Not Your Average Investor Show
Not Your Average Investor Show
How Just 1 Passive Rental Can Change Your Life
We all understand how important passive income is to our quality of life, and can easily see how great it would be to have an army of cash flowing properties allowing you to live the life of our dreams.
But most people don't realize that JUST ONE rental income property can completely change your life... so they think it's not worth it unless they have a clear path to a portfolio ahead of them.
That's why this webinar will show you THE POWER OF JUST 1 RENTAL PROPERTY so you don't get paralyzed by the idea that you're not ready to become a passive investor yet!
Join Paul Shively, head of the Fortune Builders Passive Income Club, and Gregg Cohen, co-founder of JWB Real Estate Capital, two guys who have helped thousands of investors invest in billions of dollars in real estate, to learn how:
- How passive income rental properties pay you 5 different ways (and all of them get better over time!)
- Why 1 rental property can be the best way to pay off 1 of your 3 biggest life expenses: college, healthcare, retirement
- What the easiest path to owning your first rental property is without the typical bad experience of so many 1st time investors
- and more!
If you have ever wanted to own rental properties that pay your bills, but think it may not be for you, this is one webinar you will not want to miss!
Listen in to understand exactly how to make the best decision for your financial future!
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All right. Welcome. Welcome. Welcome everyone to a very, very special webinar. I will be hosting this webinar. My name is Pablo Gonzalez. I host a weekly podcast here that we call the Not Your Average Investor Show, but I'm not the subject matter expert. I'm just brokering a conversation between two guys that have each have done individually billions of dollars in real estate transactions. We've got the man that you know and love. Paul Shively, the head of the passive income, income, passive income. I'm really struggling. You'll get
Gregg Cohen:there. You'll get there. They
Pablo Gonzalez:bring me here cause my tongue moves so perfectly. Well, that's why I'm here. the passive income club for fortune builders, has helped, thousands of folks do this, right? Paul, over hundreds, hundreds of millions of dollars of real estate invested with you billions of dollars, in transactions. welcome, man. good to see you on the other side of the zoom call. Once again,
Paul Shively:it's. It's good to be home, man. I say it every time it feels like home when I get to chat with you guys. And it's a great way to start the year. and I think it's a great topic to start the year. A lot of people are goal setting. We wanted to kick the year off strong and bring good content to you. That's, you know, very applicable very actionable, and a great way to start the year and start your goal setting. Right. I think it's a great topic that I'm really, really excited about. So thanks for having me and excited to bring it to the fortune. Bush can be, it's going to be great.
Pablo Gonzalez:To be here with you, this man over here to my right, I affectionately like to call him GC because he knows how to generate cashflow because he's got genius concepts. Cause he's a great co host of the natural investor show. And cause his name is Greg Cohen. He is the co founder of JWB real estate capital, a company that manages over 6, 000 rental properties here in Jacksonville, Florida for over almost 2000 clients completely vertically integrated. Real estate investing company, meaning everything from land acquisition to portfolio management, property management, everything in between. Plus C building here in Jacksonville because they own and are developing 20 city blocks of downtown Jacksonville. 120 people in this, in this building. Win best places to work awards. I have a giant man crush on this guy, Greg, say hello.
Gregg Cohen:Hello everybody. It is fantastic to be with you today and thank you for the man crush. I feel it often. I think we have the three of us have just a man crush here. And you know, every month we get to get together with the fortune builders community and, and, you know, love on real estate, love on the community, but you know, we spent a little love between the three of us too. So it's awesome to be here with you. Shively Pablo. Can't wait to do this.
Pablo Gonzalez:Yeah. Plenty of love. You guys, I feel that you have this, like, this like brotherhood bond. You've been doing this together for like 17 plus years. this is like an extension of the service that you get here by joining the fortune builders community. You get access to amazing vetted. Folks that know what they're doing and can really help you fast forward your retirement, grow that past income. I see folks from our community here. As we said, we host this podcast twice a week or once a week, the natural average investor show live. I see folks like John Henning. We call it the lead off hitter. John Williams, who's our world famous composer in the house, uh, we'd like to call him, but I see a whole bunch of folks here from fortune builders as well. Oh, Brickiley was Brickiley is a new member of our community from this week, but I see Lisette Casale. That's a name that's likely a Fortune Builders person. The Man of Steel, Vincent Barberite, who is Fortune Builders and JWB, Natural Average Investor Show community member, Ed Lowery, Eddie Harris, a bunch of folks that come here week in, week out, Ingrid Yeh, here from LA on fire. Happy to give you the distraction, Ingrid, I hope that you're safe and man, I hope that, that can be your community. is able to heal from this quickly. That being said, guys, one rental property to cure them all, like one rental property what it can do to change your life. As we were thinking of something that could add a ton of value here for this show, Paul, this was your idea, man. Why don't you, why don't you tell us why you thought it was so important to kick off the year with, with this show right here?
Paul Shively:Yeah. You know, it's, it's, it's something that's near and dear to my heart. I think it's really important because I sit down over the holidays, you know, I try to get some time away and I sit down and like a lot of people, what do I want the next year to look like? What do I want to start to do more of? What do I want to do a little bit less of that I did last year, right? And one of those things is I look back on part of that financial review of my own assets. How am I doing financially? A financial health check of myself. And I sit down and every year I look at these properties that I own, these little single family houses, and I am thoroughly impressed by them every single year when I analyze them. And it's really, I think, something that's very important for everyone to look at in this community, right, the Fortune Builders community and the JW community because we've chosen to invest in real estate. That is our vehicle of choice. We may do other things as well, but we're here for a reason. And it's, it's important. It's easy at the beginning of a year. It's easy to have these grandiose goals and those are phenomenal. But I want to make it really simple for people. I want to make it a little less overwhelming for people. And I want to remind everyone in the community, because I reminded myself over the holidays. Holy moly, just one of these things was really powerful, and here's what it did. And I've got stories I can share of how that happened in my life that I'll share. And what we're going to do today is show you exactly how we look at houses, how Greg looks at houses, how Fan and Paul look at houses, and how our community, who's picked up over 7, 000 of these single family rental houses that are managed by JWB and our other partners, Right? How they are changing their lives. And just one of these houses, it doesn't have to be a portfolio of 10, 30. Those are wonderful too, but just one of them, or even two of them stacked every single year in a portfolio can have a massive impact on some future challenges that we're going to face. And that's exactly what this is for, and I think it's a great way to kick off the year.
Pablo Gonzalez:what do you say about a gc? What a what, what, what? What pumps you up about this call?
Gregg Cohen:You know, I just, I love this asset class. I've been investing in this asset class since 2006. And I just fell in love with it because I think it is the perfect investment for everyone in like everyone has access to this asset class, right? You don't have to have these special barriers that you have to overcome like many other assets. And these beautiful assets are in our communities. And when we invest. In these assets, not only do we do great for ourselves, but we do well for our communities and our country. And I just, I feel so passionate about the beauty of this asset class, but I also understand that it's misunderstood, you know, and even those of us who understand how powerful this can be, sometimes get intimidated. When we start to think, Oh, I need to put hundreds of thousands of dollars in this to make an impact on my life or to change my life or to solve a big problem. So the reason I'm so excited about the call that we're doing today specifically is because talking about one, we're talking about one asset. What can one asset do to change your life? And I know from experience, One asset is really powerful and one asset is something that the Fortune Builders community is here to help you get to, the JWB team is here to help you get to, because once you get to one asset you're on that path to solving those big problems. But the number one problem or the number one hurdle is getting to one. And so that's what this show is about.
Pablo Gonzalez:All right. That being said, what I'm really pumped up about is that I'm not a full fledged 20 year real estate investor. Like these two guys have done billions of dollars in real estate. I'm, I'm a rookie in comparison to you guys, right? Like I started hosting the show, Four years ago as a marketing guy, and I've now joined the brethren of real estate investor. And one of the things that it took me a while to understand was, you know, I got past this idea of like, it's not just cashflow. I started understanding that this home price appreciation thing, it's what builds my wealth. But when I was trying to, To really tell people what pumped me up about this. It's not just the, the direct kind of return you get from real estate. It's the options that you have in real estate that I think people really misunderestimate. It's really hard to show it on an Excel sheet. So these illustrations that you two guys have figured out how to put together, I think are really going to drive some points home of the power of just one home. It's intimidating to think I got to get to a portfolio. And when you only think about one, you're like, well, okay, well, maybe it's just my life. Maybe it doesn't. But this outcome based real estate investing is something that I think we got to get really loud about because as the newest guy in the room, man, it, it really rings true. So I hope that this connects some dots for everybody and Greg and, and Paul have put together this presentation right here. We're going to get right into it. So just how one passive income rental property can change your life. If you want the, a copy of the slides, just text us 904 293 7000. 0341. Nobody actually ever looks at screenshots. That's something that we all know. We've all been to plenty of webinars, taking plenty of screenshots. Nobody looks at them. So just text us for the slides. We'll send it to you. You get to do it. And by the way, if you have questions, if you want to set up an appointment, right, like this whole experience that JJWB has made is to make it easy to own these rental properties from anywhere, right? Because they control the whole experience. I'm a client. Paul's a client. Reg's a client. Owns 400 of them. So we all know this and this is where I let you guys do this due diligence thing because I don't know how to do this.
Gregg Cohen:Yeah, I'll just jump in here. I think most of us know this, right? When we're doing a case study like we are today, we're going to use numbers. These numbers are estimates. These are not guaranteed and take it upon yourself to start your journey. Being here today might be the start of the education journey for you, Continue that journey beyond today. Work with experts that you know, have your best interest in mind before you make a financial decision. Paul, myself, Pablo, we are not financial advisors. We're not offering financial planning. What we are, are a bunch of real estate guys. And we have done this now. Shively and I have done this for about 20 years. Pablo, it's been three or four years for you now, right? Close to five, right? Close to five. So there you go. So, yeah. So super appreciate you being here and we're going to jump right into it.
Pablo Gonzalez:Let's jump right in. Do you see? So one of the first things that people misunderstand is this idea that rental properties pay you five ways. You're pretty good at this. Why don't you explain it?
Gregg Cohen:I love this. the reason that I love this asset class so much is because it pays you in five ways, and it's hard to find another asset that does that. Many people focus on only one, maybe two of the ways that rental properties can pay you, and they miss the big picture, actually, when it comes to how beautiful this asset class is. So, these are the five profit centers. There's net rental income, which we also call cash flow. There's tax savings. There's principal pay down. There's home price appreciation. And there's inflation hedging and inflation profiting. And I think we'll dive in just a little bit here. So, Shively, how about you take the one? Well, you take the one at the top. Talk to us about net rental income and why it's so important.
Paul Shively:Sure. Well, we'll keep this high and tight, right? We have a lot of other webinars. We have a lot of other trainings that you can text and get access to, right? Text that number and get access to a lot of our other recorded trainings. So we'll keep this high and tight because this is just setting the framework for what we're about to talk about, okay? If what we're going through, you're like, hold on, wait a minute, that was too quick. Text us. We can get you a lot more on this. Real quick on the five profit centers. Everyone, for the most part, especially outside of our community, right, don't have the education to what you all have. They just focus on cash flow when they're analyzing a rental property. That's the first thing they look at, right? They say, oh, well, my rent needs to be X or Y, or I need to make X amount in monthly income. And while that's not bad, that is absolutely one of the profit centers. It is a minority profit center, right? It's not the majority of the profit that these things can kick off. It can be great. It can help you solve a passive income need or, or challenge. We can create a portfolio around it. It can absolutely be a part of. Your whole profit center and your whole plan, but the cash flow that these things kick off is just one part of it. You've got another part with the tax savings which is great because you know, the tax code is written that we all get to take advantage of. We get benefits as real estate owners. We get to write some stuff off in our taxes and there's a ton of trainings on how to do that. How you can own them in entities and how you can financially engineer the legal structure. Of your holdings and we can help you with that text that number We can help you with all that stuff and greg. I know i'm rattling them off just to go quick here Sorry, I love it, right but there's You know, the same thing on the principal pay down is we can show you ways to leverage into assets where we can, you know Put it down payment get the bank to pay for a small amount a large amount a medium amount of the asset depending on what we want to structure for you. This is all customizable, right? But that's principal pay down where the tenant who's in that asset for us it can be be a Another profit center for us the rent they pay us not only comes to To us as cash flow, but it helps pay down our principal now So every single month we own more of that asset, right? When you're paying the bank, you're not just paying them interest. You're paying them principal as well, too So every time you pay the bank you own an incremental amount more of your asset, right? And over time that can grow and that's a profit center, right? And then greg, of course the big one that a large part of what this is going to be about is the home price appreciation. So why don't you take that one?
Gregg Cohen:You know, home price, appreciation, people feel like they understand it, but many people don't when it comes down to it. You know, the reality is that when you own these assets for a full market cycle and you look back on the wealth that you created, what you're going to see is between 60 to 80 percent of your wealth created in your rental properties comes from home price appreciation. And that's, that's not dependent on when you purchase the property over time. That's the way it looks. You know, I get to manage 1. 3 billion in real estate assets. And I look at the monthly numbers for all roughly 2000 of our clients every single month. And it doesn't matter if our clients invested in 2011 or our clients invested in 2013 or 18 or 2020. Whenever it is, you always consistently see that home price appreciation is the biggest chunk of the pie. But most people discount it. Most people don't understand it. They feel like it's speculative. and we spend a lot of time again in trainings, helping people see how you can count on home price appreciation, given the long, term outlook and the long term hold in the long term mindset of rental property investing. Such a home price appreciation is incredibly important. That's going to be the biggest generator of your wealth. And that's also the reason why choosing the right market is so important. So a lot of trainings there again, in Texas, if you'd like more information there. Inflation hedging is a. Even more misunderstood. I don't know if anybody talked about inflation prior to like three years ago. But you know, in rental property investing, the reason, one of the reasons why the, the very wealthy invest in hard assets like real estate, like rental properties is because as the cost of the goods and services around your rental property goes up, guess what else goes up? Your rents, your home prices, it tends to go up at a rate that is correlated to inflation. And that means that this asset just by itself is protected from inflation. It's protected from eroding your capital, which is what inflation does to many other assets. So it's a built in inflation hedge and you actually profit from inflation. When you take out debt, which again, probably a little bit more of a discussion is necessary there than we're going to have time. That's not the focus of the show today, but this is just a general overview of those five ways that rental properties pay you.
Pablo Gonzalez:And if I can dumb it down a little bit, go ahead, Paul. Yeah,
Gregg Cohen:no, no, no. Go ahead. Good.
Paul Shively:Good.
Pablo Gonzalez:No, I was just going to say, if I can dumb it down a little bit, cause that's, I'm the, I'm the dumb guy in the room. You know, I look at the cashflow coming in, right? That everybody knows what that means. The tax savings that you're able to take from rental properties, allow you to keep that cashflow much better, right? As opposed to another asset where a dividend, you just got to pay taxes on that too. Principal pay down is the concept of other people's money. When you're buying stuff off a loan. And your renter is paying it off. You are gaining that interest. You're getting that money back of that you borrowed becomes yours. And then there's home price appreciation, right? That is the whole, like your, your property going up over time. And on the show, we look at portfolios all the time, right? And we look at how this stuff matures and we call it the home price appreciation. We call it the Pac Man principle, right? Cause when you lay out all the profit centers in a pie chart, You're going to see like, it looks like a Pac Man. There's the mouth of the Pac Man, which will make up all the other little profit centers. And then the Pac Man itself is home press appreciation. It starts to get real obvious when you start joining us week after week on the show. And to answer Ian's question in the chat that said, you know, greetings from DC. Hope you plan to discuss the challenges versus opportunities of investing in single family homes, long distance investor. You know, that's not what we're going to talk a lot about today, but just know in that by being a long, long distance investor, you get to pick the market that has the best qualities for you, right? Like if you're only going to invest in your backyard of DC, you know, I'm not sure if you're going to get cashflow. I'm not sure what the, you know, I'm sure you get pretty good home price appreciation there, but like by investing remotely, You get to pick the market with the best dynamics. Jacksonville happens to be a market that has cashflow and has above average home price appreciation. So it's a growth market that also creates this cashflow scenario. And it's one of the hottest markets in the, in the country. And the other piece of advice we'd give you is to invest with somebody that's vertically integrated, right? So that you have like one number to call. The person that sold you the home is the person that's managing it. That's giving you advice on your portfolio so that your interests are aligned, especially if you're investing from far away. How'd I do that?
Paul Shively:Well said. Yeah. What I'll say is, is, you know, there's a million questions and it's great. I love questions. You know, text us. That's what we're here for. That's why I put the text number up. Your individual questions require and we would like to give individual answers, unique answers that are custom to you. Jump on the phone. That's what we're here for. That's why you invested into Mastery. That's why you joined the community. Jump on the arm of this. That's what we're here for. Today's presentation is a financial concept That we want you all to understand so you can be a more educated investor to help make better educated decisions, right? So you can take action better, right? That's why we did exactly what we're doing today And that's why we set the framework of that first slide because there's five ways To profit from a rental property in real estate, right? What we're going to be talking about today is we're pulling out the financial concepts really of just one of those But we want to drive the point home. Hey, there's there's four other ones, right? You know, there's a lot of other ones here We're going to really drive home and nail down one of them because like you said, Pablo, what is that Pac Man? It's the largest part of the Pac Man, not the smallest part. We're going to focus on the big one today as we start the year, right?
Pablo Gonzalez:Such a pro. All right, let's get into it guys. 15 year problem, right? My kid is going to college in 15 years. I got to pay for it. My grandkid is going to college in 15 years and my My daughter married a guy that probably can't pay for it, so I might have to pay for it, right? Who knows? But you got to pay for college in 15 years, and the cost of college is expected to rise 57 percent over the next 15 years. GC, what am I, what am I to do here?
Gregg Cohen:Well, I think this is a very, very common thought. I mean, I have kids, you know, you have kids, Shively, I would think most of us in the community have kids, and one of the thoughts that I had very early on when my kids were just born is, Wow. I love my children, but man, they're expensive. Man, they're expensive. And, in order to think about. Those costs rising everywhere. I think the cost that we think that's going to rise the most, it just seems to never, ever stop is the cost of education, the cost of college. So I actually pulled some of the stats here and college costs are going to rise 57 percent over the next 15 years. And this is according to one of the educational financing authorities. You'll see there, if you want to get the sources and whatnot, but here they say. Depending on if you want to go to a four year in state university, or if you want to go to a four year private school, it's going to cost you between 155, 000 to 359, 000 to send one child to college in 15 years. Man, Shively, you have young kids. What does that do to you if you're not prepared?
Paul Shively:Yeah, it's something that's very real to me, but it's also, it's, it's been real to every generation. You Right. It's been real for everyone, whether it's a kid or a grandkid. I had other investors who we helped over the course of the years. He wanted to set up a foundation to help offset some of these costs for disadvantaged youths in a couple of the communities he was in, which was really, really cool. He's an investor who was near and dear to my heart. Unfortunately, he's passed away but I'm still in touch with his wife, right? And they still have that foundation going, right? This is something that I really believe in because education helped change my life, helped open me up into a completely different world that I didn't know was possible, right? So going to college was huge for me. Of course I want my kids to go to college, but it does not just have to be a kid, it could be a grandchild, it could be a foundation you're trying to start. What we're just trying to demonstrate here is, we know inflation is happening, we know education is a goal of a lot of families, and whether it's not your goal or not, that's okay, there's other things in your life you could sub in here. This is just one that is very near and dear to a lot of people's hearts. And it's an issue, right? Costs are rising. So how do we solve that? How do we, as investors, how do we get educated to make better decisions, to take better action, so we can solve these problems, not be victim?
Gregg Cohen:All right. Yeah, you know, and I, I think, there's a lot of numbers that are thrown around in real estate and rental properties. It's a somewhat complicated asset to understand between tax savings and, you know, principal paydowns. It's kind of complicated. And I think what gets lost in, in this is, Listen, when you make one investment in one property, it's like you're setting up one account to solve a life problem many years down the road. It's like, you can call that a retirement account. You might call that a college savings account, right? And you're able to do it on the backbone of this one single asset. And for me, I like to keep things simple, right? I love the idea of making one decision. Following through with that decision, holding on to that decision, knowing it's supported by a great team and a great experience, and then knowing that, boom, I've got my asset, that's how I'm going to pay for my son Cameron to go to school, right? Cause then I freeze up mental space and I know I can go and solve the next big life problem. So I think in real estate and rental property specifically, it's something that is a relatively inexpensive asset in real estate. So it's something we can get into, but it also has this quality of like, okay, once I get into it, as soon as I understand this and I follow the model, boom, life problem solved. That's coming to me in. Five years, 10 years, 15 years, however many years it's coming to you. And I love that fact about real estate.
Pablo Gonzalez:Yeah, it's an interesting take. It's like a set it and forget it. Well, not set and forget it, right. But it's like a, you invest in this little nuclear reactor of wealth that is going to power this one thing maybe. Right. So talk me through how you break that down.
Gregg Cohen:So I started to run the numbers and I said, okay, we've got the assets here that JWB sells to our turnkey clients. And I'm always trying to show our clients What outcome are you going to accomplish based on this asset? So I said, okay, well, we've got a 15 year problem here. If one of our JWB clients, one of our mastery students invested in a rental property today, here's how they could use that one asset to solve the problem of paying for college. What you could do is buy that asset, hold on to it, know that the growth is going to happen year over year in Jacksonville, just like it does, Most years in Jacksonville, homes grow at an average rate of 4. 9 percent per year. So if you buy this asset, you let this asset do what it does, and then you hold onto that asset in 15 years, and then you refinance, how much money would you be able to pull out so that you can then go and afford to pay for your son or your daughter or your grandchild or somebody you care about to go and buy it? to college. And guess what the numbers, we can dive into the numbers for anybody who's, who's curious here. But at the end of the day, you guys see it on the slide. If you just simply follow that one model, one property will give you 225, 000 of capital in your pocket to send your child to college in 15 years. And that's a beautiful thing, Shively. Is this something that you guys have seen a lot on the, in the mastery side? Yeah,
Paul Shively:it's, it's huge, man. It's absolutely huge. I mean, I've used it personally. I know thousands of master's students have used this as well, too. And it's, it's a concept we started to teach is, you know, there, there's the here and now. But what we found is, when we started to talk to a lot of our master's students, a lot of them have goals, like me, like you. We have goals, just like our community, where they're future goals. They're future generation goals, right? And I'm sure a lot of you on the call have the same thing, where, you know, it's funny, there's a lot of cultures that have financial goals that they skip a generation, right? So I've studied a lot of other cultures where, they see their wealth as not theirs or their kids, they see it as their grandkids. So they make decisions for their grandkids wealth, not their wealth, right? And so it's a different mindset. If, you know, everyone loves the cash flow and we get focused on that, but if we take a step back and we say, okay, you know, Pablo, I said to you earlier about your 85 year old self. Tell you right for a different conversation because Pablo, we're going to do a little peer pressure here. Probably need to get back in the gym, my friend. Come on, gotta get back in shape. Right. But right. So, you know, Paul station makes a joke of, you know, if you want that oil painting of you up on the fireplace four generations from now, or you set your financial future of your family on a different path, what decisions will we make? And this is where we start to make different concepts of what real estate can do. Like you said, Greg. Okay. Let's take one house, and I'm gonna put it my son's name is Jacob, right? And I've got another son, his name's Leo, but one house for Leo. Okay, if I can make a decision now, or a grandchild, or a foundation that you want to donate to, or whatever it is, and I can defer the gratification and say I want to set this, like you said Pablo, and let this engine run for me. The concept here is I make an investment now, and I let it grow. The beautiful thing that Pablo said earlier that I want to make sure we all really sink in on is real estate has some unique tools available to us. I call it financial engineering. We can do a lot of cool things with real estate, right? That we can't do with other investment classes. We can leverage into it. We can leverage into it when and how we want to, right? We can design that leverage, those loans, to benefit us to solve specific problems. That's financial engineering at its core, in my opinion. What we're saying here is, okay, make an investment, let it grow, and we'll come back to the appreciation rate in a minute, because I think that's an important point. But if we let it grow, and then whenever we know we're going to have an issue, or a problem, or a financial large chunk we need to solve, Well, let me plan for that and say, okay, I'll make an investment, let it grow. And at that time, in this particular case, I can do what's called a cash out refinance. That's a financial engineering tool that we're saying, I'm going to take this equity. I'm going to pull it out of the assets, right? Now I can't take all of it. We use the assumption you can take about 70 percent of the equity you created. Cause that's roughly what cash out refinances allow you to do, right? You took this equity that everyone says, Oh, you can't eat equity. You can't pay bills with equity. You can't pay bills with appreciation. So forget it. I used to think that too, right? I used to teach that. Actually, I was wrong. Very bluntly, I was wrong, right? Because I did this with my dad. I'll share that story in a bit, right? Whereas I took the equity and you can do a specific type of loan called a cash out refinance that allows you to get that equity in your pocket, tax free by the way, right? And then you can use it to pay for things. But here's the beauty of it is I still own the asset. I still have that engine, right? Jacob, my son still has, you know, I, it's in my name, it's in my trust, right? But I set it aside for him. Like you done Greg, that's still Jacob's asset, right? I still control that thing, right? So whether it's five years down the road or seven or 10 or 15 in this example, right? We can time our financial issues with investments where we can say, okay, I now have solved that issue. And maybe it's not a hundred percent, Maybe you want to send a kid or a grandkid to college in six years. And it's not 15. Well, okay, so let's run the math for you and run it in six years and see how far we get. Maybe you've solved 80, 90, 60 percent of the problem. Who knows, right? But this is the concept we're trying to drive home. One house. It doesn't have to be an army of 20. If you can get an army of 20, heck yeah, you're pouring gasoline into that engine. that Pablo mentions, but just one house can solve a lot of these issues. And when we initially conceptualize real estate, a lot of times we just get focused on the here and now, or the short term cashflow. And when we're in the beginning of the year, it's a new year, it's 25, we're trying to set goals for the year. I'm going to challenge the community to think long term with our goals too. And that's why I think this is powerful. The long term growth of these assets. You can take financial engineering concepts like we just said and apply them to it and help solve big issues down the road. And one thing I want to circle back to here Cause this, analysis hinges on a couple of things, right? The first thing it really hinges on 9 percent per year. Right? So, Greg, where did that number come from? And I'm going to throw a couple questions at you, right? That probably the community say, well, hold on, wait, hold on. Wait a minute. Timeout. That all sounds great. I understand. Hold on. I can't bank on it going 4. 9 percent for you. Where'd you get that number? Where's that coming from? What has it done recently? Right? And those are normal thoughts, right? So talk to me about estimated home price appreciation of 4. 9%. Because if I make an investment and it doesn't grow, well, this strategy doesn't necessarily work. Yeah.
Gregg Cohen:Yeah. This comes back to the, to the education process around home price appreciation that we get to share with the community, with our clients, because it's, it's so foundational. You know, I said, you can count on home price appreciation when you're in for the long haul. Well, what you have to do is you have to have access to the data for your market to go back decades. to see what the average home price appreciation rate is for your market. So that 4. 9 percent figure that really does is the baseline for this growth that we're showing here. That's substantiated by going back and looking at Jacksonville real estate values from 1982 all the way through now 2024. And if you look at those I want to slow that down. I want to slow it down.
Paul Shively:40 plus years. Right? So that's a 40 plus year average. And in that time, we've seen a lot of different market cycles, correct, Greg? We have. We have. So in a 40 plus year
Gregg Cohen:window, that's the average, right? Go ahead. And many people say, well, you know, what, what defines a market cycle? Like what, what does that mean? How do you know? And a market cycle is between 10 to 20 years in real estate. And they say, well, why, why is that the number? And When you have access to the data and you know the data of what your home prices have appreciated over that 40 year timeframe, what you see is if you take 10 to 15 sections of those 40 years, what you see is on average home price appreciation is right around the average of the entire 40 years. So long story short, if you, if we pulled up, you know, a 15 year section of time in Jacksonville's real estate pricing, it's very likely that the average appreciation for those 15 years would be right around 4. 9%. So when we're talking about the methodology of buying and holding and how you can count on home price appreciation, given the fact that you're in for a full market cycle, that's why you can count on it. That's why it makes sense. It's because you have a longterm average. And you know that that average tends to repeat itself somewhere between every 10 to 20 years.
Paul Shively:It's so funny that, one of the things the financial industry really throws around is To kind of cover themselves, I think is, you know, hey, past performance is not an indicator of future success or future returns. And I find it hilarious because I actually think it is the best indicator actually out there. What has happened and what the quantifiable facts are, are probably the best indicator of what's going to happen in the future. Right. We can all try to change and improve, but, you know, showing Any investment company any market, any analysis, what have you done? And then show me the data is really valuable. And this is the data of a 40 year. It's it's in, you can't refute it. It's the data. The data is the data. Right now. Check it out. Has Jacksonville grown in specific years? A little bit less. Sure. Has Jacksonville grown in specific years? Really high. Yeah. Way more. Right. Lately we've seen eight and 12 percent numbers, right? This particular case, right? For this example, again, I'm trying to teach you the financial concept of make investments, let them grow, and help solve big problems later. Right? We're using a 4. 9 percent number. What happens if we use what Jacksonville's done the past couple years of the 12 percent type of number growth? You can double and triple that 225 number on the right, right? Put it on steroids. We're trying to be real conservative and teach you the concept here. Okay. I want to be very, very clear. And I see a couple of the other questions are coming around and saying, okay, well, hold on, explain the numbers below. What we're saying is, Hey, you make an investment. It's around the 200, 000 house, right? Just, just a generic, just, you know, a number that's kind of right, right down the middle of the road. And it grows at four or 5 percent a year. The value of that house is going to be around that 438 number in 15 years, right? What the concept is, is hey, take a loan out and change the loan you have on that house. Refinance that loan. And when you do, that bank usually will say, okay, we can't give you 100 percent of the value of it. We'll give you around 70, 75 percent of the value in a loan, right? So that's your new loan. What do you have to do with that money? Well, that's that 328 that the bank gave you. Now, what we do is we pay off our old loan, right? That's that old loan number that we got when we originally bought the house. We have to pay that one off. So that's gonna, that takes your 100, 004 right there, you pay off your old loan, right? We don't have two loans on this thing, we're just gonna have one. Pay off the old loan, what are you left with? Tax free, by the way. That's that 225 number, so I saw a lot of questions of how did we get there? Slow that down. Explain that to me again, right? And we're happy to do that, that's what we're here for. Text the number. I would say as well too. We can walk you through this, right? That's exactly what we're here for. Pablo, great. Perfect. Put it right there in the chat. It's exactly what we're here for. You're gonna get a live human when you text that number, right? They're gonna walk you through this step by step and help you customize this to your individual scenario because you may have You may have six years, you may have eight years, you may have grandkids that are different ages. You may have, you know, the whole idea is we're going to teach you the concept and you can customize it to your individual needs and plan.
Pablo Gonzalez:Yeah. Well done there, Paul. I think just because you, um, you jumped right into it. I wanted to just let BB and Melinda know that that was the answer to their question, right? Like they're, they're, they're asking to explain these numbers a little bit, what this refinance loan amount means. Yeah. When you refinance, you take out a loan on the home that you own already, the same as you would to like buy a home, but now you own it already. And with that money, right? Like over time, since you bought it for two 14, you put this investment in of 78, 000. It grew at close to 5%. It's worth this 438. You're able to take out 75 percent of the value of the house now, which, you know, and you're left. And at that point, 15 years later, you still owed 104. You pay off that 104. You have this money left over, right? And now you have that loan. You have that cash and you can do whatever you need with that cash and the cash flow from the home and the things that are happening in the home that you're already owning, continue to pay off that loan. Right? So the big differences and Eddie Harris is asking here, Hey, what happens if you put that 78, 000 in the stock market? Right? So Eddie, that fair question, right? Like this is This is what we were talking about of like, what makes it special. These like levers of real estate. you might be able to get 225 K after 15 years, putting it in another asset class. The big difference here is that you get that 225 K and you didn't have to sell the thing. In order to get that 225k, you still own it. It's still that power plant that's paying off and building wealth and building equity with it, right? So that's, that's like the magic of this thing. And I want to move on to the other examples we have here. Anything else here on this one guys? All right, cool. Anonymous attendee also says financial model does not include repairs and upgrades necessary over the 15 year period. Please explain. Greg, do you want to take that?
Gregg Cohen:Yeah, so our properties produce positive cash flow, and that includes an expectation of a certain amount of maintenance. and vacancy and repairs all throughout the, the ownership. So these models are including maintenance and repairs by, by the fact that we know that these produce positive cashflow. What we're focusing on here is really just one of the profit centers, which is the home price appreciation, but there's positive cashflow to be had even after maintenance and repairs, as well as tax savings and principal pay down. So just know that that is accounted for there.
Pablo Gonzalez:Yeah, we have a question saying why 78, 000 that's more than 20 20 percent down payment you see you want to talk about that?
Gregg Cohen:Yeah, so I mean we're being conservative here, too If I really wanted to juice these numbers I could do this in one way I could do that is is by saying we were only going to put 20 percent down which would limit the The initial investment would bring it down, but this is all about being conservative. So this is including a, I think, I think I put it at 30 percent down, which is a good approximation for maybe 25 percent down plus closing costs and things of that nature. So again, It's all about customizing this to you. And when you get on the phone with us and we go through the, the planning process with you, you're going to emerge with a detailed plan specific to you. And the numbers might change a little bit because they should, because it'll be customized to you. So I would encourage you to text the numbers, set up a phone call with us, and we'll be able to customize this to you.
Pablo Gonzalez:Yep. So, BB's asking what year do we assume the refinance can take place? Maybe this is a theoretical example of in 15 years, you know, when you refinance has a lot to do with your goals, it has a lot to do with like the current state of, you know, interest rates and stuff like that and what's happening. Right. So the best thing to do, we keep on putting that number cause that's a text to get these slides, but you can also ask these questions. The other thing that you do when you text this number is you can set up a call with an expert. That will talk you through whatever you're trying to accomplish, run through these numbers and point it directly to your goal, right? So that's actually, you know, the first step when you get on with JWB is they figure out what your goal is. And then from there, you know, they figure out if rental properties is a, you know, a viable option for you based on where you're at and based on where you want to be. Then the second call is, all right, cool. Now we got that goal. This is what that would look like, right? So they would then present you your own customized one. So we keep on putting that number. 904293. 0341. You can get the slides, but most importantly, book a call, right? Like have this conversation, make this customized for you. Let's get on to the next example, bud.
Gregg Cohen:So then I started to say, okay, well, let's assume that we followed that plan and we sent our son, daughter, grandchild, somebody we care about to college from just one rental property. Are we done there solving life's problems? No. There are life's problems coming down the pike again, but we still hold on to this one beautiful asset, right? Well, I thought, okay, some more problems coming down the pike at that point might be these 30 year problems, I call them. How about major unexpected healthcare events? Does that ever happen, Pablo?
Pablo Gonzalez:More and more, man. More and more. More and more. Yeah, 100%.
Gregg Cohen:It's downright scary. It is such an emotional time for folks and, and who can afford these unexpected healthcare events, right? Oh, by the way, we know health care costs are rising fast. So it's kind of a double whammy coming down the pike. So if I'm sitting here and I'm like, okay, what can I do to take control and solve a problem that is You know, 15 years down the road which would be the 30 year problems, right? 15 plus 15, right? I'm starting to think about this. You should start to think about this. Well, here are some stats that are pretty darn scary, right? Healthcare costs are, right now, they cost about 14, 000 a year to pay for healthcare. That's outside of, you know, Your insurance, right? These are out of pocket costs. And the growth of these costs is way higher than what typical inflation is. Which is scary for everybody. They're expected to rise to 22, 000 a year in 2032, which is about a 5 percent increase per year. So I started to think about that and I'm like, all right, well, if I'm thinking today, And that's 30 years down the road at 5 percent cost increases per year. That would mean that health care costs out of pocket would be about 68, 000 per year in 30 years per person, right? If you're a couple.
Pablo Gonzalez:It's crazy.
Gregg Cohen:And you're aging. That's two. If you're a family, that's more than that. And then think about your extended family that you want to be there to support. It's downright scary when it comes to healthcare costs. So what are we going to do about it, right? One rental property can take a big chunk of that cost out of the way for you. So same type of analysis here, right? Starting with that one rental property that you purchased back in the day at 20, in, 2025, you bought it for about 214, 000, right? You have that initial investment of about 79, 000. That asset in 2025 that you purchased grew 4. 9 percent a year for 30 years. Now that market value will be about 899, 000 per property, which is pretty eye opening, but if you run the math, that's exactly what it would be valued at. So what do you do now? All you're doing is you're running back that same scenario. You waited another 15 years to solve a problem. You're running back that same scenario. So you've got that still, that same beautiful rental property. It has that One loan that now was the original refinance and you come in 15 years later and you do the refinance thing again And what it does
Pablo Gonzalez:this is the same property. So this is the property that already paid for college Yeah, now it's paying for the medical expense. Exactly. Okay. I didn't even think about that. Yes. You're just running it back Yeah,
Gregg Cohen:one rental property can take a big chunk out of college and then 15 years later It can also support you In your golden years to the tune of about 445, 000 that you would pull out of that equity. You'd pull that out through another cash out refinance, put that in your pocket. And what does that help you do? It helps you pay for these healthcare costs, right? That's about the time of retirement. And we can kind of get into how scary The prospect of retiring is today and how scary it will be for folks in 10 years, 20 years, 30 years down the road, about a half a million dollars from this one beautiful single family rental property.
Paul Shively:Yeah. And this is the beautiful thing about real estate, right? Is what we're doing here is again, we're studying the framework to give you the education. On the financial, really it's financial engineering, right? What we're doing is showing you a concept to say, okay, if you just put one of these things in your portfolio, here's how it can grow. And here's how you can take advantage of that equity as it grows, right? This is the concept we're trying to drive home. Very zero degree, nail, hammer, boom. We're trying to not, you know, literally, Hey, this is why Thancess we say every year stack rental properties into your portfolio. Put one or two of these into your portfolio every single year and just stack it, right? And if you have to skip a year, you skip a year. I get it. It happens, right? It happens. Life. I get it. But if you can start stacking a small portfolio, just one of these things, What we're trying to do is show you the concept of what one of these things can do over time, right? And you don't necessarily have to wait 15 years. That's just the example we chose, right? I've done this in my own personal life and just timed it and helped my dad completely retire, right? And to just wait and timed it and then boom dad, you're done. You're set. Here's the point. I bought him, uh, I bought him a rental property portfolio, gifted him a couple of these things, and he's done. You don't have to worry about anything anymore, right? And then I've got stuff for my kids, and I got stuff here. I've got stuff. I've got assets I've refied four times already, and I've only owned them for like seven years, right? It's just the math sometimes works. It's very customizable to each and every one of you. That's the point. The take home point is the concept of taking advantage of your equity. And getting started with just one of these is very, very valid, right? That's the take home point. And then Greg, I think we have an, an, Oh, by the way, one more thing with this to really drive this home as well.
Gregg Cohen:Well, I started down this rabbit hole of how much healthcare costs are going to rise, and then I started to look at some of the, just about what does retirement look like? Even if I didn't have healthcare costs rising so much, what, what are my prospects for retiring as an average person in our country today? And it's not looking good guys. It's not looking good. In fact, the article that I'm pulling this, this data from the headline was the new retirement is no retirement because this concept of Unretiring has become a global phenomenon. If you look at the data, about twice as many of our 65 year old and older Americans are employed today. It's almost 20%, as you can see here on the slide. That's about double, that's twice as much as who was working 35 years ago. So 35 years ago, I feel like you could have done all the right things and really had the expectation of enjoying your golden years. But that's not what Americans are seeing today. They're scared. Even the ones who feel like they have a retirement saved, they're scared. They're drawing less on their retirements because they're concerned about their ability to, they feel like they're, they're going to outlive the retirement that they have. So it's forcing them to live a scared retirement, which is not what they deserve. And it's even more scary for those, let's call average Americans, right? 43 percent of Americans aged 55 to 64 have zero dollars saved in their retirement right now. So it's a very, very big problem. It's one of the things that we tend to get the loudest about you know, within the Not Your Average Investor community because we think retirement is broken. And we think that single family rental properties can be an asset that can really help solve those problems. But it's just downright scary out there when it comes to the prospect of retiring. So, you know, I, I started to think, well, what are people doing right now? Because, you know, listen, these problems are coming to us. There are good Good solutions to the problems. And there are, you know, not so appetizing solutions to the problem. And if we don't take action, if we don't take control of it, we're going to be faced with the options that are not that appetizing, you know, many Americans, as this article was talking about are, are on retiring and they're coming back to work, you know, and my thoughts on it are that. You know, coming back to work and I pulled this because I thought of, uh, of our friends at Walmart, like a Walmart greeter, right? I have, my family members have unretired and gone back and you know, they one of my family members was, was working at the front desk of LA fitness. And, you know, I didn't expect it for that family because they tend to be well off. And I said, you know, talk to me about that life choice. And he said, you know, That's my choice. I'm a people person. I want to get out there. I want to be a part of a team. And I think that's amazing, right? And those who want to come back and unretire and be a part of the Walmart team or at LA Fitness or work on a golf course or whatever it may be, that's an awesome, awesome choice. But there are some folks that do not have that choice. And they, in their golden years, they are forced to work a job that they do not want to do. They are forced to work there. And miss out on really important family events, watching their kids, watching their grandkids, right? And, and that's what single family rental properties can help you avoid by taking action, by investing in just one single family rental property and holding onto it. You can give yourself optionality. optionality when it comes to retirement. And unfortunately, most of our country is not going to have that optionality. It's just, it's, it's a, it's a grim reality.
Pablo Gonzalez:So I think what you forgot to say there, because you got really pumped up about this like optionality. Is that after paying the college expense after paying the medical expense, that rental property that you'd still keep holding onto would be able to replace that part time salary with the cash flow alone, right? So it's like. Right? Is that where you're going with it?
Gregg Cohen:Well, it's not going to replace it with the cash flow alone. It's going to take a big chunk out of it. You know, you've got the cash flow. You've got the principal pay down. You've got the tax savings. You've got the inflation hedging, inflation profiting. All that coming together is going to give you optionality because that's going to replace a lot of what you May have earned in that part time career that you unretired to do. So yes, thanks for bringing it home there. It's not only giving you that big chunk of money and call it about a half a million dollars, but it continues to kick and provide for you on a monthly basis.
Paul Shively:Yeah. The point we're trying to drive home there, Greg, I think is, is exactly what you said to say, create one engine. Like you called it. I think Pablo, that one engine. We showed you in a certain amount of timeframe can solve a problem. Another timeframe can solve another problem, but here's the beauty of it. You own that engine still throughout you own that house still throughout. And Oh, by the way, we're just talking about one of those profit centers. We're just talking about the appreciation growth, right? And how you can use that. It still produces income as well, too, during that whole entire time. Right, and that income is passive and that income can help you solve those other problems that Greg's saying and that's really the power of real Estate, right? Is it it's got those that's why we started with five profit centers. It's not just one All right It's the five profit centers and when you get on the horn and chat with us and walk you through it We build you that custom plan that helps you solve all those issues for you, you know, and you may need to work a little bit To create some additional capital to solve every single one of your issues You may not be there yet, but you may be able to get 70 percent of where heck Yeah, let's go or maybe you are there and you just haven't allocated it properly yet. Cool We can help you with that Or maybe you've already got a bunch of real estate and you need to help analyze it This kind of analysis on the stuff you already own great. We can help you with that, right? Text the number that that's what we're here for
Pablo Gonzalez:Let's pop the hood and look at one of those engines. What do you guys say? Huh?
Gregg Cohen:This is one. This is the power of one right here. I wanted to give everybody a visual of just one asset. This is a property that happens to be currently available for our JWB clients. You know, all of our fortune builder students are invited to become a part of the JWB community as well to be a JWB client. Shively, myself, Dan, Paul, everybody at Fortune Builders and JWB, collectively, we have sold thousands of properties together to our Fortune Builders students. It is the strongest partnership that I think I've ever heard of, of any company in real estate working together for almost 20 years and selling thousands of properties together and we love to do it. So, but this is just a visual of what you would see. This is an asset. Here in Jacksonville, you can see the purchase price of about 236, 000, very typical for a JWB asset. The median home sales price in Jacksonville happens to be about 365, 000. So you can, you can see, we want to be right below that middle income. number there. And, and Jacksonville overall happens to be a very low price market. So you're getting in even below what middle income median pricing is in Jacksonville, but we focus on new construction homes as well, obviously visually appealing, but as an investor, when you have your investor headset mindset and hat on, you're thinking about low maintenance and low vacancy costs. And that's what we love to do for clients. Three beds, two baths, 1230 square feet, very normal. You're going to find as you become a JWB client, you're going to see homes like this, that look like this, that are built similar, similar square footages and beds and baths over and over and over again because you're investing in a model that we know works, that we've seen work thousands and thousands of times. And the rent status on this home is important to pick out as well. When you invest with a vertically integrated company like JWB, it's like this asset is given to you on a silver platter. This house is already built. It is already rented for you. There's already a long term resident in place. And that resident, as I mentioned, is long term. They sign either a two or a three year lease. And our property management services are coupled with this so that when the time comes up for your resident to think, about renewing, the chances are they're going to make that decision to renew. Over 75 percent of the time, our residents choose to renew after that initial two to three year lease, which again, increases your cash flows, increases your return on investment. decreases your worries, decreases your maintenance and vacancy costs. That's the name of the game for serving you as a client. So, as an overview, these are the highlights of our portfolio. That one home is one of the assets, but there are a number of assets that are available for our clients to purchase at all times. You should expect somewhere between about 50, 000 to 75, 000 all in out of pocket. And that would include the down payment and the closing costs. And guys, I know not everybody has 50, 000 or 75, 000 right now. When I started, when I first became a part of the Fortune Builders family almost 20 years ago, I didn't have 50, 000 to be able to start. But you know what I did is I reached out to Than and to Paul and I sat down with them and they, they showed me how I could raise that money or find that money or save that money so that I could put myself in a position to be able to do that very quickly. And that's what we get to do for all of our, our folks as well. So whether or not you have the capital today or you want to have the capital, you should be reaching out to our team so that you can get on the horn and set up those conversations. And if you are in a position where you have that capital, this is an excellent time to get started because we have some incentives that are really, really powerful, especially with interest rates being higher than we all want. Our JWB clients right now, recent clients are closing at about a five and a half percent interest rate. So while you're hearing of interest rates out there and in the world being around seven percent, JWB clients recently have closed at about five and a half percent and that certainly can be you. One of the ways that we do that is by our incentives. So, for every property that is put under contract here, in January, JWB is offering what's called a 2 percent incentive. And most of the time, what we will do is take that 2 percent and we will credit that towards your maintenance costs. What that means is you're going to be able to have a four to six thousand dollar check in essence delivered to you Cash coming to you and that is there to take care of any maintenance costs that come by way of owning this rental property Which as shyly as Pablo as myself as our community will tell you guess what guys maintenance costs do happen They do happen. So this four to six thousand dollars can be there to cover that maintenance cost for you. Alternatively, if you want to use that 4, 000 to even lower your interest rate a little bit more, you can use that to lower your interest rate. So 4, per property for clients that are purchasing it. And that's available on every property that's put under contract. And for those of you who want to purchase three properties or more at a time, we get this often, especially those who are pulling money from one asset class that may be not working for them and putting it into another or doing a 1031 exchange. Maybe you have properties in California, New York, some of these higher markets and you say, okay, I want to take that equity and I want to put it into Jacksonville. So, by purchasing three properties at a time or more, we actually double the incentives. And so, you actually are going to earn somewhere between 8, 000 to 12, 000 in incentives on each property. And there's no limit to the number of properties that you can purchase and take advantage of these incentives. So, truly a special time to start investing with JWB if you haven't already and something that I would really encourage all of you, if you haven't yet, Reached out and texted our team. Go ahead and do that. Just say, hi, you're going to see there's a, there's a real human who's going to respond to you. We're going to try to just talk to you and build a relationship and get on the phone with you so that we can help.
Pablo Gonzalez:You want to go into a couple of these questions here, GC? A couple of people have some clarifying questions that I think we can knock out quickly, but just wanted to highlight the success that we've had as a community here on the Not Your Average Investor show. You want to talk about this? You want me to talk about it? Go for it, buddy. All right. These are the folks that watch this Not Your Average Investor show with us on a weekly basis. And we've gotten to see this number grow over time over the last four years. And this idea that we've had, Three folks that have amassed more than$2 million in, in profits 38 that have done over a million 162 that have done over 500,767 that have done over a hundred thousand. I'm one of those 767 inching up close to that second level.'cause I've been doing this now for like about three and a half, four years. So, just something that we're really, really proud of. This idea of surrounding you with great people the same way that Fortune Builders has done. The same way that we're doing here. You get surrounded by the right people that are doing the things that you want to do, and you get to float up with the tide, right? So it's a total profits being accounted for 305 million. super, super proud of that number. And again, text the number 904293. 0 3 4 1. Let's answer some questions here. I've been doing the best of furiously chatting away here in the chat. But, Paul Smith asks, does he only do Jacksonville or other parts of Florida? And what about hurricane insurance and other Florida, or other, and other issue Florida has most of the time?
Gregg Cohen:Okay. do we only operate in Jacksonville? Yes. We believe that Jacksonville is the single best market to invest in rental properties in the country. And we are such a big proponent of Jacksonville. Not only do we own over 400 rental properties as a company in the same neighborhoods as our clients, we are Pioneers in downtown Jacksonville because, and man, I hope you guys continue to tune in because we have so much good stuff to share with you about Jacksonville. One of the good things we get to talk about is the revitalization of downtown Jacksonville. So long story short, when you invest in one market and you plant your flag and you want to make an impact in that market, you can do so much more for your clients. You can start to city built because when downtown Jacksonville grows, you All of those 6, 000 rental properties that we manage right around downtown also grow for our clients. So, yes, Jacksonville only. And then the question about hurricane insurance, and then other issues Florida's having most of the time. Well, you know, everybody's got issues, so I'm not exactly sure what we're talking about there. But hurricane insurance is one that we talk about often. The insurance market in Florida has stabilized. And I know there's a lot of headlines out there about how insurance in Florida is a real problem. JWB clients do not have a problem attaining insurance. They do not have a problem getting insurance at rates that are possible to achieve positive cash flow. What we're actually seeing is insurance companies in Florida, in the state of Florida, are coming back into the state. And they're actually filing for rate decreases for the first time. They are filing for rate decreases. So there's absolute stabilization when it comes to the insurance market in Florida. And the reason for that is that the state legislature stepped in and closed a lot of the legal loopholes that were Frankly, the insurance companies were getting sued left and right because of these legal loopholes. So they closed all that up. That happened about two years ago. And we've seen stabilization, which is great for all of us as rental property investors.
Pablo Gonzalez:Good stuff. Ian also said he also talked about flood insurance and flood zones and stuff like that and to watch for property tax rates. I put in the chat, all of these estimates have insurance rates already estimated in them. They have the tax rates already estimated in them with like the, how, how it increases normally. And at the end of the day, you want property taxes to go up, don't you?
Gregg Cohen:Uh, The reason you're saying that is because why do property taxes go up? Because you see significant home price appreciation, right? So the beautiful thing is when you can see significant home price appreciation and still be cashflow positive. And that's what we've experienced here in Jacksonville. That's what we expect in the future.
Pablo Gonzalez:Paul, how do you describe the Jacksonville market as a rental property market before we get off?
Paul Shively:A no brainer, right? I like to keep things simple, right? I mean it's, it's, look, you can get a, you know, paralysis by analysis really easy, right? You know, I would say to all the Mastery students out there, go back and watch our rental property boot camp that I've taught for years and years and years and years and we've recorded and we put on the Mastery site. It teaches you how to pick a market, right? It teaches you how to pick a team. It teaches you how to pick a property and it's in that order, by the way. A lot of people start with the property, right? You need to start with the market and team. That's where you need to start. The property kind of solves itself if you do that, right? But yeah, I mean I would say we have God, Greg, how many videos have we done on why Jacksonville and the market and the economy and go back and watch my rental boot camp on how to pick a market that's right for you and all those things. We have so many resources at your fingertips that for us to adequately cover that in, we're already eight minutes over, would be doing a disservice to you. I'd say you, you have a Ferrari sitting in your garage on all the resources. Shoot us a text and I'll get you a way better answer. We'll get you recorded videos, we'll get you YouTube videos, we'll get you on the phone with us, we'll send you as much as you could possibly want. Because everyone's questions are different as well too, right? Which is good, and we want to give you, you know, unique answers that are very detailed and very much more than a quick 30 second blurb than we can do on the webinar here. Right.
Pablo Gonzalez:Okay. Last but not least, I just want to invite you all. We do this every Tuesday. Somebody said this is a positive, distraction, you know, like we have a community that shows up. We have about a hundred folks and plus that come every single Tuesday at 1230 Eastern, 930 Pacific. You're going to make a friend when you do this. We have events. We do. It's very similar to the fortune builders community because we have grown up together, right? So, if you like this type of programming, you want to get more education. You're curious about Jacksonville. You want to seize Greg's face more often. Let's face it. You just see this guy's face Mars. It's a good looking face. Just go to nyais. com. Join us. I promise to be more funny and less tongue tied on the average Tuesday than I was today. But I really want to thank all of you. That was About 160 people showed up today. good for you, right? Like take an hour out of your workday to get educated on an asset class, to decide to change your life, to decide to not do it like everybody else is doing it. Cause that's just not working, right? This is why smart people and rich people get into real estate. Because it really, really works. I'll, I'll give you guys any kind of, any last words, Paul?
Paul Shively:Nah, it's a great way to start the year. Really glad we did this. Thank you. You know, everyone who showed up, Hey, it's Crush it. Have a great year. We're looking forward to it. Come on back.
Gregg Cohen:Do you see anything, anything for the folks? Just, uh, really appreciate everything that Fortune Builders has meant to me personally, being one of the, the very few in the beginning. I saw Fortune Builders when it was it was not Fortune Builders. It was, it was 20 years ago. And to see the thriving community that we have here now is so special. So thank you guys for giving us the platform today, the opportunity to do what we love. And we hope to see more of you in the future. Until next time, we'll see you. Don't be average. See ya.