Not Your Average Investor Show
Not Your Average Investor Show
414 | The 5 "Supernova Cities" & What Makes Them Great Investments
Buying up properties in a growing market does 2 things investors love:
- Ensures above average home price appreciation (the #1 source of wealth creation in rental properties)
- Limits downside (these markets have higher rent appreciation than normal)
But not all growth markets are made equal. Some have their best days behind them. Some are only for high price investors. Very few have the combination of positive cash flow and plenty of upside left.
That's why we're diving into the Urban Land Institute's list of "Supernova Cities" to find the gems on the next episode of the Not Your Average Investor Show!
Join Gregg Cohen, co-founder of JWB, and show host, Pablo Gonzalez, to take a deep dive into the hottest real estate markets in America according to the ULI.
We'll discuss:
- What cities made the "super nova" list?
- Why did the ULI decide these cities where so hot?
- Where are the markets that investors can still find cash flow with the upside?
- and more!
We've mentioned this list for years on the show, but as interest rates drop, it's more important than ever to understand how you can use it to change your financial future.
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Today we're talking about something, I feel like it's become common lexicon on our show here. This idea that there's a mythical list of supernova cities by this super important organization called the Urban Land Institute. And to be one of the cities that's on there. Well, we're going to dive into this list. We're going to talk about kind of like what it means, where Jacksonville fits in it what these other cities are. And Little insider info that we have based on old GC's genius concepts over here. Oh, welcome. Welcome. Welcome. for the weekly edition of the Not Your Average Investor Show. I'm your host Pablo Gonzalez with me as always the man I affectionately like to call GC because he's got the genius concepts which he's going to share. I kind of foreshadowed that a second ago. He's, he knows how to generate gas flow. He's a great co host because his name is Greg Cohen. Say hello, Greg.
Gregg Cohen:Hello, everybody. Fantastic to be with you today.
Pablo Gonzalez:I really tested your patience on saying hello there, huh? Like a deep breath that I take, I'm like, I'm waiting to say hello and then you say, okay, I can. And then I say, hello. Well, buddy, it is good to be here with you. It's good to have the community in the house. I see the numbers ticking up quickly. Everybody getting ready. For the weekly tradition that we call what you see a
Gregg Cohen:real call, baby. We got the MVP in the house, Mr. Lee Bishop,
Pablo Gonzalez:Mr. Lee Bishop. Good to have you here, buddy. We're in the house. Drew Barnett. We got the leadoff hitter batting third today on Henning. We got Chris Lee from Fernandina beach in the house. All right, Chris, Jeff Petty. John is back from Missouri. The fairy godmother's checking in from Monterey, California. Laura Colby from Washington state. Hoping we're all having a good day, doing well. We got the mystery man in the house. Denny Davies, I'm surprised
Gregg Cohen:he's not doing his pig suey call, right? Why do you even gotta bring it up? You know, I don't know. I'm a button for punishment. You are. We got the Shaw man in the house.
Pablo Gonzalez:Nadeem Shaw. Mountain man Billy Green. Good morning from the mountainous purlieu of Colorado. I do not know what a purlieu is, but it is surprisingly easy to pronounce. Our favorite smile from the Pacific Northwest.
Gregg Cohen:Miss Pamela Myers,
Pablo Gonzalez:Pamela Mars, the Maven from the mountains of Denver. Leslie Wilson, the early bird, Mr. Dean Curry, Caitlin kitchens in the house. A WB represent teammate, Eric Brown from Virginia. I think that's a new name. New name, Eric, the party, the party, Eric, welcome to the party. Hope you make yourself at home. T Castor from Mount Juliette, Nashville, Tennessee, T we're going to be talking about, I don't believe he's a new name, right? I don't think so. I don't think so. I don't think so. We are super excited that you're here. We are pumped that you're here.
Gregg Cohen:Yes. Yes. I'm glad you're back. Love that you're from Nashville too. We talked a lot about
Pablo Gonzalez:that. We're talking about Nashville. You can uh, validate or invalidate however you feel. We got our regulars in the house. Gary and Rosalyn Riley from Marietta, California. We regard you. We got our favorite name to pronounce Aaron O'Neill
Gregg Cohen:into the light. We got Monsieur Roger Francais says a bonjour from the Inland Empire. So good. You do it. Do it bigger and better every single time.
Pablo Gonzalez:I love the Fred Good you buddy. Good to see you. Reggie Cheer. Graham is back. Good to have you Charity the first family, Ken and Carolyn Moline.
Gregg Cohen:We s salute you. We salute you. Oh man. S I'm salute slacking today. First family. We
Pablo Gonzalez:salute the first family. She regard the regulars Robert Grayson in the house. From the Inland Empire as well. It's not in hot California. All right. Is that a new name? I think so. New name. It sounds like such a familiar name. Robert Grayson, like he plays college football or something like that. It's like a Heisman winning name also. Okay. I like it. I like it. I'll go with that. Boat Grayson for Heisman. All right, Robert. Good to have you. Reggie Fonse, also in the Inland Empire. Make a friend. Feel happy. Who else? Oh, we got Kate Sutherland in here.
Gregg Cohen:Another JWB. Another JWB. Great to have you, Kate. Built
Pablo Gonzalez:this show from scratch with us. Jerry
Gregg Cohen:K in the house saying good morning, everybody. Good to have you here. Possibly Jerry Kretschmann, who is here for the summit.
Pablo Gonzalez:Oh, there you go. There you go. K stands for? Oh, Misty Johnson, Misty and Troy Johnson, the ninth the ninth most attended. Can you help me with that, Greg? I'm having a hard time with my
Gregg Cohen:tongue. Misty and Troy attended the ninth most shows last year when we actually did the numbers. So one of the top 10, let's call it top
Pablo Gonzalez:10. Top 10. Top 10. Barely. But top 10. Top 10. Jonah Burke from Indiana. Good to have you, Jonah. New name. We're going worldwide here. worldwide. We got, this thing just keeps ticking up. you, uh, make yourself at home here. Make a friend in the chat. Ask people. Sean Fleming in Destin. I love me some Destin. I was there last week. Kind of. It was Sand Destin. Wendy Herbst. I know Wendy's name. I know a Herbst. But probably not the same. Okay. Are you in Maryland? Are you in Maryland? Are you asking me? I'm right. I'm right here. Wendy, it is really nice to have you in the house. Good to have you. Deidre Castellanos from New York. Deidre, that's a new name.
Gregg Cohen:All
Pablo Gonzalez:right. All
Gregg Cohen:right. So nice to see you.
Pablo Gonzalez:Yeah, it is great to have everybody here. I feel like I could just be scrolling on here forever. My good buddy, Bob Wiesner is in the house. We got from Marietta. Just got to say, how did you got to say hi to Bob? Oh, Wendy's in Jack. So probably a different herbs.
Gregg Cohen:I'm glad we put it back.
Pablo Gonzalez:Okay, let's get to the topic du jour. Greg, that means topic of the day. Yes,
Gregg Cohen:I'm aware.
Pablo Gonzalez:But before we got there, we got some breaking news. You see, we got a special webinar coming up tomorrow. We
Gregg Cohen:tell them. We do, we do. And for all of you who have been a part of the show for so many years now we have let you know that we've got these special webinars coming up. We've been working with a lot of our partners to be able to bring more and more education and we're going to get the opportunity to kind of dive into some really important topics. Now, tomorrow is one that is. Super special. I want to invite all of you to be a part of it. As many of you know, my big brother in real estate, one of my best friends is Than Merrill of fortune builders of the and he's flipped this house fame. All those days ago, he is our big brother when it comes to, getting us started in real estate 18 years ago. And if you want to He is all of the things of being a big brother. He gives me a hard time. He makes fun of me like a big brother. But he is one of the foremost experts in real estate, investing and education. And we owe a lot of our success to the relationship that we have with Dan and fortune builders. Anyways. He's going to be on a webinar with us tomorrow. We're going to be diving into the Jacksonville market and why it is a market that not only is underpriced and undervalued, but has its best days ahead of it. And it's a webinar that you want to be a part of. Dan's been investing in Jacksonville with us for. Over a decade. And it's somebody that you will absolutely want to learn from. So we do have the link available in the chat. It's like 16, 000 syllables and crazy Niners. So I can't say it on, on the show right now. But if you're in the chat, if you're listening here, thank you for being here. One of the values is good to go to the chat right there. Click on the link, register for the webinar tomorrow. It is at 1230 Eastern. And it's going to be a good one. So I hope to see you all there.
Pablo Gonzalez:It is going to be a good one. You know, we were just in the WhatsApp chat, right? Like the very, very inner circle community chat that we have going on. And I think it was Dean Curry that he said he's been pouring into old episodes and was listening to a past fan episode that we haven't had him on for like three years. I know it's been a while. It's tough to get that guy. He's a big deal. He's a big deal. Former NFL player, one of the foremost educators in the, in the world in real estate. Big brother to you. What other, oh yeah. TV star.
Gregg Cohen:TV star, yeah.
Pablo Gonzalez:Shockingly handsome as you wouldn't be surprised if a TV star as well. I feel like I'm very physically complimentary of the Fortune Builders. You are. I don't know what it is. They just, they just do it for me. All right. So, so that being said, we're going to have Than on. Haven't had him on for a while. It's going to be a lot of fun. And you know, the best part about it is that when. I feel like the Fortune Builders community and the Not Your Average Investor community, not only do we have a lot of overlapping members, but we have overlapping values. It is very, when I went over there to the Fortune Builder events, It's clear that they're not just building an audience. They're building a community the same that we are and everybody's very helpful. And we love it when our community shows up to just be like, Hey, you know, there's going to be a whole bunch of new folks coming in. So the more that the more of you that are here the better. So that that like clash and that like the, the thing that that magical thing that happens when group of like minded peoples unite show up. So hope you're going to be there. Is Pablo going to be on tomorrow, Greg? Absolutely. You did say, you said all about Than, you said nothing about me, thank you Lee, that's why you're the MVP. Yes, I will be there Lee. Yes. I will absolutely be there. I am the moderator of this thing. He's like, he's like the Vista
Gregg Cohen:car, I don't leave home
Pablo Gonzalez:without him. If Than is one of your best friends and you're big brothers, I'm one of your best friends and you're clown? What? Sorry. Just don't
Gregg Cohen:go there. Don't make this about you right now. Gosh. All right, cool. That being said, we have Jean Paul Rousseau saying bonjour de France. I know Jean Paul very well. Long time client.
Pablo Gonzalez:Is he as French as Regifal? Or is he just jumping on the
Gregg Cohen:French bandwagon? I know Jean Paul is actually from France. He is French. And uh, he has been a long time client. And I probably, you know, thoroughly unimpressed with your French accent. Well, Jean Paul, merci,
Pablo Gonzalez:merci for being here, and, write me on the French accent if you want. And Zenobia Lewis also is back. She's in London visiting family. Good to have you. All right, GC, let's jump into these supernova cities. Uh, the first thing is, this is a, This is a list that, this is a report that the Urban Land Institute creates every year. I don't know if the Urban Land Institute means anything to you, but it's something that, for me, it's been known to me well before I was part of JWB. They're kind of like the research institution of what makes cities work. I've known it because my wife is an urban designer and she studies cities. I've known it because I got a good buddy, Steve Wernick, who is a land use attorney that has been involved in placemaking for a really, really long time. And cause I was in construction before. So like it all just kind of overlaps. It's like this like intersection between developers. Architects and urban designers and construction folks and real estate investors that really care about kind of like more than just a project. What, what, what are the things that work that we can copy and paste into other cities to create functional societies through the built environment? How did I do as far as what the urban land is? I think you did a
Gregg Cohen:great job of talking about how important this report is. And I think what it also does is it, it gives kind of a roadmap or, a, almost like a rating sheet of not just the, you know, cost of the real estate in the market, not just the population growth, but it adds in the context, the macro factors. It adds in the context of which cities have done it right to sort of maximize their resources as well. And you get this comprehensive list. And it's one that. Key leaders in our industry look at, pay attention to, to get on this list is a big deal. It is kind of like, it is a huge feather in your cap to be on this list. And where you are on this list really matters. So it is, it is certainly across the country. It is the best and the brightest from the Urban Land Institute. They also partnered with PricewaterhouseCoopers to put this together, and they do it once a year, and it really matters. So, us, as every day investors can use this, which call it the big industry leaders use, and you can better formulate your plan, your strategy for where you should be investing in single family rental properties.
Pablo Gonzalez:Got it. So without further ado. Let's put the list up here, right? So this is, this is the list. I think it's 70 markets that make the list and then they rank them in these different categories, categorizations, right? Like from backbone, which is just like your working city to niche, which is like cities that have like unique qualities to them, to the establishment, right? You're going to see the biggest name cities here that I've been around for a long time. And then there's magnets, this, these high growth cities that are really bringing people here and within the magnet cities is the super sun belt, the 18 hour cities and the supernovas. GC, you did a little bit of diving into these like magnets. What does the magnet classification mean to you?
Gregg Cohen:Well, to me, if I'm thinking about where I want to put my money the idea of A magnet group sounds pretty good to me and it's because magnets mean that they're attracting a lot of people to be living there. They are attracting a lot of population growth. And where is population growing the most in our country? In, in the Sunbelt. So when you see one of those subgroups named Super Sunbelt, you can see why it's called magnet, right? Magnets are where people are moving to. People moving to a market and population growth is important because that's what drives home price appreciation. And for you as a real estate investor in 10 years, in 20 years, after you look back on your real estate portfolio, home price appreciation is going to be the largest driver of your overall well. So that's why a report like this and understanding that you want to be in the magnet category is something to really pay attention to.
Pablo Gonzalez:Got it. So Super Sunbelt, 18 hour cities, 18 hour cities essentially means that you have a downtown where, you know, an eight hour downtown is a downtown that you just come to work at and then you leave. Right. And it's basically dead on the weekends. An 18 hour city means that it's kind of like alive the entire time. Right. I lived that transformation in Miami from when it went from just a supernova to, you know, to an 18 hour city. Now it's a super sunbelt, right? So it's like you see these like graduations of cities. I think we look at here, we see Tampa St. Petersburg is a super sunbelt one. Now, not too long ago, Tampa was not an 18 hour city. They didn't have a downtown that came that got established. It became that. We also talk a lot about Charlotte. and Denver and how they've just recently become 18 hour cities. They've recently established their downtowns. They've recently become 24 hours a day, San Diego, you might not realize, but not too long ago, the downtown wasn't worth much right now. It's just like thriving, thriving area. And then there's the supernovas. The supernovas are classified by their explosive growth potential. by their economic diversification, by their migration patterns, and by their governmental and infrastructure support that is in place to keep these things growing. Basically, these supernova cities are the ones that are poised for the most rapid growth in the next immediate window, is the way that I see it. Is that about accurate in your estimation?
Gregg Cohen:Yeah, absolutely. When you hear supernova, You hear it's about to explode, right? That's, I think it's, it's, it's fitting here. And it's fitting just to think about some of these cities that we have talked about already being successful as, you know, exploding, right? Yeah. Austin. We, we featured recently on the state of downtown report for the city of Austin. They recently claimed that they are an 18 hour city. And you think of other very successful downtowns like Nashville, we referenced Nashville a lot. So to be included in that group is really important for Jacksonville. It's a wonderful accomplishment for, for our city. And then to also see others that. Maybe, maybe have been one step farther or three steps farther like Austin and Nashville have. I think it even gives us more excitement to know that we don't have to blaze, blaze a new trap excuse me, blaze a new path here. Mm-Hmm. right. We can follow the same path that some of the our friends Supernova City friends have already been following and seen great success.
Pablo Gonzalez:Yeah. Agreed. So you, you kinda, you kinda just said the list, right? But the list of supernova cities are, if you're following along on the podcast, Austin, Boise, Nashville, Raleigh, Durham, and Jacksonville. Right. And I did a little bit of research with my friend Chad, GPT.
Gregg Cohen:Yes.
Pablo Gonzalez:And it talked about it, it, it helped me summarize kind of like, what is so attractive about these cities? What is, you know, what is the supernova designation? Right. So I'm just going to kind of read this off Austin. Is a tech hub, right? It's got strong growth in tech industries with major companies like Tesla and Oracle establishing offices. It's got high immigration, right? That's like influx of talent to Austin. And it's got cultural appeal, right? Like I was just there last week, vibrant art scene, music, food scene, really, really cool spot to be at. Surprisingly good looking people is another thing that I would add to that as well. Which everybody knows I care about because I grew up in Miami. Is all the fortune builders there? I would just say that if fortune builders want to start a satellite office, I would recommend Austin or Miami. So then there's Nashville right there. Healthcare and entertainment has a really strong presence, right? And like, The music industry drives economic growth, population growth. It's had continuous migration, particularly from higher cost cities and the infrastructure expansion. It's really increased investments in transport and housing. Then there's rally rallies known for their research triangle, growing tech sector and manufacturing base help drive job growth. A lot of IBM is there, right? Like a lot of old school industries that are established here that need that mix is there. Immigration also has been attracting people from expensive Western cities, quality of life, scenic outdoors, small town. feel combined with urban amenities. And then there's Boise, right? Boise's actually has a surprisingly good tech and manufacturing scene as well. A lot of people don't know that. A lot of in migration as well. It's close to the West, right? So people are, people are going a little bit further inland, beautiful mountainous area quality of life because of the scenic outdoors, small town feel as well. And then, you know, There's Jacksonville. Look how boring Jacksonville South. Logistics and finance, a growing logistics hub and rising financial services. Sector contribute to job growth, right?
Gregg Cohen:Yeah.
Pablo Gonzalez:Um, military presence, strong economic impact from military bases and defense related activities and affordable real estate, lower property costs compared to other Florida metros and other cities with as much upside upside, make it attractive. For investment. What do you think when I say that? Which one of these is not like the other? It's not like the other. Yeah. Where does your head go with that?
Gregg Cohen:I mean, all those things are boring and unsexy. And some of the things that I love the most about Jacksonville real estate, because you know, you know, when, sometimes when you hear things like supernova, you think of what's on the other side of a supernova, you know, and, uh, Which is what? what is it? An installation? Yeah. Yeah. so the fact that we are on the supernova list with the most unsexy characteristics as compared to tech and, you know, research triangle and whatnot should tell you something about Jacksonville's strength of the economy. It should also tell you that we are a. We are still under the radar. I mean, if you had to name, you know, five cities out there that are just super successful, Boise would be on that list. Austin would be on that list. Nashville would be on that list. Raleigh Durham, I'm sure, would be on that list. You ask people down, going down the street in any other city, you're not putting Jacksonville on that list. So we are completely under the radar. But I did want to point out, we talked about what makes Boise great, what makes Austin great, what makes Raleigh Durham and Nashville great. We've got those examples. We share them here on the show. The fact that we are number one for net corporate relocations in the entire country last year. The fact that we have a strong university system and Oh, by the way, we have the university of Florida building a downtown graduate facility here.
Pablo Gonzalez:Not just a downtown graduate facility a health care tech and fintech AI powered graduate facility because University of Florida has the largest soup public owned supercomputer in the world. Absolutely. And nobody knows that. You
Gregg Cohen:know, the fact that we have. Or fortune 500 companies here. And we have FinTech, a FinTech presence here. We are, we are so under the radar for FinTech
Pablo Gonzalez:super under the,
Gregg Cohen:Yeah, we have FIS, which is fortune 500 company that just built their corporate headquarters after being here for so many years, they built their corporate headquarters here and put their stamp that they're going to be here for a long time in downtown Jacksonville. So I just, I'm excited to be on this list. I think it's really cool to be on this list for, and, and to You know, to not have some of these sexy things, I think is a real attribute because as these sexy things do come to these cities, it's only going to expand our, our growth and expand the quality of life for our residents here.
Pablo Gonzalez:I totally agree, man. I look at this list and you know, the core of my existence is about creating relationships and connections and everywhere that I've gotten to has been because of that. And I always think about this idea that what your status is. In society has a lot to do with the room that you're in, right? Guilty by association to me is one of the most powerful levers of like influence. And the moment that you can get into a room that most people think that they don't have access to, you're, you're automatically.
Gregg Cohen:Interesting.
Pablo Gonzalez:Right. And when I look at this list of supernova cities where Jacksonville is on with the likes of Boise, Austin, Raleigh, Nashville, you know, and Jacksonville, it reminds me of that, that first list of cities that I told you about with Jacksonville. Do you remember what I'm talking about? Cities with surf. Oh yeah. Right. Like I moved here thinking, oh man, I want to, I want to like learn, you know, I want to surf more often. And right after I moved here, Surfline published this article that was like, You know, cities in the world that have over like 100 day, 100 days of like surf a year. And it was LA, San Diego, Honolulu, Cape town, South Africa Rio de Janeiro, Sydney, Australia and Jacksonville.
Gregg Cohen:Wow.
Pablo Gonzalez:Right. And it's just like, when I, when I, when I think of, you know, combining Combining of just like putting Jacksonville into this list with other names that are already so sexy And it is so under under the radar. My head goes to this is a good deal
Gregg Cohen:Yeah,
Pablo Gonzalez:right So so that's kind of like in these rooms and in these networking environments of just like how do I get into how do I? Get into the room. I love Making really, really good friends with the like least known entity in that room. Yeah. Cause I know that that person has a whole lot of like area to grow and a lot of future connections that they're going to have because they don't have everybody else, but you know, vying for their attention and not to, not to, and to boot, it's the only list where affordability actually came up as one of the attractive things.
Gregg Cohen:How about that?
Pablo Gonzalez:Right. So like when we were discussing the show, I'm, I'm, I'm, I'm hearing all these things and you're like, yeah, man, because like Jacksonville has all these great things like these other cities and, and like, people don't believe it. I'm like, don't even worry about people, whether they believe it or not. Like just the fact that like, you know, if you're, if you're able to, Look at these cities and you're a real estate investor and you want to be in a supernova city. And there is one that also happens to be 100, 000 less expensive to like put some chips on the table into your retirement account with I'm attracted in that just by default.
Gregg Cohen:Yeah. Yeah. You're, you don't have to be a great marketer once, once you get into that room and you cost a whole lot less. Yeah. I guess. Yeah. Is that the end of the show right there? Yeah. That's the show. No.
Pablo Gonzalez:So, so you put some stats to this, right GC? Like you put some stats into like comparing these supernova cities right now. Let's take a look at that and here it is, right? So like you put this together, talk me through it.
Gregg Cohen:Yeah, absolutely. So I started to kind of take that conversation that you were having with me about being in the room and I said, well, let's just put some data behind. What does that really mean? How do we stack up? And the numbers are really, really exciting to see from a Jacksonville perspective. Listen, all of these cities are super successful. These are the best and the brightest as far as downtown revitalizations, as far as, you know, Urban Land Institute's opinion of a supernova city. But if you can get on this list and you're 100, 000 less, like you just said, wow, you are in a real position of strength. So that's what we have here. Between those five supernova cities, I listed out median home prices, I also listed out median income and I listed out population growth. And can I go through all the numbers for our friends on the podcast?
Pablo Gonzalez:Yeah, I think for our friends on the podcast, we can, we can just kind of talk about this idea that like Boise's got a median home price of 491, 000, 87, 000 bucks in median income, a 2. 6 percent rate of population growth. Austin has a 456, 000 median home price, 98, 000 in median income. 2. 9 percent rate of population growth, rally Durham, half a million bucks, 500, 000 median home price, 92, 000 median income, 2. 1 percent population growth. Nashville has 488, 000 in home prices, 81, 000 in median income, 1. 6 percent population growth. And Jacksonville has 366, 000 median home price. That's the first time we say a three,
Gregg Cohen:you know, like,
Pablo Gonzalez:Median income of 81, 000, right. In the same range as the other median incomes and a population growth of 2. 2 percent right in line with these other population growths.
Gregg Cohen:Absolutely. So. You know, again, that same thing, which of these is not like the other, when it comes to a median home sales prices, every other one of these supernova cities is in the medium, medium, excuse me, medium to high 400, 000 or even over 500, 000. Right? So this concept, if you believe that your money as a real estate investor is best served in the magnet category, And within the magnet category, the supernova section of that category, if you think your money is best served, where should you be putting your money on on any of these, right? Yeah. Clearly, there's a case to be made for Jacksonville, simply because you have a lot of these other characteristics that you get with these supernova cities, and you can get in for a whole lot less. But I also wanted to show median income and population growth because it's not like you're giving up. you know, an economic base and median income here. It's not like you're giving up population growth. You're just able to get in with these other characteristics of supernova cities. But your median incomes are right in line. 81, 000 for median income in Jacksonville. I mean, I think that even surprises some Jacksonville folks, right? I think so. Right? So 81, 000 median income. That's what we're talking about as far as us being a hidden gem when it comes to tech, fintech. Fortune 500 companies, the economic job base here is, is strong and we have the fastest growing median incomes of any major city in the state of Florida. Nobody knows that. And then population growth as well.
Pablo Gonzalez:Let's talk median income a little bit more, GC, because to me, this is, this is one of the major ahas I've had since actually moving here was the idea that I knew I was going to leave Miami to lower my cost of living. Right and increase my quality of life city of surf.
Gregg Cohen:Yeah, right
Pablo Gonzalez:I thought that I would be paying a median income tax, right? Like I thought I thought I would be paying a I'd be paying for that lower cost of living Through my ability to not generate income the way that Miami gave opportunities because it was a bigger city
Gregg Cohen:Mm hmm,
Pablo Gonzalez:and Well, I've come here and I've, I've done well as an entrepreneur, you know, I think as an entrepreneur, you know, it's kind of like on me. Right. But I look at my wife, my wife was felt like she was at like a ceiling in her career in Miami, took a year and a half off. So when we came here, because again, lower cost of living allowed us to have live on one income for a while. And when she decided she wanted to get back to work a year and a half later, she returned to the workforce making close to 30 percent higher salary than what she made in Miami. I didn't know that. That is so cool. That's real. And you would not think that story occurred in Jacksonville. You would not expect that occurred. Or do you would not expect an architect's salary to be 30 percent higher in Jacksonville than in Miami? Right. Fast forward now, four years later, she makes 125 percent more than she was making in Miami.
Gregg Cohen:Like, like that's real. You got, you got your surf basically paid for many times over. You have to pay the surf tax. Yeah.
Pablo Gonzalez:Yeah. Yeah. Well, I'm just saying that because number one, obviously she's super talented and I'm really proud of her. And I think she's the best freaking architect in the world. But number two is just this idea that Jacksonville. Like job opportunities are super, super real, right? So like the fact that the median income here is in line with Nashville, while Nashville is, I don't know, 30 percent more expensive. I I'm just doing quick math here. Does not shock me at all. Cause Miami is like 60 percent more expensive than, than, than here. And I would be shocked if the median income of Miami was much higher than Jacksonville. So, so I, you know, like, and when I, and by the way, That is all to say that I love the city. I love the opportunities given me, but as a real estate investor, to me, I just see like a untapped source of potential. Even though I have seen in other cities where I lived in, like Miami, that real estate prices went up really, really fast. And I was really concerned of whether or not we can keep up with it. At the end of the day, they've kept up with it by rich people from elsewhere moving there. And it hasn't created a best, a great environment to live in. in Miami for people that are from there. That's one of the reasons I left. Whereas here in Jacksonville, what I see is a city that's growing real estate prices that are growing, that are going up salaries that are going up in accordance to what people can still afford their life, which means real estate prices are going to continue to go up. And that not only gives me upside, but it also gives me risk mitigation of knowing that I'm investing in a sustainable growth environment.
Gregg Cohen:Yeah. It's a sustainable growth environment for employees, for additional returns on investment for investors. And the community wins. That's why median incomes going up feel so good because our residents who are paying rent can continue to afford homes, right? We talk about what an affordable housing and affordable home price affordability challenge we have in this country right now. Well, there's two ways to solve that. It's raised median incomes and it is increased supply. And in Jacksonville, that's what we have the opportunity. And we're already doing both of those. So those folks who are a part of our community, win in this wonderful thing that's going on in Jacksonville. Not just us as investors. And I know what I hear from a lot of our clients is, They want to know that somebody on the other side is winning too. And so your residents, the community, Jacksonville community is winning as well. And one of the ways to show that is by meeting incomes going up.
Pablo Gonzalez:Yeah. A hundred percent. So again, we're looking at these supernova cities. There's a list of five decreed by the ULI. It's clear that Jacksonville itself is the most affordable option for all of them and the most under the radar from brand name to begin with. Right. There's another stat that we were thinking about going with breaking news today, GC, that I think is also very illuminating based on this idea of like prosperity and things that are happening here. Do you want to share that?
Gregg Cohen:Yeah, absolutely. So, not only is it important to choose the right part of the country to invest in or the, or the right magnet market to invest in if we're using ULI's terms. When you're in that market, it's important to choose the type of neighborhood and the type of housing so that you can create a positive impact for that community and that you as an investor can win, that you can earn a better return on investment. Uh, and so of course with JWB as your vertically integrated partner and the fact that we own a significant amount of rental properties in the same neighborhoods as our clients, we are all about finding that beautiful match where we can make an impact in that neighborhood and then we can create opportunities for our investors to, of course, earn a better return on investment. And that's what we've done for 18 years. All this to say is, over 18 years now, we get to track which neighborhoods we invest in and we choose for our clients to invest in, and we get to see how those neighborhoods have been comparing to the rest of Jacksonville. And the rest of Jacksonville, as we already know, is a supernova, according to ULI. So now we're comparing within the supernova, where's the best place to put your money? And what I'm excited to share with you all is, JWB neighborhoods have appreciated 77 percent more. than the average Jacksonville home. So not only are you investing in the right magnet, you're investing. Say that twice. Say that twice. So JWB neighborhoods, JWB neighborhoods have appreciated 77 percent more than the average Jacksonville home.
Pablo Gonzalez:So in a city that has. Rapid growth in a city that has been, you know, on list of like top 10 fastest growing cities. It is the second rated job market. According to the wall street journal. It's listed as a supernova city, right? Like where all the rising tide is rising all boats, the actual neighborhoods that you're investing in in the city are performing 77 percent better than the, than the average city. Home in Jacksonville is doing in a very prosperous time.
Gregg Cohen:Absolutely.
Pablo Gonzalez:I'm just going to throw it out there. That's a reason to go to chat with JWB. com. Anyways, that, that is like, like, that to me is like, you know, overperform the market, right? Like if that, if that doesn't make you curious about this whole thing and you don't want to book a call with Chad with JWB. com, that's fine. But if you are, go to chat with JWB. com, book a, book a time to talk and like, see how you can get in on like this advantage. Continue talking.
Gregg Cohen:Yeah. And our clients are all here. We've got, geez, almost 90 folks here. Thank you all so much for being here. But you all are seeing what that 77 percent feels like. When you look at your reporting and you see that you've earned hundreds and hundreds of thousands of dollars from home price appreciation, that's because you invested in the right neighborhood. JWB helped you. to choose that right neighborhood because our money's in that same neighborhood. That's why we, we know because you get to follow an industry leader. And then that neighborhood gets to improve and the quality of life gets to improve in that neighborhood. So you all know it, you all feel it. And that's what contributes to that 300 million in profits that we've created for our clients over the years. And it's 300 million in profits that we've created. We don't have hundreds of thousands of clients. Right? That's right. We have, it's about 1700. I was about under 2000. Yeah. So do the math there. You're a JWB client. You're doing really well. You know, and it's not, it's not a coincidence. It's strategy. It's working with an industry leader. It's being vertically integrated. It's us having our own money in the game allows that to be what we get to sing the praises about.
Pablo Gonzalez:A couple of questions about those stats, cause I think they're so eye popping before we move on to kind of like the last point here. Jerry Kreishman says, is 77 percent growth over what time period? I
Gregg Cohen:think it's going back to 2013. so it's definitely at least 10 years. I, it might be 2011, 2013. I'm not sure when the data goes back to.
Pablo Gonzalez:And Wendy Herbst asks, what do you attribute that outside, outsized growth to?
Gregg Cohen:I think investing in workforce housing is the best place for you to be putting your investment dollars in single family rental properties. You know, workforce housing is wonderful because if you're like me. I like mitigating risk first. And mitigating risk in investing in rental properties means having an asset that pays for itself every single month. And workforce housing is a neighborhood where the rents cover the expenses. But what it also provides for, which most people miss, is this incredible growth opportunity. People incorrectly assume that just because it doesn't, it's not oceanfront, or it might not be the absolute most eye popping homes in those neighborhoods, they just assume that it can't appreciate, which is factually incorrect. The data absolutely suggests otherwise. And that's why this data showing that our workforce housing neighborhoods that we've been investing for 18 years have appreciated 77 percent more than the average of everything else that's going on in Jacksonville helps to illuminate this. So it's neighborhood choice that's high upside. I mean, I try, I try not to talk so much about the upside because I'm built for risk mitigation. It's there. It's there. And that's, and it's the neighborhood choice. I
Pablo Gonzalez:would take it a step further. It is the neighborhood choice. I would take it a step further than high upside because I think it's a combination of things, man. I think in, cause I've, I've lived this, I've lived this in other growing cities. In rapidly growing cities, workforce housing is like the stepchild that gets left out, right? Because there's always going to be, there's always going to be the social safety net creating affordable housing and making sure that that's there. There's always, and then there is all the people that want to get rich quick and want to do things. They're going to serve the luxury market, the high end market, because there's more margin in that for the developer. Whereas workforce housing is this like, Crucial need that becomes a buy and hold strategy. So the people that want to like come in and get out, they invest into like the, the fancy faucets and you know, luxury townhomes or whatever they're going to call it. Right. Cause it's a sexier thing to sell and, and, and, and to, to drive short term profit on, but the workforce housing segment gets left behind the folks that don't need the social safety net. Right. and make again, workforce housing is 70 to 120 percent of the median income, right? So we're talking about teachers, policemen, the military logistics, folks, the thing that Jacksonville like has as this, like supporting backbone of society, they generally don't have people building for them within this. Because it's not the sexiest deal. There is this like special thing about the fact that JWB is for dudes that live here. that want to live here that are here for a long time and happen to be developing in this market because you figured out how to do infill lots to be able to develop. Most other people are going for like, where is their land and where can I charge the most margin? Your business model in itself got you into this workforce housing sector that because of its limited supply and it's ever increasing demand in a growing market has done so well from my perspective. A hundred percent.
Gregg Cohen:It comes back to the way that you should be making decisions when it comes to buying rental properties. What most average investors do is they focus on property first. Then they may pay attention to the market and they almost never pay attention to the team that's supporting the investment and many people end up floundering and not successful in rental property investing. If you start with the team, Well, we're talking about why were we able to deliver 77 percent more home price appreciation. It comes back to the team that's supporting you, right? The team understands not just where the opportunity is from a return on investment perspective, but what's sustainable longterm. What's, what's just a flash in the pan as a way to help you make money. And then what's sustainable longterm so you can buy and hold these assets for 10 years, 20 years, build a better retirement account. Team allows you to do that. Team also has identified the best real estate market to be a part of, which we have identified Jacksonville. We're not the only ones. ULI, of course as well and many others. But then the team helps you choose the market. And then within that market, the team's also going to help you choose the right neighborhood to be a part of that. And then you get all those things right. Property selection is fun, enjoyable. And and that's really the way it should be done. But you put all those things together. They're starting with the right choice of the team, the team helping you identify each of those other important elements. And that's how you're able to stand up here 10 years later, talking about how your growth is a lot more than what the average investor would have received. I
Pablo Gonzalez:think it's phenomenal, man. Question from Victor Radar, what are the average cap rates? We never talk cap rates on this show.
Gregg Cohen:We don't really talk cap rates but your cap rates are about four and a half percent or so for your JWB inventory. I would imagine your cap rates in these other cities that we're talking about are a lot, they are a lot lower because what cap rates are as a function of your net operating income over your initial investment, which is your, purchase price, basically. So if you've got basically high rents in Jacksonville, maybe higher rents in the other cities, but it took you a hundred or 125, 000 more of investment to purchase it. Your cap rates are going to be a lot lower in the other supernova cities than, than Jacksonville.
Pablo Gonzalez:Makes sense. Makes sense. Okay. So we got one more thing that we want to discuss because there is this idea of, you know, the Then there's the supernova cities and something that you see very, very common in all of these cities is that they have this like thriving downtown, right? Like if you, if you talk about Austin, Nashville, I have been to both of those downtowns in the last like two months. Really 24, seven good time. I don't know if 24, seven, right? Like maybe not from like three to five, but you can definitely get into trouble at whatever time you want there or fun or trouble. However you want to say it. Right. And as you look at the, the, the rest of these cities, right, Miami, Atlanta, Dallas, Houston Tampa, Denver, Charlotte San Diego, we, we referenced the downtown. It, they all have thriving downtowns and you put together this sheet here of Why having a thriving downtown contributes to them being in these magnet cities you see you want to talk
Gregg Cohen:about this? Yeah, absolutely. Let's take let's take the the leap now to put on your real estate investor hat and how do I use this information? How is it actionable for me? Well, I'm gonna try to connect the dots here Not only do you want to be a supernova city? You want to know how do they become supernova cities, right? Well, a very common thread is a revitalized downtown like you talked about So, connecting the dots, doing the research shows that revitalized downtown cities have appreciated a lot more than the U. S. overall. The numbers actually come out to 23 percent more home price appreciation on average in Denver, Austin, Nashville, Tampa than the U. S. average since 2012. Many of those cities have become revitalized in the last 10, 12 years, and you're starting to see those effects, and they're substantial. So what could 23 percent more home price appreciation mean for you? Well, translates into hundreds of thousands of dollars, potentially millions of dollars for you, depending on how big your portfolio is.
Pablo Gonzalez:Okay, so downtown developed downtowns lead to higher home price appreciation, higher home price appreciation leads to hundreds of thousands of dollars, depending on how big your portfolio is. do you think that Jacksonville has a down, has a developed downtown?
Gregg Cohen:I'll give you some of the the nicknames that our city has earned. If you're a Jacksonvillian and you're not in our lovely bubble here where we see where we are going, you might say things like, Jacksonville is the city of wasted potential when it comes to downtown. You might say things like, we are the city of renderings when it comes to downtown. That's, that's what Jack, that's what Jacksonville, Jacksonville, people who are closest to this and have the most baggage. That's what we feel. It's because downtown, when you go and you drive through it right now, if you don't know what I know and what you all are learning here, you would look at downtown Jacksonville, you'd say, man, how, how do you have a city here of 1. 6 million people living here? And you have such little going on downtown after the workday is done.
Pablo Gonzalez:It's such a beautiful downtown waterfront historic buildings, sports and entertainment complex. I mean, we have a river
Gregg Cohen:going through our downtown, how many cities have that? We have an NFL franchise downtown. We have AAA minor league baseball. We have hockey here. We have, you know, these wonderful concerts that come in all the time. But yeah, it's, so it's like, it's kind of like living a double life as Jacksonville right now. On the surface, we do not have it all together when it comes to downtown, but under the surface. What has been going on for really almost I would say about a decade, which is when the city of downtown actually started to have a voice. We created the downtown investment authority, which gave downtown a voice here in Jackson. When
Pablo Gonzalez:you say we, you're talking about JWB and a bunch of other people.
Gregg Cohen:Well, I don't want to misconstrue the JWB created the downtown investment authority. We are very big proponents of it and we're very big supporters of the downtown investment authority. But you know, that's just, yeah, no, we didn't, we didn't create the D the DIA. We're, you know, So, yeah, so I forgot where I was going.
Pablo Gonzalez:So you're going about what we know about downtown that people
Gregg Cohen:don't know. Oh, well, I was going about the double life. So like there's, there's what you see on the surface, but then there's what I'm trying to share with you, which is real, really where the best return on investment opportunity is. How can you know before everybody sees a big skyscraper? How can you know that Jacksonville is on its way to being a Nashville or a Tampa or a Denver before it's actually seen by everybody else? And how can you do it in a risk mitigated fashion? Well, that's the opportunity that JWB provides because what people don't know is in downtown Jacksonville right now, there's 4 billion of active construction going on downtown. That population of people living downtown is growing at a fast rate. And we know that there are certain metrics to pay attention to of when development really kicks into high gear. And so, are we sharing this, this slide? Yeah, I've been
Pablo Gonzalez:sharing them.
Gregg Cohen:Fantastic. One of those measurements, you can see here that, well,
Pablo Gonzalez:Which one do you want to talk about?
Gregg Cohen:We'll stay with that one, right? So, one of those metrics that you can know that you're downtown is on the path to greatness here and a path where developer dollars are going to come in. hand over fist and start really building things up is how many residents are living downtown. And we've looked at other successful downtowns like Denver, like Nashville, like Tampa. And what we see is that once you hit 10, 000 residents in a downtown, the rents start getting driven up to a place where other developers can come in and make money. So this 10, 000 residents plateau is a very big threshold for us to hit. And we are projected to hit that threshold this year. And if you go back to 2017, we had, we had fourth, was that 4, 800, 4, 800,
Pablo Gonzalez:half of that. Yeah.
Gregg Cohen:So while the number 10, 000 is not mind blowing in a city, that's 1. 6 million people look for trends here. We've doubled our people that are choosing to live downtown and why do people do that? because it's a better value for them. It's better quality of life than their other alternatives. So this is something that is one of those reasons why we get super excited about our place for where we are Jacksonville in Jacksonville, downtown right now, which is about to pop off.
Pablo Gonzalez:Yeah, it is a supernova city that feels like it's best days are still ahead of them based on a very visible signal indicator, which is this downtown piece. This idea of 10, 000 residents as density in an urban core, being the thing that needs everything else to happen. I explained it as, you know, when you're, when you're trying to develop these urban projects, right? These like city center projects, the best practices that people have all embraced now is mixed use, right? You walk around New York, there's a business downstairs and people are living above it, whether it's a hotel or a restaurant or offices or whatever it is, right? It's mixed use so that this 18 hour, 24 hour flywheel. Kicks in when you are a developer developing something in downtown in order to feed a mixed use building for it to need to exist. You have this kind of like chicken and egg scenario is that you need enough population there that wants the housing in order to have the businesses that want to invest in the commercial real estate space. So this need for. 10, 000 residents to be there is to be able to do these best practices thing, not just like a condo high rise, but a mixed use high rise where downstairs you get a major brand like a Whole Foods or a Publix or something like that, that is willing to be what's called an anchor tenant. And before this 10, 000, resident thing hits, then that's when cities are like coming up with these incentives. It's like, Hey, developer incentives so that you build this because we got to make it sense, make it make sense because we know what's in it for us. We know that if we hit this threshold, we're going to hit this growth spurt and everybody's going to want to move here. And as soon as that 10, 000 number hits now, You know, that developer no longer needs that incentives because they can make a phone call and Whole Foods will be like, yep, sign me up for 10, 000 square feet. Right. And they're going to get in there. And the fact that that's about to happen now in Jacksonville is this flywheel effect that's really starting to tip, which we can now really see it coming. And it's no shock that, you know, you look at that growth in residents and the growth in investment is now just like really taking off. Right. 2017. 700,019.$719,000. 2018. Sorry.$719 million. There
Gregg Cohen:we
Pablo Gonzalez:go. 2018, a billion dollars. 2019, 2020, getting close to three, 2020, 2021, 3. 2. Now 2022 is 4 billion, right? Like that jump is really, really growing because the developers are seeing it. The businesses are seeing this trend happen. And now it just kind of takes on a life of its own, right? It's reached critical mass escape velocity. And now it's not just developers like JWB, but that have this long term plan, but everybody else sees it and everybody else is jumping in. We're close. We're really, really close. Okay. Anything else you want to say about that, GC? Did I sum that up pretty good?
Gregg Cohen:I wanted to talk a little bit about the effect of, of on home price appreciation pre and post. Okay. Downtown development. Let's talk about it. Yeah. So, so another question that was going on in my mind was, okay, well, how much of an impact does a downtown truly have on home price appreciation. So I, I gave you the general number. We know over the last 10 years on average, 23 percent more home price appreciation for revitalized downtown cities. But I wanted to dig in a little bit more. And so I started to do the research to say, okay, well, if I know that downtown in Austin started to really come online somewhere around 2010, What was Austin's home price appreciation rate before downtown and what was it after? And how did that compare with the U. S.? So I did some really cool digging and some really cool research, so I wanted to share it with you all because this should reinforce the upside that our supernova city really has, knowing that we haven't gotten there yet from a downtown perspective. So here's the data. So Austin from 1982 to 2010, Austin's average home price appreciation rate per year was 3. 7%, which was exactly the same as what the U. S. was overall. But from 2011 to 2023, Austin has appreciated a rate of 7. 6%. per year. Now the U. S. has done quite well overall, right, from 2011 to 2023. The U. S. is appreciated at 6. 8%, but we went from being, excuse me, I won't say we, we are not Austin, right? But Austin went from being just like every other American city to appreciating 12 percent more in the decade or so after it had its downtown revitalization. So then I went and I pulled the data for another one too. And I said, huh, I wonder if this is a trend that we're starting to see in Nashville as well. And guess what? The numbers are even greater in Nashville. So what was really cool for me to see though, is what was it prior to the revitalization? It was just like every other city. So from 1982 to 2013, Nashville appreciated at a rate of 3. 8 percent per year. U. S. was 3. 7 percent per year. So it was just like every other city. And then Downtown came online, downtown started to attract people to live downtown and eventually people so many people wanted to live there that more and more developer dollars started to come in without incentives and it now Nashville is what it is. Well guess what's from 2014 to 2023 Nashville appreciated 9. 7 percent per year. The U. S. overall was 7. 6%, so 28 percent more home price appreciation post downtown revitalization. Now, you should be asking yourself the question, in Jacksonville, not only do we have one of the best appreciating markets to date, our appreciation is more than what the national average is. What is going to happen after downtown Jacksonville comes online? What's that appreciation bump going to be like when we have Jacksonville? 10, 000, 15, 000, 18, 000 people living downtown. That's the big opportunity that I want to share with all of you. That's why you can invest in JWB, Jacksonville Single Family Rental Properties right around downtown and take advantage of that indirectly.
Pablo Gonzalez:You know, I'm sold, man. I have absolutely bought into this. before we put language to it, I felt it. It's one of the big reasons why I bought rental properties in Jacksonville before buying a home in Jacksonville. It's because I wanted to, like, not get left behind. What I find most encouraging about this conversation so far is that a, I was right. That was, feels good. But B, I don't feel left behind yet. Right? Like the fact that it is a supernova city, it has appreciated like a supernova for the last four years. Glad I bought three years ago. But the fact that I know that I'm going to continue to build a portfolio here and that the best is yet to come. Right, like there is still downtown about to happen. All these trends are still favoring Jacksonville. I expect Jacksonville to graduate up the list of, you know, from Supernova to Super Sunbelt or whatever, you know, whatever it is to, to these established players is very, very real to me. And it's also 100, 000 less than buying something in another city so I can buy more for my money, man, like, you know, like I, I really, I really got the lesson of just like how much more can I get for my money with my last rental property, which is my biggest one. They've all appreciated the same, but the one that was my biggest one actually has most equity in it because it's a bigger pie that's grown bigger and home price appreciation is what makes you rich, right? So like, I don't know, man. I just think it's, I think it's really exciting time to be an investor, to be looking at this stuff, to be part of like the, you know, our inner circle. That's been like keeping up with this thing and having the opportunity to leverage a partner like JWB real estate capital. That, you know, like if I found us out about any other city, I'd be sitting there thinking, all right, now I got to do the research to be like, who is the market leader there? Is anybody vertically integrated there? Does anybody have like the incentives in place to win when I win and not just like win whenever they get paid kind of thing and to have this market? Be like completely signaling it to be underpriced and obviously have the partner in place man, it feels like somebody telling me like what Apple was going to do right after the iPod came out before the phone or before the tablet.
Gregg Cohen:Yeah, I think, you know, and I've had the blessing of like shouting this from the rooftops for many years now, but you all are hearing me more urgent in my tone, especially over the last. Probably a year or so since we announced some of the downtown developments that we're a part of and whatnot. One of the questions the Shaw man is asking when is JWB's office moving to downtown? We're still figuring all that out, but JWB is actually moving our corporate headquarters downtown. We, we have a beautiful building down there. And so we're figuring out when. When the right time is to move. So, you know, you're hearing me get more and more loud because there's an urgency about this. There really is. And this is not going to be the same urgent message that I share with you in one year, two years, three years, five years, I don't know when this tipping point is going to start happening, but it's going to start happening. You're going to start to see home prices and rents go up significantly more. And so, ultimately, those who are able to listen to this message and are in a position to take action are going to start off with a head start in the Pac Man. Yeah. Right? The Pac Man principle, where we talk about how much home price appreciation is going to contribute to your overall wealth. This is an opportunity for you to start off with a huge head start. and growing, you know, growing your wealth pie. So, excited about it. I'm excited to continue to share it. I'm excited. We're, we're just, you know, putting our heads together for what summit is going to look like in Q1 of next year which is where we invite all of you to come down and see the things that I'm sharing with you on the inside of what is going on truly in downtown Jacksonville and to get together with all of our Not Your Average Investor friends. So, Yeah, I get more fired up about these conversations. That's cool, man.
Pablo Gonzalez:Yeah, that's cool. I'm glad we did the show. We got three questions we're going to answer. We got Stevie B in the house. He's asking, of all the JWB neighborhoods, is investing near downtown about to be the leader of all?
Gregg Cohen:Of all the JWB neighborhoods, is investing near downtown about to be the leader of it all? All of JWB's neighborhoods are within a 10 15 minute drive. Yeah, yeah, that is all
Pablo Gonzalez:the
Gregg Cohen:neighborhoods. Yeah, so, and that's by design. So, so yeah, it's, it's very strategic that we are putting you in these neighborhoods, which are all surrounding downtown Jacksonville.
Pablo Gonzalez:Yeah. So CBB, yes. And they're all of them. It's just, yeah. And is asking, what do you think of the Detroit Metro area? That's a somewhat outside of the scope of the show, but I just wanted to go into this, the list, right? These are the, these are the, yeah, I know these are, these are the emerging trends, 2024 market categories. You know, we're up here at the top of the magnets all the way down here at the bottom is, is Detroit, which sits under this, like. Backbone cities that, you know, like built the US and are inventing themselves. So like when I see this idea of like reinventing myself, I hear some upside, but I also hear a lot of risk because when you're in reinvention mode I think of like, The stability of like an adolescent. What do you think?
Gregg Cohen:Yeah, I love your answer there. I think it was really good. I, you know, I'm not an expert in the Detroit market. But I think ULI has put the time and energy and the expertise into kind of figuring out where it sits on the scale. So, I love using ULI's description of Detroit there. I hope that helps for you.
Pablo Gonzalez:And then finally, Veru K. says, Does JWB do commercial properties?
Gregg Cohen:Uh, Veru, great question. So, you know, our focus and our hedgehog is helping everyday people invest in single family rental properties. That's why we're here. That's why we have 130 people moving in a certain direction to help all of you. Invest in single family rental properties. And that's what we do too. The majority of our investments are in single family rental properties from time to time. We have taken some commercial properties and and have done some larger developments. I've shared the ones down that we've done downtown with all of you you know, but those are more of a reflection in our commitment to being a part of a solution for downtown Jacksonville is really a once in a generation opportunity that we saw. And so our commercial involvement is is for that purpose. And it is very sparingly and it's not something that we sell. So we put our own money into our downtown commercial investments. So when you think JWB don't think commercial, right? Think about JWB being single family, rental properties, property management being vertically integrated there. But we care so much about our city that when we see an opportunity to do something and be a pioneer in downtown Jacksonville, we're going to take that opportunity
Pablo Gonzalez:and I'm going to take the opportunity to just say to me, it's kind of what makes it all special is this idea that somebody can be developing the downtown with the inherent interest of the 6, 000 homes around the downtown is very rare to me, right? Like having lived in Miami. The people that came and developed and are, you know, there is, there's like one family I can think of that was very established down there and was like a very stalwart proponent of developing Miami. And then there's a whole bunch of vultures that came in and just like made as much as they can off Miami and left. The idea of developing a downtown from a placemaking standpoint because you want the city to win as the secondary goal of like what you're, of what you're doing to me is like really, really special and what you guys are doing. And I think it's incredible. So that being said HS. Le Leslie in the chat has some feedback there. She also, who, I think Leslie just got her seventh property with jw. Yeah. With JWB across, congratulations. Yeah. Saw that, saw that come across. She says she has two properties in Detroit. It's very spotty and they have struggled through racial unrest and corruption, unfortunately. Right. So like for what it's worth, Leslie, who we call the Maven has decided to invest in Jacksonville over Detroit. Okay. Coming up tomorrow, webinar with Anne Merrill, link was in chat. Hope to see you all there also tomorrow, good friend, MVP, Lee, he's having a big day you know, he's kind of reached out to us, Lee, me and Greg, we really wish you well, I know a lot of this community, like, owes you a lot, man, so we hope that you have a, a great day. You have a good day tomorrow, my friend,
Gregg Cohen:thoughts and our thoughts and our prayers. And I, and we're going to all give each other, let's all give each other a lot of big bear hugs tomorrow to make sure that we're supporting in
Pablo Gonzalez:honor of Lee Bishop. And next week we got an interesting show. GCGC, GC has been for a long time, been asking for people to send them performers and send them deal sheets because he wants to just tear through them like a Wolverine. And We finally got you to do it. Somebody finally send us some deal sheets and there is some eye opening stuff that we need to like talk about in these deal sheets of how people position these properties and are over promising and putting you up in a bad place to not meet expectations. So we're going to tear apart some some deal sheets and like what, what other folks that aren't called JWB are pulling the wool over your eyes. So next week is going to be a, a very eyeopening show from now till then. Vibes for Lee big bear hugs around and what else do you see? Don't be average.