The Jon Sanchez Show
09/19-Is it time to add to your real estate portfolio?
What's next? At Moss Adams, that question inspires us to help people and their businesses strategically define and claim their future. As one of America's leading accounting, consulting, and wealth management firms, our collaborative approach creates solutions for your unique business needs. We leverage industry-focused insights with the collective technical resources of our firm to elevate your performance. Uncover opportunity, and move upward at MossAtoms.com. Good Thursday afternoon to you, and welcome to the John Sanchez Show on Newstalk 780K, which it's a pleasure to be with you and a pleasure to be with my co-host around the horn we will travel to wipe my lard of, of course, a synergy. When lending. Hey to my friend. I'm doing fantastic, John. You gotta be smiling today, my friend. Absolutely. Absolutely. Smiling and whiplash and everything else. Oh, my gosh. What a crazy. I think I get to say the crave later, right? You do. You do. Absolutely. Well, you know what? Let's just do it right now. Dwight, what kind of day was it today? Another record setting day. Exactly. Not for one, but for two of the major averages, the Dow and the S&P 500. There you go. I like when you get to tell us that. Absolutely. I'd like to say that. How's the whips? How's the whipsaw session been for you? Oh, fantastic. Right. Kind of what we warned about, right, we'll get into it, but it kind of what we warned about, you know, why mess with something that's working, but, you know, we'll see. Yeah. It's interesting. People will be surprised we got a little uptick, right? Yeah, and I want to have you and I explain why that happened because I know a lot of people are very confused how, you know, bond yields and mortgage rates can climb when the Fed just gave us a half a percent cut yesterday. So yeah, we will start things off with that discussion here momentarily. Mr. Corey Edge of Edge Realty, he's not affected by these day-to-day, minute-by-minute moves like Dwight and I are. So he's always in a good mood. Hi, are you, my friend? I'm doing good. I do sit back and watch and think of you guys, so you're always on my mind. Yeah, over a nice, over a nice cold beverage, you get to sit back and laugh at us as what you get to do. Yeah. Yeah. It'd be you. I'd be you. All right. Well, welcome everybody. Let me tell you what we have lined up for you this afternoon. We're going to, of course, go through today's stock market rally. It was a post-fed cut rally to say the least, like I said, a record-setting day for the Dow and the S&P 500. I'll give you all the details behind it why it happened, why we actually had an increase, as I said a moment ago, in bond yields and mortgage rates. Then we're going to get into our topic. Okay, folks, as I told you on the show last night, the world has changed from a financial standpoint after yesterday's Fed decision to cut interest rates by half a percent. The world changed after Jerome Powell basically said, "Everything is great. All the signs of recession, labor markets, fine, inflation is coming down." You know, I'm surprised he didn't conclude things by saying, "You know, I'm going to head off to the beach for a few months because things are that good," according to the chairman. Again, quite surprising. So therefore, what we're going to do for you this evening is this. We are going to help you identify the right economic conditions to buy more real estate because it involves you understanding a number of factors that influence the real estate market. And now that we have this new world of lower rates and rates potentially going lower based upon what Mr. Powell had to say and what the bond markets, telegraphing, et cetera, is it time to add to your real estate portfolio? We're not going to focus so much on those of you looking to buy a home for the first time or move up. I want to focus more so, guys, on, again, those that want to either get into the real estate investment game or add to their existing portfolio. So we're going to play a little monopoly with your money. Corey, we've got a lot of great indicators, I guess, we should talk about or that we will talk about. But overall, I want to start with you before I get to the stock market recap. What did yesterday's half a percent cut mean to you as a real estate broker and then do I? Obviously, I'm going to throw the same question to you. Honestly, it really didn't mean much to me. You guys will get into why you have a half a percent cut and mortgage rates went up because it's already factored in the market. So what's happened over the past 30 to 60 days, I think means a lot, but I don't know that yesterday's no action in and of itself, not much because the market's already factored in and the buyers are already getting the benefit of the market's anticipation of what happened yesterday. Maybe it's too soon to ask you this question, but do you anticipate your phone to ring more now that the public is aware of an interest rate cut, meaning those that happen on the sidelines to start going or do you think it's been low enough as it is? No, I think you have some buyers that may start creeping off, but I think we'll talk about a little bit too. And they mentioned it on some of the shows today, you are going to have those buyers that say, well, I did it this time. What are they going to do next time and maybe I shouldn't sit in the way? So, you know, it can work in both directions, but overall, yes, the activity will, you know, maybe it gets a little stronger, but at minimum, it remains strong. It's not going to dissuade anybody. There you go. There you go. And, you know, as I was joking with my wife today, you know, we're, well, let's see, October and over. Yeah, we're essentially three months. You know, give or take a few days away from Christmas. So, you know, like you've always said, Corey, the seasonality side of things, of course, comes into play, you know, whether it starts to change and holidays approach and so on so forth. So, yeah, it'll be interesting to get your perspective on that. All right. Let's get to the stock. Well, actually, Dwight, let me let's throw that question over to you. How has this changed? Well, I think, like you said, it brought attention and then there's anticipation of additional rate cuts and the hope that rates would settle down even lower than what we're sitting at. But then the other thing I think, too, is for those that have whether this storm, you might see a little more reef and ass activity coming back into the into play here. So, you know, it can mean a lot to the individual loan officer out there that's working hard and, you know, whether the storm, like they did, no 809, you know, to pay dividends if they go on to an interest. But I, John, I missed the show last night, so I have to ask you a question. Do you really believe inflation is under control? You know, all I can do, of course, is like everybody, Dwight, is go off the data that the government presents and, you know, whether you believe in it or not, it is what the market moves off of. I would say yes, you know, again, this is the difference between, I'll call it, Wall Street inflation and real life inflation. I've yet to find one client or one friend or even my wife saying, hey, you know, I went to the grocery store and I noticed things are a lot cheaper today than they were a month ago or even six months ago. I hear absolutely the opposite. So again, real life inflation, yeah, I don't know. But, you know, Wall Street doesn't pay attention, of course, to, you know, what the Sanchez family or the Mallard family or the Edge family is paying at, you know, Rayleigh's or their favorite grocery store, they pay attention to the data. And so, like, Chair Powell said yesterday, the data looks good, inflation is coming down. He's, you know, pegging it 2.2, 2.3 right around there. Not far from the mandate, even though I think it's going to be really tough unless we get some type of economic shock to hit the 2%. So, you know, many predictions now or you're not going to see 2% till maybe 2025, even 2026 some predictions are. So, you know, again, Dwight, to your point, it's real life versus Wall Street inflation and, you know, the street, obviously, trades off of the Wall Street inflation numbers. Yeah. Yeah. How about you? Well, I mean, I agree with your wife, your clients, I mean, I'm not seeing anything come down. And it stirs the conspiracy theory that this is political, which is looking apolitical, you know, entity, you know, you start to hear it and see it, you know, and read it. But I just, you know, I was convinced, and maybe maybe I'm just a little bit chapped that I wasn't right, but I was convinced it was going to be a cool. I thought it was going to be a cool. Oh, you need me both. You need me both. Yeah. I thought for sure the quarter was some favorable commentary that would open the door for, you know, additional quarters and quarters. But, you know, I just, I, some of the commentary, I just don't know that I specifically agree. But I understand what you're saying because of the business environment sees things different than my personal environment. Sure. Sure. Yeah. I can see Wall Street going, okay, hey, this is way better than it's been. And so here we're going to rally on it. Yeah. Yeah. Well, and as we'll talk about here in a moment, it wasn't just a half a percent cut. It was also the outlook, right? As Corey reminded everybody so diligently on Tuesday, you know, this is a meeting with the dot plot, right? This is where the Fed members get to, you know, as always like to say, I visualize them, you know, they have this little piece of paper that Powell just ripped off of the notebook paper. And they get to write down where they think rates are going, then they put it in a big black hat and then they make them, I know they obviously, you know, it's much different than that. But that's the way I always like to visualize it to give myself a laugh. But yeah, that's what this meeting was also is the dot plot where the members get to predict where they think personally where rates are going and the consensus, of course, is there's going to be more rate cuts and, you know, but keep in mind to your point, Dwight, you know, Powell made it very clear that, you know, don't basically don't get used to this, right? Half a percent is not what we want everybody to expect going forward and, of course, we'll be data driven, data dependent, so on so forth. But, you know, basically, you guys got a half a percent, which is what the street wanted. I mean, that's where the Fed futures were showing, but, you know, we don't have a victory on inflation and, you know, we'll, we'll, the streets obviously pricing in, as I said, on the show last night, about one more percent cuts for the rest of the year. Now, it's pretty simple math, there's only two meetings left in the year, so that means each meeting would have to be a half a percent if that, you know, if that prediction is accurate, but again, we've got a long ways to go to the next meeting, which is going to be right after the election, just days after the election. So, it's anybody's guess, but, you know, I think most importantly, we'll explain, you know, why did mortgage rates and bond yields tick up today and yesterday, matter of fact, after this, this Fed cut, so we'll, we'll explain that probably when we come back from the break. But in the meantime, guys, let me go to the stock market side of things today. So, you know, the market had a, had a very strange reaction, as it always does, the day of the Fed meeting. As I mentioned on the show last night, you know, we shot up about 320, 340 points right after the, the Fed made the announcement, and then things began to back down. Chair Powell began his press conference last at about an hour, and when it was all said and done, you know, we finished down 103 points on the Dow yesterday. So it was really hard to figure, to Dwight's point, what this market was going to do today. Now, people could have said exactly as Dwight said, this was, this is politically driven, meaning the half a percent cut. Jesus, the economy, really that great second point, Dwight, just made so eloquently, you know, there could be arguments on both sides of it, but I'm telling you guys, the algorithms kicked in this morning, and, you know, things weren't all that spectacular in the pre-market. We spent, you know, most of the pre-market up, you know, but, well, matter of fact, my first report, I'm looking at my notes today, we're at 486 at the first report, next report we're up of 481, right before the close, we're up 445, but, you know, we opened up strong, but then we sold off really quickly, and I'm like, okay, here we go. You know, they're going to, they're not happy with this, and, you know, what they're not happy with, I don't know, but then we reversed, and boy, what a day we ended up having. I'll have all the details of what this market did, the record setting day, well, very return. Let's turn it over to Jack Saban, he's got traffic for us, and, of course, the right now, traffic center. Hey, Jack. Welcome back to the John Sanchez Show on his talk, 780KOH, with a Koryage of Adjurility, a white molard of Synergy One lending. All right, as we said at the beginning of the show, it was a record setting day for the Dow, and the S&P 500, how'd we do? How about these numbers, 522 point gain on the Dow, up 1.26 percent, closing at 42,025. Nasdaq surging 441 points, 2.51 percent, closing at 18,013, and the S&P again, they're 94.0, 1.7 percent, finished the day at 5,713, again, record setting session there. All right, let's go over to the commodity side, and then we're going to get to this question. Why, as you'll hear in a moment from Dwight, why yields rose today, as well as mortgage rates. Oil prices, a 1.8 percent gain, nothing staggering, 71.08 a barrel. Good day for gold, 16 dollar rise, a 2006, 1460, and Dwight, a five basis point increase on the teenier treasury, 3.74 percent yield. All right, not a huge move, but again, a yield up, just like yesterday, mortgage rates, it's all you. Yeah, so if you remember, on Tuesday, we were 6.11, according to mortgage news daily, today we're at 6.17, not a huge movement, but psychologically, here we go, we go up versus down on a bigger than expected fed rate cut. My opinion, John, and you correct me if I'm wrong, because I've said they're faking, the market had already been pricing in the fed's rate cut, so they, I mean, rates have come down at least, what, 100 basis points from six and a quarter, six and a half to five. I mean, they've been coming down pretty good, and then the other thing is I think a lot of people just took money out of the ball and put it in the stock, right? Hey, you may not know, is that sideline money or is that just back and forth, Mike? Well, yes, no, you're absolutely correct on both of those points, and I'm going to throw two more points into add to your list, and that is, just focusing in your world on the mortgage side. Remember, we touched 8 percent as we all know, but you know this, I'm just saying to remind everybody else, we touched 8 percent on the 30-year back in October, so again, here we are at 6.17, so as your correct point, the market already priced this in, and that's why, again, rates have been coming down. Now, the Fed again, as I said earlier, is pricing in a future interest rate cut, so it doesn't mean that we're going to be stuck here in a slowly but surely rising mortgage rate environment to, in my opinion. I think you will probably see before the end of the year, Dwight. I think I'm very confident we're going to break the 6 percent on the 30-year, I really do. Because you've got to remember, too, everybody, for the next, you know, the first 24 to 72 hours after a major Fed decision like this, things are crazy, right? Things are, no one really knows what direction is up at this point. I mean, they just bought everything today. I mean, I'll just give you a quick example, I mean, sales force up $13.32, caterpillar up $18.19, Goldman Sachs up $19.25, Apple up $8.05, right on down the line. You know, again, okay, I can make an argument for the financials to do well, but because there's going to be more borrowing going on and they'll make money. But, you know, tell me why caterpillar should rise, you know, over 5 percent. It makes no sense. And to my point, they just bought everything today. No one wants to be left hold in the bag, plus of course, you know, we only have a few days left in the, in the, in the quarter, and this is going to be the end of the quarter, of course. Everybody wants to make sure they show their clients that they've held some big names in their portfolio and they didn't miss out on the rally. So the next, in my opinion, guys, the next couple days will really be a tell-tale sign if investors are really convinced that the economy is as strong as Powell said it is, that we're going to continue to move forward. And so, like I said, beautiful day today, no doubt about it, but it doesn't mean that we're just going to be a rocket shot straight up. But do I want to add to your list, as I said? So you hit it right on the head, but I want to throw something else. Now, you'd said, you know, investors taking money out of, out of bonds and putting it in the equity market. You know, that theory, I used to use that theory a lot. And nowadays, I don't know how accurate that theory is because I'm going to take you guys and take everybody behind the scenes. Okay, so the real money on Wall Street, the pension plans and the big, big money, the guys and gals that manage billions or hundreds of billions of dollars, they just don't say, "Oh, you know what? I want to have 100% of my clients' money in the stock market or I want 70 or I want 30." They have what are called investment policy statements, which is basically they tell their clients their pension plans, "This is how we're going to manage your money." And usually the pension plans will dictate the investment policy statement, the IPS, saying, "We only want you to at any point have a maximum of, let's say, 60% of the market, 40% into bonds or 70, 30, whatever the ratio may be for that organization." So even when market conditions change as we just experienced, those portfolio managers can't go away from that mandate. They have to adhere to that. Or they'll get fired, plain and simple, because pension plans, they don't care so much about return of your retirement dollars. They just have rules. They have to follow and they pass those rules onto the money managers. So that theory, I think, like I said, I used to use it a lot too. I don't think that is accurate in this world. What I think is more accurate, however, is this. So again, taking everybody behind the scenes, if I'm a major Wall Street bank, pick whatever name you want, and I'm a fixed income trading department, I have an inventory of bonds, you know, depending upon the size of the firm, could be hundreds of millions, if not billions of dollars of bonds. What do I want to do now that I know the Fed just gave us a half a percent cut, now that I know that there's going to be further cuts, whether it's this year, next year, et cetera, we're now beginning to interest rate cut cycle. What's the last thing I want to do, Coriage, if I'm sitting on, let's just say a billion dollars of bonds, do I want to sit on those, do I want to buy more, or do I want to sell them? You're going to sell them. That's right. Exactly. And why do you want to sell them? That's right. Take the profit. And exactly. And the last thing you want to do, remember, if rates are coming down, bond prices, you know, you got to get rid of them, and in most cases, that's what we're seeing happen. And again, Dwight, I think once the dust settles over the next, you know, tomorrow is already Friday. So let's just say into early next week, I think that will be the real telltale sign if that theory is correct. If it's wrong and we see yields continue to climb up, then that's a whole another set of circumstances that the three of us will talk about on Tuesday. But I think right now, guys, I think that's the reason to why you're seeing an edge up. And again, big deal, three basis points or, you know, two basis points increase on the 30-year mortgage really is nothing. But I just wanted to get that point across. And thanks, Dwight, for laying out your list as to the reasons why, because people get very confused. And this is why, folks, we have spent so much time over the last couple months preparing you for this interest rate decision and telling you, look at, remember, this is the Fed funds rate. This is the rates bank charge one another. That's what the Fed cut. We start to see everybody else other types of loans beginning to impact, but we have made it crystal clear, crystal clear to all of you, that the mortgage market does not trade off of what the Fed is doing. They are a bonds. Bonds are going to trade off of future economic data that the traders are anticipating, good or bad, and so on and so forth. Anything else you want to add to that, Dwight, as far as advice to people right now? No, but that goes in line then when we saw rates go up, how bond, you know, the meals went down because everybody was buying the increased bond part, you know, so, you know, it's probably a really, really good explanation as to why, you know, they want to take the profit and dump. So there's probably just a surplus of bonds today and maybe tomorrow and maybe early next week, right? Yep. So they figure this out. And remember what Powell also said in the press conference yesterday, you know, they're still unwinding their balance sheet, right? They're still not going back in and reinvesting, you know, into the bond market as the government treasuries and things that they have purchased in years past come in and they mature. They're not taking those proceeds like they were when rates were significantly lower and going in or, excuse me, they wanted the rates to be lower and they were taking those proceeds and going out and buying more bonds, which was, again, artificially, but it was an economic stimulus to bring those rates down. So the Fed said, look, you know, we're going to continue this unwinding of the balance sheet and that always will put a little bit of pressure on rates also because, you know, they are a big buyer. Are they not Dwight of bonds or sellers? Absolutely. I think they're for the longest time they were the buyer, right? They were the... That's right. You hit it right on then. Exactly. Well, after today's numbers, guys, year to date, we're looking real good. Once again, NASDAQ's up 20% for the year. S&P is up 19.8, Dow's risen 11.5, and the Russell 2000 up 11.1. So we've got some nice momentum. Let's hope it continues. You know, of course, the next big thing the market's going to focus on is third quarter earnings numbers, which will start coming out about the second week of October, which will be here before we know it. But between now and then, you know, kind of light on the economic side of things. I think this is going to be a real test to see if the bears are going to come back in and try to bring this thing down, or if the bulls are going to propel it higher. So next few weeks are going to be really interesting. All right. When we come back, what are the indicators that it's time to begin or add to your investment real estate portfolio? We've got about 10 of them lined up for you. We'll cover that. But first, let's turn it over to Greg Neff. He's got news, traffic and weather. Hey, Greg. Welcome back to the John Sanchez Show on Newstalk 780KOH, with Dwight Mallard of Synergy 1 lending Coriage of Edge Realty, once again, a record setting session for the Dow and the S&P post market or a post Fed cut rally, 522 gain on the Dow of 1.25% closing at 42,025. Nasdaq rose of 441, 2.51% and the S&P gained 95 points or 1.70%. But now it's time to turn the page of the stock market and move over to the real estate. So of course, with a Fed interest rate cut that we just experienced and more in the future, according to the street, now maybe the time. The time you've been waiting for, you've been sitting on the sidelines going, "Man, as soon as these rates start coming down, I'm going to buy my first rental." Or you know what? I need to add to my portfolio of five rentals or a commercial building. I want more. Rates are coming down. But how do I do it? How do I know it's time? How do I know what indicators to look at before I begin adding that? Well, that's what we're going to help you with tonight. So Cori, let's start. Actually, let's start with you, since this is on the rate side, and then we're going to go over to our second point. So our first point tonight, as far as economic indicators, pretty simple. Low interest rate, lower interest rates mean lower borrowing costs, cheaper amount of money to finance, higher cap rates mean in our return on the money, so on and so forth. Yeah. I mean, it's the obvious one that everybody waits for is to get that extra buying power. You know, and as rates go down, it gives you that little extra buying power or gives you that little better rate of return on that investment. So, I mean, you know, it's interesting, John, because the investor treats it just as anybody else would. They move just as rates do. So if you buy a property and it goes down, they're going to reach that. So anybody that actually started to buy a cumulative property when rates were high, they're looking at this as well. So it's a perfect opportunity to take advantage of it. Cori, I was going to move right to point number two, but I want to stay on this point for just a second. You are a real estate investor besides being a broker for all your great clients. So let me ask you this. How important is an environment like we find ourselves in for Cori Edge and his partners right now? Has this changed anything from your standpoint that now it's time to get serious and really start looking at properties or, hey, we've been looking and we've been serious for years. Correct. And so again, in the type of stuff we do, interest rates can be high, that can be low, it can be good market, bad market. We're looking for individual returns on individual deals kind of in any market. And to Dwight's great point, sometimes you find yourself looking at a great deal in a bad environment with high rates, but you know that if we can stay with it, purchase it, stay with it long enough, we can refinance those rates. So marry the property, date the rate works when you're buying a healthy yourself. It also works in the investment world, whether that big investments or small investments, as long as you understand the prepayment penalties in the commercial world to where you can get your hands on a property in a bad environment, but then turn it into a better return down the road when the market works in your direction. So let me ask you a question. Would you rather have, see if I can position this correctly, would you rather buy a good property in a low, in a rising interest rate environment or a bad property in a low interest rate environment? It depends if I can make the bad property good. So it's kind of a, I don't mean this bad, it's kind of a trick question, right? So if you hit the three of us are home builders, we've got a long way to look at things. We're looking at one year, five year, 10 years, we're looking all the way out. If we're just going to buy something and sit on it for one or two years and we have to be really specific on, okay, I got to hit, then we're close to the bottom because I know I'm going to get rid of this thing in one or two years and so I got to do my timing, right? Whereas by the long term horizon, then you're more apt to look for what you think to be a better deal, understanding that over those decades, things will change. You can write finance, you can pay off debt and sell another property and do all these things. And I had an old guy tell me once before, you know, you and I may have talked about this, but he asked me, you know, when was, when is the best time, when was the best time to ever buy property? I don't know, it was 20 years ago and the answer is always, always 20 years ago. And 24, the best time to buy a property, well, it'd be right now if you have a long time horizon. That is brilliant. That is so simple, but so brilliant that you love that, do I, that is a great, that is how you use that like, I've never heard, I can't remember that, that is fantastic. I put that one in front and that same theory can go for the stock market, yeah. Same exact theory, time is your friend when it comes to investments, I love it. No, of course. All right, Corey. So let's move to the, thank you for that. Let's go to the second point, which is we get, I don't want to get technical tonight into cap rates and calculations of, you know, ROI and so on and so forth. But typically you're going to see rents rise when interest rates come down, correct? Correct. And explain why. And so as you're, well, I'm going to get two different markets there, right? So the rents are going to go up through market forces. So we have, right, we have rates going down right now. Regardless what pal did yesterday, seeing in the bond market is starting to get easier. But if you look, really at the rents right now, they are a little bit stagnant, somewhat coming down. And some people might argue with me and you might have different properties of doing different things. But if you look at the overall trend of things, it's not going up as fast as it was and it's stagnant in some areas. So it's, again, you get into a question that's, yeah, in the perfect scenario, that's what happened, but in the scenario, we find ourselves that may not work exactly that way. Well, I think, I mean, you, boy, that's a, that's kind of another trick question on my part because I, as you were explaining that, I would think, okay, let's go even deeper, right? Peel back those layers of the onion even further. Low interest rate environment, good for corporate America, good for small business, good for business in general, regardless of size. If business is good, businesses are going to be hiring. If businesses are hiring, they're going to be paying people pretty good wages because the business is doing well when people have higher wages, they don't care about going out and spending the 15 or $1,600 a month in rent or, you know, in case of a single, you know, one bedroom apartment now or, you know, two or $3,000 a month for a rental because they can afford it. Is that, is that a good logic when it comes to the real estate side? I think it's a great logic and it's, again, as Americans, for the most part, we will spend what we have. So as long as we have it, we'll spend it on rent, movies, cars, whatever it is. It's when we don't have it anymore, that things get tricky or when you start seeing an overbuild of apartments, when you start getting into the supply demand, things are, hey, now everybody's built apartments and they all want $4,000 a month, but there's more apartments and there are renters now. They're going to see some competition to get them down, but to your point, I think it's a great one. If everybody got a 50% raise tomorrow, 50% of their income would be spent probably within a year, right? Right. They don't keep it very long. Right. Right. So we just, actually, that was our third point was job growth and low unemployment, which we have that now, right? So three so far, we've got a low interest rate environment going lower, not historically though, but still it's going lower. We've got rising rent prices in most cases and we have job growth and low unemployment. When we come back, we're going to talk about increasing home prices. Why is this a factor of lower interest rates? Let's wrap it up with Jack Saban in the right not traffic center. Hey, Jack. Welcome back to the John Sanchez show. Mr. Edge, can we get your fun of us all? 673-6700. Do I have the large center to join Lindy, the brand new company that he's just knocking the ball off the cover phone number? 240-2022. Beautiful. All right, guys, let's get back to our topic now, the time to get into investment real estate. Now that rates are starting to come down. So once again, recap, low interest rates, that helps, rising rent prices, that helps. Job growth and low unemployment, definitely a help. Corey, let's lump a .4 and .5 together, increasing home prices and high demand low inventory. They kind of go together. Is that a factor of low interest rates? I think it's a factor of low interest rates, and it has kind of that herd mentality. I've heard a lot of people talking in your world about momentum and momentum and people kind of trading based on momentum. And I think to a certain extent that happens in the real estate market, too, when people see prices going up, they think, "Oh, oh, I better jump on this train." In other words, they'll never be able to afford anything and I feed on it. So I think it's a big factor for sure. No doubt about it. Great point. No doubt about it. Let's go to point number 10, because as usual, we're wrapping out, running out of time very quickly here. Obviously, very basic. Improving lending conditions. Now, I want to give you a little bit of extra time, because I want to go a little bit deeper than just this topic really entails, and what I mean by that, Dwight, is you have shown us almost 20 years you've been on with me, lenders get tight and they get loose with lending standards, right? You as the mortgage professional, you are somewhat a victim of what the money behind you does. Again, you've given us so many scenarios over the years. Hey, this lender's tightening up or this one's getting out of the market or this one's loosening things. They've got some great new programs, et cetera. So, take us behind the scenes right now, as far as the, I guess we'll call it, the lending environment. Not so much rates. We know rates are going down. That's going to help. But let's go behind the scenes a little bit more, as far as the environment. Now that rates are, you know, everyone's convinced, including lenders, rates are coming down. What does that mean? Well, so what we look at a lot, John, as we look at delinquencies, we look at, you know, notice the defaults. The loans are performing very, very well, so therefore, investors and/or agencies are willing to take a little more risk. You start to see the agencies, Danny, Freddie, FHA, Kyle, loosened their guidelines, you know, especially when the environment feels good and solid and safe. The moment it doesn't feel good, solid and safe, they start tightening things down. So you're going to start to see, I believe, a little bit of a movement towards the loosening of some guidelines. You start welcoming lesser down payments, maybe lesser credit scores, you know, to give that person an opportunity. The, you know, when you deal with investment property, it's stayed pretty consistent. However, you used to have to put 25% down to buy an investment property. Now it's 15, right? I mean, now you can give away with a little 15. I wouldn't be surprised that somewhere down the line, there would be an investor. Maybe not necessarily the agencies being fanning free that might even entertain a 10% down investment property for the right profile. So it's a market, I believe, that is it feels safe, it feels safer and more stable. So you'll start to see a little bit more creativity. Excellent explanation, Dwight. Excellent explanation. Corey, I'm going to give you the last word here. What's your advice right now to those, again, our target that we started this show with, with, you know, I want to get into investment real estate and I know it needs to be part of my network strategy, or I want to add to my existing portfolio. Now that we've covered all this. It's always a good time. Just remember what you're looking for, the return you're looking for. If you find it in a good environment or a bad environment, then pull the trigger, keep it long enough. And if you make a mistake, time will heal the mistake. So don't try to time these things. Just look for the property that fits the criteria you want. You are full of wisdom today, Corey. Did you like it? Your wheezer? Just, just give me one of her magical health drinks this morning or something. I love my third cup of coffee. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting John at Sanchez Wealth Management.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer and investment advisor. Member FINRA SIPC, securities only offered in states John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. Synergy One Lending Equal Housing Opportunity, NMLS #1907235, Dwight Mallard, NMLS #241259, phone number 775240222. The information provided today is for educational purposes only. The position strategies or opinions of the show do not necessarily represent the position strategies or opinions of Synergy One Lending or its affiliates. All information loan programs, interest rates, terms and conditions are subject to change without notice. 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