] downsizing it. We were expecting that the 55 plus, like [unintelligible 00:12:05] they would move to the cities or some communities. I think COVID-19 pandemic freaked everyone out. No one wants to live so closely next to each other, to other people. Everybody wants to live in their own house and [chuckles] be at arm's length.Kathy: If you're staying in a luxury condo and you don't get to use the amenities or you're stuck in an elevator with other people and--Danushka: Yes, exactly.Kathy: There's a lot of changes that took place. Oh my goodness. We know that institutional funds are flooding to build to rent, building communities that are horizontal apartments because that's really what people want. They want a yard for their dogs and for their children and in case we just see variant after variant and we're all stuck at home again, they want to know that they've got a nice place to be. What is the impact of the build to rent? I've heard some people say we're really turning into a renter's nation. Would you agree with that?Danushka: Not really because build-for-rent share is still small. When you look at the single-family market, we think it's around 5% to 7% of single-family starts. [unintelligible 00:13:30] room to grow, for sure. There are larger estimates, but we use the census and the NHB serveys to compute our estimates. The single-family build for rent is a good solution for people who are not ready to buy yet, but who need additional room, more for their housing needs. You hear this on the [00:14:00] news a lot saying that everything's going to be build for rent. I don't think it's that. I don't think we agree with that to that extent. We think it's still a niche market, small market, could be rising but not to the levels, I think, what a lot of other people are estimating it to be.Kathy: Not making such an impact. That makes sense. Now, interest rates. That really could slow down things if prices are going up and then interest rates go up and the cost of a home, or I should say the mortgage becomes that much more, that could have an effect on the market. Do you anticipate that interest rates will rise next year?Danushka: Yes, we do. I think even in the recent weeks also the interest rates have gone up a little bit. We do think because the fed is going to tighten the monetary policy. I think 2018 was a really good example to see what happens when the interest rate rising. We saw a housing soft patch and slack conditions when the interest rates were increasing. Definitely, interest rates will rise, but it's still at historic level when you look at the rates that were in the '90s. We don't anticipate the rates going to those levels at all.Kathy: There was quite a bit of a slowdown for new home builders and that again has me concerned that it will exacerbate the problem. If builders are already squeezed on margins, what's the incentive to build? You're not going to build homes that you lose money on. If interest rates go up and therefore, the market slows down and maybe prices soften, there just won't be incentive to build more unless there's a way to build cheaper and maybe that's coming. Who knows? Maybe once we get past this supply [00:16:00] chain issue, prices will come back down and labor won't be so expensive and they'll be able to build more affordably at that time, but time will tell. Right?Danushka: Time will tell, exactly. [chuckles] I think it will be a good conversation to have next year at this time, to see not things have changed or if it has changed at all.Kathy: Oh, well. Let's see. You are the Assistant Vice President of Forecasting and Analysis. That's quite a job. Wow, that's a big job. Do you think there's any chance that we could be overbuilding? In other words, we do know that there's a really large cohort of Millennials turning home-buying age, but then what after that? Like, let's say 2050. If I went out and bought 20 homes today to rent out, would I be having trouble renting those out in five years?Danushka: I think that a good way to look at that is the population profile in the country. Millennials are the largest living generation. They make up 27% of the population. Then come the Gen Zs. Gen Zs are a smaller cohort compared to the Millennials. I think the Millennials are much like the Baby Boomers. Large cohorts makes big impact and the Gen Zs are something close to probably the Gen Xs. Now they're smack in the middle of large cohorts. I think the fall and also the falling birth rates as well across the country, that could mean lower housing demand in about 10 to 15 years. Not in the next five years, but I think the long-term. 10 to 15 years, we could see a slow down in the demand for housing.Kathy: Fascinating. Are there parts of the country that are [00:18:00] growing faster than others and where housing is needed more desperately than other areas?Danushka: Yes. I think the South is a-- Half of the home building takes place in the South. It's the weather. The retirement communities are a huge attraction for home building. The West has always had high demand for housing. If you think about it, we need more affordable housing on the West Coast. On the Western states, for sure, high population not much housing stock, so the house prices are rising much faster in that area, for sure, so we need housing and maybe even better zoning rules in those states.I think the larger states, the Southern cities like Atlanta, Dallas, Tampa, Phoenix, those are big market that we expect lots of growth in the next couple of years. I think also the telecommuting that people took on last year has also spread immigration to those large markets as well. We will see lots of demand for housing in those markets.Kathy: I don't know if you can speak to this question because it's very local, but I always thought it was strange that just two to three, maybe four hours out of San Francisco, there hasn't been a lot of growth. There's a lot of land in the Chico area in Redding and Oroville and we just haven't seen these retirement communities pop up the way we do in Arizona. Perhaps it's because of the tax laws. Maybe retirees would rather be in Arizona. If they're going to deal with hot weather, let's go to Arizona instead of Redding. I just found that interesting. When you say we should be developing the [00:20:00] West Coast, there's a whole lot of places on the West Coast that have not been developed and that are still pretty affordable, but just not of interest. Do you have any thoughts on that?Danushka: I could speculate a little bit. I would say California has different regulatory land development rules, probably compared to Arizona. That probably is a big factor with zoning rules. That could be a big thing. Also, who knows, maybe Arizona has everything retirees hope for.Kathy: Yes. If you don't have to pay state income tax as a retiree, that's a big bonus if you're on a fixed income, for sure.Danushka: Exactly.Kathy: If you're going to choose, you'd probably just go over the border. Go over to Nevada or-- Okay, Nevada or Arizona? I don't think Arizona has no state income tax, but I think it's lower, at least. Okay, well, that makes a lot of sense. Yes, I agree with you. The cost to build in California is so expensive. With our project in Dublin years ago, I think it was $120,000 just for the school fees and all the permit fees just before you can even get started on development. How do you create affordable housing in that scenario? Well, it's been really a pleasure to have you here on the Real Wealth Show. Any last thoughts for our listeners? They're mostly buy-and-hold investors. They buy properties and rent them out.Danushka: I think we are in a very exciting year. The last couple of-- 2020, 2021, the next couple of years, still very exciting for housing. We've never expected this amount of interest and demand for housing. I think it's just a matter of we sorting out the supply side issues in order to meet this rising demand. I hope we can rise up to the challenge.Kathy: Wonderful. All right. Well, thank you again so much for being here on the Real Wealth Show. I hope to have you back next year.Danushka: Thank you so much, Kathy. Thank you so much for having me.[00:22:00]Kathy: Thank you for joining me here on the Real Wealth Show. You can also check out new trends for real estate investors by joining our network for free at realwealthshow.com. As a member, you'll have access to our investor portal where you can view property proformas, and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, CPAs who specialize in real estate, and much more. When I mean much more, I mean over 500 webinars that are free, that will teach you the ins and outs of being a successful real estate investor. In return, all we ask is that you subscribe to our podcast and leave a review because it makes a huge difference for us in our rankings. I'm Kathy Fettke, and thanks for listening to the Real Wealth Show.[music]Speaker 3: The views and opinions expressed in this podcast are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action. For more information, go to realwealthshow.com.[00:23:06] [END OF AUDIO]

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Smart real estate investing will give you the time and the money to live life on your own terms! We call that real wealth. Host Kathy Fettke is Co-CEO of Real Wealth Network, author of the best selling “Retire Rich with Rentals" and the host of companion podcast, Real Estate News for Investors. She launched this podcast in 2003 to share her own secrets and those of top experts in the real estate investing field. She along with guests like Robert Kiyosaki, Loral Langemeier, Peter Schiff, Doug Duncan, John Burns, Bruce Norris and other rising real estate stars offer insights on the creation of passive income through real estate, and how to avoid costly mistakes. Learn how to build a portfolio outside the stock market with buy-and-hold strategies, single-family rentals, multi-family properties, syndicated deals, self-directed IRAs and 401ks, the highly-revered 1031 exchange, private money lending, creative financing, and much more!

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