Welcome to Twitter spaces. Grant Cardone here in the Cardone zone and we're going to be discussing tonight.

The Fed killing America.

Begging the Fed to stop the madness because it is crushing everyday families.

In America, it's costing the wealthy people very little and it's costing the everyday American almost everything. So I want to discuss this tonight. Appreciate you guys coming in.

Trying to do a handful of these each week. You know, maybe maybe I'll pick three or four nights in a week. I don't know. I don't know if I can do one every day, but I'm gonna try. I appreciate you showing up, appreciate you coming. As you know, I really like to mix it up with a lot of people, so I'm hoping.

That we get a chance to.

Throw it around.

And get a lot of people to be able to express your opinion here from you.

Uh, see where you're coming from? See how it's affecting your household? I just I I got a few notes about the Fed and what they're doing. I heard Elon say this the other night that that he thought and, and again, I'm surprised more people haven't followed up on this, but I thought he made it very clear two or three times that he felt like the Fed was was taking the most foolish actions.

In economic history and U.S. economic history.

So I'd really like to discuss that what it means to the richest man in the world to say the Fed is acting foolishly. If it's hurting him and causing him problems, what is it going to do to the average household that is trying to buy a house to refinance their home?

To get funding for their business. So I appreciate everybody being here. I hope it's a great discussion tonight. Thank you for coming. Appreciate the follow if you hadn't followed me already follow if you, if you go in touch my little my little gooba, gooba, whatever that's called.

You can get notifications because I'm going to try to do these economic.

Updates daily, not about stocks or.

Bitcoin so much because a lot of that's covered already on Twitter spaces. But I'd like to just talk about how to expand your business, basic economics, how do you get your money right, what do you do with your real estate place? And I'll be bringing other guest in. In fact, I'm going to have Kevin O'Leary on this month. I know for sure. I'll also have Kevin Turner. Kevin Turner worked with Sam Walton, Bill Gates and Ken Griffin and who's the third person I'm trying to get on this month.

Anyway, I'm gonna bring other guests on, so you guys build a tap into that.

So thank you malee for being here. Nelson Apegga is in here as a co-host. I got David David's in the room craze, Christiana Sigmund thank you guys. I I don't know a lot of you guys, but I'm using Twitter spaces to to to get to know new people and hopefully the whole room can get acquainted with one another and we can do some business together. I would like your feedback tonight about what the Fed and the interest rates.

Are doing to America to your personal household. But before I turn it over to other people, let me just say I just want to clarify what it means.

To raise the interest rate, the Fed rates have gone in 10 months from .08.

To 3.8%.

That's almost 4 * 4 X. So what that means for somebody buying a home is you now qualify for a lower loan amount.

What it means in real dollars is a 400,000. A $400,000 loan would go from somewhere around 1600 bucks.

To $2700, almost double. Not quite double, but getting in that neighborhood.

The Fed's supposed to monitor finance financial system risk. They're supposed to ensure a healthy economy.

They're supposed to foster economic growth.

And maintain what they call stable prices.

But what I've experienced recently is.

Zero GDP growth. They're not fostering economic growth. They're destabilizing wages. They're destabilizing employment. Prices are anything but stable.

Raising interest rates has not lowered food prices or fuel prices. Both of those things are getting corrected, normally and naturally because the supply chains are being cleaned up.

And they're supposed to balance the flow of money and credit. Now, there's a lot of people in here smarter than me, so I'd love to get your input. It. It also suggests that one of their agendas is to fight inflation. But I've, I've checked back in the last 100 years, they have never been successful fighting inflation with interest rates. So again, I just want to open it up to everybody. What do you think? What do you know? Let's, let's inform the room on, on maybe other aspects of this. And agai

You know that'll help me host this room.

Absolutely, guys. Thank you, grant. Um segment, who on stage wants to jump in? And by the way, guys, hit that button at the bottom right corner of your screen and type something in there. Retweet this room. You know this is grand second time in a row coming on here on Twitter spaces to have a conversation with you guys. So definitely do that. Everybody go ahead and retweet this role. But Sickman my brother, you want to go ahead and jump in?

I was gonna jump in Nelson thing, but I got Nick got his hand up. So I was going to say why don't you let him go first?

Absolutely. Nick, you want to go ahead?

You can unmute your mic. Go ahead.

Yeah. Hey, appreciate you guys. And and Nelson by the way, I'm gonna meet your Mike. Go ahead.

Hey, can you hear me?

I can hear you.

Yes.

Yeah, yeah, we can hear you.

I can hear you.

We can hear you.

He can hear you. Alright, cool. Hey, Nick, Marino, appreciate it grant, thanks again. I'm Kansas City and Mexico City. I bounce back and forth between depending on the time of the year. My family right now is in Mexico City. So I wanted to actually just touch base on this because this is actually, it's really interesting to see talk about interest rates and just the perspective of my gate when I was mentioning a couple days back you know in Mexico you can't even touch even you know you you rocki

Can you guys hear me right now?

Black card and you're lucky to get 7% and of course that shouldn't be the case. It should be definitely better interest rates. But I'm just afraid that we are now, you know, as you guys hear me right now.

Yeah, I can hear you, Nelson.

Yeah, I can hear you.

Yeah, no, I hear you someone.

Let's see.

OK. Nick, has Nick spoken or are we moving around? I don't know what happened to my audio.

Yes, I don't think you can hear him, Nelson.

Yes.

No.

Someone speak. Speak. OK, Nick, has Nick spoken or are we moving around? I don't, I don't. Audio here, Nelson. Yeah, I just glitched out. OK, let's get let's get somebody else on stage with their hands raised.

Yeah, I just glitched out. OK, let's get let's get somebody else on stage with their hands raised. Let's go to the bullish track.

Said Nelson. The dude was speaking, though.

Ohh, he was.

Yeah, I think you're just. I think you're blocked from him.

Yeah, he and Nelson. Yeah, you might wanna drop down Nelson. Nelson, you might wanna drop down and then have a grander or or Miley pull you back up and RECO host you.

OK.

Yeah, Nelson, drop out, restart your app, come back and I'll bring you back. Let's head back to Nick really quick.

Hey, I appreciate you shout that. Nelson too, by the way, grant, correct me if I'm wrong. Nelson's in in the DFW area, right?

No Nelson. Where does Nelson live?

No Nelson. Where does Nelson live?

And I'm getting a bunch of feedback guys.

He's in. He lives in DC.

Yeah.

I attended your, I attended one of your, your events there and it on the on real estate and I could have sworn that you, you had brought him up or something like that. I couldn't remember where in the country. But anyways, great guy his laugh is unmistakable. You know, you always know it sounds like you know, in the room when he's there. You know, I wanted to just say that also with regards to Kansas City and Mexico City with the interest rates, obviously we hope that they go down. It would be o

About the economy they're worried about now, we've kind of entered the phase kind of the parasitic phase right where now it's a run on, on, on like on, on property, on assets on. So run on everything as far as if you are a player inside of the government, if you got connections to big corporations, everybody just trying to get paid right now in terms of, well, in terms of taking as much as they can take from the inside out. And that's what's concerning on my end because they're not, things are n

Enterprise, you know, system, obviously. And this is just gonna get crazier and crazier. And on my side of things, just regard to real estate grant, I have never been blown up so much. I have, I've never been blown up so much on by wholesalers like I have been this week in terms of properties that they can't assign. Right. So I've got hundreds of properties. People are like I I need this. What what can you offer? What's the lowest you can offer? Like just let's, let's get this off my books.

They're they're struggling right now on those properties when it comes to single family. I don't know if you're hearing a lot of the same.

GC you here?

Come on, where's my? Where's my host at?

Yeah. So, so sorry, I had it on mute. Um, yeah, I am.

Yeah, I am.

And I just put a pole below and I'm getting a bunch of reverb back for some reason.

Umm.

Dude, I haven't.

Right.

Uh.

I think somebody's mic was open, so I muted everybody and the reverb went away.

They're beautiful. Thank you.

And again, some of this might be my problem because I'm new to the spaces. But, you know, I'm always trying to learn new things, so and connect with new people. So yeah, I'm hearing tremendous amounts of pain from people, mortgage brokers.

Margaret agents, real estate agents, real estate brokers.

I had a group in my office today because of the amount of real estate that we purchased.

Said in the last six months and that this group did $3 billion in the first six months of the year and the last six months they've done 0.

I did 1.1 billion last year and this year I've done 60 million, so I'm off by 94%.

Purchases.

So what, what what is that doing to you, to the family household? You guys are put up a a poll?

Do you think the Fed is overstepping, or do you think they're interfering?

I just threw it down in that little box in the bottom right hand corner where you can add dialogue and chat. I think that's what that is, right?

It's at the top now, it's pin at the top.

OK. And so I'd love for you guys to vote on that again. The guy that bought this company, Elon Musk, he's got very strong opinions about the feds involvement and some of you smarter guys in here. Show me a time in history when the Fed actually.

Controlled inflation.

And would you guys rather more inflation and less interest but you know, lower interest rates?

Because when you raise interest rates, you're not going to get rid of the $32 trillion worth of debt.

You're not going to get rid of it. All you're gonna do is add interest faster.

Know how that rebalances that, that that's always their argument. So if you have a comment, I know Aiden's in the room. The, the, the, the bullshit traders got his hand up. Let me hear from you guys.

So my thinking on that is, you know, it's, it's.

And uh, our money system's broken. You said it yesterday. I mean we're printing, printing money and stuff like that. It's it's it doesn't instill confidence and in in the people who who are using it.

So I think.

You know it, that's that's what this whole thing is, is come coming down to. It is you know what's, what's the rules for our money if we're going to be the global reserve currency. We've got to have some you know some kind of rules or expectation, you know of what's fair game.

And you know right now the dollar I mean I I'm I'm out of country I'm in Taiwan you know I I've been in Japan and and I I've been noticing the exchange rate per for for international dollars is is down by over 25% in a lot of these places that just last year they had you know 30% gain. So that means that everything that you're buying is you know 25 to 30%.

Cheaper if you hold a U.S. dollar.

Well, I, you know, I I think it's, it's just crazy. And I've been talking to people here and they're saying, yeah, you know, they're feeling it over here too. I was talking with the gentleman from Korea and he, and he was saying, you know, this, this is this is affecting the whole world and I'm, I'm kind of seeing it.

And so I I really think that's, you know what, what?

We we have to come to an agreement about if we want to, if we want to, you know, make some serious movement, we got to figure out, you know, what's fair. And I think that's why the blockchain and Bitcoin is becoming so popular because they, even though it's not decentralized, it's more decentralized than, than what we've got.

Which seems unfair. And then I always.

Um, and then?

Everybody on.

Also just wanna say, you know everybody hit that bottom, that blue little button in the bottom, hit the retweet. Follow the people in the room. They're awesome. If you, if you comment on these posts that are up top, it helps everybody on Twitter see see what we're doing here where that that post where grant tagged Elon Musk. Go in there and tag Elon Musk. If we all go tag him he's going to go comment and we can go change some really you know make some really cool.

Did it happen? But Yep. Thanks Grant for for hosting these and then anybody else wants to go. You know, this is a great conversation.

Station hey Grant, if you don't mind me asking. And I took down the last.

Yeah, not and I took down the last poll. Guys, if you could vote on this new one, it's because I took the other one down because it was basically had the same answer. Like they're doing too much and they're doing terrible things. So there was no way to for the other side to vote. So I changed that poll and just put it back up.

Awesome. So I wanted to let everybody know that Twitter spaces, I know we have some clubhouse guests is a little bit different than clubhouse. We have a limited stage. We can't fill the stage with 1000 people. So what we're doing is we're giving people an opportunity to speak, to meet Grant and then we're going to cycle people through as quickly as we can so that everybody gets a few minutes to spend speaking with Grant. So if you're done speaking, if you want to jump down, that helps us greatly

For our next hand, let's go ahead and go to Nick. How's it going?

Hey, great. Thank you very much. And just a just to ask a question with bull, maybe with Grant and how because you know Grant did his world tour, he probably saw different countries with it, but.

Building on what Bull was saying, the peso to the Mexico from the beginning year was about 22, which I thought was super manipulative, but it was at 22 to the to the peso, the dollar to the peso. Today it's at 19.7, so it's definitely dropped down as well. Speaking to what you're talking about there, but to be honest with you, I can remember just when I move, when I came, when you know, whenever my family and I came back to the states 1012 years ago, I couldn't remember when the peso was.

When it was $10 to $1.00 and we already printed $22 trillion since then. So I'm not sure how it's even 19 to the peso right now. But on that, on that note, not just in Taiwan, but also.

So, so Nick, let me understand this.

You your your dollar, your peso is is gotten stronger or weaker?

Yeah.

Slightly, yeah.

Well, this year it's gotten weaker, but yeah, in the last 10 years it's gotten, in the last 10 years it's gotten weaker and weaker and then this year it's actually gotten a little stronger. I should say. I'm sorry by about what you know, whatever that is down to 19. Yeah.

So somebody sent me an e-mail today and said Vietnam was paying 7% CD's.

But what they didn't tell me what their dollar was worth.

I mean, has it been hijacked?

Much less.

Yeah.

Oh yeah. Oh yeah. It's worth 2027% less than it was four years ago.

Yeah, so if it's worth 1/4 less.

So 1,000,000.

But you're earning more interest, so $1,000,000 is worth 750.

But you're earning three times more interest.

I'm just trying to figure out what's better, right? Like, would I rather pay 450,000 for a house?

At 3% or would I rather pay $410,000 for a house?

And pay 7%, I think I'd rather pay the higher price.

Higher price. Hey, Grant, can I ask you that question on that? In this instance, would either one of them be a huge loss for you, especially if you're holding the property? Because I mean in my opinion maybe I'm wrong, but I see this looking a lot like, you know, kind of like Mexico 94 where eventually we're going to see we're going to get to a point where a dollar where zero has to drop off on the dollar, but we're going to see inflation on properties which you know, in Mexico like you can't, y

But, but don't you, I didn't think you could finance anything down there?

Yeah, you can finance 20% down at the beginning of the year was 20% down. You could finance at about 7, seven and a half, yeah, so.

Yeah. So all my buddies that are buying a Cabo that they they all.

It's like, dude, there's no financing capability in Mexico. It's all cash.

Now there's a there's a merit called American. I think it's American real estate bank or something like that, they'll do.

Well, they're, they'll do FDIC, they're they'll do 20% down. You just have to pay. It's definitely a higher interest what's basically what it is now, back then it would seem super high, but it's probably.

Yeah. So what are the rates down there?

I'm not sure actually on that with that one right now, but today it's gotta be. If it was seven and 1/2 at the beginning of the year or the end of last year, it's got to be 10% now.

Well, what's the point though, Nick? I'm not sure I understand the point.

You understand the point where I was asking with the question with it is do you lose anyone on real estate because with regards to pricing of houses?

Yeah, so.

Yeah, what happens?

I'm sure maybe you agree that the price on how on especially multifamily or commercial prices on properties in general probably increase so you're obviously what you're paying happens isn't going to.

Yeah, yeah. What happens is.

When the rate goes up.

The new buyer coming in.

Can no longer afford that price.

So remember you make an interest rate payment every month for 360 months. If it's on a 30 year loan, you pay for the price one time.

So I know guys are like, dude, this this is not gonna hurt wealthy investors with a lot of money. The guys with a lot of money are going to just wait for the pain to set in.

OK. And they're gonna be like, OK, it's gonna basically.

Make it impossible for the average person to stretch into that house, because most people buy more than they can afford.

So.

Again, a $480,000 loan today because of rates, because that person won't be qualified. They would normally have to put 20% down. The 5% loans are they're, they're virtually done, they're gone right now.

The 5% down loans, so you're going to have to put 20% down on a $480,000 house, that's 96,000 bucks.

Less than 5% of America has 96 grand sitting around #1 #2. Your payment on that house is gonna now be $27156 a month before.

The PMI if PMI kicks in.

They'll probably be forced to do something on it.

You'll get a fixed rate at probably 7%, maybe six and a half, 7% depending on your credit. If you got bad credit, that interest rate is going to probably be 9 1/2 now that now that now that payment goes to $3000 a month, so.

You know, if the guy can't afford it, what happens if the public if the large majority of people can't afford it? Those people all walk away from that deal, so that price has to either come down.

That's where the market starts making the market starts determining who can buy what. This is the unfairness in our system.

But what's really unfair about the system is the retail end user of that home that was going to live in and raise their kids there because of the schools or whatever. They're just literally going to be priced out because of interest rates, not because of price. They're being interest rated out of the market and a big, big fat daddy is going to walk in. Somebody would, you know, they're probably just been saving their money for years, putting it away, investing it, or possibly an institution is g

Hundreds or thousands or 10s of thousands of homes pay cash for them. This is what Blackstone did when Miami crashed back in 2008.

They came in and bought thousands of condos, paid cash.

Fill them with runners, wait until interest rates settle down. I don't know how many of you know this story. I think they bought 10,000 units in this town, not 1000, and then paid for them in cash. Filled them with runners, waited till they had the income flow, then took them, turn them into bonds, sold them to Grandma's, walked away with all their cash. And they have their income.

And and that's, that's who's going to get crushed this time, the system's whacked.

And and moving interest rates up only squeezes out the little guys, not the big guys, because the big guys just sit and wait.

Can I can I touch on this grant?

And, and thanks again, man.

Yeah, please, please. You guys just come in whenever you want.

Alright, awesome man. First of all, I appreciate it. Thank you for having me up here again. And second of all, so you know, I've been trading in the market for over 10 years. My wife's been a realtor for over three years. And you know, the biggest thing we say is no one man should have as much power as Jerome Powell. And that's the unfortunate thing about this market right now and the way the Fed is treating money. The problem is it's not the amount of money that was printed, it's what the money

It's not being used for the right use cases and that's the reason why we have such high inflation and why we're in a mild recession right now. They did not take that printed money and put it into the right spots. So what that does is it causes high inflation, it makes the dollar and people like, I'm telling you all, look it up, do your research, but it makes the dollar too powerful.

And when the dollars too powerful, not only does it create inflation inside of our own country, but it inflates the rest of the world. Because at the end of the day, it doesn't matter how anybody wants to look at this situation, the American dollar is the strongest currency on the face of the planet. That will never change. And the fact that that will never change and we become too powerful in the dollar sense, it kind of affects world inflation in world.

The economic crisis right now, through war, in throw printing money, throw all this.

So, so bullish Trader, help help me walk through so I can go. I was in France. France becomes cheaper to me, am I right?

Yes, yes, yes.

But, but, but it becomes more expensive to the French and to all the people in Europe and and and in that region. Am I correct on that? So we just walk through a little practical here?

Yes, yes, Sir. Yes, Sir.

But that's what I'm saying.

So how did they inflate their prices? Can't keep going up. Their prices are going to come down for Europe to continue to support it or they they freeze the country up. But I get.

Yeah.

The power of the dollar is going up, and the power of everybody else's currency is going up as well in the middle of inflation.

Ha ha.

You see what I'm saying? Big when you're measuring, not.

No, no, no. How did how does the pound go up while the dollar went up the the pound went down?

And I'm asking.

I mean, it depends on what country, it depends on what country you're in and what the economic standpoint is in that country. But majority of the people that rely on the American dollar for their currency to stay either strong or weak are the ones that are being affected the most.

OK. So what does that have? So how does that affect us here at home though?

It's not about affecting us here at home. It's about world inflation that everybody's talking about. Everybody's.

Where? Where do you live?

I'm in South Carolina.

Yeah. So I mean do you do you care about Singapore right now?

Not technically, no.

OK, so what's going on in South Carolina? Like, what's going on? I'm just saying, bro. Like, fuck, man. I got to feed my family. I've been to Singapore once. Nelson, you've been over there, right?

Yeah, yeah.

Well, as as a.

It's like as.

When I got there, I read the rules. I'm like OK, no chewing gum, no spitting, but fucking place was expensive as fuck.

Well, you know, being in a, you know, sitting in the stock market every day, five days a week, I kind of like have to.

Measure everything world economy wise because it affects the market right?

Ohh, you're an elitist. That's what it is.

Ohh wow.

That that almost feels good coming from Grant Cardone.

Liking all that Bitcoin, man.

This guy, this guy's a Wall Street elitist, man. That's what he is.

That sounds good. Coming from Grant Cardone, that I can't lie.

Got our clip that?

Yeah, yeah, yeah. Trim that or whatever they.

Hey, Grant, can I jump in?

Yeah, go ahead.

It.

Yeah, I know. Hey Oscar, really quick Sigmund had his hand up, but he has to jump out in 8 minutes. So we'll go to Sigmund and then you Oscar.

Sure.

Appreciate it. Cool. Yeah, I just wanted to jump in with what bullish traders said again and Greg couldn't. Yeah, great to speak to again. I saw you on the round table today. It was great to see. And one thing I just wanted to kind of touch on and step back is, is looking at like the macroeconomic trends and just like the global economy because although it may be like seemed as oversimplifying it, at the end of the day, money is literally just a vector for transferring value from one party to an

They basically deflates everything else in terms of or dilutes everything else in terms of value, which is the massive problem we're facing now. And I think in terms of the macro sense, the the issue that we're seeing is that the government and the Fed had really two choices. He had the choice to either protect the US dollar as like the global standard since Nixon took us off the gold standard in 1973 or they could basically protect the stock market by continuing to pump down dollars and just ha

The government fed is worried about the ultimate control that they have in terms of the global economy. The choice is very simple and that's why we're seeing so many. We're seeing so much interest rates hikes because at the end of the day you have to protect that, that standard, that world standard, especially when you have other countries that would, you know, love to take it from you at any single chance they get. So that's just my two cents. In terms of what's happening with the interest rate

And can't wait to see what that lens, too. But we want to get other people thoughtful.

Well, good. Hey.

Thank you for saying that more professionally. I'm a degenerate, so I can't really.

Because we said them.

They did it. When you're ready to make your move in multifamily, let me know if I can help you. So, you know, putting funds together can buy much bigger deals.

So in bigger deals, bigger deals and better locations always go up when this thing reverses.

Good.

Let's do it. I I bought 5 houses. I started in real estate a year ago. I bought 5 houses within around six months and then I had to to cool it because the interest rates. I think I locked in like 2.97 somewhere around there averaging and now it's like 5 up here. I'm in Canada.

So so now look, look at, look at the problem that creates you will you will not trade those homes for 10 years because of your debt.

Those homes won't trade, so they come out of the marketplace. That's something nobody's talking about. There are literally millions of homes in America that were bought locked in on 2.5 two .8. A lot of smart Americans out there locked that debt up for 10 years. The housing market depends on people trading up in their homes when interest rate goes to 7 1/2%. If you want to go to a bigger home, you cannot make sense of it.

Exactly.

And so all that up trading will stop.

I I know three top builders that have already stopped completely stopped all building of single family homes in America.

Complete stop. That's going to affect construction workers, cement and and guys, you know, all this inflation talk, I mean, I don't understand all this stuff. It's so complicated. I'm like, wait a minute, I can't understand. I'm not a dumb person. I'm not the smartest person in the world, but I'm not dumb. And when I can't make sense of it, I'm like, OK, what's the lie? What's the lie on the line?

That that this has become such a complicated issue because.

The lie is they're trying to say that we are not in a recession when we've been in one for the last four or five months. That's the lie.

Exactly.

Agree 100% there's one of them. There's one lot, and where there's one lot, there's always two lies. The salesman never gives you one lie.

There'll be a series of them.

Hmm.

You'll.

Exactly.

For.

They're trying to preach to you on every Fed meeting that no, we're coming for a soft landing, soft landing, soft landing. Well, why is the poor homeless and middle class poor now in the richest, just richer. There's no soft landing. They're waiting to break. That's that's what they're waiting for. They're waiting for the economy to completely break, and that's when they'll pivot.

You you own nothing and be happy.

For the purpose? For the purpose? For whose benefit and what purpose?

I mean, come on, man, you know you're you. It's Phil. Pockets full a bunch of money.

And I just want to jump in on there like it's the, it's the notion of grants of this history. You will own nothing and you will be happy. And that's the entire ideology that people are trying to preach. Because at the end of the day, there are companies, organizations and institutions that will sweep up all of the real estate and then they will rent it out to everyone that they've sold this ideology to. It's as simple as that.

Said it.

Thank you, Sigmund. I'm glad you're here. I I wanted to just say thanks for coming by. Also, I hope everyone gets a chance to meet with Grant. We have over 25 hands up if you can tweet. Hashtag. What's up, Grant with a selfie? Say hello, show him where you're at. Take show him where you're at right now. And then that way he can scroll through the hashtag. What's up, grant? And see everybody that's tuned into his space. I think we'll toss it to the next hand. Oscar. I promised it to you. So what'

Thanks again, grant.

Thank you. Hey, thank you for hosting this grant. So really quickly to to add to what the gentleman before me was saying because I think it's spot on. I think the big push by the Federal Reserve grant, why the year, why they're trying to raise rates is because other countries like China, they hold so much government bonds that literally the more the inflation keeps going up, it's worth less. So the Federal Reserve is trying to to maintain some level of credibility on the world stage.

Which is why they're raising rates to calm down the inflation. The problem though is that's the supply side is what's is what needs improvement. It's not so much the the demand side, it's the supply side. And in the 80s, the early 80s, Paul Volcker, who was a then Fed chairman, he was able to bring down inflation. I think inflation back then was.

Upwards of 10%.

He he he was or was not able.

He was. He was Paul Volcker was. So if you read on Jerome.

What was it? Was it raising of interest rates that did it or was it just time?

It was. It was, yeah, it was. So Jerome Powell has publicly stated, I think in a book that Paul Volcker was one of his heroes. So he's essentially channeling inspiration from him, which is what he's what he's doing.

Yeah, but so, so if the interest rates go up and we have $32 trillion worth of debt, what did that do to the debt at the government level?

Well, the let me, let me touch on debt. The problem with the debt is no other countries at this moment in time are willing to buy it from America. That's also keeping us inflated longer than we should be like we should have been out of this bear market two months ago.

OK so, so, so explain to me then why, why, why did the 10 year?

Drop in the last two months.

Because the Fed came on and said.

And if they if they're willing, if they're not, but excuse me, but if they're not willing to buy it.

If they're not willing to buy treasury bills, the rates would have gone up, and they didn't.

The.

It went down because of the news, the news saying that, oh, we're going to do a soft landing.

No, not well, bro. Bro, that's not what controls prices. News doesn't control prices because supply and demand controls prices. If there's no buyers, the rate will keep going up. And if they?

Oh.

That's why I didn't mean the news. I meant the Federal Reserve. Sorry. I meant when the Federal Reserve has been speaking, they're trying to pitch to America that they're trying to have this soft landing come in right there. There's no soft landing. We are going to crash so hard next year is going to be horrible for people that didn't buckle up for for what's coming, you know? And it's the fact that no one wants to buy America's debt. We're so inflated. We have so much debt that it and it's it,

The actual percentage of inflation sits. It's not the worst America has ever seen, but it's the worst America has ever seen. I know it's weird to say that, but like, that's just kind of how it is.

OK, this week goes down. Bitcoins probably flatter down.

Stock markets down.

Like, where's all the inflation? You guys tell me where all this inflation is?

Yeah, please. Thank you.

Grant, uh, I'd like to answer you know contribute a bit here into the conversation. I managed to holding company and hedge fund here in New York City and we had a meeting today with my teams. And essentially you know we look at all this data internally and I'm going to give you the exact answers what, why, the reasons why, what's happening the 10 year yields everything and it's two reasons it one of it is called the the Belt Rd initiative and the other.

One is called bricks currency. And so I'm gonna break down the reasons why this is all happening and essentially the the main fundamental reason is to protect the strength of the US dollar. So there is right now if you look up bricks currency stands for five very powerful economies coming together to dethrone the US dollar. Those five economies are Brazil, Russia, India, China and South Africa, which stands for the acronym bricks all of those.

Countries have actually been buying gold reserves before COVID. If you look at the rate of purchasing of gold reserves all the way back to since 2011, you see that all of these five economies have been purchasing gold at at staggering rates that we've never seen before. They all agreed in 2019. This is before COVID to essentially develop bricks, which again the the countries are Brazil, Russia, India, China and South Africa. They are developing and backing their bricks currency to be backed by m

Precious metals, including gold, and that's why they've been allocating a lot of the reserves to gold that also includes silver and lithium, essentially not, not not only to mention moscovium and other very precious metals that Russia has that are essentially part of.

Element 115 and the periodic table. Moscovium is a very precious metal that has to do with nuclear activity. Anyways, Long story short, when you have these five economies creating their own currency that's backed by metal, essentially you, you have a threat to the US economy. And on top of that, the second reason that I mentioned is the Belt Rd initiative. Now the Belt Rd initiative, if you haven't been following what's been going on for the last two years, but wrote initiatives essentially.

What we call one belt Rd essentially a global infrastructure strategy that's been adopted by the Chinese since 2013 and they've invested in 150 countries. So China essentially owns and controls 150 trade routes. This belt Rd initiative essentially is is one that can destroy the United States economy when you have.

How many, how many trade routes do we control?

Well, essentially we don't have 150 countries and under our control and that's why if you're listening greatly to Ray Dalio, Ray Dalio essentially measures the strength of the military as one of the biggest contributing factors to the strength of the US dollar, right. So if you have China with one belt Rd initiative essentially controlling 150 countries and then you have bricks currency being backed by by metals, you have a huge threat to the US dollar and the only way to.

Protect the strength of the dollar and the purchasing power is to do something that called QT. And QT stands for quantitative tightening. So quantitative tightening actually extinguishes U.S. dollars. It actually deletes them from the M2 supply. What happens is essentially through the process is the Federal Reserve. Currently their balance sheet is.

Bro, bro, I thought you. I thought you were gonna explain this to us like you. I'm gonna have to go back to clubhouse so I can understand what people are talking about.

She.

Alright, I will, I will. I will simplify. I'll simplify it.

Hey man, talking over my head too, bro.

Sorry, I apologize.

It.

So, so, so bro, bring it, bring it, bring it back, bring it back bro. Like let's you going 95 miles an hour like bring it back to like a 12 mile an hour pace.

And it in grant in a Christian.

Yeah.

12 mile an hour. I will, I will. So, so, essentially, uh, Grant.

Because because guys, for everybody in the room, like, let, let me just. I just want to say this for everybody in the room. Like, I started reading Barrons about 40 years ago. Barron's newspaper came out every week. That's back when newspapers were in. I didn't understand any of the symbols, none of the jargon.

And my brother told me, hey bro, just stay with it until you understand it.

Absolutely.

Absolutely.

So I'm just asking you to back it off so everybody in the room can understand not only what you're saying, but how, how they can, how they can benefit from the information going forward in 2023. Because there's got to be an opportunity where there's a horse, there's shit, and where there's shit there's a horsey, you know?

So, so quantitative tightening is essentially they're, they're extinguishing the US dollar. So they're actually bringing down the M $2.00 supply of the available dollars. They're bringing it down. When you bring it down, they want to make sure that the entire balance sheet of the Federal Reserve matches 20% of GDP, which would be 5.1 trillion. Right now we're at 8.5 trillion. That would actually take about three years on average to get it from 8.5 to 5.1. So essentially we could be looking at a

That, that, that, that's a 40% drop. You're saying a 40% destruction of dollars?

Yeah.

No, they're Federal Reserve balance sheet needs to compress and bring it down to equivalent of 20% of GDP. So their balance sheet has to match 20.

Yeah, but but from 8 from 8.5 billion or 8.5 trillion, right?

To to 5 trillion.

OK.

Yeah.

Thrilling, 8.5 trillion has to come down to 5.1. That's what the Federal Reserve Committee has said multiple times. We like to they they said our balance sheet has to be 20% of GDP. But essentially to get there, that means it'll take about on average. If you do, we do forecasting models of that. On average that would actually take three years. So if you if they have.

Yeah.

Yeah, OK. But, but let me just ask you one other question. So that's $3 trillion, which is 40% of the total.

Total dollars out there right now, now, or our obligation?

Correct.

If GDP goes to zero, which I believe it's at right now.

Wouldn't, wouldn't, wouldn't that percentage have to go up, I mean.

Well, well.

There is no GDP is falling.

Right. Essentially, so we we have to essentially continue the strength of the US dollar that's that's the priority and you do that through the military and you do that through through essentially not allowing bricks to overtake the US dollar and that's why they're moving heavily with the CBDC which is the Central bank digital currency because essentially it can deplete a lot of that the power that exists in the cryptocurrency markets into back into the hands of the Federal Reserve, right. So ess

Said OK how does this affect people? What are we gonna see? So essentially we can all agree that yes next year is going to be it's going to be pretty nasty. It's going to be challenging for for everyone. But essentially over the long term, right. We cannot allow China or especially BRICS currency as I mentioned those five economies that are backing back by gold and by all all these minerals. We cannot allow another economy to destroy us right. We still need to be the dominating power for the for

If you look at the grand scheme of things in order for the United States to continue to prosper we need to sometimes take a little drawback, right. We need to take a little heat. We need to take those punches to the face so that we can prosper in the long term and and and prosperity for everyone looks looks different right. So essentially for for the middle class and low class obviously there there needs to be a higher level of education right. And so there's a lot of material and courses I know

You sell and so essentially there has to be a.

But, but, but how's how? With the House being probably the number one place for people to store money and gain or add value long term over 20 or 30 years to their asset class, it's predominantly their only asset. How? How?

How does the deflating?

Of the price of a home and making it impossible to actually ever own one.

You can keep it simple, stupid. It makes people not want to come to America.

Keep it, keep it simple, stupid. It makes it makes the American dream not the American dream. It makes the China dream now. It makes the Australian dream. It makes the Thailand dream the Dubai dream.

See, we the country was founded on in Christian. I'm sorry for cutting off, but the country is founded on the American dream. So what's happening is the we're losing the power of the American dream. That's basically what he's saying. So the fact that we're losing the power of the American dream, we're not getting the amount of people that used to want to live here. Now they don't want to be here anymore because they see what's going on with this economy. It's not strong anymore. So when you don'

To quote UN quote get their American dream who's gonna buy real estate? Who's gonna you gonna keep selling it to the same echo chamber in the next 1020 years?

Just that's kind of like keep it simple stupid sorry cushion.

No worries, no worries. Thanks for your confirmation.

Hey, hey, hey. Hey, Christian. Let me ask you a question. So what I heard from you is that so?

Introduce yourself, guys. When you come up, introduce yourself, alright?

Nobody knows you, man.

Hey hey Grant it's it's it's Ryan Secco. I just I I heard all that that Christian said. Oh, thank you.

I just.

Come in here busting in interrupting people, man.

Yeah.

So look thank you. Thank you for all the laughs. I really appreciate that. No, Christian, I I really think that you were saying you know a lot of great data and man this room grant here is so great. When I look up Christian you know the the the Federal Reserve printed 13 trillion in 2021. Am I hearing you correctly? So they printed 13 trillion. Now they want it all back. Is that what you're saying?

So through the process of quantitative tightening they actually extinguish some of those dollars back. So they essentially sell their treasuries that they have on their balance sheets. Treasuries are essentially mortgage-backed securities, MBS, RMBS which would be residential mortgage-backed securities and CMBS commercial mortgage-backed securities. So the Federal Reserve has all of them on their balance sheet and they want to get rid of it. So they'll sell it to their partner banks which is the

Uh, Wells Fargo. And so essentially they'll, they'll, they'll, they'll get all this cash out of all the banks and the Federal Reserve rather than buying more treasuries with it, they'll essentially extinguish and actually literally delete U.S. dollars from the M2 supply. And so when you delete M2 supply, and that's what's actually happening. And right now it's happening at around $72 billion a month, $72 billion a month. You know, forecasted into the future would be three years to try to get us

Of the Fed's balance sheet, so yes.

Yeah.

In Christian in Christian, in Christian just just just so I like cause because I I like this so so when you when you see this QT happening how does that affect so how will that affect America but also how will that affect lending.

That would absolutely affect lending on the on all parts. Obviously you know for the long term we will see rates going up where it could, it could get as ugly as 10 / 10 percent, 12% for sure. But essentially they, they, they're, they're aware that there's, you know, it's going to hurt the economy. They're aware that that actually hurts elections. You know, politicians want to stay in power for you know, get reelected and so if they can't sell you on that next, next idea that the economy is grea

So they need to figure out what is what is what is best for them.

Christian, are you are you a gambling man? Are you a gambling man?

I might gamble I am not a gambler now. No, Sir.

Yeah. Well, OK. How confident are you that we'll get to 10% interest rates?

How confident? Uh. I would say I would say I probably upwards of 80% probability.

Where? Where do you live? Where do you live?

I live in New York.

OK, I'll tell you what.

Yes, Sir.

I feel a bit coming on here.

What what period of time do you think we get to 1010 to 12?

Yeah.

1012 uh.

I would probably put it sometime.

Probably around the summer of next year.

OK, I'll bet you.

We're gonna see, we're gonna need to see the unemployment rate get out of 4%. Right now it's at 3.7.

I'll bet you. I'll bet you June. June is summer time in New York, and so it so it is in Miami. I'll bet you dinner wherever you wanna go.

For you and your loved one, I'll bet you dinner that we don't hit 10% mortgage rates.

That we don't. OK, alright, that sounds like a great deal.

I think.

We don't by June, June 1.

Sounds like a great.

And and you gotta buy me dinner for me and my wife if if you're wrong. And I gotta buy you dinner for you and your wife if you're right.

That that sounds like a great bet.

Chris, Christian, I'm on your same level, but what I think they're gonna do and this is.

Hey man, can I finish my bet, bro? Trying to make some money here.

Ohh my bad.

I've gotta stamp it.

God damn man, I can't just be here supporting Elon and Twitter spaces and not pick up some change.

Grant yeah, what? What else do you want to add? What else do you wanna add?

No, no, that's good. But like like I'm reading some of the comments, here's Cory Thompson. It's probably a good bet for you because he just refinanced his home. Cory, I'm reading the chat here guys. Cory Thompson refinanced his home at 9% on a 15 year arm.

Here's a young young entrepreneur in the mortgage industry, Saint Clair, saying, I'm learning so much here. Chris Christie Solis says the Fed raising rates is a wrong move. Monetary policy isn't turd, a tool turd used to curb demand by raising?

Prices.

Of Labor, but it's not raising the prices of Labor guys and capital investment, it's lowering capital investment. It's not doing what you're saying. This is meant to drive up all supply side momentum.

Like you're killing, you're killing interest and.

People asking Elon to join, so I appreciate your comments in here, but.

Absolutely.

All it's doing is putting the end user out of the market because people that have money, people that have money are going to go buy these assets. And I'm talking for myself, I mean we're, we're, we, we just created distress fund, Ron Secos, my partner at Cardone Capital, we raised what did we raise Ron 64, we were $40 million over subscribed on a $70 million purchase.

OK.

Nobody. Nobody would buy the asset class. Nobody was there. So the price keeps going down. That's the marketplace doing that. So we went in and paid cash. And there's always going to be somebody with enough cash, whether it's an Elon or a Bill Gates or a Blackstone or they're people. The people that have money are going to walk in and buy these great assets.

And I believe personally believe that in every town and little small city in America, you guys will all have this opportunity to buy a great real estate for probably 20 or 30% below what it is at today that that will in 18 to 24 months go back to where it was. So the Fed's not actually controlling inflation if I have a big dip.

All the power players walk in, grab it, and then it goes back up again.

So.

Correct.

It in in Grant.

Yeah.

Yeah.

It's like one of those buy fears or sell greed situations is exactly what it would be.

Well it yeah in grant I think I think a lot of the times we get on here and we talk about this is only going to impact the little guy or the middle class guy where you and me are seeing it's actually impacting these big institutions where you know they went and put this short term debt or floating rate debt. You know to your point in Scottsdale we bought it from a large institution and they had to sell and and we're hearing now on the on the street that you know big groups like Blackstone like o

So they're blowing up and they're walking away from either hard money or they need to sell just because they have. Yeah, go.

Sure.

But right. But Ryan, tell him, tell him the other thing that you, you heard about some of the paper those big groups and we're not using the specific name because they could be here listening, but some of their loan agreements are not tell them about how they're not like the average loan agreements.

Will, will they get so big that they're able to negotiate different terms and so, you know, being very, you know, specific, you know, we, we, we have.

Not not just on interest rates and payments, but you're talking about on things like if there was a cataclysmic or, you know, apocalyptic collapse.

Yeah.

Right. Right and and just your standard cash flow test right like all of us were were accountable and we we we have to hold you know maintain cash flow. Some of these large institutions they've negotiated through the paper and the repair and the relending where where they don't have any of these different covenants but with all that said they're we're all buying the same deals. And so I think that I know there's a lot of headlines and negativity you know I I back you grant where it's 12.

2436 months, I think there's a lot of opportunity in what Christian and what everybody's up here saying, especially in the real estate market because the debt is the biggest driver on valuations. And so when we look at it over the next six months or eight months or 12 months, values will come down. So your basis will be phenomenal. Your cash flow will still relatively be the same because if your debt is 6 and your caps is 6, your cap rate, but your basis is so much lower, so you have a lot more

So I I think I think you know the silver lining with the interest rates in in them pulling back the money is that we're going to be able to go and buy in, partner in in in buy assets like we did in Scottsdale for a discount and and then yeah.

Yeah. And if, yeah, and if you look at what Ryan's talking about, like if you, if you study where like the big groups, the Black Stones entered the real estate market, they were never in real estate the way they are today until 2010.

Hey.

So.

They started making moves in the last 12 years. They made massive moves into this cash flow generating activity and and in many other spaces to be honest. Like that had nothing to do with real estate just because they raised so much money and so much money was printed. So this is a great conversation guys. I'm going to try to do this every night. Make sure you take a moment to join the room. How do they do that, Nelson? How do they join this room or get a notification at least if you like it.

Guys so click on.

Grant did. Did you listen the other night to dudes like pre?

One second, my brother. One second man, one second. So guys, I need everybody to do this right now. Please look at the top left all the way at the top, top left of the page. That's grants profile. Go ahead and tap his profile, follow Grant. And when you follow Grant, you're going to have an alert. It's like a bell. Click it and turn all your notifications for grant. So every time he opens these rooms, you get an alert and you're able to jump in as soon as possible. So everybody in here, please d

And and yeah, and.

I'm going to also want.

All green card down and go ahead and turn on notifications.

Nelson really quick with Twitter spaces. Every day or every day that grants gonna go live, he'll tweet a link to the Twitter space and you're going to click set reminder on that space to make sure you get that notification.

Yeah. And then when you hear somebody on stage or look around, I mean, I'm gonna do this stage because I want you guys to do stuff together. Like we need to pull together and do business together, not just.

So when you hear somebody, man, reach out to them. Make sure you follow. Make sure you follow the people that are contributing here. This is not just for me. It's for you guys and for us to start figuring out how we can do stuff together. So in 2023, we're stronger together as a force than we are as individuals by ourselves. Nelson apega. Me and him been hanging out in rooms for years. David's really got me. He's been David. David. How do you pronounce your last name, dude?

It's Harris.

To hear it shot, you need to fix that man.

That.

Great. How you gonna fix his last name?

They they they've David's been encouraged me to use spaces for a long time. Malley's been here last couple nights. A lot of people, tremendous amount of intelligence in this room. I've never seen this many check marks on Twitter. I don't know how you guys got all your damn check marks.

$8.00 a month baby.

Oh, is that they give you one when you pay now.

Yes, Sir.

Yeah, well, that's cool.

Well, not anymore. Not anymore.

So ever got lucky? Got lucky?

I'm so excited, grant, for for you to be able to search that hashtag. What's up grant? And see all the beautiful faces of people that are here. And then also it sounds like you want us all to connect, so everyone in the audience go ahead and search that hashtag. What's up Grant as well, and connect with each other.

And, and, you know, there's a lot of people on Twitter that they only follow like 6 people. I don't know who they think they are, that they're that special. But I follow a lot of people. So you guys want to, you know, I want to follow you guys. But I got baby whale. I'm following baby whale shark right now just because I like his name and his profile. So, you know, I want to do business with people. I'd like to have as many followers as I have followers. So.

Let's bring it, OK, and raise your hand if you want to speak. Get in the queue by hitting that little request button and we'll get you hooked up again, thank you guys for being here.

Discussing the Fed.

Crazy up. What's up? Crazy.

Hi, how's it going? Hi Grant, it's a pleasure to meet. You know, I'm really happy to be up here. I'll look up to you a lot. Um, I guess like you obviously asked us to do a quick introduction, so I thought a quick introduction to me. My name is Josh. I'm 19 years old. I'm an entrepreneur from London. I've been into the crypto space for around two 2 1/2 years now and I found that a few companies in Web 3. So I guess my question is and I apologize if it isn't too related to the Fed because you know

How do you manage your time with all your different ventures and the workload? You know, obviously because I run a few businesses and I'm trying to trade as well and done every day. So I'm just wondering if you had any tips. Obviously you're the CEO of card on Capital Enterprises. You're also a public figure. So yeah, how do you sort of manage your time and your workload?

Yeah. Well, it's a great question. I, you know, what I do is I try to create time.

I don't try to manage it, so that really was a big change for me.

Not thinking about how to manage stuff, I don't. I don't really want to be a manager. I hate managing activities. I've never met a, you know, manager that was.

Managers don't. You can't get Rich being a manager. Nobody's ever said I got Rich being a manager. So I try to create time creators get rich creators solve problems, and and then I create time to do the things that I want to do. Like, one thing I like doing is I like mixing it up with people. I like meeting people I like.

I like here. I like when like Christiana, this is super smart dude starts explaining stuff and I don't understand it.

You know, I, when I was growing up and I was in school, I couldn't, I couldn't stop the teacher. I tried to, but they wouldn't let me do it. They sent me to the principal. Now I can stop people and say, hey, she explained to me what the hell you talking about? I don't understand it. So. And I can only do that with people. I like people and I like seeing other people be successful. When you guys get successful, it encourages me to get successful. So more successful, whatever. So that's how I do i

Do stuff I don't wanna do.

Yeah, yeah, definitely. Because I think.

You know, there's a lot of times I gotta do something. I don't wanna do it, but but I don't do stuff that I'm no good at.

And and that I don't like to do. And that there's no return on. Yeah.

Hmm.

Definitely, yeah. Because yeah, I think I've noticed it's quite a problem for me because I'll be doing maybe 14-15 hours of work a day and I'll still realise I've got more work to do.

You bragging or complaining?

Yeah.

It's a bit of both, man, but but yeah, I think obviously.

I remember, I remember when I used to work 15 days and I was part time.

Yeah, man, I don't know. I really, I really enjoy it. I really enjoy what I'm doing. But I do notice, especially my.

Yeah, you heard what I said though, right?

Sorry, what did you say?

I said I remember when I was, you know, part time.

And complain about it.

Yeah.

No man, I'm yeah. I'm lucky though because I still love my mum so I've got a lot of time on my hands, haven't got too many expenses.

But yeah, I think it's just a case of trying to like, like you say, sort of manage your time better and create.

Time, yeah.

No, no. Create your time. Quit managing it. Create time and move out. Move out from your mom, bro, you need to get out on your own now.

Yeah, definitely. Definitely.

Don't, don't. You don't need to manage your expenses either. You need to go create income.

Yeah.

You need you need to go. Come live with me a little. I'll turn you into a God damn beast.

Let's go. Let's go.

Grant.

Ohh bro I'd love to. I'll be your in time for you any day. Just hit me hit me up in Twitter DMS man I'll.

Definitely.

I've got to know it. Pardon capital. Do you have employees sleeping on mattresses under their desks like Elon does at Twitter?

No, but me and Ryan have me and Ryan have done that. We don't ask the employees to do that.

I'm still at the office right now. I think I'm gonna blow my blow up mattress.

Right, Ryan, you've done that.

Of course.

Love it.

OK, let's keep the conversation going, guys.

Thanks Chris for stopping by. Don, I see you have your hands up. What's up, Don?

Don, your mic is muted. Brother, your mic is muted.

Gotta unmute.

Yo, I can't, I I don't think grants coming through with me so I can't really hear them, but I just wanted to throw my two cents. I worked pretty heavily in the single family space and kind of wanted to touch on like the the funds buying and kind of the Fed relating back to that topic. Can you guys hear me OK?

Yep, we.

Yeah, I can hear you.

Loud and clear.

Alright. Um, so yeah, I mean we, we sell pretty much anywhere from like 50 to to 60 properties every single month here in Texas and I worked pretty heavy on the on the data side of it, just try to find and track like who's buying property and who's not buying property. But basically what I'm seeing is since the first rate hike in.

Like late June, early July obviously we know like I mean hedge funds been buying between hedge funds and I buyers, I mean there's like a significant difference between the two.

And the big one is a lot of a lot of people pay attention to the eye buyers like you know, you know like brain fart here. But yeah, you have the eye buyers and hedge funds. But basically what I'm seeing is there's 20% less LLC's that are actually purchasing deeds in the state of Texas. But if you subtract the I buyers and actual hedge funds, there's actually more inventory or there's more buyers on the market just from the retail standpoint. So if we, if we pay attention to kind of what the purp

Goal is of raising interest rates was obviously to hedge inflation. But I mean the reality is like, I mean the cost of real estate was just skyrocketing month over month. So it's it's really interesting to see now with the interest rates going up. But pretty much you know all the major quote UN quote New York hedge funds that you know aren't really buying on notes or having to fix and flip. They're just holding them as rentals like who knows when they're going to actually sell but I mean the rea

Well, actually, actually, actually that's not true. That's not true most.

Excuse me, OK.

Which is crazy to think about because you know hedge funds are are are scooping out 30 to 40% of the properties and you know now they have like a like a huge control.

So, so actually we neutered you bro, because you couldn't hear what I was telling you actually the hedge funds have to sell, they don't have a choice. And if any of you that work for a fund, you can tell me if I'm wrong on this, but most of these funds have guidance or what's it called, Ron, what's their working like their agreement to their investors, there's some agreement, there's some time, time horizon three to five years.

Like their bylaws.

Yeah.

Yeah, their bylaws, their bylaws to the investors. OK. And.

When you say they don't have to sell, the truth is their investors expect that to be able to get out of the deal at some point in the future. Now we we also have a fund, we're on our 23rd fund.

I think 23rd to 22, right?

22.

Yep.

2020 Second fund and we we have a 1010 year horizon for the very, very.

Example that you're setting right now, we don't want to have to sell when things are bad. We want to make money, we want to wait till the till we want to sell. Not when some bylaw said, Oh yeah Mitt, right in the middle of COVID you need to sell your property because we had a three-year horizon promising to the investor.

Which no one can possibly predict in three to five years what's what the market's going to be.

So or whether they'll be buyers or money or opportunity or whatever. So these guys have to sell, brother. They don't have a choice. Those assets will be coming up.

And.

You know all real estate has not inflated.

In every city in America, the way, the way a lot of people suggested that if you go to Singapore, I think there was somebody from Singapore here earlier than Singapore and Sydney, Australia.

They make our prices look like nothing.

In in some of the markets that we're in.

Yeah.

Yeah in in Grant you know he he was mentioning I buyers what I think he meant was like these instant buyers like open door they're they're a company that will just make offers on these homes if you look at their stock right.

Well, so.

But there are. Aren't they already out of the market right now? Haven't they already tapped out?

Yeah, yeah. So, so they're they're they're doing uh, cuts of staff and everything else. But they're they're they're stock is down right now over 80% in the last six months. And so I would predict if they're not already out right now, it's going to be like they're not going to even be in the game. They're not going to be in the space anymore. So you know, I don't know what was named Don or who was asking and I don't think he could hear you for some reason Grant, but I I think, I think I think the

Or more of the end users for now because open door, I mean literally 80% in the last six months, they have no working capital to continue to buy these homes.

Yeah. Don wants to speak. Thank you, Ryan. Appreciate that input.

Go ahead, guys.

Done. Back up here. Here we go.

John, you can speak now if you want to unmute your mic.

Hey, yeah, sorry, I was like a Twitter glitch. You on fire all the developers. So it's still kind of glitchy but basically I was getting at is you, you got, I mean I'm just going to shoot it straight. I mean you have Jewish hedge funds, Jewish hedge funds, you know they work, they play a little bit different than the bars. These people are coming in scooping up single family homes and they're plan is to never sell. They're just going to keep them as rental properties. So they literally capitaliz

So it's interesting when you when you pay attention to them because people think of head institutional buyers as eye buyers like open door, I mean the the Jewish hedge funds they're they're coming in and playing a completely different ball game you know what I mean? So basically what I was getting at is you know these, these, these you know hedge funds.

Did, did, did they, did they put that they didn't use cash. They if they did in the last two years they did it because it was cheap money. So and they wouldn't do that on fixed debt, they wouldn't do that on long term fixed debt. So they must have done it on adjustable, right?

I mean, grant, I'm, I'm I'm tracking it man. And these these headphones are different. Basically what my what I'm thinking is, you know call me a.

You know, a conspiracy theorist or what have you, but I really think, you know, these hedge funds came into the market to play so they can have control over it. Like, you know, the other markets that they have control over.

Yeah, I mean.

Oh, you think they want it? You think you think they want all this because they're like, hey, we want to deprive the end user from buying so we can buy more. And by the way, I'm not attaching this to any particular community.

Yeah, well, I mean.

Because I don't wanna be. I don't wanna be labeled anything anti.

Yeah.

Yeah, me either. I'm not anti anything. I mean I I just feel like we we all just got out money to be honest, you know and now these hedge funds, they own 30% of the properties. They're not relisting them, they're not fixing flipping them, they're just holding them as rentals and you know like literally these wholesalers that we are competing against in which we never really sold to these big institutional buyers, they all went out of business because that's the only people that are buying to the

Across the country, they're all unemployed right now. Nobody can sell their properties unless it's like a mom and pop investor or, you know, fix and flipper or landlord. And the institutional buyers are still buying. Now they're just changing what they're buying instead of paying overage.

Hey.

Yeah.

John Ledger is in the building.

Ohh OK OK.

No, but are they, bro? They're not buying. They're not. They're not buying, bro. That activity, the activity in the market is off by at least 80%. You got to get up. You got to get a handle on your kid too, bro. Hey, John Najarian is in the room. I don't know if you guys can find him. I can't see him down there, but he hit me with a text. But in cope, no. John Najarian from CNBC, you know, it's written a bunch of financial books. I'd love his hit on it.

Can you, John, can you hear me so that I can invite you up here, please? Thank you.

Uh, but, but I'm just saying to you, man, like that, that's not true.

That the hedge funds.

Or buying.

I'm telling you, I promise you, I'm in this space every day.

The activity is off, Brian. What do you think it's off?

Uh, huh.

I agree with you. I think it's I mean in the multifamily space that's probably higher than that because everything seized up. The only sellers right now are the guys who have built merchant meaning they built it to sell. But a lot of the single family homes, the people are locked into their current deal because they don't want to go and get a new home, but the new loan. So you know the, the, the space that we're in Grant specifically literally we had, I had somebody in my office today they said

They they, they said they did 3 billion best year they've ever had and it was all done in the first four months of the year and they've done nothing since then.

I don't. I mean, I don't know what part of the country you and Don, maybe I need to come to where you are.

Uh.

Hmm.

Hmm.

Yeah.

Alright, so basically I work with single family homes in Texas. The type of properties that these are buying their single family homes, they aren't using any type of federal money. There's no balloon payments, there's no nothing. They're just holding them as rental properties, literally just holding them. They're not transferring them to a different entity. They're not refinancing. It's a different type of money. You see what I'm saying? So.

I'm telling you.

So when you talk, how much volume you talking about though? You talking about a handful of houses or?

Yeah. I mean, they were literally buying 30% of the inventory that was available on the market. They were literally buying houses for retail value and you could buy it for retail.

I know you're talking about last year, Don. You're talking about last quarter of last year.

OK.

Uh, huh.

Talking about in June and July and then in June and July, the first rate hike, they stopped buying completely. They just completely shut off. Now what we're starting to see is these same entities are starting to buy properties again now that people can't, you know?

Yeah, yeah. Well, I I believe that. I, I believe that there at some point they're going to go back in and start buying stuff. And I believe every American, everybody in this Twitter space is right now. You guys should be prepping for that to buy.

I agree.

Like as many pieces of real estate as you can.

Yeah, it's, it's like basically what I'm getting at is, you know, the recession that most people think that we're in, you know, people aren't out here broke as fuck. Starving people can still pay their bills.

Yeah.

Yeah.

You know, people still have jobs for the most part. It's just interest rates just went up. You know, the qualifications to get bank loans is a little bit different, you know what I mean? So basically what I'm getting at.

Yeah, but you, you don't think anything's changed, but rates, you don't think, you don't think there's going to be unemployment?

Yeah.

Right.

Yeah.

Yeah.

I well, of course, I believe there's unemployment. I mean real estate within itself. And I mean backs like I mean call it 80 different industries, so of course there's gonna be unemployment, but it's a different type of recession. It's very controlled obviously since it's Fed controlling the rates, you know, it's different when somebody's controlling the rates versus, hey, people are just flat out without jobs, you know what I mean? So when, when it's in a position, when we're in a position wher

I guess it's it's important for all of us to pay attention to this and take advantage of it, especially in the market that we're in.

How much? How much real estate do you own?

OK.

A couple million, not anything like you, grant.

Let's go, bro.

I'm getting there though.

Let's go. OK, let's move this around. Let's move this conversation around so guys, watch when you come up and talk. Somebody's probably going to remove you as a speaker so we can bring some other people up. Please don't be offended, we're begging Elon Musk to open this thing up so we could have 304050 speakers up here. At the same time, I like the chaos, so appreciate everybody giving, you know, giving your angle on this thing.

100% guys. Let's keep it rocking and rolling. Logan, you wanna jump in?

Hey, what's up guys? Uh, my name is Logan. I'm from Tulsa, OK.

God damn bro, you in the bathroom or something? What's going on?

Hold on one second.

Hey, you're the auditorium.

Alright, let.

Can you hear me better now?

Oh Lord.

Hello.

Jesus Lord.

OK is getting worse, bro. You got to echo, man. You and an echo chamber. You're going to agree with that last dude.

You better now.

Yeah, sure. Go ahead, man.

OK, sorry about my audio. I don't know what's going on, um.

Are you on air pods?

Hello.

No, I'm just straight on my phone.

OK.

Um, but I'm from Tulsa, OK, um.

I'm not like.

I hope you got something good to say.

Yeah, I mean, maybe, but I'm not as smart as, uh, most of these people on this panel. After listening, I feel like I need to go into a doomsday bunker for the most part. But no, I just kind of wanted to throw in my my opinion on the real estate market.

Right now, I think if you're flipping, uh, single family or small multifamily or multifamily in general.

Um, you need to add like a wow factor right now because I don't think people are shopping by the price anymore. They're shopping by how much their payments are. So like the wow factor. I mean, as soon as they walk into a house, they think wow, you know, and, and I'm even seeing that in my rentals right now, just this month, a report just came out in Tulsa, a vacancy is up 68%.

On the month, which is like a crazy number.

Well, how much is it?

68%.

Vacancy is 68%.

Yeah, yeah, vacancy.

So.

On what houses or apartments?

Uh, yeah, single family houses and.

Uh, well, what happened, bro? What happened?

I think, I think, he said up 68%.

No. What did you say, Sir? I didn't understand that.

Oh, oh.

OK.

Yeah, vacancy is up 68% this month in Tulsa. Yeah. But I'm just saying that that kind of points to the fact that even in your rentals you need to start adding wow factors because you know, it's not like four months ago when the rental market was on fire and you could rent a unit for for whatever you wanted to and.

Right. So you guys understand that for vacancy, what that would mean is let's say they had a 5% vacancy.

And if vacancy goes up 7 percent, 70%.

That means vacancy would go from 5% to 8 1/2%.

So don't nobody write an article tomorrow that vacancies 68%. It just means that vacancy went from 5% to 8% or 9092% occupied.

Right, right.

That, that could be, that could be because of new product coming on new inventory, it could have nothing to do with any of this interest rate conversation.

You.

It's almost like that Cajun math grant.

Yeah, I just. Yeah, I just. The headlines are always awful, but you know, most people don't break them down.

Right. Yeah. And I think, uh.

Agreed.

Yep.

The syndicators are going to really struggle over. The are probably struggling right now, the ones that that we're creating and quote value add by just acquiring properties and raising the rents and now they're caught with their pants down.

100% agree with that.

Yeah, there's there's some pretty nasty examples of that right now that I've been hearing about.

Yeah. What do you, what do you, what do you buy exactly?

I buy single family in small multifamily.

Yeah, yeah. Well, that's great, man. Look, he just, he just showed you guys an opportunity right there. He's saying syndicators, people that raise money to do a value add on an apartment or single family home, and they were going to flip it. Those guys are going to get caught. They're going to get trapped.

The banks are going to call their loans and you guys can step in and take those deals out. I'm telling you, it's going to be millions of these situations around America.

And.

Yeah.

Yeah.

Wow. Wow.

Yeah. And just, uh, to add to that, grant. Uh, I think there's a big opportunity in the single family in small multifamily space right now. Right now I'm literally just throwing offers, dude, like. And then just to give you guys an example, I offered on a 110K asking price today. Their first counter came back at 85. Ki offered 77, so they dropped the price 25 on the 1st initial counter. Like, people are going to start bleeding here pretty soon.

Wow. And what would that rent for, brother? What? What would that rent for Echo man?

I'm sorry that it's echoing it would rent for.

It's alright. What will that rent for though?

1500.

Oh my God, you're paying 88, you're paying 85,000 in rent for 1500.

Yeah, Yep.

Nelson, we need to go down there and buy all the Tulsa.

Yeah.

That's a fact.

OK.

Hey, Grant, Grant hit.

I don't think they've ever seen a Nigerian in Tulsa, by the way, Nelson.

Thank you.

That's why I gotta go with you, man. You and Ryan.

OK.

You can go with me bro. I know my way around, bro.

Let's do it.

Hey Grant, hit me up if you want to partner in Tulsa, Bro.

Yeah, well, I need to buy it, but I want to come by three or 400 units at one time.

Yeah, I mean, I'm just trying to learn the game from you, so.

Yeah. So once you or you and my club.

Uh, I don't believe so.

Are you coming to my December event?

Uh, no, when you're December event.

Let me, let me see, let me. Can somebody put this up there? Grantcardone.com/CH.

I got you.

$5000 ticket for 500 bucks. I'm doing 3 days in December. I think it's the 141516.

It's grant 161718.

161718.

OK. I don't even know the dates. Three days, it's all real estate. It's all real estate investors, real estate brokers, guys that already have inventory, guys that are wanting to get in the game that that and they'll be with me for three days. I do the entire 3 days.

It's a fantastic way to get around a bunch of money and a bunch of other investors and guys that want to do deals. I do two of those a year. The next one after this is like June and next year. So if you guys can come, that's a suit. That's the only place you can get that price. You can't get it on my website. It's 497 for all three days and it's a $5000 seat.

OK, what was the URL again?

Grantcardone.com/CH.

I'm getting it pinned in one second.

OK. Thanks guys.

Yeah. Thank you, bro. I appreciate you.

Yeah, absolutely, man.

Appreciate you being here. Appreciate the input. See, that's why I love these rooms, because, man, I could connect with a guy like I'll meet somebody in here, that, that, that, that could change my life.

OK. You couldn't do this, could do this five or six years ago. Thank you, Elon.

This room would have been shut down.

12 weeks ago I was talking shit about the bed.

Thank you, Elon.

Ohh hell yeah.

Most likely.

No shit. Yeah, 100% OK, take it away, guys.

Guys, let's keep it rocking and rolling, Christian.

You don't have to raise your hand in this room, just rip.

Just rock'n'roll, Christian. What's going on my brother?

Hey, Nelson, how are you? Good to hear you.

I'm doing good, man. Let's talk about it.

Let's talk about it. What do you wanna know?

God damn you raise your hand bro. Let's go.

Let's go.

Yeah.

That's it.

Yeah, Christian, I wanna know who you are. I want you to tweet. Use hashtag. What's up, grant? Tell us who you are. So Grant can scroll that hashtag and meet everybody. And so I can see who you are too. And so everyone in this room can see who you are.

Absolutely, yes. So I managed a hedge fund out in New York City and so I was telling you before, you know those two reasons why all of this chaos is happening with the US dollar is just the Belt Rd initiative. I encourage you guys to look it up and the bricks currency, they're backing that new currency backing by all metals, right. So the US doesn't want to fall behind, right. They need the strength of the US dollar to continue and hopefully you know have a prosperous economy for the next 50 yea

Right. And so um for those of you that perhaps are still looking to you know buy real estate, but these rates won't allow you obviously seller finance everything, nearly everything you can get your hands on, you know just off market seller finance and ideally hopefully buy some businesses as well. A lot of baby boomers are exiting the market. They don't want to, you know, there's a plumbing business that's doing $11 million a year or something or $4 million a year or some some construction compa

Buy a business from baby Boomer seller, finance a thing, create cash flow right? So that's that's what I would recommend.

Yes.

I agree with that 100% Man 100, there's going to be millions. There's 3034 million small businesses in America. 2/3 of them break even.

Or lose money.

Exactly and.

And those guys are going to tap out in this cycle, but he just told you guys you should be looking at this year is not starting a new business but buying an existing one.

An existing one. Exactly and.

Literally stepping in you, we did a deal, Christian. We did a deal late last year, mid last year and we basically agreed to give the guy $1,000,000.

To take over the company, but the $1,000,000 gets paid out of the earnings once we took the company over.

Nice, amazing deal.

And and we're 90% owner of the company now and it went from making 250 grand a month to four million a month already.

Yeah.

Beautiful. Beautiful. Yeah, exactly. Yeah. Buying distressed assets, right. We call that essentially activism activist investor in the hedge fund space where you're an activist, you, you can squeeze out value from an asset you acquired that's being mismanaged, right. And that's what that's what a lot of you know the car icons and the bill Ackman's of the world do. So essentially you can do that in a small scale. There's going to be you know more than $30 trillion of of wealth being transferred f

Disease with the average paycheck being $177,000 is the average wealth transfer and that has to do with either 41 case or personal residence. And so thus you know what, what do you do with say the average is 170,000, what do you do with that? Well that would be your down payment on a business that it's, it's, it's essentially worth say call it a million, right, or making $1,000,000 in revenue. So that would be the best way to survive the next two years or however long it takes for the Fed to do

Uh with inflation and and their M2 extinguishing of money supply. Uh, but essentially, you know, I think, I think you know it's still a lot of if you look at the data, a lot of good opportunities always come from recessionary times, right. So despite the sort of negative perspectives in the environment we're in, we still have to be optimists in in this world, right. We still need to find opportunity whereas alpha where can we generate alpha where, where can we generate tremendous opportunity for

For families and hopefully for many generations to come, right. And Speaking of generations, most wealth is actually destroyed obviously to taxes and the passage of wealth to the next generation. And so you have to start planning, you know, creating a revocable and revocable trusts essentially to to plan for those wealth transfers, right. So if your parents are baby boomers, they have a business.

You're going deep, bro. You're going deep again, bro. You go. You're going deep.

Hmm.

Exactly. If if your parents are essentially have a business or you're acquiring a business, what is the long term advantage of that right? How can I have my family benefit and can I can I put this in revocable trust that can secure the cash?

These guys in New York, Nelson, huh? They can throw down, can't they?

Yeah.

Ohh God.

Shit. These fucking guys, these guys, man.

Yeah.

Yeah.

Yeah.

Yeah. And and and you know, uh, I don't know if you've heard of this grant, but uh, there's such thing as cash flow insurance, you've probably heard of it where you can sit, you can ensure the cash flow of a trust. So if your trust is generating X amount of earnings, you know, and you're going to pass this down to your kids and your grandchildren, you, you want to make sure that trust has a a Chief Investment officer and the board and essentially insurance policies that can guarantee returns and

OK man, stop it. You gotta stop now, man. You gotta stop now. God damn, I'm gonna. I'm gonna want to buy some God damn life insurance here in a second.

Jesus Christ, OK.

Hit him. Hit it. Ring it out. Ring it out. Come on, Nelson. Take control. Nelson, stop being. Come on.

Oh God.

Oh, my pleasure, my pleasure.

OK. Hey, I appreciate you being here, Christian. I look forward to meeting you, man. You're a smart dude. I look forward to getting hooked up with you.

Yeah, let's, uh, let's touch base in June, hopefully in the summer in New York.

OK help help me grow. I need some help growing bro. Appreciate you.

Aye.

That sounds good. That sounds a little gross together.

Yeah, no.

Ohh no.