Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.

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We already had one of the fastest growing populations. But then when you start doing hardcore lockdowns, you had people that were leaving due to poor weather, and then it was high cost of living. And then because so many people were leaving these areas, the state governments had to start ratcheting up the income tax.

And so just started being this compounding effect. Then you throw in hardcore lockdowns, and then you throw in civil unrest and, and people start saying, Why do I live here? Like what are the benefits? What would your life look like if you could replace all of your working income with simple and conservative investments that could do it for you?

Over the last 13 years, we’ve helped thousands of clients transact over half a billion dollars in simple and conservative real estate transactions, allowing them to begin replacing their working income with real estate investment income.

Each week, we’ll be pulling back the curtain on the ins and outs of real time retirement based real estate transactions that will transform your financial future, even if you have no real estate experience. This is replace your income with me, Kevin claesson, and Steve Earle.

All right, well, welcome everybody to replace your income. I’m here with my buddy Steve Earle. As always, I’m Kevin claesson. Steve, What’s up, buddy? How are you? Dude? How’s it going this morning? Good man doing amazing. So Steve just got back from an awesome motorcycle trip, didn’t you? I did four days.

My two sons on Harley’s ride to the Grand Tetons, Yellowstone virgin national force. All kinds of good stuff is great. See, man, I had almost as thrilling of a weekend with my two sons. Oh, yeah. I mean, I coached under eight soccer. Dude. That’s all Yeah, it is. It is. It’s crazy. That is where I started out as my kids soccer coach. That was that was the funnest thing in the world.

Oh, man. I love it. We’re just out on the field. And I’m running around and I’m hoarse by the end of the game because I’m like trying to shout to the kids where to go. But I gotta tell you is awesome. Because the whole so Brody’s my youngest, right. And he’s the one that I coach brasted and I just worked on brass and stroke. Okay. I don’t know if I told you this. Braxton my middle kid. He is trying to raise money to save the rhinos. I think I told you that right, you know, awesome. story.

So my son really loves animals. And like he has had ever since he was a little kid. He’s had this dream and desire to be able to help an endangered species get off the endangered species list. And one of his favorite YouTube personalities is Coyote Peterson. If you guys know the brave wilderness channel Ryan’s on today, we’ll bring him on in a second. Ryan, you got kids, you guys check this channel out. But it’s just awesome.

And Coyote Peterson is doing this thing. He’s like, hey, let’s raise money to save the rhinos and, and the top fundraisers can. I’m gonna bring you out with me to Africa. We’ll go on safari, you could be on an episode of brave wilderness. So this is like all of Braxton’s dreams wrapped up into one right. And so I’ve been helping him film videos that we’re going to start to publish where he gives like five daily awesome facts about like, not very well known animals. And then we’re doing that to try to raise money for the rhinos.

By the way, if you’re listening, go to Taz. claesson.com that’s Da Zhi. Place calm. If you want to help save the rhinos. It’s a little site that we put together. But anyway, that was what not what I was gonna tell you. I was gonna tell you about Brody, my soccer guy who’s six years old, the whole fourth quarter Steve.

He was not running and he was not like really getting into the game like he usually does. And I kept seeing like, he was grabbing an area that was below the waist and I was like, What is going on? When the game got over? He ran right up. He’s like, Dad, I have to pee so bad. So he played the whole fourth quarter with trying to make sure he didn’t he his pants. So that was how exciting my weekend was animal.

Soccer.

Oh, man. Hey, you guys, if you’re joining us, we’re so glad to be with you. Again. Thank you for continuing to listen to replace your income. We love doing the podcast. We love you guys, as always remember to go and rate the podcast on Apple iTunes. And in case you’re wondering, there’s a number of options, five stars is the appropriate option. assuming of course you liked the show. If you don’t like the show, then you could just tell me I’m ugly, but that’s fine, too. But go and rate and review the show and subscribe and share it. We’d love it when you share it. We are having so much fun with this podcast.

Steve, I got to tell you, I almost everybody I talked to inside of the company every day says oh my gosh, I heard this episode or I listen to this podcast. Are you having the same experience as we’re kind of working with clients? Yeah, yeah. Kevin, it’s really fun. I mean, literally, when I’m out I run into somebody that I know that we’ve been working with, they’ll bring it up through like hey, I listened to you on the podcast and I’m like, Hey cool, like I’m a celebrity.

Actually. Watch. You know that aside, they really are loving the content. You know, they kind of are enjoying the topics that we Have to talk about. And it’s really just fantastic. And you know, I’m really, I don’t know, like I’ve said this probably five times given. I was winning this whole thing with some trepidation. And now I just I really enjoy getting together with you each week and being able to have an actual recorded conversation about some of the things that we kind of talked about anyways.

Oh, dude, it’s awesome. And I don’t entirely know what you mean, because the word trepidation is too big for me. But in assuming that I knew what that word meant, I’m sure I’d agree. Yeah. Well, hey, we guys, we have an awesome guest today. And I am so excited for this guest. And so we, Steve, you know, we hear from listeners often, and they, we’ve done episodes about like what’s going on in the market.

And then now’s a great time to be able to invest in real estate. In fact, we call it a perfect storm just a couple of weeks ago. But we still people still want to hear from our team on the ground. And so we went to one of our awesome amazing just world class expert team members on the ground.

Our amazing buddy Ryan Hein Ricker, who is our acquisitions manager on the ground in the greater Orlando area. And by the way, for those of you who don’t know, Orlando is in a state called Florida. And so Ryan, out there in Florida, he Ryan, how long have we worked together now?

Gotta be close to 12 years, guys. Oh my gosh, for sure.

Yeah, I think that when we started to work together, I didn’t have gray in my whiskers. And now I’ve got a lot. So if that’s any indicator, right there with you, buddy.

But we have Brian Heinrich here with us today. And Ryan is just amazing. I got to tell you every time Steve and I talked to Ryan and Steve talks to Ryan more than I do. I am just Ryan, I am always blown away with just how plugged in you are to everything real estate on a larger, just from a larger perspective, but especially in the Florida area.

I mean, obviously, I know, it’s your day to day thing. But you are man, whether we’ve been out to dinner together or at a Utah Jazz game together, or just been on a phone call, your expertise and your level of understanding of real estate. And the market and real estate investing has always just blown me away.

And so Ryan, thank you so much for being with us today on the podcast, we love to have you We’re so thankful that we’re all part of this DIY family where we just get to help clients take advantage of real estate and begin replacing their income one property at a time. So anyway, Ryan, thanks for joining us, man.

Hey, thanks for having me, guys. I’m happy to be here.yet. Now, Steve, I would love to hear from you if you get a chance to interact with Ryan on a regular basis. And I know you always have such an awesome experience with Ryan, what would you if you were to introduce Ryan, how would you introduce him?

Well, he’s much more than just a real estate acquisition director. He’s got a very deep base in finances and economics. And so he understands like the kind of the deeper underlying issues in the economy.

He’s tracking not only you know, the ongoing data, but what’s going on, you know, in the political world, what’s going on in the, in the area random in terms of municipal government and the state government, what what projects are going on the infrastructure, build outs, all that kind of stuff, which, which really impacts you and I and our clients in the form of, of how all of that underlying information and goings ons affects single family residence and real estate in general.

And so, just that deep understanding is such a huge base from which he can draw that, you know, really helps us to understand what’s going on specifically in that market. And what’s awesome is Ryan and I often have conversations on more of a national level, even occasionally.

And and so he’s he’s become my go to guy for, you know, obviously the Orlando area, but on a much broader scale as well. And his knowledge in from and it goes beyond just the real estate as well, like I mentioned in the property management side of things as well. And so So anyways, he’s become a great friend and a great advisor and a great asset to Dunphy, real estate over the years.

100% and I discovered a hidden talent today, Steve, before I was getting ready to record I got you know, Ryan’s over in Florida. We’re in Utah, and Ryan showed me a very impressive Lego castle that he is building with his children.

And it is amazing. It is like the Walt Disney World castle and it looks awesome. So Ryan, the Where did these hidden talents come from man? Well, I guess my hobbies just tend to be real estate. You know, on the weekend. I’d love to say I had some amazing story, but I was pretty much driving houses all weekend and I had a sick kid. So he was tagging along but now I just I grew up on a farm in South Dakota.

And so I feel like land has always been in my blood. And as I grew up, I didn’t have the same gene pool that some of my big farm kid cousins had. And so my dad had the heart to heart conversation with me when probably it was about 16. And it was maybe just maybe you should get off the farm and do something with your brain. And my cousin, my first cousin who’s running good chunk of the the old farm these days, his nickname was ogre in high school. My mom is five foot tall, 100 pounds, I got all of her jeans.

And so it was really no competition with ogre and I. And I ended up getting into the finance space when I was 18 years old, with Wells Fargo. They handed me the keys to a branch when I was when I just turned 22. So I was their youngest branch manager in their network and relocated down to Memphis, but I guess just kind of taking that land in the blood kind of thing. And I got into finance, which ended up being a stepping stone to ultimately getting into real estate and land and housing and just a little different twist of what my family had always done. And so I just live and breathe, real estate housing.

This weekend, my son and I were playing a game called city skylines we’re doing urban planning, building a city. I just love it, I guess, when it comes through? Yeah, it really does come through to I mean, your passion for real estate is awesome, which is why we wanted to have you on the show, because not only can you talk very specifically to what’s going on on the ground, in the Florida and in the Orlando market, but just your passion for real estate.

And what it does for people that’s so much of what we’re trying to accomplish with this show is that we’re helping people understand that you can be a hard working American, that’s going to work and that your expertise is in something that isn’t real estate, but you can utilize real estate as this tool to help you begin replacing your income one property at a time.

But the only way that that really works is being able to have a team that can really implement that for you. And that’s where you guys are so instrumental in what you do. Ryan is so amazing, because you have helped I don’t even know how many thousands of people over the years that you’ve been doing this invest in sibling conservative as you talk about blue chip type, single family residential real estate in some of these markets, to help them replace their income to generate cash flow, and to do all the things that we talked about on the show.

And so you’re such an impressive guy, such an impressive guest. And what we wanted to talk about today was really just kind of wanted to talk about like, what are you seen, I mean, what’s going on in the market? Because Steve and I, we could sit here in Utah, we could talk about what’s going on in other markets, right? And we could say, hey, things are looking really good, or, you know, we think it’s a really good time to invest, so on and so forth.

But there you are, on the ground, doing the deals with done for you clients, as an individual investor, right there in the Florida area, we wanted to kind of just talk to you about what are you seeing what is really happening right now? And what are the things that people listening kind of just need to be aware of?

So I wanted to just turn some time over to you to kind of say, Okay, look, paint the picture of why invest in Florida, why invest in Orlando, why invest in blue chip type real estate, these single family residences that are not, you know, scraping the bottom of the barrel that are $80,000 properties, but they’re higher quality properties. I know that that’s something you’re very passionate about. So I want to just kind of get your take on it. Yeah.

So what’s interesting, I think, if we kind of step back to call it early 2020. The US housing market was very tight, a lot of tailwinds. We’re hearing a lot about supply constraints, housing shortages, low interest rate environment. And so as we’ve been talking over the last few years, our clients have seen a lot of appreciation in our local market.

And really, throughout the US, it’s almost like you could sort of throw a dart out there on a market and probably make money in real estate. And then fast forward to this COVID era. And I think the stories become more localized and more granular. And so, again, coming into the market, lots of tailwinds. They were talking shortage of 300,000 homes in the US, and that number increasing substantially every year.

So if you’re a real estate investor, in general, you are probably doing pretty good. And but everybody’s an expert in a bull market. Right? Whenever one’s making money, you feel like, Hey, this is easy. I can do this. But when times get choppy, that’s when you realize, you know if you’re doing the right thing or not.

And with regards to the COVID era, I think the first thing that that happened was we saw the shutdowns. And everybody got scared and said, you know, is this it? And I think there was a lot of thought and feeling that the housing market was going to collapse.

The first thing we were doing was low Looking at prior pandemics, and there was some, there wasn’t a real great correlation. But there was data out there to suggest that when a pandemic hits, there was a lot of most of the data was from Asia showing SARS and these different bird flus and so forth, that the the housing markets actually just paused it, they froze up.

And that’s what we noticed here in Orlando. But once things started reawakening, remember this, this reading this great blog post, john Byrne’s real estate consulting, you get a chance, there’s a free newsletter, you can sign up for a lot of the publicly traded builders subscribe to their paid data from john burns.

But he was talking about that this was going to create a migration, the largest migration we’ve seen in our lifetimes. And it’s once things restarted, like we noticed here in Florida, sales dropped off a cliff. I mean, they just froze. But the prices did decline. It was just no sales, no purchases, people didn’t want people coming through their homes.

And then once things sort of reopened, people started saying I’m moving. And the best analogy I can think of is people had a five year plan. And they condense that into a five month plan. And we started seeing as some of the side effects of COVID were certain states locking down hardcore, certain states having a little bit more laissez faire approach, and maybe with more focus in the instance of Florida, on a county by county approach.

So the bigger cities locking down the rural areas staying wide open. But what we saw in the North East was hardcore lockdowns, followed by civil unrest, and some other things that started being transformational. And that’s that was the the clue or the cue for a lot of people to say, I’m out. And it was combination. Over time, there’s been this great migration from the northeast. What I’ve been reading is 50,000 people a year leaving the state of New York for the state of Florida, which really starts adding up over time.

So we already had one of the fastest growing populations. But then when you start doing hardcore lockdowns, you had people that were leaving due to poor weather, and then it was high cost of living. And then because so many people were leaving these areas, the state governments had to start ratcheting up the income tax. And so just started being this compounding effect. Then you throw in hardcore lockdowns, then you throw in civil unrest.

And people start saying, Why do I Why do I live here? Like what are the benefits, and the I Love New York isn’t going to really cut it. So you start thinking about quality of life and all of this. So we started seeing an acceleration of people moving into our state, from places in the northeast, and the number one destination for people in the state of Illinois, New York, New Jersey, Pennsylvania, and Massachusetts, and Connecticut, it’s all Florida.

They’re all moving to Florida, I guess Illinois is not really in the northeast, but you get the drift, Chicago, people moving to Florida. And so we just saw this acceleration of that happening and and then you see the home prices really picking up here.

But what you don’t see is that pickup reverberating across the entire nation, you see winners and losers effect happening and getting amplified to the fact that there’s 15,000 apartments on the market in Manhattan. And home prices are plummeting. And then here you’re seeing just an acceleration of home prices. So this for example, in August year over year, we saw 10%, median home price appreciation game 10% significant.

And we had sort of predicted we are going to see this mid single to upper single digits as you guys recall in our 2020 forecast. And that’s just expectations are blowing out. And the inventory is disappearing. Now you factor in foreclosures being stalled out from both the state and I guess most states have have stopped foreclosures, so you just don’t have any inventory.

So now in Orlando, we’re looking at a scenario where we’ve got 1.6 month inventory at current pace of sales. A typical healthy housing market is six months supply. So we’re at 1.6. We haven’t seen that level since 2005.

And so I really don’t think we’re in a scenario where we’re going to see home prices coming down much that you throw in lowest interest rates in our lifetime, and it just kind of gas on the fire. So it’s just an interesting market.

And you know, we’re seeing the effects of what we already knew about Florida. The advantages of Florida really being amplified across the entire east coast. And it’s interesting to see That’s awesome. Yeah, man, it’s so interesting.

And so you talk about we and Steven, I’ve talked about this on the podcast, too. And we talked about an article that said something to the effect of, what was it, Steve? What was the shortage in terms of supply the 10 year shortage in rental property? opportunities, really.

So we know there’s this shortage, right? We know that this high demand, just like you described, right, and there’s all these amazing things that are kind of taking place that are having people say, Okay, number one, I want to buy a home for a primary residence. But but then investors like us, we’re looking at it, and we’re going, Oh, my gosh, I mean, we just got to take action. We don’t want to miss out on this market.

Because Holy cow, if we wait six months, or if we wait 12 months to jump in, because we’re worried about COVID-19 still, what potential loss or what potential opportunity cost that might be. So there’s all of this demand for housing and to your point, you know, 1.6 months of, you know, current supply. So my question is, here, you guys are, you’re helping dry clients acquire property on a regular basis.

So how are you guys, because I think this is important for everybody to know. Because when you think about going and doing real estate in a market and utilizing that real estate, to help you replace your income, you’ve got to have somebody that’s there on the ground, if you’re not going to invest in your backyard, and even if you are, that understands the market that could get you the kinds of properties that are going to benefit you from an income replacement standpoint. And so you look at the dry team on the ground there in Florida.

Ryan, talk a little bit about what is the process to be able to go and find homes when supply is so low, so that we can provide real estate for clients that are looking and saying, Oh, my gosh, I got to take advantage of this right now.

Yeah, it’s been more challenging the last few months than probably ever for us. But what we’re always doing is talking to builders, we’re scouring for the inventory. And as an investor, you have to be very careful, because there are communities that are I’d say most of Florida is Hoa driven type communities.

Because Florida is a new state, especially Central Florida, especially the Orlando area, before air conditioning, 60 years ago, there, there was no one here. Okay. Right, like mazing housing stock that a, you know, a Philadelphia would have or something, it’s primarily a single family home community.

And so we get a lot of feedback from investors, I want a duplex, I want a four family home, they almost they’re almost non existent, they were just never built, it’s not that there aren’t a lot on the market, they’re just never built. And so you have this new city scenario. And, you know, one of the positives, we have a lot of land.

And it doesn’t necessarily mean that there’s such a surplus of land that they can infinitely build, because there’s a lot of wetland and all of that. So we have to be really careful. And this is where we’re being on the ground is is really key, we have to find the right types of neighborhoods that will even allow investors, we have to find builders who we even sell to investors, we were there White Knight of you know, five, seven years ago, when there was a surplus of homes on the market. And every builder wanted to sell to groups like you guys in groups, you know, like us, in general.

And now it’s the homeowner is out there, the homeowner is picking up from wherever USA, and they view Florida dollars is cheaper than the dollars they’re coming from in the northeast, for example. And they’re willing to pay more. And so we’re constantly interviewing builders we have we do a lot of relationship building with listing agents.

And so we’re not just, you know, we’re not using the typical, let’s let’s find the cheapest way to get business done, because it’s very transactional. And so we’re more relationship based. We’re forging deals with other realtors out there who are going to bring us inventory because they know that we will close they know that the dry client is well prepared, well educated going into a transaction, and that they’re willing to execute.

And so for us, it’s leveraging our network of people to build relationships to basically find deals that will surface. And then one of the beautiful things is there’s several builders, who will they’ll just give us inventory before it will go to the consumer.

And we don’t get as much time as we used to we used to get say, three, four day hold on a property. Now it’s a three hour hold, because the demand is just really off the charts. So but but

Ryan, I would I would add that that three or four hour Hold on, because of the relationship that we’ve been able to develop with these builders over the years because of everything that you just talked about, is like absolutely key because if you don’t even have that three or four hour window of a hold, then you don’t even have a chance correct.

You don’t you have no chance the multiple offer game is pretty much dead right now. A lot of the builders won’t necessarily accept a bidding war 10 20,000 over list because everybody’s very uncertain over the appraisals Right now, so it’s become a first mover more than anything. And then it’s really identifying the right builders, Florida due to its transient nature.

And it’s relatively newness as a state, there’s been all kinds of land schemes out there, you know, let me tell you some lakefront property in Florida kind of deal. And so a lot of builders didn’t exist two years ago, and they may not exist two years from now. And so we’re also having to really sift through what’s out there.

To give you an example, I went through a builder we hadn’t worked with, before we were evaluating their homes, I noticed a giant slab crack in one of the rooms, and then I followed it, and it went through the tile, the tile already been laid, the house was done, it was for sale and ready to go. And the slab crack was larger than it should have been.

I mean, the slabs, cracked concrete cracks, right, but it doesn’t crack through the tile all the way up. And I noticed this, they had three homes in a row on the same street, went to the next one, same thing went to the next one, same thing there said, Hey, this is no big deal, we’ll be filling it in, we’ll replace those tiles, etc.

And then I came to the realization, they’re not letting their slabs cure for a couple days, they’re just dropping the concrete blocks right on these things as fast as they can. And while you can sort of patch and hide that, over time, I don’t know if you heard it rains a lot in Florida, a lot, and it’ll rain for days and days and days. And eventually, you’ll have groundwater come up through your home and you’re gonna have a mold issue, you’re gonna have these types of things.

So we are we scrutinize the quality of the builders a lot versus, and we prioritize that over just getting a deal. And so I think that’s important is that it’s not a race to just get deals, it’s a race to get quality deals with quality builders that are going to be around tomorrow. And it really the same goes for existing homes, because we obviously do existing construction as well.

So we want to make sure that the existing homes have good life on their home components. They’re built, that the components are quality, I’m talking heating and air and roofs and those types of things.

Yeah. And in fact, I mean, that’s one of the reasons why we’ve, I feel like we’ve had such a great opportunity or you know, such a great thing working together here over so many years is because we’re about the relationship more than the transactional, right. So, of course, the transaction is important, but the relationship comes first.

And when you when you take care of the people that you’re working with, typically, business takes care of itself. So right, one thing I wanted to ask you is, I feel like it, it’s been very fortunate that the state government of Utah, and the municipal government of Orlando has had great foresight, in my opinion, they’ve had a number of massive infrastructure projects going on, then at the end of the day, they’re already well into the process of these projects.

And the benefits of which are now really this this groundwork, which has been being laid, which is continuing to be being laid, has really provided the ability of so many people to move into the state. Can you just talk about some of those projects? What’s going on, please be completed, what things are still in the works? what’s what’s coming up in the future?

Yeah, the infrastructure has been a big deal. And the leadership of both the state and local level has been fantastic, and really prioritizing projects that are going to have a meaningful impact. And that are, you know, white elephants. In examples, the MLS stadium that was completed about two years ago. And that was a scenario where, you know, classic sports team wants the state to handle a bunch of money.

The governor looks at the deal. And he says, this stadium is owned by a billionaire. It’s a soccer town. They’re coming, they’re building the stadium, no matter what, that’s a project, they actually said, we’re not going to give you the money. And the billionaire, just stroke the check out of his pocket. So we don’t have these sports teams holding us hostage like they do in a lot of a lot of cases. That’s just one example of I think good leadership.

But what’s going on right now major infrastructure, the interstate four, which is really the only major highway that take goes through the entire length of Orlando has been is under expansion, a $3 billion expansion. It’s going to go to 8 billion. They said of course, but they were able to realize when the shutdowns happen, they said, okay, the traffic, they have to work on it for overnight, most of the time. And so they’re working around the clock at night, and during the day, constructions pretty much stopped.

They said with the shutdowns we’re going 24 seven on I four and so they allocated additional resources to push that project ahead. So that’s a massive remake of pretty much the entire expressway system through Orlando adding high speed Toll Lanes down the middle, which is going to alleviate some congestion. And they’re remaking every single overpass throughout the whole city. And then there’s a beltway called 429. That’s being completed.

The Turnpike, Florida’s Turnpike is being all the interchanges are being redone there. So they’ve been fast tracking stuff that was really on the docket. That is now it’s happening. So you’ve got that happening.

One of the other big connectivity things that I think is going to, it’ll be a while before we feel the effects. But we have a privately funded high speed rail that’s already open from Palm Beach, to Miami, and that’s expanding to Orlando, it’s called the bright line at Virgin Trains is taking over with branding and going to run it, but that the track is being laid to Orlando right now.

They completed a I think it was a billion dollar Transit Center at the Orlando International Airport. So that’s already done and waiting for the tracks to arrive. And then the other big ticket item is a whole new terminal at Orlando International, which pre pandemic was, had just become the busiest airport in Orlando, I think it had moved up to eight or nine in the US.

But it passed Miami, which was a real big deal Miami, typical gateway to the Americas from Latin America or gateway to the US from Latin America. Orlando is replacing that and so big international terminals under construction, that’s about a two and a half billion dollar deal. So we have all these things that have just been construction activity is off the charts, which is a good thing, because the parks have really downsized throughout this Disney universal etc.

And while they’re a meaningful part of the economy, one of the old complaints about the parks was that they’re lower paying jobs. And I think that is actually kind of our saving grace because a lot of those people were able to pivot to another job with Amazon opening up massive amounts of distribution and fulfillment centers throughout the Orlando area during the pandemic, places like Publix, all these different all these different things that are hiring, those people were able to find a similar wage somewhere else.

So I think it is kind of soften the blow there. And then all the new blood of people coming in is creating a ton of service sector demand. So between that and the other thing I’d like to touch on just to ramble for a second here is the Space Coast stuff that’s happening. And, you know, NASA, the big downsize 10 years ago and they said the space industry is never coming back. Guess what? Ilan Musk is shooting off rockets practically every other day. Now it seems like. And there’s this whole space explosion going on about 50 miles east of Orlando.

And that has led to all the aerospace companies expanding within Orlando, Lockheed Martin, for example, hiring hundreds of engineers here in Orlando. So all these different things are kind of happening that I think is is keeping things going forward.

And then the new blood of humans just pouring in. There’s an article we should touch on 1000 people a day moving to the state of Florida. It’s, that’s remarkable. And Orlando said that their impact is about 1500 people a week, and that we’re pacing through this pandemic we’re pacing that by 2030 will be bigger than Boston Metro.

And by 2045 bigger than DC metro at the pace so easy. It’s It’s wild and and we were we did a trip to North Carolina. A couple weeks ago, we came back last Sunday, we decided to play the license plate game. But we kind of forgot to start till we’re about four hours from home. Perry, Georgia of all places, you can look it up on the map.

And it was like hey, you know, I can’t remember what passed us it was in New York or something. And I was like, we should play the license plate game. So we started doing that we hit 41 states by the time we got out including Hawaii, but 41 I told the kids maybe we get like 15 and we were passing moving trucks were passing the the typical husband and wife both with the SUVs packed up with a Minnesota license plate.

You know, clearly the moving truck had already you know was there on its way and they’re moving the rest of the family. It was it was pretty remarkable when you think about that for hours then. So we were you know maybe I don’t know what Perry is I’m taking a shot in the dark 75 miles from the 100 miles from the Florida border. But the majority of those states were once we were inside Florida. So think about that.

And crazy. I mean what an indeed Yes, that’s an indicator of really what’s happening right now. And you articulated it really really well and I The last thing that I kind of want to cover because I know you speak passionately about it and you have such a unique take but so much of what Steven I talked about on replace your income and as you know, Ryan, so much of what we all do. Dry is just trying to help clients replace their income.

One property at a time is utilizing a kind of real estate where we always talk about, we just go hit real estate singles, right? We’re not looking to hit homeruns, we’re not doing really expensive real estate, we’re also not doing the stuff that, you know, looks really good. If you’re marketing, like, go get an 80 year $100,000 home, we’re doing a different kind of real estate, a higher quality real estate.

And I know that that’s a that’s been a very conscious decision. I know that you made Ryan as a personal investor, but also a decision that we collectively have made at DEF why and the reason why I want to bring it up is because if you’re listening to the podcast, and you’re thinking about replacing your income, there’s a really strong case to be made for this kind of real estate. What Ryan always talks about as blue chip real estate being the foundation of that that income replacement sort of approach.

And so when you talk to that, just as we kind of conclude here, right? Will you talk a little bit in fact, I think you even wrote a book called Blue Chip real estate. But what you talk about that real quick as we kind of wrap things up? Yeah, absolutely.

So my thought my our thesis with blue chip real estate is, when you’re trying to replace your income through real estate, you need to take the same a similar approach as you would with your 401k, or your retirement fund with regards to equities.

And you might have companies like Microsoft and Apple and IBM and Coca Cola in your in your 401 K, you’re not filling it, you’re not loading it up with penny stocks. Like that’s doesn’t even make sense, right? So why would you do that in real estate, and one of the most common things we see as people are getting started in real estate is they look at cheap properties.

And it’s cheap, and therefore it’s got these beautiful forecasted returns on paper. But I’ve been a landlord for 20 years. And I’d love to say I’ve seen it all I learned new stuff every day, I got started in the cheap properties, I had some people kind of pushing me in that direction.

And for the most part, it just didn’t really end well. The tenants didn’t didn’t fulfill their lease obligations, they damaged the homes quite a bit. Homes took longer to lease. And so you’re almost renovating in between every house. And so with blue chip real estate, kind of the quick synopsis is three bedrooms, two baths, two car garage homes, suburban areas, areas that are in the path of growth, they might not be the sexy pre construction condos in Miami or whatever.

But replacing your income and investing isn’t supposed to be this wild ride, it should be that baseball game where you’re executing off of singles like you guys suggest. And so we just like that, it’s it’s this kind of diligence. And that’s why we tell people act quickly, when we present a deal, because they’re all going to be kind of the same, they’re all going to hit this criteria, they’re going to be in areas that are close to median home price.

So in Orlando, the median home prices right around $260,000, you’re gonna see homes that are call it 210 to 270, right in that range. And so you get much below that in this market, and it gets the neighborhood’s aren’t of the utmost quality. And you end up in areas where other landlords are the predominant owners of the neighborhood.

And so if you do decide to exit or you’re going to 1031 exchange and buy more properties, at some point, your goal is to exit to A another homeowner, unless you have the property leased up. And you know, a lot of times we have another buyer for people. But if you have an empty property and you want to sell it, you want a homeowner to come in and buy that because an investor might discount you they might buy as an investor and look for an opportunity or deal. So we like to be stacked in homeowner driven neighborhoods.

Again, with this three bed, two bath, two car garage, a four bed is also great, but a minimum of a three bed, two bath two car garage. And in Florida that means block construction, concrete block construction, we’re the only state that really does that. But these homes are ready to do 140 mile an hour wind now. So I don’t want to call it hurricane proof but about as hurricane resistant.

And then we’re buying in the center of the state where you just really don’t see the bad storms, or the effects of the bad storms, maybe some roof damage and things like that. But we’re really focused on that vanilla bread and butter home that appeals to the widest number of people on the rental side in the widest audience when you go to resell the property down the road.

I love it. And you know I just thank you so much for kind of covering that and it sure seems like not only are the the homes near hurricane hurricane proof, but it sounds like they’re big bad wolf proof as well because you didn’t build it out of straw or wood.

You went ahead with block construction. So huff and puff all you want. No, that’s awesome. Ryan, appreciate you so much for coming on. Any last words of Steve Ryan, on on anything that we want to cover today or about why Central Florida should be something that we’re looking at as a piece of our income replacement plan.

I would just say real quick that we we’ve been in the area now for you know, six ish years and and we have a group of people who have come full circle cycle where they they bought it now sold. And now they’ve bought more to taking that one property turned it into two or in some cases three in the Orlando area.

And it’s been a phenomenal markets been very consistent. And and we expect it to continue to do so you heard all of the prison’s from from Ryan as to you know why this market is likely to continue to just be a good solid market for the foreseeable future. I just, I can’t see the end of the road in terms of the opportunity in this great state.

And so I just ended with thanking Brian for being on with us this morning is great to see him chat with him a little bit, catch up some more. I do have the opportunity to speak with Ryan multiple times a month, sometimes multiple times a week. But we have a standing monthly meeting where we sit down and and he provides me with updated information on what’s going on and, and just a great wealth of knowledge and and great resource to us and to our clients.

So thanks for being on on the podcast this morning grant much appreciated. Yeah. Last thing I’ll leave you guys with it’s an election year. I don’t care what side of the political spectrum you’re on. But we know that if there’s regime change, income taxes are likely to go up that’s been declared. That’s going to accelerate the population growth into Florida, which is a no income tax state. So as they always say, follow the money.

The 35 year, there’s a lot I’ll leave you with the stat the 35 year average daily population growth of Florida is 777 777 people a day moving to Florida, route 1000 this year. So that 35 year trend, I’m going to leave you with that number, follow money, follow the people. Thanks for having us. Now. That’s awesome. Ryan, thank you so much, Steve, thanks for joining us. And if you’re listening, thank you for joining us on replace your income.

As always, we appreciate being with you dry and today was awesome. What a great episode. Thank you for joining us and everybody listening. We’ll see you next week. Take care. Thanks, guys. Thanks for joining us on replace your income with Kevin and Steve.

Do you want to learn more about our company done for you real estate and to see if you qualify right now today to begin replacing your income with simple and conservative real estate investing done for you. Visit de f y dash intro.com.

Click the orange button. Watch our super quick webinar and fill out the little form on the right side of the page. You’ll know within 60 seconds if you qualify to begin replacing your income right away. As always, please rate review and share the podcast with friends and family. And until next time. Just remember, income replacement for you and your family may only be one property away.

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