FOMO IS DEAD

Added: 2026-05-20

[00:00:02]Oh, >> here with uh Jacob and he said near his house, he lives about a half hour from me. Near his house, uh there's a a builder um not sure, maybe it's Dr. Horton.

[00:00:16]>> I think it's Dr. Horton.

[00:00:17]>> I think it's Dr. Horton. Uh they got a development plan to build 500 homes.

[00:00:22]They stopped everything.

[00:00:24]>> So, it's 3 to 500 additional homes. They went in and bought bought a bunch of old farmland behind our neighborhood. Uh they've slapped up maybe 12 of them and you've got 70 lots that they've already cleared. They've got for sale signs in them. Nothing has sold. All the building has stopped and uh yeah, they're not doing anything.

[00:00:45]>> So, what are your thoughts? Why do you think I mean, this almost sounds ominous to what we saw in 2008 when everything just stopped >> when they when they first started building those houses. Um, I mean, they they throw up two or three, four of them at a time. When they started that, five or six houses in the in the old part of the neighborhood went up for sale and they're not selling. They're still sitting there on the market. Um, I think they saw that and the ones that they have built, they're just vacant.

[00:01:13]Nobody's in them. Nobody's buying them.

[00:01:15]I think one of them sold uh but you've still got like four or five more that are just sitting there vacant. And the one they uh they eventually turned one of them into a the model house the where you can go to and see what their what their quality is. But >> and let's not forget uh we've now got the tenure at 4.6%.

[00:01:36]We're going to see mortgage rates explode this week. Uh I think they're right around four I think FHA. Yeah, FHA. I mean, the delinquencies in FHA, >> they uh they released a statement today saying that it's about to >> skyrocketing and we've got over 42,000 foreclosure filings in the month of April. So, the builders are probably getting nervous. And they may just say, "Look, let's just hold up here, sell the homes we have up, and just uh chill out for a while before we start building."

[00:02:05]But uh to borrow money now is going to be a big problem. The and the builders know that and I'm very curious to see where we see the 30year mortgage rates this week. Uh now that the 10 years at 4.6%.

[00:02:19]Money is going to get very very expensive to borrow and this is going to get very very interesting and this stuff can shut off like a switch very very quickly. How many people what what do you think the homes would be listing for? What do you think? uh three to three through five >> 3 to 500,000. So uh at uh let's just say 6 to 7%.

[00:02:41]>> Uh that's, you know, I mean that's you're getting a lot more house here, but still uh that's going to be $2 to $3,000 a month.

[00:02:49]>> Yeah.

[00:02:50]>> Um in an area where I don't know if it can sustain, you know, if people can can sustain that right now. Two to $3,000 a month. maybe, you know, maybe 2,000, but you start getting into $3,000 a month.

[00:03:01]Uh I I don't know if the population here, if you look at the household income, uh average versus, you know, $3,000 a month for a house if it pans out. I don't think it does.

[00:03:13]>> I don't think it does. So, um, >> and the thing is is that's $3 to $500,000 for a house back when I was in high school that would have sold for 80, 90, 125.

[00:03:27]>> Isn't it amazing to like what are your thoughts on that to go back a few years or even let's just go back to 2019 before all this stuff really started?

[00:03:35]>> Those houses, you know, a house that was 300,000 was was selling for probably about $175,000. Yeah, >> the the the houses that are selling for five now were selling for like 225 back then, 200. And so they've more than doubled. Uh some have tripled.

[00:03:50]>> Like we're looking >> before I moved back to Alabama in 2023.

[00:03:54]>> Yeah.

[00:03:55]>> Or 22, it was we were looking at houses in Tennessee.

[00:03:59]>> Yeah. The 7 acre pool, I think it was roughly 3,500 foot house in 2018 sold for $90,000 and they wanted $1.2 million for it.

[00:04:12]>> Wait, it sold in what year?

[00:04:14]>> 19.

[00:04:15]>> 2019.

[00:04:16]>> 2019. And look at 20.

[00:04:18]>> Yeah.

[00:04:18]>> 22. They wanted $1.2 million for it.

[00:04:21]>> Yeah. So, I mean, a lot of these people just uh living some kind.

[00:04:24]>> Yes. I mean, just I've seen crazy stuff like that. It's like like >> I don't know, man. What are these people thinking? And you know, I I tried to buy a house last year all cash in another part of Alabama and they literally laughed me away and the thing is still on the market over a year later and it needed a ton of work. But, you know, like I I I it just seemed like a lot of this just started in California and went east. these these incredible numbers what people thought they could get like literally like they had a lottery ticket in their homes and some crazy things did happen in 2122 with the numbers >> those days are over the the the the FOMO the fear of missing out the FOMO is gone and now now we are now in the third year of a major real estate freeze and I think it's about to get much worse your thoughts >> Oh yeah 100% um hopefully rates will actually drop I know couple months ago, everybody was freaking out because they dropped I think it was like 1% or like 0.9%.

[00:05:24]Everybody jumped in on it.

[00:05:26]>> Yeah.

[00:05:26]>> Um >> but but but I want to I want to I want to I want to be the devil's advocate here. You drop rates, >> that means prices go up.

[00:05:33]>> Uh prices are already so elevated. Um maybe we need to see prices come down >> and then rates come down.

[00:05:40]>> But I mean the rates are pretty average.

[00:05:42]If you look at the last three, four decades, six, seven%. It's very normal.

[00:05:45]The problem isn't The problem is you homes have doubled and tripled in five years. That's the problem.

[00:05:50]>> Yes and no. Yes and no. I remember my parents bought a house up in Tennessee.

[00:05:54]Yeah. Um back in 2010. $150,000 house.

[00:06:00]>> It was uh up in Clarksville, Tennessee.

[00:06:02]As a matter of fact, 1050 Periwinkle Place. Um look it up, y'all. Pretty decent house. Don't go there. Clark Clarkville's crazy. Um >> but uh we were we were stationed at Fort Campbell. We lived in Clarksville. We went to school, yada yada. And um they they paid I think it was 150. Um we enclosed the basement, added two extra bedrooms, a living room, a kitchenet, and a bathroom down there. Or no, I think we did away with the kitchenet, but we did a bathroom down there. Uh and then kept one one of the the onecar garage down there for the dirt bikes and everything else. But they were on a 2%.

[00:06:42]>> Yeah.

[00:06:43]>> 2%.

[00:06:44]>> Yeah. That's not a VA loan. That's not that's that's not >> anything military. That's that's just going to the bank.

[00:06:50]>> What low rates do too is allow people to buy homes they can't afford. And a lot of people in California especially went and bought homes that was that could not afford. But because the rates were low enough, they did. But here's the problem. And comment down below. This is a good debate.

[00:07:03]>> Comment down below. Let me know your thoughts. Would you rather buy a house at 10%, a 10% mortgage, but you buy the house for 200,000 versus buying the house for 500,000 at say five or 4%.

[00:07:15]Because now you have $500,000 of debt versus $200,000 of debt. I'd rather have less debt, pay a higher rate, pay it off quicker than taking on a half a million in debt. Oh, but my rate's lower.

[00:07:24]>> Yeah.

[00:07:25]>> Bottom line is you still owe a half a million versus 200,000. the 12,000 square foot barnaminium that we sent off to a builder in Texas. He quoted us 5.85 for everything, the land clearing, concrete, framing, finish framing, whole nine yards.

[00:07:46]So there, if you're going to buy a house, build your own. It's cheaper than going up to these Dr. Hortons or or these spec homes, these shotgun houses that these these multi-million dollar companies come and throw them up with cardboard, everything else. Yeah.

[00:08:04]>> Go build.

[00:08:04]>> Let me ask you this, though. That's a good one, too, cuz I was just at at Lowe's >> and we're looking at the price of lumber, >> man. It's not going to be cheap to build.

[00:08:12]>> No.

[00:08:13]>> I mean, wow. I'm blown away with what plywood costs, what a 2x4 costs, a 1x two. Um, man, I mean, just to build a porch right now, I I was just saying like if we didn't have a porch right now and we said, "Hey, Jacob, build a porch for us right now."

[00:08:27]>> Yeah.

[00:08:28]>> This would be tens of thousands of dollars just in lumber, not even labor.

[00:08:33]So, I don't know like the cost of building a house today, plus now energy costs going to go with it. It's going to get expensive.

[00:08:41]>> Oh, yeah.

[00:08:42]>> It's going to be, in my opinion, cheaper to buy an older house versus putting up a new house because of the cost.

[00:08:48]>> Oh, yeah. So >> yeah, put up a house barnaminiums to look into them.

[00:08:54]>> Now Barnaminium uh >> they'll last forever and >> there you go.

[00:08:58]>> Yeah, you you build a stick built house today, it's going to be a fortune.

[00:09:02]>> Going to be a damn fortune. Uh just blown away with the cost of material right now.

[00:09:07]>> It's getting worse.

[00:09:08]>> There's a builder down here in Graceville, Florida. Um he's got I think 13 houses up right now and it's all metal framing. Mhm.

[00:09:17]>> So he did 100% metal framing, concrete up, metal framing >> and uh metal roof.

[00:09:23]>> And that's what they should be doing in Malibu, Pacific Palisades, uh many parts of California. Now there should be more concrete and more metal buildings in those areas that are fireprone. Uh the only homes that survived uh were concrete and and steel uh frame buildings >> or had a blue roof.

[00:09:42]>> Yeah.

[00:09:45]So, what let me ask you this. Um, so 16,000 structures and homes burnt down uh in the LA fires, Malibu fires, whatever they're calling it.

[00:09:56]>> Didn't they just buy it for uh uh income housing or something?

[00:10:00]>> Well, that was Altadena. Uh the the the board was passing uh something there.

[00:10:06]They could bring in lowincome housing into Altadena. uh where these people, you know, had bought homes many many years ago for, you know, a few hundred thousand dollars. Now the homes are a million and a half dollars. Yeah. Uh and now they're talking about bringing in lowincome housing and apartment buildings into those areas. That's probably going to happen. Um but I want to get your opinion on this. So 16,000 structures have burnt down and they have um been able to build 28 new homes in this fire area in the past, I don't know, year plus. Yeah. So, 16,000 gone, 28 rebuilt in about a year and two, three months. What What are your thoughts on that?

[00:10:45]>> Somebody's got some money. Somebody wiggled their way in. And uh I don't know. That's a touchy subject.

[00:10:54]You know, >> why only 28 homes built? Like, how bad is the bureaucracy? What is going on? Of course, we're seeing a lot of Chinese money coming in, foreign money coming in, >> buying. You've got to have some money to be putting up.

[00:11:05]>> Yeah. you know, especially with what they're trying to do with that land.

[00:11:08]>> Yeah. I mean, because you've got m you've got multi-millionaires, billionaires there that cannot get their homes rebuilt. So, what's the hold up? I mean, they're making it so difficult.

[00:11:16]It's almost like they don't want anybody to come back to Malibu, Pacific Palisades, Altadena. So, I God only knows where this is all going to go, but isn't it a bit weird that the and they're going to and they're going to vote Karen Bass, the mayor, back in who is behind all this?

[00:11:31]>> Does this make any sense to you?

[00:11:33]>> Where was the water?

[00:11:34]>> Yeah. Where Where was the water?

[00:11:37]>> Yeah.

[00:11:38]>> I mean, is that another coincidence? I mean, and is it I mean, like Karen Bass gets elected again. Is this >> We can thank the lobbyist.

[00:11:46]>> Yeah.

[00:11:46]>> For her getting reelected.

[00:11:47]>> Yeah.

[00:11:48]>> 100%.

[00:11:48]>> Yeah. Uh Well, look, if you are a glutton for punishment, you stay there, right? I I mean, you're going to get what you deserve.

[00:11:56]>> I I I I'm done feeling sorry for people.

[00:11:58]People don't listen. They don't prepare.

[00:12:00]They vote for this kind of nonsense.

[00:12:02]They live in this nonsense. And you know, if you want to be abused like this, stay in California and and get ready for the next uh mudslide, get ready for the next fire, get ready for the next riot, uh get ready for more crime, get ready for higher prices, higher taxes, and uh more disaster.

[00:12:22]>> Or get ready for the data center to come in and they they uh they do imminent domain and they take your house.

[00:12:27]>> Take your house. Yep. you know, so >> and your water bills will go up because you're gonna have to pay for this. Your taxes will power because it all go well that's already happening now because we have blackouts in Georgia right now.

[00:12:38]>> We had brown outs, we had blackouts, >> I think it's uh 17 Don't quote me on the numbers. Um haven't fully read into it.

[00:12:45]Um >> yeah, Fairfield >> Fairfield, Georgia. It's what 17,000 uh people.

[00:12:56]>> Oh yeah, that's the one we were talking about the other day. 30 million gallons of water out of power and now the government's coming in and filing imminent domain and taking their land that their families and uh you know generations >> have worked for and bought and passed down or they came in and bought >> and now they have nothing >> and it can just be taken.

[00:13:18]>> Yep.

[00:13:19]>> Scary times.

[00:13:20]>> Yeah.

[00:13:21]>> And the government when when the government does imminent domain, it's not like they come in and hand you a check. They just say, "Hey, this is ours. Get off. You've got so many days."

[00:13:31]>> Yeah.

[00:13:31]>> So, >> uh, so any, uh, last thoughts on, uh, any last preparations? I mean, I think that we're going to see some big trouble this year. We're we're now in May. We still have half a year left. I think we're going to see some big trouble financially in this country, socially.

[00:13:47]Um, give us two things right now we can add to our preparations. Letter, what's on your mind right now? If you had two things right now that that you could tell your best friends, your family members, you got to have these two things right now, what would they be?

[00:14:00]>> Uh, guns and ammo.

[00:14:01]>> All right, there you go. Talk to you later.