This New Law Just Triggered the Greatest Real Estate Change in Decades

Your lot a lot of people have been talking about the big and beautiful bill and while a lot of people have their opinions on it Really? The only thing that matters is that it's past and it's part of our economic reality for the next few years So in this video, we're gonna chat about what you should be investing in based on this bill Yeah, I think that you know, obviously a lot of people are still upset about it. Some people aren't And I actually agree with both sides right like yeah, but it is what it is It's past and so there are some things that you should be paying attention to for sure If you're gonna take advantage of it because it's here, right? Yeah, you can't negotiate that. It's definitely here So there are definitely some things that we want you to be able to take advantage of as we move forward We're gonna be talking about this at limitless. So we'll be there this week. Yeah, hopefully see you guys in Dallas You'll see us live or fly out tomorrow. We'll be there all week. So let's jump into it So let's talk about what is in the big and beautiful bill. So you basically you have your tariffs on imports 10% is the baseline obviously Trump's negotiating all that still corporate tax cuts from 21 to 15 percent massive energy deregulation and fossil fuel incentives bonus depreciation and border Infrastructure spending. Yeah, so specifically when it comes to real estate, what does all that mean? Essentially, obviously if you have a business or your real estate professional, please make sure you know Because you can't just buy real estate and not be a real estate professional to take advantage of some of these things But that bonus depreciation the cost cost segregation all that stuff is huge You guys might know that bonus depreciation Under the Biden administration went from 100 to 80 to 60 to 40 now went back up to 100 So what does that mean? What that means is as you start to renovate things So the bonus depreciation one of the things as I've been explained is it's considered a land improvement So I've talked a lot about billboards in the past. So think of When we buy our billboards They're on leased land So that means you don't own the land and that means the actual structure with the digital face That's an actual land improvement. So that land improvement is considered Part of both appreciation. So why don't you explain what bonus depreciation is? I don't think everyone Yeah, essentially means that you can write off a hundred percent of the expense that year now doesn't have to be billboards Can we do lots of things but essentially you have to checks with your tax professional But when you spend money to rehab something and prove something again land improvement Then it might qualify underneath this bonus depreciation. And why is that important? It's important because in the case we bought a billboard this year in Columbus, Ohio It was about a million bucks and it it does about 250 grand a year in cash flow So now that million dollars not all of it, but majority of it we can actually write off so so So almost the entire investment because we actually don't own the land. We actually have a lease so So this is a really important thing as you start to invest in real estate as you're starting to look at what to invest in I think it's really really really important that you take a look at some of these Depreciation categories and again, make sure you check with your tax professional We will have a tax panel on this for limitless for those of you might still be confused So it is confusing and I'm not a tax person, but I do know because I asked That there are lots of things related to real estate that fall in this category Yeah, and multifamily is one of those things and so is things like intangible drilling cost, you know If you're in an oil rich state Flex warehouse space and those kind of things as well. Yeah, so so Might be a strategy. So one of the strategies for us moving forward obviously and it should be for you is Find out what qualifies in the bonus depreciation And cost segregation and then develop a strategy for that. So as part of that, so not only just looking at cash flow And those kinds of things but looking at the depreciation part as a strategy because I can tell you From my own personal experience a lot of our investors, especially now after Ross. I've been doing this for almost 30 years a lot of them probably started out like some of you looking entirely for Passive income and cash flow and that kind of stuff But now as things are transferring down to maybe their kids or or maybe they're just Want to pull some cash out They start to look at people start to look at the tax benefits and the tax purposes So so less about cash flow and more about tax now, this is obviously if you're getting a little older But there's an entire industry of people that are concerned about tax because they make a lot of money and so this this can be an excellent strategy for you if you're if you utilize that on the front end and then build a Investment strategy around that. Yeah, and the second thing you should focus on is just rentals in general But you have to look at what rentals are going to do a good right now And you're going to have to go to rentals that obviously have a strong migration, which we've always talked about But now that they're putting so much money towards these border towns That is going to up the infrastructure there, right? If there's going to be more jobs around the border Then those cities are going to flourish and they're going to need rentals that they might not have yet Yeah, so as an example Ross and I Many of you might have heard of or maybe not a little town called Sierra Vista, Arizona now it's Oddly enough. It's near the border of Arizona and Mexico and and so being from Phoenix Obviously, I knew about Sierra Vista now most of the time you probably wouldn't be looking at building there But Ross and I or bought by there Ross and I bought Land and we built like a 250 unit property down there. We still own it today And if it's in a border town, and why would we do that? There's a couple reasons one There's a military base there called Fort Huachuca Fort Huachuca has It's it's an information base among other things and so but also guess what's in that town? The Border Patrol Headquarters not the Border Patrol headquarters, but a Border Patrol headquarters So again to Daniel's point, so if you start to take a look at some of these little towns You might find these opportunities where they're starting to you know Add more people to shore up some of these kinds of things and I think that's kind of the point here So we've been doing that in Sierra Vista It's been wildly successful and what I would call a third-tier town because you got Phoenix You got Tucson, which is actually second tier and then you got a little town like Sierra Vista So sometimes these little towns can be in extremely profitable They can also go boom and bust pretty quickly with the strike of a pen because I've also been on the other side of that Where you have military bases deployed and all of a sudden you lose a bunch of people so be careful It's it's not for the faint of heart sometimes and you can see this too with Energy production zones since energy is such a focus of this bill. So, you know, Texas, North Dakota, Oklahoma They were probably going to do pretty well on housing needs right now because energy production is going to be up Also, you know your industrial and flex space because you know, these tariffs are gonna bring so much many jobs Into the u.s. They're going to have to have places to make and store all of this stuff So industrial and flex space is going to do really well in the next few years Which by the way, they're on fire right now You guys said they were already on fire because of the what they call last mile distribution So last mile distribution is like basically you order us up on Amazon it, you know at 9 a.m And you basically want it by 2? Well, if where whatever you're ordering is, you know across the u.s It's gonna be much more difficult. So last mile means that there and this has been going on for a while They basically are taking those goods that you would have normally bought and they're they're bringing it to a city near you You know and so that you can get it much quicker faster. So the industrial areas Industrial communities has been on fire for a while The one thing I want to mention about energy and this is kind of new It should not be too much of a surprise, but I think in a year now from now you guys are gonna see The the power grid the power needs for AI is unbelievable. So these these data centers Even nuclear power and I know a lot of people, you know are against it telling you You're gonna start to see in my opinion if you just take a look around the world as compared to the rest of the world We're lagging behind on nuclear power. Now. I'm not a I'm not the person to say is it good or bad? I'm not same with coal or you know, a hydroelectric or any of that kind of stuff, but I can tell you this We have a severe power need One of the paddles that we were doing in at limitless this week The one of the one of the experts is in the industrial commercial industrial area in the Dallas In the Dallas market and they said they can't build these things fast enough and it takes six years to get power So power starting to be something that I think you're gonna you're gonna see more of an issue And the government and local and federal are gonna have to jump in. So so I would keep your eye around These kinds of power centers because they're creating massive jobs. I know for a fact that meta Google they're doing massive massive campuses for AI in areas like Memphis And so so as you start to look at just you just want to be ahead of this obviously like in Memphis They're already under construction. So you already know there's going to be people there So you already know there's going to be a need for housing both on the purchase side on the rental side So whenever whenever something like that goes in In Phoenix, it's it's the Taiwan semiconductor plant, right? It's gonna bring like 10,000 plus jobs. So it's going to be a boon for that area So though these are the things that you need to be watching with this administration, you know And people are going to be taking advantage of these tax policies these loopholes these things And and also just technology as it continues to grow Absolutely, and something else to look out for is commodities and hard assets And we've also already seen this with the run on gold and Bitcoin right now Trump came out today saying that he wants a weak dollar because the weak dollar is you know better for the u.s But a weak dollar also means that things like crypto and gold And real estate can all go up when the dollar is weak, right, right So so if you take a look at one year ago Gold for example was just about a little over two thousand an ounce today It's you know over three thousand now. So why would gold go up a $1,000 in one year now again, I'm not advocating you go buy gold But you need to look at the whole picture right and the same thing with Bitcoin so what happened when the dollar becomes weak People start moving their money into other kinds of things. And so that's the that's the important thing I'm not I'm not pitching Bitcoin here I'm just trying to tell you that when Trump comes out and says he wants a weak dollar It means something to other people. It means it means some the people that hold dollars It means something to people that are actually getting paid in dollars and and and it also means something if your Retirement is based in dollars or even if you're you have a savings account in dollars And so so just just know that if that's a strategy of the government that there are things that you can do to you know to move the needle around to not be at such a Disadvantage to let's say in the savings account because what that really means is that your dollars if they're in savings are gonna buy you less Essentially, that's what that means Absolutely, and then there are certain small businesses that are really good in this kind of economy You do have to remember our economy is slowing down So luxury businesses are probably not the first thing you should be reaching for but with the big beautiful bill There was a lot of things that pass that certain businesses are going to do really well so let's talk about the first one is obviously any kind of Industry in the u.s. Right any kind of domestic industry that was coming from China, but now has to be done in the u.s It's going to be a good spot to be in whether you're actually operating the business or just owning the real estate either Oh, yeah, so we just had we had a dinner with a friend that actually manufactured things here moved it to China about what four or five years ago and When when the tariffs hit he had a I think he had four or five million dollars of inventory over there that now He's having to bring into Canada. And so now he said that he's having to bring the manufacturing back to the u.s. Which is exactly Obviously what this administration wants. So what does that mean? He went he had a lot of employees He went down to you know, just enough to be able to manufacture in China and and then now he's back here to get so what it's done is it it's he Buying all the stuff locally having it made manufactured locally And a lot of these businesses that are buying things from another country even having them assembled here They're out scrambling right now trying to figure out how to how to how to keep their business going Locally and sometimes that's with another country But sometimes that's locally. So so that's what the Neal's talking about and this Primarily whether you believe it or not or whether you agree with Trump or not. It's happening So he's definitely trying to bring jobs back in the u.s Now how much they cost whether that's going to be inflationary different topic But from a housing standpoint, you just need to know that this is happening right now we're seeing a lot of friends family that are happy to figure out how to get their stuff made locally to survive because Most of their business was done outside of the u.s. And then assembled here or distributed here Absolutely, and then the second one is going to be blue-collar services like HVAC Plumbing all this new energy production and facilities and you know all the industry coming back to the u.s. Is going to put more demand on those services and Also going into a weaker economy. That is one thing people need is their AC fix their plumbing done, you know, these aren't You know luxury purchase. Yeah and mark my words guys Like these are the next 10 year in the next decades millionaires I'm telling you right now like like AI is wiping out called that entry-level white collar, you know which is unfortunate for sure, but But if you call a handyman, you guys already know this like, you know Our handyman went from basically 30 or 40 hours an hour to 50 to 60 to 70 About 90 now right in a period of a I don't know three or four years and so You know that that that older trade my dad did this you know the college is kind of I guess Absconded from all those young kids that would have normally gone into those trades because back in my day there was a whole system of journeymen coming in and working with trades and but that that's gone so There's a huge huge gap of people We're seeing this in the maintenance side of our apartment buildings and I know plenty of people are having this and this this next decade It's the year for people that know how to do the electrical plumbing HVAC and those companies are on fire right now Yeah, and and then to Daniel's point That's just gonna get even more because now a lot of those products. I'm talking about the physical products They're going to be made here locally. So I think if you're investing starting Considering that's that's a market that's not going away. It's severely under supply Absolutely, and we also need to talk about the energy support businesses, right? Because you know, we're so used to having white-collar jobs accountant CPAs marketing all these things and they're not mentioned in this list This is getting back to blue-collar So when you have energy businesses, you need businesses that you know support them like diesel repair machine repair You know all these kind of things So when you are looking to start a business that could be a great business Depending on your area is things that can support these energy businesses, you know or real estate In markets where that's heavy. I'm telling you these businesses. We had a friend actually trying to buy he started a Low voltage company and then and then he actually ended up in the AC business and he's been starting these little businesses and he's crushing it and he's been trying to find others and You can't find anyone that wants to sell right now because there's way more business Then then that's needed Absolutely. And then if we get into the next one, it would be You know food and service businesses in boom towns, you know, we're even seeing this a little bit in like little Coeur d'Alene up here There's a lot of food trucks and things now because there's not a lot of infrastructure in some of these towns and rent who wants to pay that There's a lot of different, you know food service businesses that are gonna be catering to these smaller towns where they don't have a lot Of options. I mean sometimes we drive into towns and we'll be like five Russian. Yeah, you know, yeah Yeah, yeah. Yeah. So I think that's something to watch too as the food costs and labor costs and all that stuff goes up I think you're gonna start to see a little more mobility here because again I know we're in the rental business But rent and overhead is a huge piece that crushes a restaurant, you know food is also a piece but You know, most of the most small businesses if they're not really well located They really struggle. It's it's really really really interesting And you know, they have to have heavy marketing and all that kind of stuff and sometimes they just don't know how And so I think you're gonna see a lot more of this This is another industry that's gonna pop up and we you know we have one area in town here with this brand new that they basically just Took an open parking lot and set it up for food trucks and they're basically there There's like ten of them with an area You can pull up and park and just sit out on picnic benches and stuff like that We're starting to see more and more and more of that These kind of started kind of a little bit like in Austin and Dallas, you know, we've seen these along Congress before But now I think you're gonna see a lot more because you anybody can have a parking lot and create a food truck Court, you know for people especially if it's a it's in a really good area. Yeah, absolutely So let's talk about some things that you don't want to invest in right because a lot of people are looking at starting Businesses in this kind of economy. So any kind of e-commerce, right? They're getting crushed and a lot of them unless your margins were amazing are you know having to go out of business? Because it doesn't work domestically, right? I'd be careful and that I'd be careful with virtual assistants be honest I mean, I know that that industry just kind of got ramped up and I know you know We're talking about eight ten dollars an hour stuff. But now chat GPT the bots accounting You know HR all that stuff we're starting to see Creep in the bookkeeping is insane what you could do now You know just by putting that stuff but you know I had a friend the other day that went and got his blood work done and Put it into chat GPT and said well, you know What would the doctor tell me to do and it kicked out a whole protocol based on a certain doctor? Yeah based on a certain doctor then he took it to his doctor and it was pretty darn close Exact but it was close enough. So it's very interesting. So I talked to the doc I'm like, you know, so what does that tell you like all of a sudden, you know, so so these these things They don't seem like much but they're starting to creep up. Yeah, and based on the big beautiful bill You also need to be careful with green energy because obviously Trump is not for green energy And he doesn't like it where that was very popular under Biden So that was a lot of money went into that so not a lot of money is going into green energy now So I would not go in that direction. Yeah, you heard him. He just went on a rant yesterday about the windmills He made this big deal with the UK which many of you might know about now Obviously around the the trade which is actually gonna be huge for us, right? Oddly enough it made sense when he said it but now they're gonna have to we're they're gonna have to we're gonna have our cars For sale there and all kinds of things for sale in in Europe which is Obvious now that he said it but but he's talking about these windmills. He said basically they have a eight-year-old eight-year span You can't get a rip. They're expensive to maintain You get basically less than ten years out of them And then he said that the blades and all all the components or stuff are toxic and they're all made in China So now it's Trump Yeah But that's what he said, so he's to your point he is not going to be pumping this green energy And he hasn't went after this yet, but I would be careful with the offshoring Um, I wouldn't be careful if you're gonna hire somebody offshore because you can just easily make that switch But if you're want to support a bit sort of business that is offshoring its work You know that is something else that this administration may go after because they really want it to be America first No, so I guess what we wanted to go over is the big beautiful bill. It's not just about stocks or you know Bonus depreciation it really is about you taking advantage of the tax laws because we're really big on that right because everyone always says Oh, this is a fair. That's not fair, and that's fine But really you just have to play by whatever set of rules the administration that's in power gives you and this is a good Blueprint for you when you're looking to get started in something Yeah, and take a look at the whole picture like like for those of you might be heavy in gold One thing that we have a sponsor monetary metals Which will show you right now like there is a way to monetize that and lease it out so take a look Gold is near all-time highs, but appreciation isn't the only way to benefit monetary metals You could potentially earn a yield on your gold paid in physical gold without selling it Here's how it works when you lease your gold through their platform Pre-qualified companies pay to use it under strict guidelines like renting out real estate But with gold instead of paying to store your metal you may earn up to 4% Annually in gold you stay in control and you can choose which leases to participate in monetary metals Handles the due diligence lease terms and all the administration thousands of investors use this approach to grow their gold not just sit on it Visit monetary dash metals comm forward slash Ken to learn more leasing gold involves risk and returns are not guaranteed This is not an offer to buy or sell securities. Please review all risk disclosures at monetary dash metals calm Visit monetary dash metals comm forward slash Ken to learn more so and now so now let's talk about the Fed Well, let's talk about what a big week We have in general so the Fed's meeting a bunch of earnings reports are coming out the jobs reports coming out So we will definitely know what how the economy is doing in the next few days based on these We've got a ways like this this in my opinion This week is gonna set the tone for the next six months now, not just because the limitless Obviously, we got all kinds of people coming to that. Hopefully see you guys if you're in Dallas, there's still some tickets limitless expo calm We'd love to see you guys there. We'll be there all week down at the Gaylord Texan But this week is big because you know, as you guys know Trump is all over Powell And I don't think Powell's budget Yeah, you never know I mean there's definitely more pressure on him to lower rate this time than there has been in the past So it really could go either way most likely he's going to hold But you know, you have your jobs report coming out And I was reading too and we need to look back on this for next week It's not just about this job report, but the edited job reports from the last two months, right? So we need to kind of see because they always Right, so what the readjusted numbers were because that's gonna be really important too And that is something the Fed has to consider is the readjusted numbers as well. Yeah, so hopefully we'll see you guys this week in Dallas Appreciate you watching as always and let's crush it. Alright you guys next week