0:00

Today, we're talking about this idea

0:02

that rents and rents have skyrocketed over the

0:04

past couple of years, right? Like they're way up over the

0:06

past few years, especially here in Jacksonville.

0:09

And as investors, that's awesome.

0:13

We have a question of like, how long

0:15

term is that going to happen? How long is that going to go as a

0:17

party? How long is the party going to last? And

0:19

then the other question that not an average investor asks

0:21

is, who's this party good for?

0:24

Who's invited to this party, right? So we're going to just talk

0:26

about how this stuff is happening. Why,

0:28

how long it's going to go, how it'll affect your

0:30

investment. And just as importantly, we're

0:33

going to talk about how this can actually be a good

0:35

thing for the entire community. Welcome

1:54

to the Thursday edition of the not your average investor

1:57

show. I'm your host. Pablo Gonzalez

1:59

with me as always today here next

2:01

to me able to be affected by my fake laugh That's

2:03

true Is the man that I like to call GC because of his genius

2:06

concepts cuz he knows how to generate cash flow Cuz he's

2:08

a great ghost and cuz his name is Greg Cohen.

2:10

Say hello Greg. Hello,

2:11

everybody. Great to be with you

2:12

Hello, everybody. I

2:14

feel like you've started inflecting

2:15

that a little differently I'm going strong with it

2:18

because it's becoming my thing

2:20

Is it because you've been watching Seinfeld and you saw that episode

2:23

where he does that voice?

2:24

Yes. That's a good one. I was going for Mrs. Doubtfire.

2:26

That's what I was, that's what I was choosing.

2:30

Welcome to the show, folks. And if

2:32

you like this type of stuff, being in a room with

2:34

Greg hearing him say hello in

2:36

person and the fake laugh, which I promise

2:39

is better in person, I just found out it is

2:41

then there's something happened on February

2:43

16th and 17th that I think you're going to like.

2:45

What is it? You see

2:46

Uh, yeah, we've got the, uh, Not Your Average

2:48

Investor Summit coming up on February 16th and 17th.

2:51

The great news is that we're having the summit and

2:54

those who are already signed up are going

2:56

to have a ball. It's going to be a fantastic

2:58

event. The slightly bummer news

3:00

is that we're sold out. So, if you haven't

3:03

been able to sign up for it, We're sold

3:05

out right now. But then the little

3:07

bit of sprinkling of good news is

3:10

that we do have a waiting list. And we would highly

3:12

encourage all of you who would like to

3:14

be a part of this event to go to the waiting list.

3:16

And we are doing our darndest to

3:18

make sure that we can accommodate as many as possible.

3:21

so go to the waiting list. Go to JWBSummit.

3:24

com and sign up if you haven't

3:26

signed up for the waiting list yet. And

3:29

there's a lot of information for all of you

3:31

who are coming. Parking, hotels,

3:34

other logistics right there at JWBSUMMIT.

3:37

COM and we can't wait to see you. The thing about

3:39

the waiting lists is that we're trying really

3:41

hard to accommodate in two ways. One

3:43

is how many people can we like expand

3:45

to and you know maybe invite a couple people

3:48

off the waiting list. Two is I'm leaning

3:50

really, really hard on Greg. As

3:52

this waiting list grows, I'm leaning real

3:54

hard on GC over here to have a second

3:56

event. So if it's something that you really want to be a

3:58

part of please don't say, man, it's already

4:00

a winning this. I'm not going to get in help me

4:02

help you by adding a little. Sprinkle

4:05

a little pressure on him right here to, to

4:07

see if we do a second event this year. I'm for

4:09

it. I want to hang out with people as much as possible. It's

4:11

a big lift. It's a big ass for the JWB team.

4:13

So we just got to show them that it's wanted by the people.

4:16

So just come sign up for the waiting list at JWB

4:18

summit. com. And if you've already

4:20

signed up, man, it is only getting cooler

4:22

by the day. The agenda, what we're

4:24

going to talk about, the people that are coming, I'm getting

4:27

really, really excited. I cannot wait. I just got a text

4:29

Lee Bishop saying that he just booked his Airbnb,

4:32

we're going to go grab dinner and blah, blah, blah, blah, blah. So there's

4:34

got to be a lot of cool stuff happening. Hope to see

4:36

everybody there. Jwbsummit.

4:39

com February 16th and

4:41

17th. And when you go,

4:43

you get to answer the age old question. What

4:46

do people look like that

4:48

we call out in what GC?

4:50

The roll call baby. We got the MVP in

4:52

the house. Lee Bishop. Of course you've

4:54

heard of him. You've heard of him. We've got the lead off hitter hitting second

4:56

today. John Henning. John Hen. We got the sha

4:58

man of the community. Nadiem Sha.

5:01

We got our regulars. Gary and Rosalyn

5:03

Riley from Murrieta, California. We

5:05

regard you. We got the Maven in the house.

5:07

Leslie Wilson. Leslie Wilson. We got Mama Bear saying

5:09

Hey everyone. Miss Cody

5:11

Adams. We got Leo. We're back on. Dun dun.

5:15

We

5:15

got the five F's our

5:17

favorite. Flat fee,

5:20

fiduciary, financial advisor,

5:22

friend, the six hefs, Kelly

5:24

Barenbaum in the house. Good to have you. Can't

5:27

wait to see you, Kelly. We got Pamela Meyers. She's

5:29

back from the Seattle area. I think, I think Pamela's

5:31

coming. I don't remember. I hope so.

5:33

I hope so. It's great to see Pamela. She is here,

5:35

I think, each and every single show. So thank you so

5:37

much for being here.

5:38

24 is the year of Pamela. We

5:40

got Joel Wixel in the house from Santa Barbara.

5:42

All right, Joel. You ever been over to Santa Barbara? I have not.

5:44

Oh man, it's so nice. I actually have

5:46

a friend coming to visit. She just texted me

5:49

who used to live in Santa Barbara. I haven't seen her in

5:51

like 20 years and I left to surf in Santa Barbara

5:53

with her. Yeah. But I'm hanging out with her this weekend. Nice. On surfing.

5:55

There we go. Love Santa Barbara. Alright, who else we got?

5:57

And you're the ringmaster. Drew Barnhill. Drew

5:59

Barnhill, Vincent, Barbara Wright from Strong

6:02

Island out

6:02

here. Speaking of another individual,

6:04

making time to be here each and every show. Vincent,

6:06

great to see

6:07

you. Love it. The patron Santos of Northern

6:09

Virginia and the not your average investor show. Michael

6:11

Santos. Michael Santos In the house.

6:14

We got our amigo in the house with a amigos.

6:17

Phil Shields. Phil Shields. Good to have you. We got Big Papa

6:19

now. So we love it when he calls it Big

6:20

Papa. Pops, how are you, man? Good to see

6:22

you. The co founder of the co founder, Jay Cohen. scroll.

6:24

The early bird's here a little late, but he's here. And we'll

6:26

count on it. Dean Curry. Dean

6:27

Curry. 14 days until the summit. I

6:29

love it, baby. He was the first to sign up, as we all know. He's the

6:31

early bird. He's the early bird. He's the early bird. We got Eric.

6:34

Kilo in the house. Ooh, new name. New

6:36

name.

6:36

New name. Welcome to the

6:37

party. All the way from Blooming Prairie, Minnesota.

6:39

That sounds delightful.

6:42

You know, he should say hello to Lita. She's from Minnesota, too. That's

6:44

right. Lita's up in Minnesota, as well. I don't know how close

6:46

to Blooming Prairie. Maybe she's in already Bloomed

6:48

Prairie or Lake or

6:50

something like that, but I'm sure it's a wonderful place.

6:52

It sounds delicious. Scott Richardson in the

6:54

house. All right. Scott Richardson. Is that a new

6:56

name? I think so. I think that's a new name.

6:58

All right, Scott.

6:59

Welcome, welcome, welcome. Welcome to the

7:00

show. Jeff Pettyjohn. Jeff Pettyjohn. Not a new name at all. There

7:02

we go. From Missouri. Sergio Prieto,

7:04

go Gators,

7:05

go Gators, and the Gators had a huge

7:07

win in basketball last night, beat Kentucky on the

7:09

road, go

7:10

Gators. Huge basketball win. Steven

7:12

Chmielewski from Providence, Rhode

7:14

Island. Speaking of people who are putting pressure on

7:16

for a second event, Steven took your advice,

7:18

signed up for the waiting list, and promptly fired

7:20

an email to my team saying, hey,

7:22

I can't be here. For this one, but

7:24

I want to come to the one that's going to happen later in the year. So

7:27

thank you, Stephen, the

7:27

legendary Chmielewski full court press.

7:30

I love it. Stanley Jocelyn in the house is

7:32

back. Stanley the patriarch

7:34

and matriarch of the first family of the Not Your Average Best Show,

7:36

Ken and Carolyn Malin. We salute

7:38

you. The better

7:39

Greg has also checked in. Greg Stone, by

7:41

the way, Greg Stone, the better Greg just added

7:43

new properties to his portfolio. So congratulations

7:46

to the better Greg. That's why they call him

7:47

the better Greg. That's why they call him Greg. Good

7:50

to see you pop up in that new property list, man.

7:52

That's awesome. Reggie Fonse, is

7:54

it Fonse or Fonse?

7:56

You know, I think whichever you

7:58

decide, go strong with it because that's the way it is.

8:01

The stronger I go when I'm wrong, the quicker I get

8:03

a reaction. I'm sure. I remember when I

8:05

used to call Hervé Francois, I'd be like, Hervé

8:09

Francois. Yeah, right. Yeah, yeah. He's like, nah,

8:11

Hervé, bro. Yeah, man. So Reggie, good to have you in the

8:13

house as well. Out of the IE, you

8:15

know what the IE is? No.

8:17

Inland Empire, California, man. That is where

8:19

I first moved out there when I, as a,

8:22

got my job started in Miami. They moved me to

8:24

managing a branch out of Corona

8:27

and then in Riverside. And

8:29

then I moved to Orange County. What do you know? It's a

8:31

beautiful little, the high, it's close to the high desert.

8:33

It's nice out there, man. We got the fairy godmother

8:35

in the house. Miss Jen Pilsen. Miss Jen Pilsen.

8:38

Greetings from Monterey, California, a beautiful

8:40

part of the world. Marty Quinn from

8:42

Golden, Colorado is back. All right, Marty. Good to

8:44

have you, Marty. And, Agnes. Chioma.

8:47

Ooh. Texas. New

8:48

name. New name. Agnes, thank you for

8:50

being here. Welcome to the show, Agnes.

8:52

I hope you make a habit out of it. we got Margaret Smith

8:54

in the house.

8:54

I like that. Oh, it's the, and she asked

8:56

all the questions. What was her name again? Margaret Smith is the Jeopardy Queen.

8:58

The Jeopardy Queen.

8:59

Thank you so much. The Queen of the questions.

9:03

Good to have you. All right, GC. So as

9:05

we start thinking about this, we

9:07

got some breaking

9:08

news. What's the breaking news, GC? We do have some breaking

9:10

news. As you know, it's that time of the month.

9:13

Where we get to distribute rental

9:15

income, net rental income to our

9:17

clients. And it is the most fun

9:19

day of the month for our team. And when

9:21

we do get to send out the funds

9:24

that our clients have earned, we

9:26

send a team email out. We celebrate

9:28

it because we should be celebrating wins like

9:30

this. So I wanted to share. That celebration

9:32

with all of you. this month we

9:34

delivered net rental income to

9:37

1,809

9:39

clients, to the tune of

9:41

$5,330,577

9:46

and 4 cents. So think

9:48

about those funds going to you and your

9:50

families and all of the good that you can

9:52

do in this world, and we are so excited

9:54

to be a part of it. So certainly something to celebrate.

9:57

Okay.

9:59

Paid out 5,

10:02

330,

10:06

577. 04. Don't

10:08

forget the four cents. To

10:10

residents today?

10:12

to clients. To clients. Oh, yeah, yeah, yeah.

10:14

It was sent

10:15

out towards the end of the month. To investors. Right.

10:17

You just distributed, just walked around

10:19

like, Santa Claus. Jumping

10:21

in and out of chimneys with, with stacks of checks.

10:24

Five million bucks. there's more efficient ways

10:26

to deliver the money than, than that. but,

10:28

that would be fun too.

10:32

That number just keeps getting growing and it just blows

10:34

my mind. Just the, I think the logistical

10:37

distribution of 5 million bucks

10:40

to me is a business all unto itself. And

10:42

it's just something that you guys do every

10:44

single month. And that's not. How much

10:46

money you're making. That's not how much

10:48

you're collecting. That is how much you

10:50

are giving out to investors per

10:53

month in their bank account

10:54

cash. Yes. And just to define it, that's

10:57

the rental income that the investors

10:59

have earned who are JWB clients. We are obviously

11:01

the property management. company

11:04

as a part of our vertically integrated service. And

11:06

so that is the net amount. There's the

11:08

gross rental income that's collected that we

11:10

collect on behalf of our clients. We

11:12

hold back the property management fees and

11:14

the difference is those 5

11:17

million. Get to, it's fun

11:19

to do that on a monthly basis and

11:21

it's all about impact.

11:23

All about impact. Love that, man. I also

11:25

miss my boy Luis Olivarez from the 305

11:28

in the chat. I skipped over him. Donna Chica checking

11:30

in. Good to have you back as

11:32

well. So, um, we else here.

11:34

We've got a question

11:37

that's being answered from a past show by

11:39

Greg. I feel like I got to come up

11:40

with a better statement. There we go. Work

11:42

on that one a little bit.

11:43

the patron Santorio's. Always infamous

11:46

for his questions. Clearly infamous in

11:48

a good way. More than famous.

11:50

Yes. The good type of infamous.

11:55

so he sent in a question that said, thank

11:57

you for addressing my question during the show today. I,

11:59

as actually asking if JWB would

12:01

engage in tenant outreach, similar

12:04

to what was done in April, 2020,

12:06

if the unemployment rate were

12:09

to increase mirroring the

12:11

situation in 2020, if my memory

12:13

serves me, right. JWB proactively

12:16

contacted each tenant to assess

12:18

the impact of COVID, offering assistance

12:21

or proposing a payment plan instead

12:23

of resorting to eviction. I recall that

12:25

the current rent rates were impressively high

12:28

at that time, around 90%.

12:30

And I'm curious to know. If JWB

12:33

considers this approach a viable tool

12:35

for future use, and if so, what

12:38

insights were gained from the period,

12:40

the previous experience? Thanks once again.

12:42

Excited about the summit. And Ann and I

12:45

are looking forward to it.

12:45

We're looking forward to having you buddy. Absolutely. And thanks

12:48

so much for sending that question. And he has a question

12:50

that he asked live that I actually screwed

12:52

up because I thought he was an answer. I answered something

12:54

different. and so we appreciate everybody

12:56

who has questions live and you can always send them

12:58

in. Thanks. To info at JWB companies,

13:00

just like Michael. So Michael, to answer your question,

13:03

you know, a couple of things here, what we did

13:05

during COVID there were certain things that

13:07

are just standard operating procedure as far as

13:09

how we are here to take

13:12

care of your investment, which would mean of

13:14

course, collecting rent and working with residents

13:16

if there is a payment problem. There are

13:18

certain standard things that we do and then there's things that we did above

13:20

and beyond because of the unprecedented nature

13:22

that COVID was. But what you

13:25

mentioned there, offering assistance and

13:27

proposing payment plans instead of resorting

13:29

to eviction. The good thing for everybody to know

13:31

here is that's standard. That's standard.

13:33

That's how we operate at JWB all the time.

13:36

That is not standard for standard property

13:38

management companies for typical property management companies.

13:41

But for us, we do a

13:43

tremendous amount of work. Even if there is a payment

13:45

issue with your residence, we want to work with that

13:47

resident to make sure that that resident

13:49

is served and that you're served as well. So

13:51

those things would continue to happen regardless

13:54

of whatever happens with unemployment. Unemployment

13:56

is not something that we're expecting

13:58

to spike to a large degree, so

14:01

we're not anticipating that now

14:04

the extraordinary measures that we put in during

14:06

covid going above and beyond

14:08

as we did, you know, we're not

14:11

anticipating that those are going to be necessary

14:13

right now. And so I wouldn't anticipate

14:15

some of the. Additional things

14:17

that we did beyond that, like, first

14:19

of all, understanding how the community

14:22

services would work as far as rental

14:24

assistance. It was a brand new world. And

14:26

there were organizations out there that were coming

14:28

up with ways to help residents, but the information

14:31

was It's hard to figure out. So we

14:33

put a task force on that and we figured that out

14:35

and we're able to help a lot of residents continue to stay in their homes,

14:37

things like that. That's probably not going to be necessary

14:39

right now, even if unemployment spikes. So

14:42

we're not anticipating going to those same lengths

14:44

because we don't anticipate unemployment becoming

14:46

that big of a problem. But

14:48

just know this at the end of the day, our

14:50

mission is to protect your

14:53

investment. And to make sure

14:55

that we're serving the resident at the same

14:57

time. So that's our mission. We

14:59

will always do whatever it takes to do that. We

15:01

would be monitoring vacancy rates. We'd be monitoring

15:03

other things that we do every single month. So

15:06

long story short, if it needed to be done, we

15:08

would do it, but I'm not anticipating those extra

15:10

extra measures that were done during COVID.

15:12

what I hear in that answer, Greg, is

15:15

as JWB, you understand that

15:17

what you do, what you provide

15:20

to investors is essentially.

15:22

The peace of mind that you can enter

15:25

a very complicated asset class

15:27

without having to worry about it. Yes,

15:30

right. And you have

15:33

very strategically built your

15:35

business around this like flywheel

15:38

that affects that experience, right?

15:40

It is not just, Hey, can I acquire

15:42

houses at a good price?

15:45

It's not, Hey. Can I remodel

15:48

homes that I find off market

15:50

to a certain standard in a way

15:52

that there is like an extra amount of

15:54

profit when I turn this deal over to an

15:56

investor? It's not just can

15:59

I also market this thing and get

16:01

it filled in one time or

16:03

even many times and have a line of tenants

16:05

out the door wanting to live in these assets?

16:08

It is. Understanding

16:10

that for this thing to work, occupancy

16:14

is key, right? Like lowering

16:16

vacancy rates is key and

16:19

having a team that is agile

16:21

enough to coalesce

16:24

around The problem, right? The

16:26

problem being vacancy. So

16:28

when something that is way out

16:30

of the norm happens,

16:33

which was COVID way out of the norm,

16:36

we can say that we can say that a week before

16:39

March 14th, we had no

16:41

clue that this could possibly be possible until

16:44

they shut down the NBA. We had no, I

16:46

did not believe that that was going to happen. And

16:48

at a moment's notice, you were able

16:50

to act quick with your team outside

16:52

of what you normally do, outside of the

16:54

normal scope of work of what they've been trained to,

16:57

to just pounce on like one

16:59

thing that is at the end of the day,

17:02

the problem that you solve, keeping

17:04

the asset performing and letting

17:06

people sleep at night. Um, And that was,

17:09

you know, for all of us watching a giant

17:11

show of force that maybe, you know, the show was

17:13

new. So maybe we didn't really understand the business

17:15

that well. But what I'm also hearing you say

17:18

is that if that is ever required,

17:20

you're able to ramp that up again because you have a

17:22

team that has proven to be able to do that.

17:25

Just that the things

17:27

that we are looking at in the economy coming

17:29

forth, right? Going from 3 percent unemployment

17:31

rate to 5 percent unemployment rate

17:34

are not going to be something that

17:36

is going to affect us

17:38

as investors in the same

17:40

manner that, that COVID complete disruption

17:43

potentially could. So it's just a matter of,

17:45

you have levers that you can pull. You

17:47

have a machine that runs every single day and

17:50

that machine can handle all these different things. But if you ever

17:52

need to, like, take that machine off of a different exit

17:54

and down to like a dirt path, you're able to do it.

17:56

You've seen in those who were here on the show four years

17:58

ago, saw it in real time. So

18:00

we do have that ability to do that. And yeah,

18:03

I think it's a great question, but you know,

18:05

the things that we're probably going to see

18:07

in the economy this year are things that we've seen

18:09

over and over and over again.

18:12

And unemployment right now is really low

18:14

anyways. So certainly not on

18:16

my radar as far as being a concern

18:19

that would require. You

18:21

know, additional measures

18:22

like that. speaking of a concern. So Leo

18:24

Fragonon has something here in the Q and a, and

18:26

maybe we can knock this out before we get into the meat of

18:28

the content today. He's saying my second

18:31

JWB property two years in,

18:33

I'm assuming the property tax

18:35

was adjusted around 6k more now

18:37

in my mortgage escrow additional

18:40

around 500 in monthly in mortgage.

18:43

It's going to be a negative cashflow at this point.

18:45

I had reached out to Michelle Ryan, JWBCR

18:47

coordinator, and I will be assessing

18:49

this soon with my portfolio manager.

18:51

Definitely holding on. But what else do you recommend

18:54

at this point? Sorry that we will miss this

18:56

summit as we have some

18:58

nasty IT audit during that

18:59

week. Nobody wants a nasty IT

19:01

audit. Nobody

19:02

wants a nasty IT audit. For like NASM,

19:04

right? Isn't that what like Leo's working on out there? Yeah.

19:07

Leo, we're gonna miss you, man. We are

19:09

gonna

19:09

miss you. Any advice for Leo? Yes, absolutely.

19:11

So let me just explain what's happening

19:13

here. Leo bought

19:16

his second property with JWB. We

19:18

laid out the plan with

19:20

Leo to build that property in

19:22

conjunction with accomplishing his financial goals.

19:25

Each property has a pro forma where

19:27

it lays out, here's what your expected positive

19:29

cash flow is. We go through the

19:31

closing, we set the property up,

19:33

we set the loan up, we do all of those

19:35

things. And then There

19:37

are some things that are outside of JWB's

19:39

control. One of the things that is

19:41

outside of JWB's control is

19:44

how the escrow, the mortgage

19:46

escrow, is handled between

19:49

Leo and his lender. And

19:51

we supply all the information as far as what

19:53

property taxes will be

19:56

and insurance will be. But sometimes,

19:58

lenders And

20:01

so sometimes what lenders do is they don't use

20:03

the information that is provided for them

20:05

and they either over escrow

20:08

mortgage amounts, meaning

20:10

like taxes

20:12

might be 3, 000 for the year and

20:14

they hold back 6, 000

20:16

for the year for taxes, even though that.

20:19

is not real. Or sometimes

20:22

they under escrow and the

20:24

taxes, property taxes might be 3,

20:26

000 for the year and they only owe, hold

20:28

back 1, 000. And that

20:30

is the lender thing. As you can imagine, sometimes with

20:32

banks, the left hand doesn't know what the right

20:34

hand is doing. And so this can be a real

20:36

thing for clients because ultimately this does affect

20:39

your cashflow. Your asset is working

20:41

just like described, but

20:44

because of that bank Over

20:46

escrow or under escrow you can feel

20:48

a cash flow pinch or you can feel

20:50

a surplus of cash flow So

20:53

it's not uncommon I think we had a similar question

20:55

of this last show or the show before as well So

20:57

I'm glad that we're bringing more and more light to it. I've

20:59

actually

21:00

I'm going through this with

21:01

Katina as well You are as well. Yeah. Okay. So

21:03

what happens is there is a there's a

21:05

balancing effect it usually takes a year for

21:07

there to be a balancing effect and

21:09

let's just say that they under escrow

21:11

and typically is what will happen first.

21:14

They'll under escrow. So for that year,

21:16

maybe in Katina, maybe for Leo,

21:19

the previous year, you probably

21:21

had an overabundance of

21:23

casualty, even more than we told you to expect

21:25

on the evaluation because they under escrowed.

21:29

Then what they do is realize, Oh goodness,

21:31

we didn't have enough money in escrow to make

21:33

the property tax payment. And so the following

21:36

year is what they do is they make up for it by over

21:38

escrowing. And

21:40

usually they get their act together and it

21:42

might take a couple of years for this to get

21:44

back to what taxes really should be.

21:47

But for that couple of years, you're either going to have more

21:49

cashflow or you're going to have less cashflow. Even

21:51

though the asset is performing. So, you

21:54

know, that's really where it is, Leo, as far as advice

21:56

on what to do, you know, hopefully

21:58

you're saving that cashflow that over that

22:00

excess of cashflow that you received when

22:03

it was under escrowed you save that

22:05

because that should more than offset the.

22:08

The situation you're in now if you haven't

22:10

there's not much that you can do right now because

22:12

they just collected two little taxes or

22:15

insurance for you. You just gotta kinda

22:17

wait it out. But just know that it

22:19

will come back and should level

22:21

out. You just gotta give it a little bit of time.

22:23

Let me ask you a couple of those clarifying questions there. All right.

22:26

So, so basically the

22:28

mortgage company under,

22:31

they took out too little in order

22:33

to pay for the taxes. And

22:35

then once they realize, oh crap, I

22:37

messed up here. Now they're taking out,

22:39

not just like enough of what they needed to

22:41

the year prior or the two years prior, but

22:43

that plus the thing to make up for

22:45

the years before. And what

22:47

I'm hearing from you then That

22:50

means that at some point it's

22:52

going to go back down to the

22:54

real number that they should, right? So if the pendulum

22:56

is over here, it's going to swing to over here.

22:59

But then in what it sounds like

23:01

about a year or two, maybe it'll swing

23:03

back to the middle. And then. Your

23:06

cash flow will for sure be positive

23:08

again and then just continue to increase

23:10

as rents go up.

23:11

Yeah, I mean, there's a lot of things that go into positive

23:14

cash flow. The mortgage payment, the taxes,

23:16

insurance are one component of that. So,

23:19

it is possible for you to be positive

23:21

cash flow even if they over escrow.

23:24

Yeah. Because you could have

23:26

gotten more rental income. We could have had a rent increase.

23:29

You could have had no maintenance cost or things like

23:31

that. So it's difficult to say

23:33

you are definitely going to be positive cash flow

23:35

or that you're definitely negative cash flow

23:37

if they over escrow. But what

23:40

will happen over time is they'll get their act

23:42

together and they'll escrow and your

23:44

mortgage payment will be the right amount. And,

23:47

it'll set you up for positive cashflow because

23:49

that's the way that this investment was set up in the beginning. Yeah.

23:51

And

23:51

in the meantime, the property is doing what it

23:53

was going to do anyway, still producing

23:55

all those, all those profit centers. it's

23:58

just, you're either prepaying for some of that

24:00

right now and you

24:01

didn't before. And if you want to double check this, you can

24:03

go onto the, tax assessor's website.

24:06

and Duval County, and you can look up

24:08

your tax bill to see really what your

24:10

property taxes are. And,

24:13

you know, you can look on your mortgage payment and

24:15

see how much they're escrowing. And if they should be

24:17

escrowing 250 a month for that,

24:19

based on what the tax bill is, but they're escrowing

24:22

500, well, you're going to see that Over

24:24

escrow amount and you'll

24:27

be able to, you know, see the proof

24:29

there. Yeah.

24:29

And what I've learned in my experience, Greg, is

24:32

that what everything

24:34

that you've told me has come true in the sense that

24:36

my, you know, my property at Katina is

24:39

now slightly monthly cashflow negative.

24:42

But I have three properties and

24:45

my other two properties are overperforming

24:47

right now. There you go. So my portfolio

24:49

is still very cashflow positive, even

24:52

though one property right now until this thing gets

24:54

fixed is cashflow

24:55

negative. And it's cashflow negative because of the over escrow. Because

24:57

of the over escrow. Yeah. Correct. There you go.

25:00

That's why three properties wins.

25:01

Yeah. So, got a question here in the chat from Agnes

25:03

Chioma. Agnes, probably first time here,

25:05

but she's asking, do you have an in

25:07

house property management company that handles the management

25:10

of the properties invested with you?

25:11

Agnes, what do you say to that? Agnes, thank

25:13

you so much for being here. Thank you for having the courage to ask

25:16

a question. And you lobbed up a softball

25:18

for me. It's a softball. Yes. Absolutely. Very

25:20

strong. Yes. We are the property

25:22

management company. And part of the reason

25:24

that you may want to invest with JWB

25:26

is because we're a vertically integrated

25:28

company, which means that we have. All

25:30

aspects under one roof. And that is

25:33

incredibly important when you're making a decision

25:35

to invest in rental properties.

25:36

That's right. So Agnes, when we say vertically integrated,

25:39

the reason why it's so important is this idea of,

25:41

I don't know if you've ever had work done at your house, right?

25:43

But you might have, general contractor

25:45

and the general contractor hires a drywall guy.

25:48

And then the general contractor contractor

25:51

dry hires a paint guy. And all

25:53

of a sudden. A month later, your

25:55

wall doesn't look quite right, right?

25:57

And then you go back to the general contractor

25:59

and you're like, what's going on here? The general contractor is like, well,

26:02

you know, it was the drywall guy's fault. And then you go to the

26:04

drywall guy and the guy's like, no, no, no, no, no. The

26:06

paint was done wrong here. This is why it doesn't

26:08

look right. And the painter comes in and goes, no, no, no, no. The general

26:10

contractor told me that this was only going to be a thousand bucks.

26:13

And so I estimated anyways, it's

26:15

a big blame game when you're, we're dealing

26:17

with a realtor. A builder and

26:19

a property manager. When we say vertical integration,

26:22

it means that the general contractor is

26:24

the guy that put up the drywall, the guy that painted

26:27

it and the guy that planned for all of it. So

26:29

if you have an issue with the wall. There's

26:31

one person to go to and you can't hide

26:33

behind any excuses. So the JWB

26:35

business model is built that way. If

26:38

the property is not performing,

26:40

nobody's gonna shift the blame here. They've

26:42

actually built one of the biggest single family

26:44

home property management companies in the United States

26:47

underneath this whole investment

26:49

vehicle Company that they have

26:52

and they're not just acquiring land.

26:54

They're not just remodeling land They're managing

26:56

over 6, 000 properties And

26:59

also managing your portfolio while

27:01

doing it to have in house asset managers that

27:03

tell you where the money's going and what to do with

27:05

It and things of the sort As

27:08

well as revitalizing downtown Jacksonville,

27:10

which is driving up median

27:12

income rates So yeah, they do have a property

27:14

management company

27:15

Well said. Well said. And thank you so much for that

27:17

question, Agnes.

27:18

Yeah. Great question. All right, here we go. So now

27:20

let's take them to class, GC. Okay. We are talking

27:22

about this amazing spike

27:24

in rental property in, in, in

27:27

rental income for, sorry,

27:29

amazing spike in rent prices. Yes.

27:32

That has happened in the U. S. since

27:34

COVID. Yes. Why is that happening?

27:37

Oh, wow. Well, there's

27:39

a lot that has gone into that.

27:41

It first starts with an undersupply of housing.

27:44

And we talk about this a lot because

27:47

an undersupply of housing is

27:49

what keeps their keeps a high floor

27:52

for home prices. And it also

27:54

keeps a high floor. for

27:56

rents. And it goes a little bit farther

27:58

than that when you think about what's actually happened

28:00

with home prices and rents as well. You

28:02

have that high floor, but when you start to sprinkle

28:05

in the amount of money that was injected

28:07

into the economy over the past

28:10

three years, four years now, you

28:12

start to understand why

28:14

prices, not just rent prices,

28:16

not just home prices, but prices on

28:18

everything across the board started to

28:22

raise incredibly high at rates that

28:24

we haven't seen in 40 years. So

28:26

it's a combination of those two things. It is low

28:29

supply of housing. And then

28:31

you filled the bank accounts of

28:33

Americans by a lot

28:36

of either stimulus or fed

28:38

activity to pump more money into the economy.

28:41

And that's a combination for prices

28:44

around on many products and services to go

28:46

up rents being one

28:47

Yeah. So one of those things is

28:50

Same reason why there's inflation. Yes, right.

28:52

And the other is a chronic issue

28:55

that we see is kind of like the information

28:57

advantage for Rental home investors.

28:59

It's that the untold story here

29:02

is that there is an undersupply of single

29:04

family homes in large cities

29:06

and specifically an undersupply

29:09

of workforce housing in

29:11

growing, thriving cities that,

29:13

you know, when you look at supply and demand

29:16

the laws of economics say that if there is not enough

29:18

supply for the demand there. So

29:21

we're going to dive into exactly how much

29:23

they've gone up and what it all means

29:26

and how much longer it's going to happen. And

29:28

just as importantly, is this hurting

29:30

that workforce resident that needs this as a class

29:32

to live. So, before we get into that, you

29:34

see, You always like to tell

29:36

everybody a little bit.

29:37

I do, especially we have new folks like Agnes

29:39

joining and whatnot. It's always good

29:41

for you all to do your own due diligence. I'm going to share

29:44

some numbers with you to help you to

29:46

illustrate some points here. These are

29:48

estimates only. They are not guaranteed.

29:50

This is not financial advice. You should do

29:52

your own due diligence. We're not financial advisors.

29:55

And with that, let's jump into it. All right. You

29:56

see, so how high have these prices

29:59

gone? Well, I'm glad you asked. Okay. I think I want

30:01

to just put like a baseline out there of what

30:03

does a typical rent increase

30:05

look like in Jacksonville. And we have the benefit

30:08

of a lot of years to gain

30:10

perspective here. So I went back from 1985

30:13

to 2022. And

30:16

if you go back those 38 years,

30:18

their rents

30:20

increased on average 3.

30:23

7 percent per year. in

30:25

Jacksonville, Florida. Some

30:27

other noteworthy things here. You can start

30:30

to see and take that data and say, okay, what's,

30:32

what's more likely here? Did,

30:34

did they go up 10 percent some years and

30:36

did they drop some years? Let's get

30:38

a little bit more insight. So the largest ever

30:41

annual rent increase on average

30:44

was 11. 9%. And

30:46

that was in the year 2021. Makes sense. What

30:48

was going on in the economy in 2021? We

30:51

had

30:51

just gotten off the back of COVID and

30:54

there was a bunch of cash flow pumped into

30:56

the economy with the stimuluses,

30:58

inflation was raging. So

31:00

prices were going up on just about everything.

31:03

And we were still very low

31:04

on housing. So we're connecting the dots on that

31:06

question that you just asked me about why did rents

31:08

go up? Well, you can see a combination

31:10

of stimulus and fed actions along

31:13

with low housing supply led to that in

31:15

2021, there've only been two years where it's

31:17

been over 10 percent in

31:19

38 years. You want to guess what those two years

31:21

were? 21 and 20? 20, 21, and 20, 22.

31:26

So, it's very not

31:28

normal for it to be that high.

31:30

So, outlier. Outlier. Those two

31:32

years were outliers of being over 10 percent

31:34

rent increase. Yes.

31:35

But what's not an outlier is that rents go

31:38

up. So, rents actually

31:40

increased 97

31:42

percent of the years. 37

31:45

out of 38 years, rents in Jacksonville

31:47

have gone up. So when we talk about why this

31:49

is such a consistent asset class, something

31:52

you can depend on and rely on,

31:54

whereas there's other asset classes that you really can't,

31:57

rents going up in Jacksonville happen 97

32:00

percent of the time.

32:01

So 37 out of the 38

32:03

years, rent has gone up. Yes.

32:06

Continue. Now, I wanted

32:08

to see, okay, what's a likely rent increase?

32:11

So rents increased

32:14

at least 2 percent per

32:16

year on average, 84

32:19

percent of the time. So 32 out

32:21

of 38 years, rents went up. at

32:24

least 2 percent or more. Okay.

32:26

So if you're a betting man or a woman, you

32:29

can pretty

32:29

much bank on that. You can bank on at

32:31

least 2 percent rent increase

32:33

each and

32:34

every year. The data tells us it happens

32:36

over 8 times. Pretty standard. Okay.

32:39

There was only one year

32:41

that rents decreased. It

32:44

was one year that rents decreased. And

32:46

they only decreased. a half

32:49

of a percent. So,

32:51

and that was in 2020, 2010. What happened

32:53

in 2010? Great recession. It was a great recession,

32:56

right? The Great Recession actually, really in

32:58

real estate, it lasted from 2007 to 2011.

33:01

Yeah. So, at the Great Recession,

33:04

it dropped 0. 5 percent

33:06

here in Jacksonville. Yeah. Actually, over

33:08

time from 2007 to 2011,

33:10

in the depths of the Great Recession, rents

33:13

actually went up. In Jacksonville, if you

33:15

look over that time period so you can kind

33:17

of see what the downside risk of decreases

33:19

of rents are, and

33:22

it is incredibly rare for

33:24

rents to go down in Jacksonville. In fact,

33:26

across the entire country, rents have

33:28

never decreased on record

33:31

for the entire country. Got it. So if

33:33

what we are talking about here is how

33:35

long is this party going to last of

33:38

rents going up? And that's the question. It

33:40

sounds like. The party's

33:42

here to stay right? Like, or it's

33:44

likely that that party happens every single year

33:47

and the party, while it's

33:49

not going to be a rager every single year, like it was

33:51

in 2021 and

33:53

2022 where rents went up 10 percent

33:56

plus. It seems like a

33:58

nice little get together every single year of good friends,

34:01

a nice little barbecue of

34:03

what looks like 3. 7 percent

34:06

per year on average is a very reasonable thing

34:08

to expect. And it's very unlikely

34:10

that it's going to be less than a 2 percent increase

34:13

because that generally happens and it's going to be

34:15

really, really shockingly unlikely

34:18

that nobody shows

34:18

up to the party. Exactly. And if you guys,

34:21

you know, were wondering a year ago

34:23

why I said, listen, I think rents are gonna

34:25

go up. in 2023.

34:27

We were one of the only, you

34:30

know, I don't know what you'd call us, media outlets

34:32

to actually say that and put our name on it. Well,

34:34

the reason is because I know how unlikely

34:36

it is for rents to go down. And I also know what

34:39

low supply we have for housing. So helps

34:41

to help you to get kind of inside our heads a little

34:43

bit. And then of course, rents have gone up in 2023

34:46

in Jacksonville. We're still waiting on the final numbers, but

34:48

somewhere around two to 3 percent is where it's going to be for

34:51

rent growth. In 2023 on

34:53

the heels of unprecedented rent

34:55

growth in 2021 and 2022.

34:57

Got it. So rents are going to continue

34:59

to go up in the short term.

35:01

That's what we're expecting. Okay. What else? So

35:03

then let's talk about now that we have the perspective,

35:06

how unique is it? And

35:08

how much have rents gone up? Ronald is asking, are you talking

35:10

about single family residences or all rents?

35:13

I like rents from departments

35:14

and everything. Great question. I'm specifically talking

35:16

about single family rental properties.

35:18

Okay, cool. so now let's talk about

35:21

Let's put this in perspective of what happened over the last

35:23

three years and really what happened over the last 10 years and

35:25

compare it to what's normal. Well,

35:27

from 2020 to 2022, so

35:30

those three years, rents increased

35:32

on average 27%.

35:35

That's 9 percent rent increases

35:38

per year on average, very

35:41

unlikely. That's two and a half times

35:43

the normal rent increase

35:46

average. So this is an unprecedented time that we've

35:48

seen in the last three years. And then I

35:51

peeled back a little bit more. What's happened over the last

35:53

10 years in Jacksonville? And average rents

35:55

have increased 51 percent over

35:57

the 10 years. So of course that comes out to

35:59

about a 5 percent rent increase

36:02

on average per year.

36:03

Got it. So the last three years, it's gone up

36:05

a total of 27%, which is an average

36:07

of 9 percent per year over the last three years,

36:09

super high. Over the last 10 years, it's gone

36:11

up 51%. So if I bought Something

36:14

that the rent was a hundred bucks a month

36:17

ten years ago today. It's 150 bucks, right?

36:19

So and the average rent increase has been

36:21

5 percent so higher than that like 30

36:23

year average so far So we've been

36:25

at an elevated period of increased

36:28

rents in Jackson.

36:29

Exactly. Okay What else? Well,

36:32

then I said, okay, let's look at this from

36:34

all perspectives here. And the first perspective

36:36

that I want to look at this is through the investor

36:39

lens. Okay. If you are an investor

36:41

who bought a rental property with JWB in 2020,

36:44

what does life look like right now? Knowing

36:47

that rents have gone up like this. So

36:49

that's what I did. I pulled a property that

36:51

a real property that was purchased by a client

36:54

in 2020. It's here on Lucent drive

36:56

on the West side of Jacksonville. core

36:58

neighborhoods. And we'll look at the numbers

37:00

here of what did we say was going to happen?

37:03

And then as we saw this outsized

37:05

rent growth, how is that affecting this

37:07

client's cash flow? Let's

37:10

look at it. And here we go. So

37:12

if we go the year 2020, when this client purchased

37:15

the home, the rent was 1,

37:18

075. per month. That's the gross monthly

37:21

rent. You take out all the expenses

37:23

that come along with it, like maintenance

37:25

costs, vacancy costs, your

37:27

mortgage payment, property management

37:29

costs, all of those associated costs. You take

37:32

all that out, and this client purchased

37:34

this property expecting about

37:36

85 a month in cash flow,

37:39

right? Now, hopefully when you look at that

37:41

number, You look at that and you say, Hey, well,

37:44

that's awesome. 85 bucks a month. There's not many

37:46

assets that put some positive cash flow in my

37:48

pockets every single month. But many of

37:50

you, especially newer folks might be saying, well,

37:52

that's not a lot. You know, that's

37:54

not a lot. And you're right. Cashflow,

37:57

year one, is not going

38:00

to change your life. It's not the reason to get

38:02

into this investment. If you're curious about more

38:04

than that, you can go to any of our videos

38:06

on YouTube and we talk about the five profit

38:08

centers. You know, net rental

38:10

income, when you buy the property, make sure it's cashflow

38:12

positive, but the beauty is what

38:14

happens years down the road

38:17

as the cashflow grows for when

38:19

you really truly need it. And guess what? We

38:21

had a spike in rents. Rent prices

38:23

spiked more than they ever have in a three

38:25

year period of time. I didn't know that was going to happen.

38:28

But this client certainly

38:30

has benefited from that. Just like you've

38:32

benefited from that. Absolutely. Because you bought

38:34

your first property in 2020. It was 2020,

38:37

actually. Early 2021, no? It looked yesterday.

38:40

2020. You know better than I do. Minosa? Yeah.

38:42

I think that was in 2020. Regardless, splitting

38:44

hairs, right? 2020, 2021,

38:47

2022 for you. And all of you who have bought properties

38:49

in 2020. So this client's property

38:51

now rents for 1, 461

38:54

a month. You take

38:57

away all the costs that have come along with that

38:59

as well. And he's left with net

39:01

rental income of 215

39:03

a month, right here, right now,

39:06

for an average difference of

39:08

130 a month of

39:10

net rental income, which when you put

39:13

that out to a year, that's 1,

39:15

500, 1, 800 a year of

39:17

additional net rental income.

39:20

Which he wasn't assuming would be here

39:22

day one when he bought

39:23

that property. Yeah. Yeah. I look at that and I think, all

39:25

right, maybe I'm thinking that this cashflow is going to

39:27

pay for my cell phone bill month after

39:29

month or maybe YouTube TV

39:31

or something like that. But it turns out it's paying

39:33

for my car insurance. That's a,

39:36

that's a nice little

39:37

bump. There you go. It's nothing that's going to change your

39:39

life, but the important thing is get

39:41

this asset and it grows and

39:43

it grows and it grows and it grows. And

39:46

then it does change your life. at some point here. So, something

39:48

else to consider here. You know, I

39:50

often hear on the show, great

39:53

questions from clients and they might say, well, Hey,

39:55

listen, my property taxes went up, right?

39:57

What should I do about this? Right. Or

39:59

my insurance costs have gone up. What

40:02

should I do about this? And what I'm very quick to point

40:04

out is yes, that

40:06

has happened. That's happened on your properties.

40:08

It's happened on your properties, I'm sure, but

40:11

we need to take into perspective what

40:13

all is happening to see if we're winning. So

40:16

this client example here is very represented

40:19

for all of you too, because in this example,

40:21

his taxes went up from $1,620

40:24

when he bought in 2020. mm-Hmm to two thousand

40:26

seven hundred forty two thousand seven hundred

40:28

forty one dollars in 20.

40:30

Yes. So it went up for the year, it went

40:32

up about 1, 100. Yes.

40:34

Okay, got it. Right? So that's an additional

40:36

cost that's taken into account there. Property

40:39

insurance increased from 623

40:41

to about 1, 500. So

40:44

you know, those additional costs are there. But

40:47

we're not fully understanding how

40:49

much rents have gone up. And when you

40:51

take into the account, the additional

40:53

costs from taxes, insurance, and other costs

40:55

along the way, many times

40:57

it's more than offset by the rental

40:59

increases that you've seen. And I

41:01

want everybody to see that because when that happens,

41:04

that's how you get to that net difference

41:06

of call it 1500 or 1, 800

41:09

a year of additional net rental income, taking

41:11

those things into account.

41:13

That makes sense. Yes. So you are, you're having

41:16

You have costs that might go up and you feel

41:18

that, but you're also having

41:20

your cashflow, your revenue go

41:22

up that can offset those costs. And

41:24

then on top of that, as we know here on the non

41:27

traverage investor show, the majority of

41:29

wealth we're going to build over time is

41:31

the appreciation of the home. And

41:33

that's been going up extraordinary. Which

41:35

dwarfs everything else, right?

41:37

Yeah. 81, 000 of home price appreciation

41:39

for this client on Lucent. Yeah.

41:42

So you're winning on a net rental income

41:44

basis. You're really winning on

41:46

wealth accumulation when you get to the other profit centers.

41:49

Makes sense. And then that's the last three years,

41:51

right? But then there's also the idea

41:53

that, hey, we're in here, we're long term investors

41:56

here, right? So, it might have only

41:58

gone up, you know, it might,

42:00

it might've gone up 180 bucks

42:02

per month. in the first three

42:04

years, but by year 10, this

42:06

property is going to be at 530

42:09

per month in positive in

42:12

more rent. And then in year 20,

42:14

it's going to have a thousand bucks per month

42:17

in more rent. And year 30,

42:19

it's going to have Another 700 on

42:21

top of that. So 1, 700

42:23

more per month. Um, so this

42:26

again is an asset that's gonna, and this

42:28

is based on what assumptions you see. Is this like

42:30

that 3 percent going up or?

42:31

Yes, this is, well, this is based

42:34

on 3. 7 percent going

42:36

up year over year over year for rents,

42:38

like we talked about. But what it also

42:40

includes is expecting property taxes

42:42

and insurance costs and other costs

42:44

as well to be going up. So this is the

42:47

net rental income 10 years from now

42:49

of what this client should expect from

42:51

this home or 20 years or 30

42:53

years. And when you start to see.

42:55

1, 700

42:58

in net rental income coming for just

43:00

one asset. That's where it starts to get

43:03

life changing, right? Or you

43:05

stack this with properties, a portfolio

43:07

is like three properties in a portfolio or five

43:09

or 20 like some of our clients have. And

43:12

now you're seeing the life changing

43:14

offense of owning rental property plus

43:15

your net worth having gone up astronomically

43:18

because now we're talking about that home price appreciation.

43:20

That's really just like a number that again. Completely

43:23

dwarfs all this stuff. Exactly. And everything

43:25

that that comes with, right? So that's rent

43:27

growth over time. In

43:29

the short run, we're looking

43:31

at this, GC, can you explain this?

43:33

Yeah. So a common question is, well, rents can they

43:35

continue to go up? There's been this huge spike

43:37

in rents. What are the experts

43:40

expecting? And this is

43:42

from John Burns, real estate consulting. And

43:44

John and his team. Put

43:46

together projections for what they expect each market

43:48

rent to go up as well as the U S overall. And

43:51

the experts are expecting rents to continue

43:53

to rise. especially in Jacksonville.

43:56

And so I put here in 2024, they're expecting

43:58

4 percent rent growth. Same thing in

44:00

2025. In 2026, they're actually expecting

44:02

4. 8 percent rent growth here in Jacksonville.

44:05

And that's more than what the U. S. is expected

44:07

for rent growth as well. But it's noticeable here, the

44:10

U. S. is expected to go up in rent as well. So

44:13

get used to rents going

44:15

up. It's happened 97

44:17

percent of the years in the past for Jacksonville.

44:19

It's a normal part of the

44:21

process.

44:22

So reds going up is

44:24

a normal part of the process is the idea that

44:26

the U S economy is growing. There's going to be inflation

44:29

happening period, right? What

44:31

I'm seeing beyond these numbers here

44:33

at GCR are two things. One is we

44:35

talk a lot about the show, about how Jacksonville is special.

44:38

And how it is a city that is still

44:40

underpriced, and it's going to grow at a

44:42

faster rate than other cities around it

44:44

and particularly with downtown coming back on,

44:47

and it looks like, if I look at our

44:49

expected rent growth, and

44:52

the U. S. expected rent growth, that John

44:54

Burns agrees. Well, yeah, but John's

44:56

not even really clued into what's going on in downtown

44:58

Jacksonville. These, these reports are based on

45:00

Not that insider knowledge that we're all

45:03

going to have a fun time talking about at

45:05

the summit and we talk about here so I would look

45:07

at that as significant upside

45:09

over what we see here. Okay.

45:11

And then the other thing that I'm seeing here is

45:14

it feels like if I look

45:16

at the idea that over the last 30 years,

45:19

it's been. 3 percent rank growth.

45:21

And over the last 20 years, it's been

45:23

five, 10 years has been 5 percent rank

45:25

growth. And Burns is expecting

45:28

over the next three years to be at 4

45:30

percent and 4. 8 percent after

45:32

this like period of like crazy

45:34

10 percent plus, it feels

45:36

like we're almost at a new normal, right? Like I know that

45:39

you guys, I know that you guys like

45:41

to be very conservative in your data and

45:43

in those projections that you just shared, you're saying 3.

45:46

6%, but there's definitely a possibility here that Rent

45:49

growth in Jacksonville over the next

45:51

30 years is going to be higher than the last

45:53

30 years on average. Yeah,

45:55

certainly possible. We build these

45:57

expectations knowing that we want to under

46:00

promise and over deliver. So a lot

46:02

of opportunities to deliver better

46:04

returns, more rent growth is certainly

46:06

one of them.

46:48

All right. So that, so. This

46:51

is the party for investors,

46:53

right? Investors love seeing these numbers.

46:56

Because what it means is everything that we talk about,

46:58

this is an asset that you invest in that

47:00

gets better over time. And like I find

47:02

a one, right. And even

47:05

in your late stages of your

47:07

life, when you really

47:09

need this cash, when you're actually living off of it. That

47:11

still continues to improve as opposed

47:14

to maybe other asset classes

47:16

where you just kind of build up

47:18

to a certain amount and then you get a withdrawal

47:20

from it and become very, very conservative and it might

47:22

go up and down. Right. That's what we're

47:24

in it for. Yep. Now, if we were to think beyond

47:27

that, beyond our own personal gain, and

47:29

we were asked the question, what

47:31

about the residents? Yeah. Is this bad

47:33

for the city? Is this bad for the workforce,

47:35

housing stock? Am I benefiting

47:38

off of other people's pain?

47:39

Right. I love that we have

47:42

space to talk about this from a different

47:44

perspective as well because I don't think

47:46

investors talk about the

47:48

resident perspective enough. And

47:50

there's no reason that there have to be two different perspectives.

47:52

There's a way to recognize and appreciate

47:55

how everybody can win in

47:57

the long run here. And so I wanted

47:59

to take a step back and just think

48:01

about it from the space of our community and

48:04

our residents. And because at the end

48:06

of the day, If we're not serving our residents,

48:08

there's no way that we can perform in this asset

48:10

class. And so we do it for that reason,

48:12

but we do it for more than that because that's the type

48:14

of people that we are and we want to serve

48:16

and raise whoever we can. And

48:18

so, you know, when you start

48:20

to think about what's actually happening,

48:22

bigger picture here, there is a flywheel

48:25

that I wanted to share with all of you. And

48:27

higher rents are a part of that

48:30

flywheel where everybody can win.

48:32

So let's start with that flywheel, right? It usually

48:34

starts somewhere with either more and better

48:37

jobs or population growth. It kind of starts

48:39

there, right? We've seen population growth in

48:41

Jacksonville, right? We've seen more

48:43

and better jobs. When you have

48:45

more better jobs and population growth, that

48:47

leads to higher median incomes.

48:50

Higher median incomes are critical here.

48:52

This is one of the reasons, and we'll share more about

48:54

this on the summit, but this is one of the reasons we're so

48:56

passionate about building downtown

48:59

and revitalizing downtown. It's because

49:01

we believe when we raise median

49:03

incomes, the rising

49:05

tide lifts all boats and everybody

49:07

wins, right? If

49:10

the median incomes would rise,

49:12

people can afford higher rents and

49:14

it doesn't displace them. Right?

49:16

So rising median incomes, raising median

49:19

incomes is something that we're passionate about.

49:21

So when you have median incomes that rise

49:25

and you have higher rents that will

49:27

follow.

49:28

Well, median incomes rise, people

49:31

have more money and they're gonna. You

49:33

know, like there's going to be a higher demand

49:35

for higher priced things. Exactly.

49:38

Just like, just like the Fed pumping money into

49:40

the economy, raised rents, you

49:42

know, like really, really fast artificially.

49:45

Higher median income means, man,

49:47

I'm gonna, I've got this money.

49:49

That's the sustainable way. That's the sustainable

49:52

way. So, but the key is raising

49:54

median incomes. Yeah. Right. And

49:56

that's something that developers and

49:58

You know, that's what developers know

50:01

because when they raise median incomes that

50:03

leads to higher rents, higher rents are what

50:05

developers like JWB need to see

50:08

in order for us to make bigger investments

50:11

that will lead to the next part of the flywheel, which is more

50:13

amenities. Right. When you

50:15

think about grocery stores going into

50:17

neighborhoods, bars, restaurants,

50:21

when you think about what higher rents contribute to,

50:23

they contribute to higher property taxes

50:25

as well. So we want our teachers,

50:27

firefighters, police, of course our

50:30

infrastructure and our community, all

50:32

of these things happen. Because

50:35

higher median incomes lead to higher rents, more

50:37

amenities. And what this does is it leads to

50:39

a higher quality of life in the community. This

50:43

cycle continues to happen. This

50:45

is the cycle that we're interested in. Yeah.

50:48

Right? Because everybody can win in this cycle.

50:50

That then leads to more and better jobs. Because

50:53

employers want to be here where there's a higher quality

50:55

of life, leads to population growth, and

50:57

you see how this happens.

50:59

So that is, that's kind of, that's

51:02

the big picture of how the community can

51:04

win. But let's take a moment here and just pause,

51:06

because this isn't real life right now for residents,

51:10

right? We're at a point right now

51:12

where it's difficult. It's

51:14

difficult for every resident, no matter which part

51:16

of the country you are in. Some of

51:19

you may call them tenants, right?

51:21

Residents is what we call it, JWB. But

51:24

you've just had the largest increase

51:26

in rents in a three year time period since

51:28

we started tracking that. And

51:31

this flywheel that I'm talking about takes time.

51:33

Yeah, it takes time for these things to happen.

51:35

And so I think looking

51:37

and an understanding of this is probably the

51:39

most difficult time for residents to

51:42

absorb that increase.

51:45

Wages overall haven't kept up

51:47

nationwide. They couldn't keep up

51:49

to these, types of rent increases and just

51:51

live there and understand that this is a tough

51:53

moment for residents. But

51:55

the message really is. You

51:57

know, higher rents are

52:00

a part of a very positive

52:02

process for the entire community

52:06

and for the entire region.

52:08

And you can do it in a way where

52:10

everybody wins. And that's what our intention is.

52:13

I want to get into the nuts and bolts on how you do it because

52:15

we've got some questions about that, but I want to just kind of

52:18

recap what you said, right? And

52:21

I'll start from where you ended, this

52:23

is probably the hardest, the

52:26

most painful points in a

52:28

long time for

52:30

the workforce housing resident,

52:33

because we've seen an outlier

52:35

of increased rent that has

52:38

happened recently. And

52:40

we are sympathetic to that, right? Like there

52:42

is right now, it is a bit of a squeeze

52:45

for many Americans across the country

52:47

and definitely in Jacksonville as well. But

52:49

what you're trying to say is if you zoom out, higher

52:51

rents are really just a part of an ecosystem,

52:54

right? An ecosystem that

52:56

when it's operating in

52:58

the way that it should becomes a bit of a flywheel.

53:00

Yes. Which is essentially higher rents

53:03

are caused. Because population

53:05

growth has driven up higher median

53:07

incomes, which means that folks out there

53:09

are Demanding and asking

53:12

for more things right demand has increased for

53:14

rents and better housing Which raises

53:16

the rent and once that rent is raised

53:18

and other developers see this thing and they say, oh,

53:20

okay Well, if rent is at this price

53:22

point then I can come in here build better things

53:24

more things Whole Foods wants to come

53:26

in and sell to those people schools

53:29

You know, like, we'll get better and things

53:31

of the sort because there's an increased tax basis.

53:34

There's more investments being into put

53:36

into the society, which makes more amenities,

53:38

which increases the higher quality of life.

53:41

And once quality of life increases, then

53:43

companies are looking around thinking, where do I want to bring

53:45

my headquarters? Where do I want to recruit people

53:48

to? Local companies

53:50

are thinking, man, I should expand because things are good.

53:52

I'm gonna hire more people. I'm gonna bring in a VP

53:55

of this thing that before it was just like

53:57

done by an administrator, right?

53:59

I'm gonna create that opportunity to local so there's

54:01

more better jobs and as more jobs

54:03

are out there then more people want to live here because

54:05

there's better jobs and higher quality of life, which

54:08

means that again, Income

54:10

increases, median incomes increase, higher

54:12

rents increase, more amenities get built, quality

54:14

of life goes even more up, more jobs show up,

54:17

population grows, higher median incomes, higher

54:20

rents, right? It's a flywheel that continues to feed

54:22

itself. Exactly. And when looked

54:24

at it that way, then over the long

54:26

term, it's good for society. Mm hmm. Right.

54:29

I want to get into just the, this window

54:31

right now, which is Antonio del Monaco

54:34

asks great name, by the way, Antonio, welcome to

54:36

the show. That's a new name. I've never, I've never heard that before.

54:38

My middle name is Antonio. Asking how

54:40

do you inform tenants that their renewal

54:43

rent is going to be higher and deal

54:45

with the typical objection of them saying,

54:47

saying that they will move to another property

54:50

around the corner that is being offered

54:52

at the rent that they. They're paying now.

54:54

Yeah, you know, we really believe that through

54:56

effective communication, through compassion

54:59

but setting the right expectations right off the bat

55:02

you can really help residents see how this is a great

55:04

value to them to be able to rent with

55:06

JWB and to understand

55:08

that rent increases are a part of

55:10

the marketplace. This is not a solely

55:12

JWB initiative

55:15

there. The data is out there that if

55:17

it wasn't going to have a rent increase with JWB,

55:19

it's going to be with that next. Yeah. Yeah. person that they

55:21

would be renting with. So, you know, by,

55:24

by being articulate and understanding

55:26

that and helping to educate and doing

55:28

it with compassion, we feel like, you

55:30

know, that's the recipe to really help people,

55:33

you know, invest or to

55:36

buy or lease a property or whatnot. That's

55:38

kind of standard around JWB. So we

55:40

equip our team with that information, that

55:42

knowledge we train, we make sure that. We

55:45

are treating people the right way and you

55:47

know, at the end of the day, we rent out, you

55:49

know, over 1200 homes this year

55:51

by doing that. And we sign on average,

55:53

two and three year leases by doing that.

55:56

And you know, a great thing to know too,

55:58

is not only do we rent out homes, that number

56:00

of homes for that length of time,

56:02

but when the time comes up, When you say rent out

56:04

1200 homes, you mean you put in a new resident

56:06

into a home 1200 times a year,

56:08

but you actually rent out 6000 homes a

56:10

year. Yes, we manage 6, 000

56:12

homes. Not all of those come up for rent each year,

56:15

right? So, 1, 200 is the number of

56:17

rents homes that we rented in 2023.

56:20

So great point there. And the next question

56:22

you should be asking is, how do they like their experience?

56:25

Do they want to keep buying from us? Do they want

56:27

to keep renting from us? You only do that if

56:29

you like your experience. Over 70 percent

56:31

of residents choose to renew. 70

56:34

percent choose to renew and they have

56:36

had to absorb large rent increases

56:39

in order to do that. So it's all about providing

56:41

value and communicating clearly. You

56:44

see, I think you answered that in a very human way,

56:46

which is very typical of you to Antonio's

56:48

question. And I think it makes a lot of sense,

56:50

right? Like you, you do

56:52

it with compassion. You train people to do it. You

56:55

rely on giving them a good experience, which is going

56:57

to make them want to stay and you have the data to

56:59

prove it. Antonio, what I'll tell you as a guy

57:01

that looks really admirationally

57:03

at what this company has been able to do,

57:06

the way that I would say it is,

57:08

JWB, unlike most

57:10

property management companies, JWB

57:13

has Wrapped their business around

57:15

a problem instead of a product

57:18

or instead of a brand or instead of a feature

57:21

or whatever. They have wrapped their business

57:23

around this idea that in

57:25

order to be able to get this

57:27

asset to perform for you, they

57:29

need to be able to keep

57:31

it rented. So everything that they have

57:33

done. is aimed at

57:36

that one joint, right, that

57:38

joint of like putting a resident

57:40

in place and making sure that they stay. And

57:42

what that means is they do a couple of different things.

57:45

Number one, they sign minimum two

57:47

year leases, and they really sign

57:49

two and three year leases. So the average lease

57:51

that you sign is two point 26

57:54

months, 26 months, right, is the average

57:56

lease that is signed at JWB.

57:58

That in itself. Allows

58:01

you to understand that a resident is going to stay longer

58:04

just as importantly and this is something that

58:06

most property management companies can't do because they don't have

58:08

to scale. But if you go to most property management

58:10

companies, what they do is they'll grow.

58:13

As their portfolio of properties grow and

58:15

they'll hire a person every, you know, like

58:18

you got, once you get to like 10 homes, now

58:20

you got to go hire another property manager.

58:22

So this one property manager can, can manage

58:24

five and the other one can manage five and as it continues

58:26

to grow, they grow to 10 and then they go hire another one

58:29

and they do that. JWB has gone

58:31

beyond that scale now with the 6, 000 homes

58:33

and what they have is a department.

58:36

That manages metrics, not per

58:38

property, right? So each department,

58:41

you know, there's a department that handles, that

58:43

handles getting new, new residents,

58:46

property management,

58:48

there's a department that's handles maintenance and

58:50

there's a department that handles renewals,

58:52

right? So this. The question that you're asking

58:54

of how do you communicate your rent's going

58:57

to go up and Oh, by the way, I want you to stay

58:59

here and I want you to sign another two, three year lease is

59:01

they train their team as

59:04

a, this is a sales opportunity

59:06

for them. they are trained as account

59:08

executives in their portfolio

59:11

of residents and they're out there six

59:13

months before building a relationship

59:15

throughout it the whole time. So that

59:17

four months before they already know them

59:20

and they have this conversation like, Hey, as

59:22

you know, You're a two, three year lease

59:24

is about to come up. This is what the market

59:26

is doing. So if you go anywhere else, you're

59:28

probably looking to go up this

59:30

much in rent, no matter what that's

59:33

going to, that's going to hurt you because you also have to pay

59:35

for moving expenses, blah, blah, blah, blah, blah. And

59:37

for four months, they're talking to them. Making

59:39

it obvious that it's in their best interest

59:41

to, Hey, let's just accept this 3

59:44

percent rent increase because at

59:46

the end of the day, it's best for me. And though, by the way,

59:48

if you go live in

59:50

another single family home, that's operated by another

59:52

landlord, they're probably not

59:54

at the scale of JWB here in Jacksonville.

59:57

And that means that if a toilet breaks, you're

59:59

like waiting for Pablo to call his

1:00:01

plumber. And say I need you

1:00:03

here. When can you get here? Blah, blah, blah, blah, blah. Whereas

1:00:05

a JWB, they have like a whole

1:00:07

army of people that are doing this day

1:00:09

in and day out. Right? So at the end of the day, when he's saying

1:00:11

provide value, it's just giving them a better

1:00:14

option anyways. And on top of that

1:00:16

they've built a certain scale and a certain team

1:00:18

that manages this thing the way that an account

1:00:21

executive manages you renewing

1:00:23

your Salesforce you know, like software

1:00:25

subscription more so than just like,

1:00:27

oh, Hey. 5 percent more. Are you staying

1:00:30

or are you not? Yeah. You know,

1:00:32

100%. Cool. I had to, I had to go off on that, but well done, man. I

1:00:34

think it's really cool. All right, GC. So let's, um, I

1:00:36

got a couple more questions. Let's just finish kind of like what we're

1:00:38

talking here. So there's this flywheel in

1:00:40

this ecosystem that you are a

1:00:42

part of, right? You're working on

1:00:44

the higher median income thing. You're building

1:00:46

a, a better downtown. But

1:00:48

talk to me about how this flywheel right

1:00:50

now snapshot of it in Jacksonville

1:00:52

looks. Absolutely. So what else is increasing

1:00:54

in Jacksonville? I don't know. Are they seeing on the screen right now?

1:00:57

Yeah. These are good numbers to see. Cause

1:01:00

I think it's really cool for us to see what

1:01:02

else is working in Jacksonville to

1:01:04

help us see that. Flywheel and

1:01:06

where, what stage, what stages are there?

1:01:08

Is this thing working right? Because

1:01:11

there are definitely other places in the country

1:01:13

where rents have gone up, but the flywheel is not

1:01:16

working or it's definitely not working as

1:01:18

well. So here's what's

1:01:20

going on in Jacksonville. You compare

1:01:22

where we were in 2017 to where we are in 2023.

1:01:25

Our population has increased. It's a great

1:01:27

time. People want to be here. Right,

1:01:29

we've gone up from 1. 1, excuse

1:01:31

me, 1. 51 million people in

1:01:34

the MSA to 1. 68

1:01:36

million people. What else is going up?

1:01:38

Our median household income, right? That

1:01:40

critical measure where everybody can win.

1:01:42

Well, guess what? It's going up. It's going up substantially.

1:01:46

Median household income in 2017 in Jacksonville

1:01:48

of 58, 700. Now it's

1:01:50

74, 900. I think that's 27%.

1:01:52

I was doing the math late at night. Somebody can check me on

1:01:55

that. But 27 percent median

1:01:57

income growth household median income growth

1:01:59

in Jacksonville, over that time period. Jobs!

1:02:02

Have gone up, right? So you were talking

1:02:04

about how new jobs, better jobs,

1:02:07

find that talent. They want to be in that

1:02:09

place where people know there's a higher quality of life.

1:02:11

Well, guess what? We've added over

1:02:13

a, let's see, 125, 000 jobs

1:02:16

from 2017. to 2023.

1:02:19

Right. And then unemployment

1:02:21

as well. Unemployment has gone down significantly.

1:02:24

We have one of the lowest unemployment rates in the country

1:02:26

right now. It was 4. 8 percent

1:02:28

in 2017. It's two and a half percent

1:02:30

now as of this data from the U. S.

1:02:32

Census and Bureau of Labor Statistics. So

1:02:35

all four of these critical leading

1:02:37

indicators are showing you that this

1:02:40

cycle is working in

1:02:42

Jacksonville. It's hard for residents

1:02:44

right now because it is the major point of pain

1:02:47

because the rents have gone up and they haven't seen the amenities

1:02:49

in full force yet, but this

1:02:51

is what we are investing

1:02:54

in. You are investing when you make a JWB

1:02:56

investment, you're investing in this and

1:02:59

the. This is that when that

1:03:01

everybody can have the resident and of course you

1:03:03

in the long run as well

1:03:04

So if we're looking at this, right, we

1:03:06

didn't show this graphic before but if we're looking at this thing

1:03:08

of like population growth drives up Higher incomes

1:03:11

drives up rents drives up amenities drives a quality of life

1:03:13

brings better jobs these numbers right here,

1:03:15

right? population growth of

1:03:17

100, 000

1:03:20

almost 200, 000 people Have

1:03:22

moved here in the last five years has driven

1:03:24

up the median income by

1:03:27

16, 000 in the last five years

1:03:29

has increased the amount of jobs

1:03:32

inside of Jacksonville by

1:03:34

130, 000, 125, 000

1:03:37

here in the last five years and

1:03:39

has dropped the unemployment rate in the last five years

1:03:42

by half, um, from 4. 8 to

1:03:44

2. 5%. So that's the, this is the flywheel

1:03:46

at work. That's happening, which, okay.

1:03:49

Tells you the answer to the question is this going to be sustainable

1:03:51

for Jacksonville? That's a yes. That's

1:03:53

a yes. Because this means the flywheel is working.

1:03:55

And the dollars who are going to be making

1:03:57

the decisions to develop the amenities are looking

1:03:59

at this. Correct. They look at this and they say,

1:04:02

boom, that's where I want to

1:04:03

be. I'm going to keep spending money there and keep

1:04:05

making it better. Because I want to accelerate this

1:04:07

thing because I want my rent. So I'm

1:04:09

going to put in a grocery store. I'm going to take the

1:04:11

risk to build a shopping center. I'm going to

1:04:13

put in bars, restaurants, all

1:04:15

this good stuff. These are leading indicators.

1:04:17

Yeah. And,

1:04:18

here's the big kink stat right here.

1:04:20

Well, I came across this as I was doing my research late

1:04:22

last night. It's a stat that I haven't shared because

1:04:24

I honestly didn't know it before

1:04:26

last night, but it is such a. Great

1:04:29

stat for us to all know and love, right? So

1:04:31

Jacksonville has

1:04:33

the highest growth

1:04:36

rate of corporate relocations

1:04:38

of any major

1:04:41

U. S. city from 2022

1:04:43

to 2023. Jacksonville,

1:04:45

the number one. major U. S.

1:04:47

city in the country for corporate relocations.

1:04:50

It's in the state, which is the

1:04:52

number one state, which is a lot of people

1:04:54

do think of Florida as a great state for corporate relocations.

1:04:57

But it's not that just Florida's number one.

1:04:59

Florida's number one by a large

1:05:01

margin. It has more than 15

1:05:03

percent higher corporate relocations,

1:05:06

the growth rate for corporate relocations higher. Then

1:05:08

the second one. So you're in the

1:05:10

prime state for corporate relocations,

1:05:13

and you're in the prime city. And why is that? Because

1:05:15

people love living in

1:05:17

Jacksonville. And if the talent's here,

1:05:20

employers want

1:05:21

to be here. Great

1:05:24

people to build great companies

1:05:26

to make a lot of money to have

1:05:28

nice things, right? And

1:05:30

if you can attract people here,

1:05:33

then that means that you can build a great

1:05:35

company, right? So Jacksonville

1:05:37

is, I'll say it again

1:05:39

the gold medal winner for

1:05:41

the most corporate relocations, the

1:05:43

most jobs brought in, in

1:05:46

the state that has the most jobs brought in, in the

1:05:48

country. In the end, the city

1:05:50

of that, that wins within

1:05:52

that state within the entire country of most

1:05:54

corporate relocation. I wish I said that better. We

1:05:56

get it. Yeah. I think we get it. And you know, that's

1:05:58

backed up by a whole bunch of other great stats and

1:06:00

rankings. I mean, we can just kind of like run

1:06:03

over this, but, actually I can, I can barely see

1:06:05

this. Can you see it? I can't really see it, but

1:06:07

there's a litany of lists that Jacksonville

1:06:09

has been a part of, right. As far as like best

1:06:12

city to start a business in. City

1:06:14

for job seekers, in the United States, top

1:06:16

25 best places for young professionals,

1:06:18

top 10 biggest boom towns, top

1:06:20

city for new residents in 2022,

1:06:23

fastest growing Metro in the state, right?

1:06:25

Like it's got all these lists. It's one of, one of

1:06:27

only five supernova cities

1:06:29

that the urban land Institute says, and this is by

1:06:32

travel leisure for money geek

1:06:34

the business journal, the wall street journal Zillow,

1:06:37

right? Like all these, all these honors

1:06:39

being bestowed to Jacksonville. because

1:06:41

of these statistics. And then you look into

1:06:43

the micro and you see this, you

1:06:45

see this Winn Dixie center that

1:06:47

JWB built in Arlington in one

1:06:49

of its core neighborhoods. You want to tell

1:06:50

me more about this? I do. And you were there that day

1:06:53

when we opened it as well. I was sick. I couldn't be

1:06:55

there. So I'd love to hear your perspective of actually

1:06:57

being there, but about five

1:06:59

years ago, JWB saw an opportunity

1:07:01

for us to improve the quality of life.

1:07:04

And one of our core neighborhoods and

1:07:06

to improve the investments for our clients

1:07:08

over the long haul. And this was a major

1:07:10

undertaking. It was called the town and country

1:07:13

shopping center and fallen into disrepair.

1:07:15

And it is the thoroughfare

1:07:17

from downtown Jacksonville into Arlington.

1:07:19

Arlington is one of our four neighborhoods. And

1:07:22

many of you own homes there. And

1:07:24

for everybody who's on the summit, we are going to pass

1:07:26

by. This example

1:07:28

of what I talked to you about right now, but we

1:07:30

saw this opportunity. We thought this could be a big

1:07:32

win for the community. We thought this

1:07:34

could be a big win for our clients. And over a long

1:07:36

time, JWB would win as well.

1:07:39

We got into this project. It's the first time we ever have

1:07:42

renovated a shopping center. And

1:07:44

I'll tell you. We got

1:07:46

in, and really learned a lot

1:07:48

through this experience, right? Way over

1:07:50

budget, way over timeline, all

1:07:53

of that good stuff, right? But that

1:07:55

stuff doesn't matter because we completed

1:07:57

the project. and what we've done for the community.

1:08:00

So 17

1:08:02

years ago when Dixie, was occupying

1:08:05

the anchor spot in the town

1:08:07

and country shopping center, we got

1:08:09

in there. It's now called college park and

1:08:12

guess who we were able to convince to come back

1:08:14

to take up the anchor spot. None

1:08:16

other than when Dixie for 17 years,

1:08:18

Arlington has been a food desert. There hasn't

1:08:21

been grocery stores in Arlington. And

1:08:23

when Dixie came back because

1:08:25

of this investment by taking

1:08:27

this shopping center that had been fallen into disrepair,

1:08:30

and they said, this is where we want to be,

1:08:32

but you know what else they did, they looked at all

1:08:34

of those numbers and those metrics of

1:08:37

those rents that have gone up the population

1:08:39

growth in down, excuse me,

1:08:41

in Arlington and in

1:08:43

downtown, and they said, This is

1:08:45

a great investment for us as well. It's

1:08:48

created over 100 jobs right

1:08:50

in Arlington. Great paying jobs

1:08:53

to help improve the quality of life for

1:08:56

your residents. So that's pretty

1:08:58

cool. But I have an even deeper level to the

1:09:00

story. So we

1:09:03

also partner with the boys and girls club

1:09:06

and our team mentors, folks

1:09:08

from the Boys and Girls Club. And we have this incredible

1:09:11

group of young adults that

1:09:13

we've been able to have an impact on. And,

1:09:16

one young lady, said

1:09:18

to our team, the person who is mentoring

1:09:20

her, Hey, you know what? I'm so excited

1:09:22

about this new Winn Dixie opening. You know,

1:09:25

I think I'm going to go apply for a job there. And

1:09:27

my teammate, Melissa, who you all

1:09:29

have met before, Melissa Gillespie, a director of

1:09:32

property management and leasing, she said, let me

1:09:34

make a call. And so we were able

1:09:36

to connect the powers that be at Winn

1:09:38

Dixie with this young lady,

1:09:41

an aspiring young woman looking

1:09:43

to make something of herself. We were able to connect

1:09:45

the dots. Now she is one of those

1:09:47

hundred employees. working at

1:09:50

Winn Dixie, sort of completing the circle

1:09:52

here and showing how, because

1:09:54

of this investment, your investment,

1:09:57

which helps us make these types of investments,

1:09:59

we're able to make an impact. We're able to

1:10:01

change people's lives. And this is

1:10:03

one of many things that is going to be happening

1:10:06

in Arlington and a lot

1:10:08

that's happening in downtown Jacksonville

1:10:11

as well. So this is one example

1:10:13

of the type of impact you get to have.

1:10:15

By being a JWB investor

1:10:18

and ultimately your

1:10:20

investment performs better by these

1:10:22

types of stories as well.

1:10:25

You said it, man. I was there. And it was,

1:10:27

it was a really special day because I got to

1:10:29

go there and then we went to the

1:10:31

announcement of the Pearl Street District, which

1:10:34

I was at as well. And that was like a big highfalutin

1:10:36

thing. But I think I remember calling you and be like, yo,

1:10:38

man, I've never been more excited to be part of JWB

1:10:41

and part of this story because

1:10:43

that Winn Dixie Center, like going from.

1:10:46

On the street, there was a, I was just

1:10:48

showing like a highlight video of the whole thing,

1:10:50

and I don't know if you all noticed, but there was a line of people,

1:10:53

this was a, like a Wednesday morning

1:10:55

at 7 in the morning, a store

1:10:57

opening for a Winn Dixie, there was a line around

1:11:00

like the block of like the shopping center

1:11:03

of people waiting to get in, and I was able

1:11:05

to talk to those folks, like, We

1:11:07

haven't had a grocery store accessible

1:11:10

to us in this neighborhood for years.

1:11:12

They were so excited for the jobs,

1:11:15

the ability to just like pick up milk

1:11:17

on the way home, to be able to feed your

1:11:19

family and to not have to like go through a hard

1:11:21

time, not have to buy it at a convenience store to be

1:11:23

able to buy fresh produce. You

1:11:25

know, all the things that you need, people were super

1:11:27

excited about it. And it was just this like

1:11:30

beautiful economic flywheel of it. And

1:11:32

one of the. You, you talk about, you talk about

1:11:34

the job created for the, Boys and

1:11:36

Girls Club. The guy that really

1:11:38

stood out to me was the superintendent of

1:11:40

the project. Oh, yeah. Who I've talked to you about.

1:11:42

This guy, fascinating dude.

1:11:44

I was able to have like a 20

1:11:46

minute conversation with him. This

1:11:48

guy was living on the west coast

1:11:51

of Florida. And he had saved

1:11:53

up a bunch of money to, like, open up a coffee shop

1:11:55

in, like, Naples or something like that. When he

1:11:57

came here and started working on this project, he

1:11:59

said, forget it. He wanted to open

1:12:01

his coffee shop there. And

1:12:03

right in that same shopping center, he's opening

1:12:06

up this coffee shop that is, like, on the way

1:12:08

into downtown. Where he's also going to be printing

1:12:10

plans, like he's going to like, he's going to like niche

1:12:12

into like this whole construction industry that's going down

1:12:14

there and he didn't just stop there. He

1:12:16

also, there was a bait and tackle shop right next

1:12:19

to the coffee shop. He ended up buying that

1:12:21

guy out and going all

1:12:23

in on this shopping center because he sees

1:12:25

it. He was telling me stories about how when he first

1:12:27

got there at night they'd show up

1:12:29

and they would. You know, when they were opening, there was

1:12:31

all these broken bottles and all these

1:12:33

different things that were happening. And there was all this, like, gang

1:12:35

activity that was happening, like, on the corner

1:12:37

of that parking lot. He went out there

1:12:40

and was like, this guy's like an ex special forces

1:12:42

guy, so fearless. Right. Obviously, he

1:12:44

goes out there and he goes, who's the leader here? And everybody's

1:12:47

like, whoa, what's up with this guy? Right.

1:12:49

And like the leader of the gang shows up with

1:12:51

a gun in his hand and he's just like, what's up,

1:12:53

man? You want to kill me? And he's like, no, no, no, no. Listen, man,

1:12:55

I'm just here to tell you. I'm

1:12:58

here to build this thing, right? This,

1:13:00

when Dixie your community hasn't had a grocery

1:13:03

store in a long time. And

1:13:05

if you guys gathering around here

1:13:07

is going to slow it all down, it's going to create all this disruptions.

1:13:10

You might not end up getting this thing and

1:13:12

go home and like, ask your wife, ask your mom,

1:13:15

ask your grandmother, like how important this

1:13:17

thing is to this community being here.

1:13:20

And I'm telling you that right now, like if you guys don't

1:13:22

let this happen, You might not get another chance

1:13:24

at this, right? Because all the numbers are here,

1:13:26

all these things are happening. And if this gets disrupted

1:13:29

by the activity happening around the neighborhood you

1:13:31

might not get another shot at this. That

1:13:33

guy came back the next day, sat

1:13:35

down with him and goes, you have our protection here.

1:13:38

You know, like nobody's going to bother you

1:13:40

make this thing happen. And the whole community

1:13:42

rallied around this center

1:13:44

because the Winn Dixie was so crucial

1:13:47

and is so desperately needed. by

1:13:49

those folks. And again,

1:13:52

it's a story of an economic flywheel.

1:13:54

You guys investing in all these properties downtown,

1:13:57

you know, in Arlington and investing in downtown

1:14:00

made you go out there and like restore this like

1:14:02

strip mall that didn't have a grocery store. You

1:14:04

went out and bought a grocery store in, you

1:14:06

invested in all of this. And now this like

1:14:08

win, win, win has become like

1:14:10

the ultimate community staple of,

1:14:13

of everybody across socioeconomic

1:14:15

barriers.

1:14:16

I didn't know that story. It's incredible. You

1:14:19

know, but I think what this is doing is,

1:14:21

you know, it's creating hope,

1:14:24

right? It's creating hope in our communities,

1:14:26

and that's not something you can put a price

1:14:28

tag on. And you all are a part of that. You

1:14:30

know, everybody who has invested with us

1:14:33

has given us the ability to go out

1:14:35

and do some of these things. And

1:14:38

these things are being done not for a return

1:14:40

on investment in the short run. This is about

1:14:42

community building. It's about making sure that your

1:14:44

investments are taken care of. It's about elevating

1:14:47

the residents that we have in our community.

1:14:49

And later on, down the road, JWB

1:14:51

will be fine. But that's the type of impact

1:14:53

that we want to make after 18 years in business.

1:14:57

That's what gets us motivated. Love it.

1:14:59

Love it. So again, answering the question,

1:15:02

rents have gone up 27 percent in the last three

1:15:04

years. Is this party here

1:15:06

to stay? And is this a party that

1:15:08

is good for the community? I think the resounding

1:15:10

answer is Rents are going to continue

1:15:12

to go up because Jacksonville is in the path

1:15:14

of progress and it's got the perfect

1:15:17

economic flywheel happening Which means

1:15:19

that even the folks that are right now the most

1:15:21

affected in the short term because 27 percent

1:15:24

in three short years is a lot

1:15:26

They are also in the path of progress

1:15:29

and this thing being done the right way Is

1:15:31

something where the investors that are putting

1:15:33

their money into it are gonna win But

1:15:36

they don't, and they don't have to win thinking that somebody

1:15:38

else is losing. Exactly,

1:15:40

exactly. I think that's so critical. I

1:15:42

hear that over and over from our investors

1:15:44

because of the quality of people that they are. Not

1:15:46

only do they want to do well, they want

1:15:48

to make sure that others are doing well alongside

1:15:51

them. It's not at the disadvantage

1:15:53

of somebody else. And stories

1:15:55

like this help to illuminate how that's

1:15:58

possible. And I think it really,

1:16:00

really matters. Love it, man.

1:16:03

Love it. G.

1:16:03

C. Good job today, buddy. Yeah, man. This is great, man. Yeah.

1:16:05

Good work. And to our community, I know we went

1:16:08

super long. We just kind of got really passionate. I didn't

1:16:10

even realize it's 1. 48 right now. Time

1:16:12

flies when you're having fun. Time flies when you're having fun. You're talking

1:16:14

about something you care about, but also when you're surrounded by great

1:16:16

people asking great questions, being a part

1:16:18

of this conversation. We never take

1:16:20

it for granted that you just took an hour and

1:16:22

a half out of a Thursday

1:16:24

middle of the workday to be here and be

1:16:26

part of this, that you're taking time out of

1:16:28

your life to come to Jacksonville, February 16th,

1:16:31

17th to hang out with us. I promise you're going to get the best

1:16:33

out of us. So go to jwbsummit. com,

1:16:36

sign up for that thing, get on the waiting list,

1:16:38

see you there in a couple of weeks. I'm

1:16:40

just really, really excited. And Tuesday, we're

1:16:42

having a different conversation.

1:16:45

What are we doing on Tuesday? I don't know if you've

1:16:47

noticed, but we're in an election cycle. Oh

1:16:49

yeah, that's right. And in every election

1:16:51

cycle, things get heated and

1:16:54

the conversation around social security

1:16:56

is something that we really need to have. So we're going

1:16:58

to talk about social security in the election

1:17:00

cycle, the state of the American

1:17:02

retirement and how Americans are

1:17:04

really failing at retiring. and what

1:17:07

it all means. So we hope that you join us

1:17:09

on Tuesday to have another really deep, really

1:17:11

passionate conversation about some really, really important

1:17:13

stuff in our Not Your Average Insights,

1:17:16

where GC and I are going to go back and forth with you

1:17:19

on that conversation. And, from

1:17:21

now till then, I already saw the early birds say

1:17:23

it in the chat. What do you think, man? Don't

1:17:25

be average. See you on Tuesday.