Built to Rent - BTR
Paul Grant Truesdell, J.D., AIF, CLU, ChFC, RFC
Founder & CEO of The Truesdell Companies
The Truesdell Professional Building
200 NW 52nd Avenue
Ocala, Florida 34482
352-612-1000 - Local
212-433-2525 - New York
Truesdell Wealth, Inc.
https://truesdellwealth.com
The Truesdell Companies
https://truesdell.net
Casual Breakfast Conversation at the Stone Creek Grille - January 8th @ 9:45 AM
Casual Conversation over Cocktails at the Stone Creek Grille - February 19th - 3:00 PM
Reservations Required - Call or Text: 352-612-1000
The Truesdell Companies is a proud sponsor of the Eirinn Abu benefit concert for Tunnel to Towers, on February 28th at the Circle Square arena in Ocala, Florida. For more information, visit: https://eirinnabu.com or https://eirinnabu.com/event/5760795/695871447/eirinn-abu-and-tunnel-to-towers-foundation-concert
- - -
Rough Transcription
Paul Grant Truesdell, J.D., AIF 0:00
The growth of build to rent communities such as the BB livings developments, these are going on in the Tampa Bay area, makes a well, it's a significant shift in the housing market that a lot of people should be paying attention to, and this may be the first time you've heard of it. And so we're going to talk about the growth of build to rent, B, T, R, you are
Speaker 1 0:27
listening to the Paul Truesdell podcast sponsored by Truesdell wealth and the other Truesdell companies. Note, due to our extensive holdings and our clients always assume that we have a position in all companies discussed and that a conflict of interest exists, the information presented is provided for entertainment and informational purposes only. Truesdell wealth is a registered investment advisor.
Paul Grant Truesdell, J.D., AIF 0:58
Build to rent communities, not couple homes, an entire community. Now these communities are designed as single family subdivisions, but their use is, well, it's for rental use, and they've surged in popularity over the past five years in particular, especially since and after COVID, a ridiculous pandemic that we had now. This trend has been fueled by a growing demand for more spacious private living options compared to traditional multi family apartments. I can tell you absolutely without any doubt or hesitation if I was moving to an area for two or three years as kind of a job situation. These communities would be number one on my list. Apartment living. I don't care who you are or what you do. Generally speaking, trigger warning, they suck. You just can't get an ongoing caliber of people worth a ding dong. There's always problems, parking lots, cars, issues, parties, you name it. So as I said, the trend is really being fueled by a growing demand for more spacious and private living options compared to traditional multi family apartments. I kind of want to have a little bit of distance between the neighbors. Maybe want the kids to be able to run around the yard a little bit. Not that kids really do that anymore. Does anybody even ride a bicycle? In fact, come to think about it, when's the last time you ever saw a group of kids who found a vacant lot and they turned it into like a football field or baseball field, or they just did anything like that on their own? I guess had to all died out with our generation. The appeal of build to rent communities lies in their ability to combine the privacy and space of single family homes with the amenities that's the key thing, amenities and maintenance service of luxury apartments, as I said, residents enjoy the convenience of such high end amenities as property management, but not just Ralphie tool, dude who looks like he crawled off of a Navy ship in World War Two. We're talking about professional property management and the freedom from long term ownership commitments look. One of the big advantages of people when they move to Florida is the amenities in these 55 plus communities. When you have a really good dynamic understanding activities director or team, things can be a lot of fun, the villages, Stone Creek, Sun City Center and the many others here in Florida, that's one of the reasons you move there, is because there's so much to do. And so you have a community center, a clubhouse gym of a gym of some type, pool, usually you have tennis courts and pickleball courts. And depending upon the size of the community, you might have a golf course, nearby or on site. Now if you go online, you'll read that things. They'll say like, oh, the advantage is, they attract young professionals, that's true, but they also attract retirees and families who prefer flexibility over the responsibilities of home ownership. Now this is something I've talked about for many years as an investment advisor, I can tell you absolutely unequivocally, beyond the exclusion of every reasonable doubt, home ownership is not necessarily the pathway to financial independence. Oh, I know. I know every realtor in the world will tell you, homeownership, home ownership, homeowners, even when President Bush, okay, the 43rd President of the United States, it was always about the American dream is to own a house. Maybe American dream should be about being financially independent. You work because you want to work, not because you have to work. That's a nice situation, by the way. But the issue is, if you have the inability to save money. Uh, on your own without having payroll deduction plans. Yeah, your your your real estate, is like a force to savings. It's one of the big advantages for people. When they buy a whole life insurance policy, it's like a forced savings. Nobody wants to talk about it. Everybody wants to say, Oh, you're better off doing some other type of investment that has a higher rate of return and doesn't have all the costs and fees. I don't disagree, but for most people, that forced savings is, well, the only thing they can accumulate. And I get it, that's not you. So you have a hard time understanding that, but it's true. Now, the model, okay, build to rent doesn't it's not perfect, okay, there are drawbacks. Critics argue that the focus on rental housing could reduce opportunities for first time buyers, exacerbating housing affordability issues. Additionally, build to rent developments are often, well, they require a lot of acreage, potentially reducing the availability of land for traditional residential projects. I had to dig that up and come up with it. I don't buy any of that garbage. Because here's the thing, you you live in a single family home, whether you buy or not, the acreage is there. It's just a false premise. But what I am going to tell you is that the more of these types of developments out there, puts a real squeeze on independent builders, custom builders. It puts a real squeeze. Well, custom, I'll say the semi custom market, but it puts a real squeeze because your venture capital money, your private equity money, your pension money that goes into these types of projects, the leverage they have is astronomical. I mean, I'll give you a good example, DR Horton. It is really hard to compete when you have a home for sale, an existing home, when DR Horton is putting up homes, subsidizing the mortgage, I go on and on, it's really hard. Now, I'm not saying the construction is any better, but it is what it is now in the Tampa Bay area, the trend has gained momentum with communities. Again, like I mentioned, BB living well in park, they're offering a variety of different options, and it's a real growing demand. Now the region's suburban areas such as Manatee and Pasco, they've become really hot spots for these projects, and they benefit from, well, a lot of available space. You can't go anywhere in the heart of Florida or along the Gulf Coast, where you got some open land somebody's looking to build. And yes, insurance is an issue. But again, that's another point of these developments. You can have group, layered insurance. I'm not going to talk too much about how Lloyds of London works, other than to say that it works like you have tranches or you have different levels of coverage. So I'll take the first 100 million dollars of insurance. Somebody else takes 100 to a billion, and somebody takes over a billion, those kinds of of coverages different ranges. So you get to a certain level. It's pretty inexpensive, but you got to have the chops and the money to deliver if you got to come up and well, pay out. So there's some advantages there. But even though you may have heard that Florida is not a hot market anymore because of the cost of insurance, homeowners insurance, oh, poppycock, people are coming here like by the bushel baskets now, as I said, built to rent. Communities are structured to resemble just like every other typical single family subdivision, yet they're built specifically for the purpose of home owners of rental rather than home ownership. That's really important. So you're not gonna get somebody who has a is renting, somebody else who is is buying. And again, as I said, this is important. It provides people with a little larger living space, a little bit more private. Amenities are everything, and what we're finding is they're very strategically placed in suburban communities. No, no if ands or buts about it now, in terms of ownership and investment in in these things, some build to rent communities are part of what are known as real estate investment trusts, or REITs, r, e, i, t, s. Now some of these, well, they remain under private control their entire time, and the structure, well, pretty much depends upon the financial backing the long term goals of the developer, the investors. You see, we have private equity firms, and they frequently dominate early stages and well, these developments, funding the acquisition of land, the construction that all requires a pretty big upfront capital infusement, and you got to have some risk tolerance, because you. Not getting an immediate return on on your your investment. So you have people who in institutions with large amounts of money and are looking to get in, and this provides a real steady cash flow. Now, private equity investors often view build to rent projects as high yield assets, given the increasing demand for rental housing. Now, once the communities are stabilized and you're beginning to make money, achieving high occupancy rates and consistent cash flow, well, they become really attractive candidates for conversion into what's known as a REIT now, a REIT structure allows for the pooling of multiple stabilized properties into a portfolio that can be publicly traded or it could even be privately held. You have publicly traded real estate investment trusts and non traded. So you have traded non traded, and for the record, 95% of all invest investors should never, ever, ever consider a non traded real estate investment trust, because you have liquidity needs, time horizon needs, if you are retired, and generally speaking, if you're, oh say, 65 to 60 and older, do not buy in any way, shape or form, a non traded real estate investment trust, just don't do it. Because if you're not healthy and something happens, remember, as we get older, we're more likely to die, we're more likely to need money for healthcare, etc. These things are not liquid. Usually, they carry big fat commissions. And that's the reason why a lot of your insurance agents, investment advisors, brokers, financial planners, the magoos of the world, they sell these things. It's not in your best interest. It's in the best interest of them. And when you dig into the fees and you find all the layers of fees and commissions involved. Not such a good deal. Not at all.
So you have these properties are bundled together. They're converted into a real estate investment trust. It's a pooling of stabilized assets. So the transition provides the private equity firms with an exit strategy they're out. It enables them to realize returns on their initial investments, basically profit and get out. Now, the key thing is, always remember. Never forget. Sometimes companies have very specific goals in mind. They will tell you up front they plan on. It is their anticipation that, well, those are wishy washy words that they're going to get out. So when you have a non traded real estate investment trust, when they say it's our plans to take this public in, say, five or 10 years, there's no guarantee on that. Okay? There's none in there. The secondary market on those. Not so good. Not a lot of liquidity, not a lot of marketability, not good. So again, you've got to look at these from an investment standpoint as to the type of structure you that's why it's handy to work with an investment advisor, for example, that has a legal background, can actually read contracts. You want to work with a licensed attorney that can give you actual legal advice on these things, but again, we're talking primarily right now about the development of these and they're becoming more and more popular, which means they're gonna be offered as more and more of an investment to rank and file people. I guarantee it, because look, here's the advantage. You're looking for significant income, mainly in the form of what we would call dividends. These things are going to be very attractive. People need a place to stay, and the structure aligns very well with those who want predictable rental income. So yeah, build to rent. Properties are pretty interesting. So overall, the BTR communities, they often begin under private equity ownership due to their capital intensive nature, long term potential for stable cash flows, the scalability makes them prime candidates for inclusion in REIT portfolios. And the trend well, it underscores the evolving strategies within the real estate market to adapt the shifting housing preferences and, frankly, the economic dynamics in the world today. So yeah, that might be something to pay very close attention to. One of the things that I'm looking very heavily at our build to rent 55 plus retirement communities. And I just think about that, you go in and it's a steady Eddie when it comes to Nope, you don't have a mortgage, you've got rent payment that includes all the amenity fees. You know exactly what you need to pay period. So you've got a lot of people out there who, let's say, they retire. From law enforcement, firefighting, government pensions of some type. They've got government pensions, okay? Basically, the only people out there who have defined benefit pension plans are the government employees out there. So you've got that set up, right? You've got your Social Security. Maybe you have six, $7,000.08 910, $1,000 a month of income, and so you're paying 2500, to $3,000 a month. You don't mow your grass, you don't have to have a extra gym membership. Have access to a golf cart course, and because you're a resident, you get a discount on the on the Greens fees. They have a clubhouse, they have a restaurant, and so there's lots of different ways for the community to make money. But a bang, better boom, but a bang, your down payment, you you were gonna drop, let's say 400,000 to 700,000 out of house. Now you don't have to do that. You keep that invested. And while some people would say, whoa, whoa, whoa, wait a minute, I want to own the house, okay, but let's say, like last year and the year before, you basically just put your money into the s, p5 100. You didn't do anything else other than that. You through the you roll the dice, you decided to go all in well now that 700,000 is worth 840,000 and now the 840 is now up at a million dollars. So you have to ask yourself, do you think you could make $300,000 in profit on a $700,000 purchase for real estate. Obviously, the market doesn't no guarantee could be right down the toilet, but you get the point. And here's everything. Let's say you decide to live there for two year contract or three year contract. Some people don't like their neighbors. They wind up not liking the neighborhood, and then they want to move to the newer neighborhood that's being built because, well, that has a nicer style. And I want to go there. I have a two car garage. Oh, this is a two car plus the golf cart. And then these other homes are going to have four car garages. Oh, I want to go there. And then there's Tarzan and Jane. And you can't stand Tarzan Jane, so you move. The number of people in 55 plus communities who moved because of bad neighbors is pretty darn big. If you had told me, when I began in this business in the 1980s that people bought and stayed in a community when they retired, like my mother and father and all of my aunts and uncles who all moved from up north, down here to Florida, I would have said, You're nuts. But holy moly, people move. I don't know why, but moving, to me, is horrible. I like being a little bit more stable. Traveling that's different. And if you got a neighbor who's a pain in the rear end, you can put bushes and shrubs and fencing up. You can deal with it. Obviously some are absolutely god forsaken horrible, but over time, they'll die off. But you get the point. Build to rent communities all retired, all the amenities, everything's there. Yeah, I'm willing to bet you're going to see a boatload of those things, not not high rise condos, but just the same concept, just flatten them out, but you're gonna start seeing those a lot, at least. That's my forecast. This
Speaker 1 18:28
concludes the Paul Truesdell podcast. However, before you go see the show notes for this podcast, for special offers in person and online events and a variety of booklets on a wide variety of investment, income, estate, risk and overall wealth issues to schedule a conversation with Team Truesdell, text or call, 352-612-1000, the Paul Truesdell podcast is available on nearly all podcast players, such as Apple, Google, Spotify, as well as on Paul's personal website, Paul truesdell.com
Speaker 2 19:05
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Speaker 3 19:17
like comment and share this podcast with family, friends, neighbors, relatives and co workers, past and present, it is greatly appreciated and will never be forgotten. You.
Founder & CEO of The Truesdell Companies
The Truesdell Professional Building
200 NW 52nd Avenue
Ocala, Florida 34482
352-612-1000 - Local
212-433-2525 - New York
Truesdell Wealth, Inc.
https://truesdellwealth.com
The Truesdell Companies
https://truesdell.net
Casual Breakfast Conversation at the Stone Creek Grille - January 8th @ 9:45 AM
Casual Conversation over Cocktails at the Stone Creek Grille - February 19th - 3:00 PM
Reservations Required - Call or Text: 352-612-1000
The Truesdell Companies is a proud sponsor of the Eirinn Abu benefit concert for Tunnel to Towers, on February 28th at the Circle Square arena in Ocala, Florida. For more information, visit: https://eirinnabu.com or https://eirinnabu.com/event/5760795/695871447/eirinn-abu-and-tunnel-to-towers-foundation-concert
- - -
Rough Transcription
Paul Grant Truesdell, J.D., AIF 0:00
The growth of build to rent communities such as the BB livings developments, these are going on in the Tampa Bay area, makes a well, it's a significant shift in the housing market that a lot of people should be paying attention to, and this may be the first time you've heard of it. And so we're going to talk about the growth of build to rent, B, T, R, you are
Speaker 1 0:27
listening to the Paul Truesdell podcast sponsored by Truesdell wealth and the other Truesdell companies. Note, due to our extensive holdings and our clients always assume that we have a position in all companies discussed and that a conflict of interest exists, the information presented is provided for entertainment and informational purposes only. Truesdell wealth is a registered investment advisor.
Paul Grant Truesdell, J.D., AIF 0:58
Build to rent communities, not couple homes, an entire community. Now these communities are designed as single family subdivisions, but their use is, well, it's for rental use, and they've surged in popularity over the past five years in particular, especially since and after COVID, a ridiculous pandemic that we had now. This trend has been fueled by a growing demand for more spacious private living options compared to traditional multi family apartments. I can tell you absolutely without any doubt or hesitation if I was moving to an area for two or three years as kind of a job situation. These communities would be number one on my list. Apartment living. I don't care who you are or what you do. Generally speaking, trigger warning, they suck. You just can't get an ongoing caliber of people worth a ding dong. There's always problems, parking lots, cars, issues, parties, you name it. So as I said, the trend is really being fueled by a growing demand for more spacious and private living options compared to traditional multi family apartments. I kind of want to have a little bit of distance between the neighbors. Maybe want the kids to be able to run around the yard a little bit. Not that kids really do that anymore. Does anybody even ride a bicycle? In fact, come to think about it, when's the last time you ever saw a group of kids who found a vacant lot and they turned it into like a football field or baseball field, or they just did anything like that on their own? I guess had to all died out with our generation. The appeal of build to rent communities lies in their ability to combine the privacy and space of single family homes with the amenities that's the key thing, amenities and maintenance service of luxury apartments, as I said, residents enjoy the convenience of such high end amenities as property management, but not just Ralphie tool, dude who looks like he crawled off of a Navy ship in World War Two. We're talking about professional property management and the freedom from long term ownership commitments look. One of the big advantages of people when they move to Florida is the amenities in these 55 plus communities. When you have a really good dynamic understanding activities director or team, things can be a lot of fun, the villages, Stone Creek, Sun City Center and the many others here in Florida, that's one of the reasons you move there, is because there's so much to do. And so you have a community center, a clubhouse gym of a gym of some type, pool, usually you have tennis courts and pickleball courts. And depending upon the size of the community, you might have a golf course, nearby or on site. Now if you go online, you'll read that things. They'll say like, oh, the advantage is, they attract young professionals, that's true, but they also attract retirees and families who prefer flexibility over the responsibilities of home ownership. Now this is something I've talked about for many years as an investment advisor, I can tell you absolutely unequivocally, beyond the exclusion of every reasonable doubt, home ownership is not necessarily the pathway to financial independence. Oh, I know. I know every realtor in the world will tell you, homeownership, home ownership, homeowners, even when President Bush, okay, the 43rd President of the United States, it was always about the American dream is to own a house. Maybe American dream should be about being financially independent. You work because you want to work, not because you have to work. That's a nice situation, by the way. But the issue is, if you have the inability to save money. Uh, on your own without having payroll deduction plans. Yeah, your your your real estate, is like a force to savings. It's one of the big advantages for people. When they buy a whole life insurance policy, it's like a forced savings. Nobody wants to talk about it. Everybody wants to say, Oh, you're better off doing some other type of investment that has a higher rate of return and doesn't have all the costs and fees. I don't disagree, but for most people, that forced savings is, well, the only thing they can accumulate. And I get it, that's not you. So you have a hard time understanding that, but it's true. Now, the model, okay, build to rent doesn't it's not perfect, okay, there are drawbacks. Critics argue that the focus on rental housing could reduce opportunities for first time buyers, exacerbating housing affordability issues. Additionally, build to rent developments are often, well, they require a lot of acreage, potentially reducing the availability of land for traditional residential projects. I had to dig that up and come up with it. I don't buy any of that garbage. Because here's the thing, you you live in a single family home, whether you buy or not, the acreage is there. It's just a false premise. But what I am going to tell you is that the more of these types of developments out there, puts a real squeeze on independent builders, custom builders. It puts a real squeeze. Well, custom, I'll say the semi custom market, but it puts a real squeeze because your venture capital money, your private equity money, your pension money that goes into these types of projects, the leverage they have is astronomical. I mean, I'll give you a good example, DR Horton. It is really hard to compete when you have a home for sale, an existing home, when DR Horton is putting up homes, subsidizing the mortgage, I go on and on, it's really hard. Now, I'm not saying the construction is any better, but it is what it is now in the Tampa Bay area, the trend has gained momentum with communities. Again, like I mentioned, BB living well in park, they're offering a variety of different options, and it's a real growing demand. Now the region's suburban areas such as Manatee and Pasco, they've become really hot spots for these projects, and they benefit from, well, a lot of available space. You can't go anywhere in the heart of Florida or along the Gulf Coast, where you got some open land somebody's looking to build. And yes, insurance is an issue. But again, that's another point of these developments. You can have group, layered insurance. I'm not going to talk too much about how Lloyds of London works, other than to say that it works like you have tranches or you have different levels of coverage. So I'll take the first 100 million dollars of insurance. Somebody else takes 100 to a billion, and somebody takes over a billion, those kinds of of coverages different ranges. So you get to a certain level. It's pretty inexpensive, but you got to have the chops and the money to deliver if you got to come up and well, pay out. So there's some advantages there. But even though you may have heard that Florida is not a hot market anymore because of the cost of insurance, homeowners insurance, oh, poppycock, people are coming here like by the bushel baskets now, as I said, built to rent. Communities are structured to resemble just like every other typical single family subdivision, yet they're built specifically for the purpose of home owners of rental rather than home ownership. That's really important. So you're not gonna get somebody who has a is renting, somebody else who is is buying. And again, as I said, this is important. It provides people with a little larger living space, a little bit more private. Amenities are everything, and what we're finding is they're very strategically placed in suburban communities. No, no if ands or buts about it now, in terms of ownership and investment in in these things, some build to rent communities are part of what are known as real estate investment trusts, or REITs, r, e, i, t, s. Now some of these, well, they remain under private control their entire time, and the structure, well, pretty much depends upon the financial backing the long term goals of the developer, the investors. You see, we have private equity firms, and they frequently dominate early stages and well, these developments, funding the acquisition of land, the construction that all requires a pretty big upfront capital infusement, and you got to have some risk tolerance, because you. Not getting an immediate return on on your your investment. So you have people who in institutions with large amounts of money and are looking to get in, and this provides a real steady cash flow. Now, private equity investors often view build to rent projects as high yield assets, given the increasing demand for rental housing. Now, once the communities are stabilized and you're beginning to make money, achieving high occupancy rates and consistent cash flow, well, they become really attractive candidates for conversion into what's known as a REIT now, a REIT structure allows for the pooling of multiple stabilized properties into a portfolio that can be publicly traded or it could even be privately held. You have publicly traded real estate investment trusts and non traded. So you have traded non traded, and for the record, 95% of all invest investors should never, ever, ever consider a non traded real estate investment trust, because you have liquidity needs, time horizon needs, if you are retired, and generally speaking, if you're, oh say, 65 to 60 and older, do not buy in any way, shape or form, a non traded real estate investment trust, just don't do it. Because if you're not healthy and something happens, remember, as we get older, we're more likely to die, we're more likely to need money for healthcare, etc. These things are not liquid. Usually, they carry big fat commissions. And that's the reason why a lot of your insurance agents, investment advisors, brokers, financial planners, the magoos of the world, they sell these things. It's not in your best interest. It's in the best interest of them. And when you dig into the fees and you find all the layers of fees and commissions involved. Not such a good deal. Not at all.
So you have these properties are bundled together. They're converted into a real estate investment trust. It's a pooling of stabilized assets. So the transition provides the private equity firms with an exit strategy they're out. It enables them to realize returns on their initial investments, basically profit and get out. Now, the key thing is, always remember. Never forget. Sometimes companies have very specific goals in mind. They will tell you up front they plan on. It is their anticipation that, well, those are wishy washy words that they're going to get out. So when you have a non traded real estate investment trust, when they say it's our plans to take this public in, say, five or 10 years, there's no guarantee on that. Okay? There's none in there. The secondary market on those. Not so good. Not a lot of liquidity, not a lot of marketability, not good. So again, you've got to look at these from an investment standpoint as to the type of structure you that's why it's handy to work with an investment advisor, for example, that has a legal background, can actually read contracts. You want to work with a licensed attorney that can give you actual legal advice on these things, but again, we're talking primarily right now about the development of these and they're becoming more and more popular, which means they're gonna be offered as more and more of an investment to rank and file people. I guarantee it, because look, here's the advantage. You're looking for significant income, mainly in the form of what we would call dividends. These things are going to be very attractive. People need a place to stay, and the structure aligns very well with those who want predictable rental income. So yeah, build to rent. Properties are pretty interesting. So overall, the BTR communities, they often begin under private equity ownership due to their capital intensive nature, long term potential for stable cash flows, the scalability makes them prime candidates for inclusion in REIT portfolios. And the trend well, it underscores the evolving strategies within the real estate market to adapt the shifting housing preferences and, frankly, the economic dynamics in the world today. So yeah, that might be something to pay very close attention to. One of the things that I'm looking very heavily at our build to rent 55 plus retirement communities. And I just think about that, you go in and it's a steady Eddie when it comes to Nope, you don't have a mortgage, you've got rent payment that includes all the amenity fees. You know exactly what you need to pay period. So you've got a lot of people out there who, let's say, they retire. From law enforcement, firefighting, government pensions of some type. They've got government pensions, okay? Basically, the only people out there who have defined benefit pension plans are the government employees out there. So you've got that set up, right? You've got your Social Security. Maybe you have six, $7,000.08 910, $1,000 a month of income, and so you're paying 2500, to $3,000 a month. You don't mow your grass, you don't have to have a extra gym membership. Have access to a golf cart course, and because you're a resident, you get a discount on the on the Greens fees. They have a clubhouse, they have a restaurant, and so there's lots of different ways for the community to make money. But a bang, better boom, but a bang, your down payment, you you were gonna drop, let's say 400,000 to 700,000 out of house. Now you don't have to do that. You keep that invested. And while some people would say, whoa, whoa, whoa, wait a minute, I want to own the house, okay, but let's say, like last year and the year before, you basically just put your money into the s, p5 100. You didn't do anything else other than that. You through the you roll the dice, you decided to go all in well now that 700,000 is worth 840,000 and now the 840 is now up at a million dollars. So you have to ask yourself, do you think you could make $300,000 in profit on a $700,000 purchase for real estate. Obviously, the market doesn't no guarantee could be right down the toilet, but you get the point. And here's everything. Let's say you decide to live there for two year contract or three year contract. Some people don't like their neighbors. They wind up not liking the neighborhood, and then they want to move to the newer neighborhood that's being built because, well, that has a nicer style. And I want to go there. I have a two car garage. Oh, this is a two car plus the golf cart. And then these other homes are going to have four car garages. Oh, I want to go there. And then there's Tarzan and Jane. And you can't stand Tarzan Jane, so you move. The number of people in 55 plus communities who moved because of bad neighbors is pretty darn big. If you had told me, when I began in this business in the 1980s that people bought and stayed in a community when they retired, like my mother and father and all of my aunts and uncles who all moved from up north, down here to Florida, I would have said, You're nuts. But holy moly, people move. I don't know why, but moving, to me, is horrible. I like being a little bit more stable. Traveling that's different. And if you got a neighbor who's a pain in the rear end, you can put bushes and shrubs and fencing up. You can deal with it. Obviously some are absolutely god forsaken horrible, but over time, they'll die off. But you get the point. Build to rent communities all retired, all the amenities, everything's there. Yeah, I'm willing to bet you're going to see a boatload of those things, not not high rise condos, but just the same concept, just flatten them out, but you're gonna start seeing those a lot, at least. That's my forecast. This
Speaker 1 18:28
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