URGENT: The U.S. Is Running Out of Emergency Oil

Let's let's jump right into oil and prices and energy. You know, there's so many ways we can go on this, but um this hits the, you know, Main Street's pocketbook directly. Um and obviously, uh can make big differences on on where people could invest in the future. So, what's your crystal ball with oil short-term, long-term?

Well, it's been such a confusing ride so far, you know, because we now we're there's no such thing as uh investing in oil at the moment if not even trading because, you know, you have to know what Trump's going to tweet, you know, at 2 in the morning. Um, you know, and and so it's it's been really it's been a very staged managed environment. It's been kind of weird that way, you know, um because we're releasing this strategic petroleum reserve. Trump is saying that gas has to go down in price that you have all these statements that we want all these things to to happen. Um but at the same time the straight of moose is still not entirely open. It's pretty closed and it's not just the oil that's missing. It's not just the natural gas but we're missing sulfur, ura, there's aluminum, helium. There's like so much missing.

We haven't really faced a shock like this before. And I think you have to look at it in the context of like so COVID happens right and that begins I think to dismantle this whole idea of globalization and we start to get a little deglobalization because companies suddenly realize oh my supply chains could get severed I I might have to have a little deeper inventory and maybe we should reshore manufacturing. So those are some of the big wins that got started. And then with this with with the attack on Iran and the and the closing the straight of Hamuz I I think it's really clear that that de deg del deglobalization that that's now that's a foot right and it's really going to happen.

Meanwhile the United States in an effort to keep the price down, we released our strategic petroleum reserve which Biden released a lot of in 2022. So I called it the strategic political reserve because he did that right into the elections, you know, to try and drive price down. And so that started the whole thing. Trump rebuilt it a tiny bit and then it's really been sold off. And the deal is is that if we're going to leave enough for the military to conduct a proper war, we only have maybe about two more weeks of releasing oil from the from that. And we heard Trump come out, right? He came out. Trump's tweets are one thing, but I love Trump when he's speaking because he has no filters and sometimes you you feel like you got a little something more, like a little something closer to the truth, right? And was just a week ago he said, "Yeah, we were four weeks away from global economic catastrophe, right?" And I think he was accurate because we were only four weeks away from running out of um what what I would call bare minimums in the strategic petroleum reserve and now we're two weeks away from that.

So, here we are. It's July. Limitless couldn't come fast enough because, you know, we're going to have to talk about this. I don't even know what the world's going to look like in August. I hope it looks better. But truthfully, it could it could be just as messy as it is now. And I think people got to get ready for that cuz energy is everything. And the United States is blessed with a lot of energy, but it gets complex quick under that. And so, you kind of have to know the difference between oil, what they call petroleum, also natural gas, the data centers coming on. We're all familiar with the electricity bills going up, but there's a lot of moving pieces in this. So, I think energy is going to be really front and center for a lot of people this year, next year, and the year after that.

>> So, so I know Chris, you know, when I spoke to you, I said, "Okay, so it's almost like somebody had a lot of cash in reserve, some kind of a bank account. It was like a, you know, a rainy day fund, you So the US has always had this and they've used it to kind of you know neutralize um you know prices at the pump generally among other things and and so this is we're now heading into this point where the savings account is almost drained right and we still have the use. It's almost like losing a job with with no savings. I mean is that where we're kind of heading?

>> Yeah it's great. I'll you know continue the metaphor. So, you know, um, somebody has 100 grand in the bank, they lose their job, and they keep living their lifestyle, and there's no problem until the 100 grand goes to zero, and then it's then it's a problem.

>> Yeah.

>> Um, so we've really been eating into our reserves under the idea that this whole thing is going to be over and comprehensively over, and that's that, right? And look, there's a lot of complexity to this and who knows what's really happening behind the scenes, but but out here in the cheap seats, I can't see that we have anything close to an agreement. All we have is this signed. And if you have a good lawyer, they'll tell you never sign anouou, right? It's all downside, very little upside, right? It's an agreement to talk about how you're going to get to an agreement, you know? So, that's where we're at. And we have the 60-day clock running and and let's hope that that they do get to those agreements. But right now, they're profoundly apart on very substantial issues like does Iran get to charge tolls in the straight? um you know, are who when do they have to give up their nuclear materials? Uh are they going to get paid? You know, all kinds of stuff.

Um, but let let's be clear, Trump Trump has got to get some motion on this in the next few weeks or I do think we're going to be hitting some very serious turbulence in that. One quick thing, little wonky, but this is kind of detailed. It's really important. I'll be I'll be bringing some of this to Limitless is is that the headline price for oil is one thing. Downstream from oil is the refinery and the refined products, gasoline, diesel, jet fuel. The spread between the stuff the refiners buy, that's the headline oil price that Trump's crowing about, and the stuff they sell, that's that spread between those two prices is called the crack spread. We've never had a crack spread this wide before. That that speaks to really serious physical tightness out there in the refined products market. And the reason for that is our refiners are going flat out. It's huge. Their cap ute is like just flat out like 94 95%. They can't go much hotter than that. But all their output is both being consumed in the US and we've been shipping it overseas. We've been selling it to Japan and Europe just to help them keep the prices down for a while. So it's not just that we're eating our seed corn or the principle in our account. Kenny Tarl, it's it's we're we're also sending it to the rest of the world.

You said something about if they can't figure it out in 60 days, we're going to have some turbulence. What does what does that actually mean?

>> That's a euphemism. It it could get really messy. So turbulence. So here here's my here's my concern. My concern is that the oldest and most important chart of all economics for commodities is the PQ chart. You got you got your price, you got your quantity, you got your supply, right? And so so demand is matched to supply by price. We've been holding the price down and our demand hasn't gone down. Number of jet miles flown. Um total consumption of petroleum products for May is up 2.6% year-over-year. Our demand is as high as it's ever been, but our supplies are now just running down. You can watch this. Our commercial inventories, our refined inventories, our strategic inventories, all of those are running down. And so when I say, you know, could get a little spicy, if you keep that up long enough and you just suddenly run out of something, you get into what's called rationing. You actually have a physical shortage. That is a completely different beast from, hey, prices went a little high for a while. It was uncomfortable. A shortage is really destructive.

>> So, so Chris, um, you know, a lot of people now look at, especially when the price went up, you know, they start to look at alternatives, right? You know what I mean? and and I I know there's some pros and cons on on some of these alternatives. So, I'd love you to talk about that. You know, you we talk about solar, we talk about coal, we talk about some other things, and I know you're really well verssed there. There's there's a lot of challenges um in in those areas, right?

>> Well, there are there it's just complicated territory and and there there's no magic silver bullet in this story, right? Um, if we were being really responsive as a nation, uh, Trump would be immediately reducing the regulatory barriers for nukes and we'd be putting in small nukes, mid nukes, big nukes, we'd be we'd be slapping nukes in every which way. Um, and that's just to just so that because of the natural gas component of this, we don't burn oil to make electricity. It's that that that's not a swappable commodity. But for oil, um, you know, absolutely we should be pushing towards how we could be much more efficient with that. So, so when I first heard about the straight being closed, within 2 weeks, I'd sourced an electric car. Never thought I'd buy an electric car, I actually love it a lot. Um, because it plugs straight into my solar panels. And the next thing I did was I bought a lot of batteries for the house, right? Lithium ion, you know, pretty big racks so that I can run my house for a lot longer if necessary. And I just did all of that because I thought, look, there's a chance that Trump, you know, creates this issue. We could easily see a a scenario where we actually get into some sort of a tiff with China, right? China's already been in tiff with us where they've uh limited rare earth's exports to us. Now titanium, you know, they're very selectively showing they could trade war with us. We get all of our lithium batteries practically from China. So I thought better get those now, right? So these are some of the some of the uh responses I had to make. But I I do think people are going to have to consider seriously what it would be like if we hit that that shortage. What happens then is we go into raationing, right? You just know how messy that's going to be. Remember co they're like you're

>> Yeah,

>> you're an essential restaurant, but you're not. You know, it's going to be that messy again, right? You get some diesel, not you, right? That's it'll it's just government, right? So, so that's the concern and and but leave all that aside. Let's pretend straight up from sorts itself out because of the data center buildout and because of the LG export terminals that are now in flight, right? These are already shovel ready andor starting to be built. By 2030, we're going to take our natural gas consumption and we're going to put another 24 billion cubic feet per day of demand on top of what we already have. And the problem I have with that is I can't find where that's going to come from because all of the major gas fields we have except for the Peran. The Perian is an oil field with a gassy output that's still climbing because it's it's that's great. But I don't think it can put out another 24. And so I look at this and I say, "Okay, look, it's going to get tight. If I'm Europe, I'm very worried because if the United States gets tight, we say, "Sorry, we're keeping it here." And that's probably appropriate. But even with that, I I think um you know, we've already seen huge impacts of data centers on people's electricity bills, and I think we're going to start to see that in natural gas going forward. That's the problem side. The the I'm a big investor in natural gas cuz I I see the bull side of it, too.

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>> Yeah. Well, I know and then you know data centers are now all over the place and and if you if you take a look at um the new nuclear power um you know outside of the US there's hundreds and hundreds of these plants going up to accommodate the AI the energy issue with AI, right? And and we're we're done we're not anywhere close with that, right?

>> No, we're we're really far behind. There's a couple of small deals privately that have been done. One with Microsoft. They're going to talk about reopening Three Mile Island. Um Oakland's got a deal with Google. I mean, there's a few things going on, but China's slapping in like dozens of these things um you know, right away and and at all different scales. So, energy is going to be a huge story. I don't think we have a good comprehensive energy strategy here in the US. If we do, they're hiding it really well. Um and so that's just going to be a struggle as we sort of come up with that. This is everything, guys, from distribution lines to generators to the the nuke plants, extra gas fired power. We're going to have to bring coal back on. There's going to be a bit of a scramble going forward, but uh this is there's going to be both picks and shovels and and and you know, actual energy producers in this. It's going to be a huge thing going forward. By way of example, just last week it hit 90 in Georgia. Wow. Go figure, right? Um, and the NERC issued a level three alert, their highest alert for grid instability because they didn't have enough power to run that southeast grid. How did that happen? Right? It's just 90, you know? So, we're starting to see these sort of like grid instabilities and some data centers are not going in just because they don't have any way of getting the power there. Uh, that's the number one shortfall. And in many cases, that's cuz they don't have the transformers or they don't they can't get the gas turbines, the actual turbine units, because there's a huge waiting list. So, we had this huge scramble into data centers, but I think what we're going to start seeing is that's starting to moderate as we run into some of the realities, including, you know, public backlash,

>> right?

>> Um, and how about water? Because, uh, I also heard that water is also a big deal as as it relates to, you know, where where this is all headed.

>> Well, it it is only in the sense that a lot of the places they decided to put these data centers are kind of water poor to start with. I think if they went in other places it wouldn't be that big of a deal. But um, you know golf courses chew up a lot of water. It just depends what you want to use your water on. Um, but yeah, where some of these are going in hu huge deal Kenny. I mean going to places in Texas and Utah pretty water poor areas actually.

>> Yeah that's what I've been reading a little bit of. So, so Chris, I I I I know it does appear and and and I'm I'm just kind of scratching the surface here, but it does appear that that we're losing the the nuclear power race right now as far as, you know, be able to accommodate that. So, do you see these other countries coming out with those? Obviously, they already are. They're coming out with those sooner. um are are they then going to be able to you know capture you know this this you know is it this AI phenomena that we're obviously clearly seeing.

>> Well you know um it's a great question uh who was um the Shark Tank Kevin Oly. So he's on with Tucker Carlson. He's talking about this huge 9 gawatt center they have going on planned going on up in Utah and and he says oh well we have to do this because we have to beat China. You know it's existential. we we have if we don't get there or whatever there is China wins and the issue is is that China's taking a completely different approach to all of this they have open sourced it right Quen DeepSeek are both open- source models and and also China now produces twice as more than twice as much electricity as the United States and they're slapping it in super fast right tons of nuclear plants going in they're conceiving of a dam that's going to be three times larger than the Three Gorges dam already and they've got all obviously all their solar and wind, but that's just a tiny component. They're putting in coal. Like they're just they're just going at it. They get it right. Uh energy is a cornerstone of their um project. So if you said the future belongs to whoever has the energy to run the AI models, that's not us at present. We have a lot of catchup we're going to have to do there. And and I hope we get serious about that. I'd much rather be spending our national money on beefing up our electrical production and grid uh than I don't know, you know, closing the straight over. But just me.

So, Limitless is coming. Obviously, I'm grateful that you're going to be able to talk there and come this year. Um, you know, what do you what do you want to talk about? What's kind of on your mind? You know, we're asking these questions that that are kind of the lowhanging fruit on on a lot of people's minds, but what else are you seeing that nobody's seeing that that people can learn?

>> Well, you know, we're going to have to we're going to have to really dive into this energy a bit. And honestly, I have an idea what I'm going to talk about, but a lot could happen in the next few weeks cuz that's how it's been just like a never- ending train of like wake up and find out what what new world we're facing right now. So, there's going to there's obviously there's going to be some events. I hope they're positive. I hope it's like we're just looking forward um now because the straits behind us and all that Iran stuff. That's what I hope. If not, we we'll sort of have to parse through that. But for sure, there's going to be, you know, my model for everything is you have to get steeped in the context, right? just tons of education. That's why I come to Limitless. So, I'm bringing my son, you know, my partner, his daughter. Like, we come because we learn a lot and we got to find out what everybody else is thinking. And then I'm just there to share everything I know, you know, and we'll put some context out there. And then once you have that context, you have to make decisions off of that. And we haven't touched on it yet here tonight, but I like to put economy and energy together because they're related concepts. And if oil goes back up in in price for whatever reason, if it really shoots, we're probably going to see interest rates follow along like they did earlier on. And that's going to have huge impacts. Uh, all of this bleeds into inflation as well. And inflation has two components. You know, that's the monetary component, but then it has the um, you know, where you have a supply shortfall. It's just cost push. So those two parts have really been playing in hard right now over the last few months. I'm sure you everybody's familiar with that on this, but I see that continuing and there's real shortages that are coming and and we're going to have to start thinking about what that really means because you know in your businesses uh obviously interest rates are are like front and center kind of drives a lot.

>> We just had George Gamut on right before or not long before you and uh so if I heard you correctly he said if something like if oil goes up then interest rates will follow along. Do you mean like interest rates will go up too or go down?

>> No. Yeah, they'll go up. Yeah.

>> So, George seems to think rates are going down. So,

>> what's up?

>> Can't wait to see that debate. Yeah. By the way, he says hi. Um, so Chris, can you walk everybody through because I know immediately you're there. Can you walk everybody through the logic of why higher uh oil would would mean higher interest rates?

>> Yeah. So, so oil is is embedded in everything, right? Everything like like Taro that that water you're drinking. Like there's oil's in everything, you know? Well, the container, right? But also the truck that brought it here and and the filters and that that filtered it and all that. So oil's just in everything. We don't we're not as familiar with that. We think about our gas, gas pump prices, all that. But but oil's baked in every product, right, at some level. So when the price of oil goes up, you get it basically this inflation just follows along for the ride. As inflation goes up, it really starts to lean on people's desire to hold particularly longdated paper, right? Because why would you hold a 10ear at 44 if you think inflation's five or 6%. You wouldn't, right? So it's you start to see as inflation creeps up, you start to see um people holding less long paper.

And in the context of that, we also know that as in as the oil prices go up and and we see shortages, you know what the government's going to do? They're going to print more money. And that also has that uh inflationary impulse on that. And when the government prints more money, what really happens is the Fed clickity clicks on some keys and vacuums up some more treasuries. Um, so basically when the government borrows and spends more, that's just more money out into the environment. So these are all going to be things that would weigh on uh that. Second, if oil really shoots up in price, you find countries out there like Japan. Japan's interest rates are blowing out. The yen's having a huge problem right now. Japan imports 100% of its oil. And so the problem is is that oil goes up in price, the yen actually starts to shoot down in value and also their interest rates start to go off the reservation. And there's only this is one big global economy. So it's kind of like our tenure and Japan's and Germany's and UK. They're all kind of linked in some way. So you can't just have one area just going off the reservation and shooting up without the rest sort of feeling that pressure as well. And then the final piece is that um there's a lot of reasons for countries to need to sell US treasuries right now. China doesn't want to hold them. So they've been open about that, but the Gulf Coast countries are going to need to sell something to reconstruct their countries and and it's probably going to be um US financial assets visa v Treasury. So those are all sort of like pressures that could go on that. So when I say oil is going up in price, it's doing so because there's been a shortfall that's been recognized. we have to now control the supply demand mismatch with rising price and all of that bleeds into making um treasuries go up. Now that's the dynamic we saw at the beginning of of this cycle. So you know so you've got this inflationary period but you also have potential for higher unemployment at least in the short term right well during all this displacement. So, so, uh, which which road do you go down here if, uh, you know, based on the economy?

>> Well, I can't wait to hear, uh, whoever you've got lined up, um, you know, I was listening in Lor Leor there for a bit. Uh, but AI is is we have to really wrestle with this as a nation and as individuals, as fathers. Um, just because it it is going to have a huge impact on hiring. It just is, right? um you know my business is now operating at a level where a few years ago I'd have had to hire more people and I don't have to right so that's sort of a silent thing I'm not firing anybody but haven't had to hire anybody right and and so that part is I think I'm seeing that in a lot of businesses they're just finding out they don't have to hire people right and then there are obviously other ones that are going to be highly susceptible call centers gone right um you know a lot of junior sort of like cognitive things um you know early you know parallegals CPAs, all this law, all the law people I talk with are just freaking out at how good the models are, but also what does this mean to the profession? Um, so that's that's going to have huge sort of deflationary impacts. But I actually think this means we're going to see more inflation because why? Because you know what the government's going to do with that? STEMI checks.

>> Yeah. UBI, right?

>> UBI. Yeah. Yeah.

>> So, Chris, Chris, um, for those of people watching this right now, like if you know, based on everything that you said with oil, with possible inflation, with you thought that rate might go up, >> where should I be focused on my investments right now? What should I be those people boots on the ground? People trying to figure what to do, where to place capital, what to lean into, what to lean out of. What are your thoughts on all that right now?

>> Well, it's it's a mixed bag and I reserve the right to change my mind like 10 minutes from now. But uh for sure

>> it it's it's a time to be super nimble. Um I'm a a big fan of hard assets in this environment. Um and for all sorts of reasons, some fundamentals, some for for money printing. I I do tend to have a belief system which is that the monetary authorities, the Federal Reserve, they will not risk a deflation. They will always default towards inflation. They might have a little scare in there to justify it, but I'm a big believer they're going to print. They're going to print more. Okay? So, so think that through. I I do believe that, you know, the government is not going to allow people to just become mass homeless because we can't afford to live in houses that are all there already. So, I I do think that we're going to have to wrestle with this, but you know, what are the what are the trends? Government's going to print more. The government's going to spend more, right? The Fed's going to print some more. And then we have this silent QE that's been going on where right now the interest payments for the federal government on a run rate based on May is 1.3 trillion a year and climbing quickly and that actually operates like QE, right? So, uh, Tarl, this this plays in because

>> what's that even mean?

>> Well, like quantitative easing was just the Fed printing and throwing the money out there, right? And when they did that, uh, guess what happens? The stock market goes up. financial assets do really well. It's heavily liqufied. So, what I'm telling you is we have a highly liquid environment. They are pumping cash out like crazy right now and they're going to continue to do that. So, lots of things are going to perform reasonably well. But that said, I don't believe in sort of this passive just buy stocks point of view. There's always a bull market somewhere. There's some really good sectors sitting under there right now. But the headlines, the Mag 7 have already been like, you know, drifting and having trouble a little bit. The whole thing, the bubble jumped over into the what's called the socks, the semiconductors. They've been doing like gang busters, but that'll drift off. So, you can start to feel this dynamic. This isn't my first rodeo. Like, I've seen a few bubbles unfortunately in my day. And and so, uh, I just think, you know, if you get your head, people have to get your eyes off the headlines and figure out where the bull markets are because there's always a bull market somewhere. There's always a bull market somewhere. And so I think the time now is to get very tactical, very strategic. And no more passive investing. It's time to start really thinking through winners and losers. And you know, um, but man, I love energy at this particular juncture. I really do.

>> Yeah. We Sorry. Um, one of the thing I kind of whenever somebody's whenever I have a whole bunch of people telling me to invest in something, it really makes me very nervous. Uh, and I was at an event the other week and I had people I had multiple people showing me their stock portfolios about their AI companies they've invested in and so forth as well. Now I have some, right, for sure. But I was getting advice from multiple people about investing in stocks and and I was like, huh? Like that always kind of sends off uh senses for myself, right? And just something to think about on my side. Well, Chris,

>> yeah, but I mean, if you've seen those stock charts though, like for Micron, it is a it is a pure parabola. I mean,

>> it's a perfect time a perfect segue because one of the first books I read of yours, I think it was Crash Course, talks about the, you know, the three types of wealth, the primary, secondary, and tertiary. Um, and for me that solidified my investing strategy, uh, from 2012 after I read your book. Mick, can you just summarize what you wrote in there because it's it starts with hard assets and moves all the way up to these paper assets which we were just talking about and I think it could be extremely helpful.

>> Yeah, it it's a it's a really helpful thought process. So, I was wrestling at the time I was writing I was wrestling with this idea of trying to sort of articulate what's wealth, you know, and I live in a culture where it's very simple. Well, Bill Gates has the wealth and Elon Musk has the wealth and what do you mean? How do they have wealth? Well, because they have more digits on a bank account than you do, so they're wealthier, right? And then I realized, as I started to think it through, I was like, "Well, hold up. Um, my money, my cash has value to me because I can buy things with it. I can buy cars, houses, food, electricity, things like that. So, the cash is actually just a representation of wealth. But my whole life, I've been told it was wealth." And I realized it's a claim on wealth. So, what's real wealth? Real wealth is here on the farm is our rich soils, right? That's we call that primary wealth. Like if you have a lot of oil in the ground, you have a country that has the capability of being very wealthy. If you have coal in the ground, you have the capability of being pretty wealthy, right? So if you live in sand in the northern deserts and no water, no nothing, you're not as wealthy, right? And so that primary wealth is the foundation of everything. And then secondary wealth sits on top of that. And so humans build factories. We cut trees down and make lumber. We go fishing and bring fish to market. Secondary wealth is taking that primary wealth and adding value to it and bringing it to market. So it could be factories, could be could be fishing boats, it could be fish at the market. So that's secondary wealth. And then tertiary wealth, well that's all the stuff on top of it, right? Cash, derivatives, representations. And it has value to us because we can exchange it for these other two. But if we were on a desert island, you know, just rocks, and we had two pallets float up and one was $100 bills, but the other one was like medical kits and and you know, food, like that would be the more valuable pallet, right, by far in that scenario. So that was just how I think about it. Primary, secondary, tertiary wealth. But there's this law, Kenny, that sits on top of those, which is that if I don't have any primary wealth, I can't make secondary wealth. If I live in a country with no trees, I'm not going to make lumber that goes to market. Doesn't work. So primary begets secondary and then similarly secondary begets tertiary. Tertiary has no value unless you have lots of these things down here. And we're about to discover as a nation that that we've been a little shortsighted on that primary stuff on some big stuff. Okay, copper, uranium, you name it. Like it's like a really giant story there. So that that's kind of what I want to bring to people is just this there's data. Just let's look at it and everybody's starting to talk about it now. So it's a little less lonely. Kenny than it was for me a few years ago in Tarl. But you know Goldman Sachs will tell you about the looming copper shortage and it's massive and it's enduring and it's going to be with us a long time and that has huge implications for all kinds of things and I think having access to that information early is an edge. Well, the other thing that I just want to point out is that most people's wealth is at the top in the tertiary category and it's also the one that's the most volatile and it's the one that goes first and it's the one that everybody's timing. It's the stock market. It's, you know, is this going up? Is this going down? Um, where, you know, so I always like if you got gold in the ground, you you're more you got a better deal than the ETF up top, right? um you know, because as you know there's more ETFs actually in circulation than there is actually physical gold. So you know which one would you rather be in? Would you actually rather have a gold coin or a gold stock? Right. It's it's pretty clear.

>> Yeah.

>> Or sounds like

>> or copper mine or just copper. Um, actually there's another phrase I've I've I've been sort of sitting on because you know we look at how um fragile the markets could be right. We all know sometimes things happen. And the great financial crisis was a big wakeup call for a lot of us and just how how it could be fragile quickly. And so now I actually think that um the operative phrase here is possession is 1010 of the law.

>> I used to say it's n10 of the law. I want to upgrade that. I'm going to add that last 10 back on there.

>> Yeah.

>> So the gold coin in the hand I'd rather have that than the representation that I have gold somewhere else. You know it's

>> same thing with physical dollars, right?

>> Mhm.

>> I mean, you know, as as we print print print, uh, you know, Kiasaki, of course, you know, our all of our mutual friend, he's been talking about this for years. You know, you can manipulate paper.

>> Well, you sure can. I mean, you see things like when things get a little tight, right? Like like right now, there's a lot of people gated behind Blackstone private equity funds, right? On paper, they've got money. You just can't get it, right?

>> There's a lot of that right now. And then uh so I this I actually like this question because I think it's important for people to think about um this question here. What does a scenario for Main Street look like if oil reserves do get depleted

>> and how can they prepare?

>> Oo that's a great question. So um if if reserves get depleted and we get into shortages

>> then you get into a situation where you're going to have triage, right? And triage it looks like um raationing. And raationing is going to look like this. Um, government's always going to get what it needs because they're important. Um, somehow rich people Bill Gates will get his hands on what he wants. That'll happen. Military gets what it wants. Then they'll sort of triage it down a little bit. Well, we need trucks and trucking and food distribution and Amazon or whatever. And and whatever's sort of left at the bottom of that, I think, is Main Street, right? And so I could easily envision we had rationing back in the 70s. It was sort of like, you know, even odd on your license plates, but people figured out how to game that. very easy to predict. The next one's going to be a digital access pass that allows you to get access gallons per week or month or whatever and you're going to have to present your phone and the QR code and all that. I mean, that's clearly where they're going to drive with this if if it goes that far. So, that's what it looks like sort of at the front end. People may not be able to get access to all the fuel that they're used to, right? And then the second thing that's going to happen off that though is that it's going to create all kinds of disruptions in the supply chains because the government's going to try and sort it out and be important and pick winners and losers and they're going to do a terrible job at it because that's how they that's how they roll.

>> So what should somebody do with that information you just said today?

>> Well, um I like I think you should figure out how you can limit your exposure to those things. So, so let me just tell you what I've done. A lot of my followers have done this, too. So, you get the electric car, if that makes sense for you. I have a solar panel. We've got the batteries. So, I do that. I have a farm, so I put in a thousand-gallon diesel tank. So, I have,000 gallons of diesel on on hand. I'm making sure that I'm constantly like keeping all of my fuel kind of kind of stocked up because I think, you know, whatever this crisis is, it'll be it'll have a duration to it. I just want to make sure that um I'm I'm not trying to figure out how to be my own like energy company. I'm just trying to figure out how to have some buffers in my life so that if that storm comes, hey, I can eat into my buffers and and it gives me a much smoother path than somebody else, right? And um and with that, I can help people and and all of that. So, I could easily see situations where people who don't have those buffers built in just find themselves really limited in what they can do, how far they can travel, all kinds of things. And Chris, I know you talk about a lot of this stuff on your uh website. Where can people go for more of that because there's a whole bunch of really practical things people could take action on.

>> Well, that's peakprosperity.com. P AK, like mountain peak. And um yeah, I coined that term long time ago, but I I sort of foresaw that we were going to like just max out our debt and fail to do this energy policy. Unfortunately, all kind of predictable, but but if that happened, you know, we we would sort of hit like max easy life. But I actually think there's, you know, let me be let me be completely clear about this. I'm a very realistic optimist. I actually think this is all going to work out for the best. could be a little bumpy along the way, you know, and that's my job at Peak Prosperity is to help people see it, build those buffers, become more resilient, you know, figure out what kind of decisions they want to make about where their investments go, how, you know, are you going to plant a garden, you know, what kind of car you should buy? All kinds of things that sort of feed off of this. But, um, you know, kind of interesting. I was at a at a pretty it was interesting meeting yesterday in DC and there were a number of, uh, fairly high level people there. This was called Feds for Freedom and they're federal workers, great people, awesome in the intelligence community, in various departments and across all of government. They came together because they saw that our our country is heading towards not freedom and they're high integrity people and they wanted to, you know, talk about um all of this. I ended up talking about food and food and national security and all of that. And it was amazing how many people came up afterwards and said, "I've always wanted to have a little farm. How do I do that?" So, the vibe is out there right now. People have started to figure out that they want to they would love to have that kind of resilience that we talk about at Peak Prosperity. And so, I I think the I think that the momentum is building in that end.

>> Yeah. And you like you mentioned something that kind of like stuck with me just for a moment there is like, hey, I think this is going to be for the better. It's just going to be bumpy. And something that we've talked about, Ken and I've talked about before is that messy middle aspect where I'm like like even for myself, hey my like for real estate for instance, I'm like five years from now, 10 years from now, I'm not really too worried about that. The next two years I'm a little worried, right? Like or the next what you got to get through it, right? Whatever that bumpy aspect is and like where do you how do you think how bumpy is do you think it's going to get?

>> You know, um probably less bumpy than I'm imagining, but but still pretty bumpy.

>> Yeah. You know, so it listen, if if the one thing I I'm going to focus on and bring to this is is if we accidentally sail into a fuel shortage, it's going to get ridiculously bumpy. I mean, we're talking See, everything connects to everything. So, if energy prices go up because we have a shortage, that's going to impact our financial markets, which is going to impact our monetary system. Like, it's all these are all interconnected levers. And so, um, I really wish we weren't going down this particular path of just sort of like sailing into, um, what seems to be a shortage, but we'll see how it turns out. Um, but by bumpy, I mean we're talking like financial markets down a lot. Potential of having to do capital controls. If it gets really bad, Trump will will try and put in um export controls on fuel. That's going to be exceedingly bumpy, right? Um because guess what happens when you put export controls on something? the producers are somehow not exactly incentivized to produce more of this stuff. It it's a self-fulfilling prophecy. Um, you know, and and he already mentioned that he wants gas prices at 250. That's what Trump said. He was blaming the retailers. He's like, "You retail gas stations 250." That means he doesn't understand at all how this market works, right? The retailers are price takers, right? They don't set the price at all. Very, very low margin, you know, high competitive business selling gasoline. It's the middlemen. Well, are they price setters? Nope. They're all competing for what's available coming out of the refiner. So, are they the price setters? Nope. It's just how the markets work. So, Trump is basically saying, "Hey, I want to put price controls on this." That's Nixonian, right? Last time we tried that, things got really bumpy. The dollar really started to tank. We had this double hump inflation through 73 to 75 and then 7880. that double that last hump of inflation was only brought down because Paul Vulkar rammed short-term interest rates to 21% long-term to 14. Our system couldn't survive that.

Again, at this point. So, I I don't want to repeat that history because we have too much debt on the books right now. It it would our we would actually the dollar would die if we tried that.

And that's another really good point. Uh back then when that happened, we didn't we weren't in 38, 39 trillion of debt. Uh, you know, as you pointed out earlier, we're at 1.3 trillion now on our annual, uh, you know, just interest payments only.

Yeah, just interest payments only. So, so very different time back then. And and and that that's another really, really interesting point because as rates go up, that just makes that whole interest payment more.

And as the interest payment becomes more, they have to borrow more. So, the interest rates go up, which means they have to have a higher interest payment, which makes you borrow more.

Correct. And and that's the danger. You can't get caught in that that that final doom loop. You just can't go there. Um, but I haven't seen anybody in DC who's willing to like dial our spending back at all, either side of the aisle.

Said no one ever.

Said no one.

Yeah. This is uh like I mean, a lot what's what's fascinating just be doing doing Limitless for as long as Ken and I have been doing is that like as we get closer, like just the world changes so dramatically so quickly these days, but we also get the news faster than ever as well. And and some of it's BS, some of it's real. We for that.

And that's that's Ken and I are going to talk about that at Limitless about how, how do you find the truth in things a little bit more? Because there's a lot of BS out there, there's a lot of stuff that's uh slop, right, for lack of a better word. And there's a lot of people trying to control what we see and how we perceive it and so forth as well.

Know, right. And I think it's very important, especially as a lot of different disinformation, but it's getting more AI for good and bad, right? In some capacities. Uh, but even on the topic of oil on gas, we're going to have a lot of that at Limitless. Chris, you're going to talk a lot about this stuff too, uh, in all aspects at Limitless. But I want everybody to be clear too. Limitless, Limitless is is is an investment conference and it's a business conference. So like this is, we're talking about these things, right, with oil, gas, crude, uh, macroeconomics, AI, right? All that stuff. Of course, there's going to be plenty of real estate at Limitless because that's what Ken and I focus on. But the reason why we talk about all this stuff is because what you just said, Chris, is it affects everything, right? So, it affects all of you. Don't think if oil all of a sudden like goes away, that's not going to affect real estate. That's not going to affect tenants' abilities to pay rent. That's not going to affect like there's so much that this affects, which is why like for me, I was a single, I am a single family investor. And if you would have talked to me between the years 2010 and I want to say 2022 until Limitless, all I thought about was single family investing. I didn't look at anything. I didn't look at anything else, right? Just single family investing. That's it.

And it wasn't until going to Limitless that I go, I should buy some gold. Oh, I should get some silver. Oh, Mikeelli's talking about oil and gas. I should go for like, what is, I didn't know you could invest in that. Like, how do you invest in oil and gas? And I started opening my mind and broadening broadening my portfolio, but also just like realizing that I need to pay attention to this stuff because things connect like you just said. And I don't want to be caught going backwards just because I wasn't paying attention like what you said today about oil and gas or a short. Like I did not know that till just now as far as like that 60-day aspect and reserves and everything. I'm like, I better go get a five-gallon, get a five-gallon tank and store it at home, right?

But five gallons. Yeah, that's going to be a game changer for you.

My weed trimmer is going to have plenty of gas. But uh, but for, but it is make me think differently. And I'm already thinking, oh, I should go to some of the oil sessions at Limitless. I don't go to all of them. I go to I want, right? But um, but that's why we do Limitless is because of this information because now I'm me as an investor in real estate is now looking at other things to connect the dots and how does that lead back to my portfolio, for my family, for my financial uh security.

And Limitless has a whole bunch of business as well. Like guys like Leor are talking about business and how to utilize tools to help our businesses. So if you guys are watching this right now, right, Limitless is it's an all class. It's asset classes and business so that we can become better and more holistic in our financial plan, protect our families, protect our financial futures, learn from other people like Chris, like Ken, like many of the other people and attendees that are out there so that we can take it back home, build those relationships, uh, but also take it back home and use it for ourselves in some capacity. And hopefully, hopefully all of us there can get a little bit more secure in our decisions, a little bit more certain in our decisions and take advantage of some of these things as well.

Right, because like you said, Chris, and I want to uh uh ask you a question on this, but you know, you always think there's a bull market somewhere, right? And where is it?

And we all hope that Limalist will help us figure out where that bull market is going to be so we can re reallocate maybe some positions, right? So that said, why should people come to Limitless, Chris?

Well, I'll tell you, there's only two conferences I go to that a year that I won't miss, and one of them is mine, and Limitless is the other one. It's it's really it's the best conference. I I just it's hard to explain. There's just this vibe. It's being around other entrepreneurs. It it's um I'm really a big believer now the older I get that there's this osmosis thing that happens when real humans get together. Um, you know, this is nice virtually, but there's something magic that happens when you do it physically. And I always get something from it. And my goal when I go to a conference like Limitless, I always say I'm there to meet one person. I don't know who it is yet, but I I know that's going to happen. It's going to be magic. And every year it's been multiple people. Um, so you know, if my goal is one, vastly exceeding my goal every year and and so that's what it's all about. It's it's really it's the sessions are great, but in between sessions is is even greater, it turns out for me.

But also bringing your kids this year, you know, you and your partner, uh, you know, and I actually been doing that as you know, Chris, and you, you know, my kids and, uh, you know, getting them in the right rooms with the right people, I think, uh, you know, because they don't listen to us, right? But they'll my son will sit down next to you and listen to you and and and hang on every word.

Yeah. And vice versa. It's just how it's just how it works, right? That's part of that's part of grow. But no, it's my um my my uh business partner Nick, his his daughter Bella. She was 16 last year.

And she just eyes wide open. She she was just sort of absorbing it all. Took her about a week to process it. She got home and it completely changed how she was thinking about things because she was thinking paychecks, jobs, college, all this and that. And she just said, "Dad, I want to go back because there's there's something." She she caught the vibe. She's like, "Wait, you can live this way." So, she ran into some awesome people, younger people, you know, maybe a couple couple steps ahead of her who were already on their path, already had homes, doors, whatever they were doing. And and just, you know, hearing those success stories. But, you know, it it was the reality of it. Like kids these days got great BS detectors, right? So, the first guy we ran into, I think that she talked to was fantastic. He was like, "Oh, I own all this stuff, you know, it's great. I got all these doors." And she said, "Oh, that's he that was straight line." He goes, "Oh, no. I went broke once." You know, he had his his his crash and burn to riches story, you know, and that was real for her. But, you know, just the way he went about it, she's like, "Oh, it really changed her."

Good. Well, yeah, that that Thank you, by the way. That's that's what we're trying to do. Uh, we we you we we have a lot of kids coming this year and we're actually designing curriculum for them. Uh, which is super exciting because you know the parents, they want they you know, they want their families in in the same room.

Yeah. There was this wine and wine and dine thing after this event I was at and I was with this family, very nice people from Chattanooga, 19-year-old daughter. She's going into premed or something. She thought, man, I was pitching limitless. I was like, "Before you go in to decide to become a doctor, just go, just just take a few days. Go check this out just to see, you know," cuz the mother of the family, her whole family was entrepreneurs and she was really worried about her daughter going into medicine because you either go into a practice, which means you get slotted in, which you have no autonomy, or you have your own practice, which means you have to know how to run businesses, right? There was a day, Chris, where that would be the opposite in my household. And my parents were like, "You you need to go be a doctor." I'm like, "Well, did you ever see my report card?" Like, "Who are you talking to?" But isn't that interesting how that's flipped?

Yeah. Yeah. It really has. And for those of you guys statistic, I mean, uh, sorry, logistically, uh, if you guys do have kids that are under 18 or 18 or under, right, and you want to come out to Limitless, just send us a message to our our support team, support at fixated events, and we'll make sure that they get a ticket.

Yep. Free.

Event for free. And so the.

Oh, great. That's awesome.

Now, for those of you guys, I have a five-year-old. For those of you that were like me six years ago, I might have been turned off by everything that these guys just said about having kids at the event. I just want to be clear, there's, don't worry if you're not into the kids thing. There's plenty of like nowhere near kids are all over the place. There's not a bunch of kids running around. That's not actually the case.

No bouncy castle. What?

No bouncy castle.

Next generation. Come on. Let's get them in the room.

But we do want we do want people to uh to, you know, invite their families and stuff like that because this this affects your family. This affects all of us. Uh, if you guys decide to come out, just let us know. And all that said, so final thoughts, Chris?

I can't think of a more important year for this, you know, with with AI and we're just talking about the kids and everything. Every parent I talk to right now is worried or scared senseless about what kind of a future their kids are stepping into. And um, obviously the answer to that is if you can have people skills and entrepreneurship, there's always a market somewhere, you know, that's it. I I to me, this is the direction everybody should be going as fast as possible. Not not college, paycheck, all that whole nine yards. Um, so I I actually think I can't wait for this. It's I'm really looking forward to it as always. So, thanks for the invite.

Yeah, Chris, can't wait to see you soon. Thank you, by the way, for jumping on.

See you in 40 days.

My pleasure.

All right. Cheers, Chris. Guys, you.

Bet.

So, for those of you guys that are still here, we can answer some questions for you guys, but also I wanted to ask one question to Ken before we continue though. Uh Ken, I'm going to ask you in a minute like about the multif just so we can do some wrap-up because you got a lot going on in the multif family space. I know you're going to be talking a lot about it at Limitless. Uh, in fact, you just merged companies with another behemoth. Uh, and you guys have big plans for what's happening. I don't want to spoil it all for what's going on with Limitless, but uh, we're gonna definitely talk about the multif family space and some of the real estate before we sign off. One last aspect for you guys that you guys are still here. If you guys use the discount code web 10, sorry, web 15. Web 10 works too, but if you want more of a discount, use web 15 uh, as a promo code at the event. Uh, you can you guys guys can see at the comments right there. There's page there for you guys to get to. Uh, we'll also be emailing out this live for you guys to go watch the replay. Uh, and we have Limitless is a macro event. It is an event that is designed for guys like all of us. Basically people that are in the businesses trying to figure out what's going on. They're investing today trying to figure out what to do. Uh, we have three main stages. We have two exhibitor stages. We have podcast stages. We have the Limitless Exchange stage, which we haven't even really talked about, which is one of the coolest things I think we do. Uh, which when you guys buy a ticket, we'll send you more information on it, but essentially it's an entire barter stage, right? Where you we had people getting a Porsche last year off the stage from trading for aspects too. We had people getting condos uh and so forth, but we also had people just trading like hours or whatever. Just all sorts of fun stuff. It's an incredible experience. Uh kids love it, right, as well, right? Uh and and we're looking forward to having that back this year. We have over 70 exhibitors. I think we'll be about 80 exhibitors by the time we get there. If you guys have a company that is looking to possibly expand in your reach, you can reach out to our company and we can look for a spot for you as well. Uh, and tickets go on, sorry, tickets are on sale now. They go up in price July 6th. Uh, and this is the last this is the cheapest you're going to get these tickets. Period. Right. If you can't make it in person, there's an incredible virtual option as well uh that we will that that is a great experience. It also gets you engaged with the exhibitors. There's entire networking experiences in the virtual aspect too that we help host. So you can meet other attendees even on a virtual level. Uh, so if you're if you can't make it in person, it's too far for you, don't want to for whatever reason go out to Scottsdale, you can also join us virtually uh and you'll have an incredible experience, see all the sessions and be able to interact with a lot of the other attendees uh in that one aspect too.

So Ken, any thoughts on that?

Well, first of all, uh, again, I I I think every single year we have this, I get extremely excited, but this year in particular with Chris said it perfectly with with all the uncertainty and e, you know, all of us, even even Chris, people that have been in cycles before with, you know, the stuff going on with oil and the stuff going on with AI, the stuff going on with inflation and and obviously the fact that we're at war. There's just so many things. Um, you know, everybody's just like going to be in the right room looking for the same kind of answers. I believe I I I really do. I I think when when things are kind of normal, uh, which is when we started Limitless, they're semi-predictable, but there seems like there's there's some wheels coming off a lot of different things. And uh it's going to be really interesting to sit in these sessions and and and really I think try to hone um, you know, where we should be and and I guess for you know, semi predict the future as much as you can based on you know, listening to some really smart people like Chris.

Awesome. So Ken, uh, I want to ask you a question about multifamily real estate investing right now. The multi, you know, you brought up already early on this webinar about, you know, an 8,000 per door property that was that at one point sold for $90,000 a door property as an example. You bought something like almost half a billion in real estate last year, if I remember correctly, correct me wrong. Uh, you were buying, you're raising, you're buying at discounts. You were talking about this for years, right? Back uh back in the day when you and I were starting limitless, that it's not like they're good for multifamily. You told people to wait. You bought uh you also just merged. I know you're going to go over a whole bunch of stuff on this at Limitless, so I don't want to steal a lot of the uh aspects, but what are you doing today when it comes to investing in real estate?

Well, I I I'm going to talk about the merger at at Limitless and more importantly, uh my partners, my new partners are coming and and why is that important? It's important because of the reason the reason that you merge. Well, not there's multiple reasons you merge, but the reasons we merged was uh for the human capital piece, for the wisdom, for the experience of my other partners. And so what you know, what happens is, u you know, I'm in the, you know, I'm in I'm in my final chapters, right? Like my I've had a lot of success in real estate um at some point. I've got succession issues. I've got, you know, but you also see things a little more clear as you've been through these cycles. And so having partners that have also been through those cycles and see things similarly, but also a little bit differently. Um, having, you know, putting together this is the time to put together the team, you know. So, so as we start to look at this cycle, I look at um, you know, what is what is a distressed lender looking for? Seriously, like if you're if you're a lender and you have all kinds of distressed real estate, you know, what is your some of your biggest stress? The stress is obviously you need to get it off uh off your books. That would be number one. But to who and why and who are they? What's their experience? What's their team? How deep are they? What you know, like all that stuff, you know, you're looking at the risk. So, so by putting together the team and by putting together, you know, what I would consider an A team, um, you know, I'm not talking about capital. I'm not talking about fundraising. I'm not talking about any of that stuff. I'm talking about property management, you know, um, you know, uh, boots on the ground, practical, uh, how do you run these things, you know, how do you fix these things? How do you maintain these things? Um, and and and so so that to me is what everyone everybody should be thinking about. Uh, because that's that those are going to get some of the very best deals. So, you know, so so we're, you know, we have a massive competitive advantage right now when we're talking with lenders and brokers because it's no longer um I'm really popular on social media and I'm raising a bunch of money. Um and uh and and so therefore I can buy something. Um, that those days are gone. And so so now it gets back to the, you know, the basics and uh, you know, which is what the whole real estate is the foundation of real estate is after you buy it, what happens, you know, what I mean, um, or if you're taking something that's severely broken from someone like a lender, how do you fix it, um, and have you done that before? And so so that's kind of the next step.

Yeah, and on that point, like I mean Ken, with you being, I love everything you just said and I want to hone this in for those of you guys that are uh single family investors like myself. Um, you know, one of there's a slide that I like to show time show people when it comes to either doing like BRRRRs, buy, rehab, rent, refinance, repeat, or flip, is it's only three steps. You buy something messed up, you fix it up, and then you sell it, right? That's it. Or you refinance and you keep it. And it sounds simple, but where all the problems happen is what you just kind of said, Ken, which is that middle part, which is that operations portion of it, which is the fixing, the operations, the building. And after you keep it, you got to actually like rent it, manage it, and so forth. But on a single family level, a lot of the operations is what you just said. And when the market shifts, if stuff change and money gets tight, like what George said, and everything like that, it's it's getting funding even as a single family investor is really dependent on your ability to operate deals. Uh, and not just buy them and hope the market goes up. So Ken, you're seeing that because there's if I'm not a multifamily investor, if all of a sudden I wanted to buy a 100 unit apartment complex tomorrow that was failing and so forth, do you think I can go get a loan on it?

No. And that that's kind of the point, you know, when you when you have a fix and flip, which is a big piece of the market, you know, and and and and I'm not averse to that. I don't believe it's a huge wealth builder. Uh, but regardless, you know, you you don't fix and flip an apartment building, right? You can, but it just takes years, right? Uh, of significant size, you know, but as you know, Tarl, uh, one of the one of the people that we're bringing in this year at Limitless um has done uh probably in the nation one of the very best office building conversions of multifamily that I've seen. I actually toured it. So, so this is a this is a guy that bought um, you know, an office building and converted it to multi. So, he's coming. Never he's not he's not a speaker. He's just a guy grinding, you know, just like all of us. And so, uh, you know, there's these opportunities where you find this, let's say, vacant office building and it's being converted. So, those are the kinds of people we want, uh, to to listen to. Those are the kinds of opportunities that are out there. Um, and you know, if you have the right team and you know what to do, um, there's so much opportunity.

Yeah, and to your point, yeah, like that, you know, TK who's coming out, he's not a speaker, but he's going to be on stage like.

He will be on stage. Yeah. Yeah. And I told him, I said, "Hey, we'll just do a panel. We'll sit there. We'll have a conversation like like we're hanging out in the living room." And uh, which by the way, uh, you know, I've known him uh, you know, he he's not a newbie uh, by any stretch of the means. Um, you know, but uh, this is a significant project that that I think when done, it's going to be opening just a couple months after Limitless. Um, is going to get amazing amount of attraction. Uh, people are going to fly in to to look at it because it's, you know, it's it's one of the big categories, you know, what do you do with vacant office.

Right. Office is wounded a bit right now for all kinds of reasons. Um, you know, mostly work from home and AI and all these other things. And so what do you do with those corners? You know, and and so, so there's just all this, you know, there's all this stuff going on. There's massive opportunities everywhere. U when there's a when there's distress, if again, back to the team, back to the plan, back to the execution. Uh, we're not even talking about fundraising. You know what I mean? Because you won't get the money like you just said. The money won't come unless you have that infrastructure and you know what to do. And and that's that's a huge point that I think a lot of us miss is that even if you were investing, even in single family, whatever, we run businesses and the and then this is a business and lenders, capital like LPs and people that are going to lend you money or invest in your stuff are looking to make sure that that we can operate our business, right? And which is one of the reasons why Limitless has so many different business uh components to it, so many different sessions that involve scaling, growing, how to like structure your business the right way, how to start it, like a lot of it has a lot to do with that because that affects all our investments. It affects our ability to even raise capital.

So Ken, when you're sitting there raising capital for multifamily, like people are investing with you because they know you can actually operate and you have a business plan and you have a team. Now, if guys like me, if I want to go raise capital in single family, how people invest in my stuff is because they can see that, hey, you actually can buy a house, you know how to fix it up, you know how to stabilize it, and you have a business plan, right? An aspect to be able to execute it. That's the only way I see it. You see it, that's in the future as funding gets tighter potentially, uh, that's the only way you're going to get money, right? So, coming out to Limitless, it's kind of a no-brainer.

Yeah, it is. It's it's oftentimes it's the opposite of what you think. I think a lot of people think if you have the money, it's time, right? Well, that's not how that's not how professional money works, right? Um, like we were looking at a group, a huge group, big national group. You would certainly recognize the name. Um, and of course in MySpace, you know, there's thousands of multifamily players, right? And so they flew out. Why did they flew out? They flew out because of one reason. They said, "We want to meet the team. We want to make you who's running your property management, who's who's your CFO, how long have they been here, you know, they want to see the whole picture." Um, and only then when they check that box, which is the biggest box, then then of course they start to look at deploying capital. But it it all starts there. It always has. Um, it's just when when real estate looks like it's becoming easy, you know, and next year's more than last year. Um, you know, people seem to forget those very basics. And and so that's why I'm so excited to bring my new partners. Obviously, a lot of people know who Ross is, my my partner for 25 years, but now we partnered up with the with a new group. Um, and uh, you know, some of the founders of what was called Bridge Investment Group, still is out of Salt Lake City. And uh, these are some of the smartest guys in the space. Um, and so I'm very much looking forward to to to having them come to Limitless for the first time.

So do you think people should be buying real estate right now?

Uh, it's a loaded question. Um, you know, obviously if you haven't, maybe not. Um, if you don't know how, probably not. Um, you know, there's so many things, uh, you know, it doesn't mean you can't, but um, you know, you you in order to mitigate risk, you have to have experience, you have to know how to purchase it, you have to know how to deploy the capital, you have to know what the exit is there. So, there's so many things in my world for multifamily, for me, for for my company, the answer is absolutely yes, right? Because uh, it already got repriced when rates went up and cap rates went up, expenses are up, and occupancy's down. So occupancy's down and expenses are up and values are down, that means that if you owned something, uh, it's worth a lot less today than it was. Um, okay, so so that's again, it's a timing thing. It's not always the case in single family, right? There are single family markets that are doing actually just just fine.

Um, and there are also single family markets that are not, like Austin or some like some areas of Florida. So, you know, so it just depends on the market. It depends on who you are, your experience level, you know, and and you know, but it's it's never about the money. It's never about like a light switch and says it's time, you know, there because even that um, you know, as as I was telling you, you know, we have an investment committee every week and and we meet for two hours every single week um, and we look at a number of deals during that and we pass on 90, 95% of those. We probably make offers on 10 to 20% of those and then out of that, we get a very small percentage of them. But because it, we just stick to our math um, and you know, and and stick to um, you know, stick to the basic fundamentals of investor returns and you know, can we fix this and do we want to hold this long term and what market is in, what size is it in, um, you know, and and like anything, a seller, a bank, whoever it is, they want the maximum price and you want to buy it for the minimum price or the right price, I should say. And often often times um, those those two roads don't meet, right? Um, so you know, there's a there's kind of a process, a dance, if you will, um, you know, back and forth. And and so there there's a, you know, it's not just, should I start and, you know, because you can very easily and we saw this already, jump in, raise money and get in trouble.

Absolutely. And especially if we're taking advice from people that got started in 2020 or 21 and so forth. Yeah. They only see an upswing on that. But, uh, so be careful out there. Right now, I think I mean, personally, right now, like everything you said, Ken, I agree on it. Like, like I said, my focus is single family. I think it's a great time, depending on which market you're in, but also as an operator, betting on the market, saving us is not there right now, but it's a great time to collect, in my opinion, some solid assets if you know what you're doing with those assets. And if you don't, that's why you get education. That's why you meet other people. That's why you maybe partner with some people uh and learn and participate in it instead of just watching it.

So, uh Ken, let's go ahead and talk about this one last time as we go. Um, if you guys have any questions, now it's time to put it on the chat. Uh, but Limitless is coming up fast. If you guys go on the website in four days, five hours, prices go up. Uh, we have a lot going on at this event. Uh, we typically have actually we have 50 plus speakers, 70 plus exhibitors, 1500 plus people every single year come out to the event. Uh, the average attendee, 60 plus% of the attendees are accredited investors and most people are getting after it in some capacity. If you are brand new to any of this stuff, fantastic, you can still check us out and come to the event itself. We highly encourage you guys to come out. Uh, but this is definitely an event that takes it to a little bit another level as far as people you meet, education. There's no selling from the stage. It's three full days. Expert speakers, unparalleled networking, uh, so much content uh throughout this event. Uh, real operators, real experience, networking is designed throughout the event. So if you want to meet who you're looking for, you can find it. Uh, the full agenda is out as well. So you can go out there and check it all out. Uh, and the event is three st in those three days. Uh, you can see here, click on the agenda tab. Lot of sessions talks about you got uncertainty and uncertain times from Ken and I. We got outlook, economic outlook, state of the union addresses. Uh, every single day there's probably anywhere between 20 to 30 sessions happening on any one day. Not to mention, of course, our podcast stage is happening. Exhibitor stages are happening. There is so much going on at this event. So, check it out. Use web 10. That is your discount code and your promo code for this webinar. Take advantage of it. If you can't make it in person, check out the virtual. Absolutely worth it. You get all the recordings as well. Uh, and Ken, any final thoughts before we sign off?

Well, I just want to thank everybody for that's stuck around listening to, you know, those three speakers. That's just a taste of, you know, some of the folks you guys are um going to meet and see and and you know, don't be afraid to to uh, you know, if if you're a little bit of confused about some of the stuff, don't be afraid to come. Uh, because seriously um I can tell you from personal experience. Um, I started not really understanding a lot of the stuff and I'm still learning a lot of the stuff. Um, and like Tarl just said, you learned a lot just from hearing Chris just on this webinar. Um, and and as your mind starts to open up, more stuff drops in. Um, I'm telling you, and just being around people that that are really, really, really good at u and that's our job. Our job is to find people like Chris to come open up your mind a little bit about an area that maybe is a blind spot. Um, and so that's why I love Limitless every year. I get so excited about it because we literally start with what is the world looking at right now? What are the stress points of people? And then work backwards and then find the speakers. Um, and then we then we kind of back into the topics and after you know, a series of interviews and stuff like that. So each year is completely handcrafted and hand delivered uh based on whatever's going on. So I'm it's a lot of work. It's a lot of fun. Tarl, I appreciate you as a partner. Thank you. Uh, and it's uh, you know, it really, really is turning out to be an incredible conference for people.

So it's a great place to make friends. It's a great place to learn. It's a great place to network. It's a great place to as you heard Leora find business partners. Even him, like he was there as a speaker, uh, which is fantastic. Uh, so we're looking forward to seeing you guys there. Uh, and thank you. Oh, thank you all. Look at that. Uh, I like this comment. Thank you both for providing Limitless and this sneak peek. Thank you. We'll end on that. So appreciate you all. We'll see you guys in a few weeks. Sale. If not in person, hopefully virtually. And have a good evening. Happy 4th of July. Happy 250th birthday. Happy.

250. Peace out.