 Hey, how's it going everybody Russell Moore coming to you live again from dedicated to financial literacy and Be sure to hit the subscribe button notify button and Give me a like if you like the content and Continue to shoot out the content to you Real quickly. It's been a minute since I've been on the channel and so Just want to welcome everybody back. Thank you. Thank you for tuning in and I want to Kind of kind of make this quick It's quick as possible I'm gonna talk about a couple of things the market a little bit and then housing and You know people are really kind of going through changes and are confused about the housing market right now and What to do what to do should I buy should I not should I buy should I not what are we gonna do? What's gonna happen with the market? Are we in a bubble? You're hearing all those kinds of questions Ken McElroy, I believe that's his name a very good channel him and his wife Daneel There it's a good channel you might want to tune in to them. I just want to give a shout out to them there They give a lot of good content. Anyway I'll start off with the market just talking about the market real quick. It's Anybody to tell unless you've been sleeping under a rock We are definitely in a correction Some people are calling it a crash Definitely a correction right now the market is correcting The Dow Jones NASDAQ S&P Russell 2000 everything every all the markets have been down Lot of it was today was a response to the job numbers. I think we're up 300 about 385,000 jobs that were added in May So it caused a little cause a little stir in the job in the market The other thing I wanted to mention real quickly is Monday Monday, I believe is the sixth where Amazon will have an it will be having their 20 and 20 to one stock split You missed a deadline. I believe it was May 30th I believe there was a deadline on when to to purchase shares where that you could get in on the stock split on Monday now after the initial stock split happens, you'll be able to purchase shares, okay? But that should be interesting on how that's gonna go I want to make this I want to say this right from the beginning. This is my disclaimer I'm not telling people what to do. I'm not telling you to buy any shares I'm not telling you to sell your shares. I'm not telling you to do anything Concerning the concerning Amazon I if you want to know what I'm doing. Yeah, I got some call options today I believe it's gonna go up like I've said in my previous video that the market will what the market will do is When there's a stock split particularly a company like Amazon Normally what will happen is the retail investors and some Into institutional investors they will actually begin to buy shares Because remember the shares will be down to about a hundred between a hundred and thirty and hundred and fifty dollars on Monday and so everybody's gonna get you know, they're gonna be get excited like hey and You know Amazon is low. It's at a low price and it'll begin to purchase and so that will cause the stock to rise But be careful because there's going to be a sell-off some traders day traders swing traders Well, I'm not talking about long-term investors will be like, you know what? I'm gonna make some quick money and get out of the market. So that's usually what happens. I'm not promising you That's what's gonna happen. But usually there's a mad rush. It'll go up. Maybe a day It may be even in the same day it will go down But give it a couple of days probably a day or two and and then boom You'll get a initial crash and some people will buy more shares and it gradually go back up. Okay, so So, yeah, that's Amazon get ready for Google. It'll be next July Google will be and watch my videos on stock splits. I'm not gonna go into all of that Okay, so that's it for the market now the housing market. Are we in the bubble? I Think so. Yeah Yeah, to some degree because remember the feds the feds raise the rates in March Okay, so we're between three point six three percent three point six percent and five point six percent As far as mortgage rates So if you purchase a home right now, you're gonna be paying around anywhere between three point six and five point six for your alone Your rate your rate will be between three point six and five point six and climbing And so some people are afraid because they're saying yet the rates are gone up But the how the prices of homes and particularly here in California the prices of homes are not Taking a dime. They are a little bit. Some buyers are starting to panic and say, you know what? Sellers some sellers are starting to panic not buyers sellers sellers are starting to panic and say, you know what am I man? I should have sold earlier. Will I be able to sell my house because some of the buyers are being priced out? because remember When the mortgage rates go up That means you'll need more loan. You'll need more money when you get your loan So you'll need to qualify for more and some people will be able to sell more money We're right on the brink. I'm not being able to qualify anyway. And then now since the rates are up It'll price them out. They won't be able to be able to get the loan They won't be able to get approved. So some people will come out because of that some will say, you know what? If the rates are going up that means at one point the prices of the homes will come down So you got a percentage of people that are gonna pull back and wait and say, you know what? I've waited this long. I'm gonna wait and see what the market does Everybody's saying we're in a crash. It's gonna come down. So based on speculation Many people are gonna pull out and say I'm gonna wait until the prices come down and you guys they will They will the rates go up at one point. It's gonna they're gonna come down But that could be depending on what market you're in. I live in California. We have 44 million people here and Right now our inventory towards homes. We are right now around 2.2 million Short the homes that we need to have So because inventory is so low I'm I'm not so sure that the housing market. I believe it's gonna come down What goes up must come down. Okay, but I don't believe it's gonna be as fast here in California I can't speak for Texas. I can't speak to Idaho Boys the Idaho which I hear is like very overpriced and it's definitely gonna have a crash I can't speak for Vegas. I can't speak for Phoenix, Arizona You know what I'm saying? I can't speak for Washington, Seattle, which is the second highest market next to California and New York so Here's my thing Here's my thing if you're planning on keeping the house and Not moving out and you want it you're gonna be in there 10 years plus And yeah, I would look to try to buy one because here's what here's the issue if you don't the rates are gonna continue to go up By the end of this year next year the mortgage rate could easily be at seven to eight percent Yeah, and will the homes the prices of the home go down Enough to offset to offset that rate. I don't know Many people are saying 25 to 30 percent Eventually the market the housing market in California will go down depending on what part of California northern California much more People are getting out of there leaving San Francisco their houses and the prices are too extremely too high So they're gonna come down and they're gonna probably come down about 30 40 percent at one point Ventura San Diego, Southern California Orange County Yeah to some degree But will it be enough Will it be enough and how long will you have to wait before they they come down low enough for you to be able to purchase a home Okay so Use wisdom during this time The plan to my wife and I we have several options. We bought a house in November of 2021 2.7 2.7 rate a great rate 30 years fixed 30 year fixed loan We're locked in baby And get this because the rental of home renting an apartment or a home in our market in this area a Three bedroom three bath, which is what we have was 16 between 16 17 on your square feet it's it's it's it's it's around between 34 and 3900 a month in some cases for four grand a month our mortgages only 1900 You add on that hacking or renting out one of our bedrooms for five to six hundred dollars. You're talking $1,300. Okay, let's add the 808. Let's add the taxes. That's another five about between 700 800 dollars a month But you're talking, okay $2,000 Versus paying four thousand almost four thousand if we rent it and here's the thing when you're renting You're actually paying for somebody else's home They're using you They are using you to pay off their loan So guess what? You're paying on a loan. You're paying on a mortgage Have you ever thought about that when you're renting you're actually paying on a mortgage It's just somebody else's mortgage. You're paying it for them When you can own your own Now i'm not saying going into buying a home ill advisedly and you know for those other believers out there chris Pray about it ask out to lead you and show you and bring the house to you And begin to speak it forth into existence But I don't know if you want to wait till the rates are eight nine percent Which is definitely a possibility the way this administration has run this economy is Absolutely crazy so anyway But one of the options that we thought about is renting this out getting a little closer to la My job my wife works from home online teacher. So she works online So guess what we're not using one of our vehicles hardly at all So that's cutting back on gas, which is about seven dollars a gallon here in california So we're saving on that front and then I told her look I have a property manager background Why not me look for a property management a property where I can manage Usually you can find one where you do not pay any rent No, you don't pay for rent and in some cases I had a I was pro I was a property manager in long beach, california And not only did I have a two bedroom apartment that was free no rent But they had I had a stipend every month for all the utilities And I only had to commit to 20 hours a week So that enabled me to get another job Because yeah, even though the rent was paid and the utilities was that you still need extra money You got to eat food and all of that. But can you imagine in california over 70 percent? It is considered over 70 percent anywhere between let me refer to that between 60 and 70 and in San Francisco over 80 percent of a person's salary is used towards Their living situation rent or mortgage Can you imagine 70 percent? That's that's that's whole it's crazy Okay, so we removed that We got somebody we're renting our house. We also would get cash flow because we would rent it out for about 37 3800 What I just told you we're paying 2000 So not only they Not only are they paying for the rent the mortgage, but they'll be paying our hoas and our taxes And we could even do a below market value at around 3500 and still be making about 700 800 cash flow living in a free apartment I'm taking care of the apartment still able to work do my job as my for my church work for them full time So we have options. We haven't decided on that yet But it's something that we're considering after about a year being your year and a half Be creative ask out to show you you can do things that are very creative And here's the thing about property management if you look into it Um You don't need a license And in some cases you don't even need to experience some some people want experience, but You know, it's not mandatory You collect rent Collect rent turn it in if there's a problem in one of the apartments you call a vendor Now some property management companies they want you to have some experience in fixing things I was a maintenance tech for about seven years. So I'm pretty handy with fixing certain things. So, um But you know, but if you can find one where you're just relying mostly on vendors And make sure it's a small building anything over 30 It's too much work You won't you won't rest I'll do another video just on um Just on property manager being a resident manager or a property manager I think I'll do a video on that and for people that may be interested. It's a good way to just To supplement your income um You get a building you're over it Usually especially if you have a building where there's not a lot of drama look for older people Eldenly, they're not gonna cause any problems. You don't have to worry about noise and partying All of that kind of stuff. There's certain things that you can look for It could be tough to get in but once you get in You're in like fling And you rent free Take care of the building make sure that you know, uh, Make sure it's maintenance low You have vendors that you can reach out to to come in and fix if there's a problem one of the apartments Take care of your tenants and just stay there And save your chips save your money So my wife could actually basically save her whole salary You guys get that Now we're putting money away for another building to purchase rental, uh investment property And we have somebody else paying off our our home And we got cash flow coming so we're making money from this home We got plans, baby Think outside the box. God bless you. Love you guys. Have a wonderful wonderful week God loves you