6 Skills you have to master in order to be wealthy

There are six skills that every future millionaire must master. These six skills will put you in the millionaire mindset and prepare you to stay in that mindset throughout your life. When you build on the six skills; persuasion, reading people. Sharing the wealth, leverage, problem-solving and saying no, you set a foundation for the life that you want to have. They are skills that you have to hone and work on every day of your life and when you make them a priority, you will begin to master them.


Persuasion is the ability to convince someone to see things in the way that you want them to. You have to be able to persuade your family to support you when you start a business. You have to have the ability to persuade investors to invest in you and employees to work for you. You also have to be able to persuade yourself, that you can accomplish what you set out to do. You have to be able to persuade yourself to keep moving forward. Persuading is not a perversion of the truth, it is a form of selling. Therefore, if you are a good salesperson, you will be good at maintaining the skill of persuasion.

Reading People

Reading people is a very important skill. You need to be able to have good instincts about people and knowing who you can trust. You have to be able to know how to read your investors, your customers, and even your family. You need to be able to read the signals to know what your investors need to feel assured in their investment. You need to be preemptive about understanding your customer’s needs and being able to read your customers is a good way to give them what they want before they even have to ask for it. Behind ahead of the game is a great way to make sure that you never fall behind.

Share the Wealth

You cannot be greedy when it comes to building your wealth. Sharing your wealth is a very important skill to maintain throughout your life. Ways that you can use this skill include; hosting charity events, gift cards, letting people test your product for free. You have to be willing to put some of the work in for free. You need to be willing to give things away in your business in order to help you build a reputation and referral source from clients.


Leverage is an important skill to hone. You have to be able to leverage people to see how they can benefit you in the most productive way. You have to be willing to leverage your contacts, your friends and even your family. Leverage is more than just about how they can help you, but also how you can help them. You cannot leverage on only one side of the playing field. You have to be willing to give as much as you get.

Problem Solving

You have to be able to solve problems rationally. You cannot let problems distract you from your end goal. You have to learn to calmly handle these problems as they come up. If you cannot learn to handle problems quietly and calmly, then over time they will start to have an effect on your business. This is why you have to be consistent with how you solve the problems and when possible, keep them at an arm’s length.

Saying No

You have to be willing to say “no” more than you say “yes.” There is a guilt that can sometimes come up when we say no to things. You have to remember that your time is valuable and you need to give your time to the things that are consistently making you money. This is why it is an important skill to know when to say no and stick to that as your answer.


These are six skills that all millionaires maintain. These skills are important to work on and hone over the years because they will make you more successful and better respected in your life. They work hand in hand to help you build your life without anything getting in your way. This is how you begin to set a foundation for the life that you want to have.

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Until Next Time,


Fear of Missing Out….

I have been seeing this a lot lately on the private forum that I host each week. Click here to join. People so afraid of missing their opportunity to buy, that they are looking to buy right now when prices have went down by a few thousand dollars. I keep trying to explain we are in month three of a national shutdown. People are still getting federal and state unemployment, and businesses still have hope they can rebound from this. In other words, this is just the very beginning. Very few people have felt the economic pain yet, and until that happens the market won’t even begin to significantly decline.

As my motto of late has been “Don’t catch a falling knife.” Essentially meaning don’t buy while prices are still going down. Even though I say that often, I still get people nervously asking, “When will I know the right time to buy?” Everyone is so concerned they are going to miss something. It’s as though they think they have a thirty day window to get a good deal once the time is right.

I don’t know how to best explain this except by saying, “I never try and time the height of the market and I certainly don’t time the market low.” I can promise you this, if you are patient you won’t “miss out.” The last recession in 2008 real estate prices went down for years before they hit the bottom in 2011. That was three years of falling prices. That is what I would have called the “falling knife period.” After 2011 they slowly climbed back up, but even if you bought in 2012, 2013, even 2014 you probably got a really good deal.

Market bubbles deflate slowly, and they rise back up slowly after their decline. So don’t feel the pressure or rush to buy. Don’t have fear of missing out. You will have a big window to buy when the time is right. I also will let you know my thoughts along the way as the market corrects over the next few months or even years.

Talk to you soon,


Tenant Screening Tips

There are many tenant screening tips that can be beneficial to you long term in the real estate business. When looking for tenants to rent your properties, you want to be sure that they are individuals that you want to be able to form a professional relationship, often long term. You want to be able to trust many factors, that they will treat your property with respect, pay their rent on time and not cause you any unnecessary issues while they are a tenant in your property.

Key Tips

There are some tips that I can give you when interviewing with new tenants that you may not have previously thought of. One that may not come to mind for everyone is to walk the applicants back out to their car after you speak with them. If they keep an unkept vehicle, they will commonly treat your property the same way. Also, instead of asking them whether or not they have an animal, ask them how many animals that they have. This is a good way to catch them off guard because if they do have animals, they will assume that you already know about them. Do not let them try to assure you that their animal lives elsewhere, this will not be the case. The animal will live on the property that you are leasing and should be tied to the application as such.

Background Checks

Background checks are extremely important when verifying possible tenants for your properties. Always, with no exceptions, do a credit and a background check on any tenant and all adults that will be possibly occupying your properties. Do not accept anyone that has a history of being a felon to rent at any of your properties. They will normally violate your HOA and cause general problems for you and your property. You will also need to be up to date on other laws in your areas concerning things such as service dogs. Service dog laws are generally different state by state. There are only certain animals that will be considered a service animal by the state and they need to have the proper papers in order as well. You subsequently cannot charge them any kind
of additional deposit or pet rent for any service animal.


Understanding these initial key tips for screening possible tenants will help you long term find the best tenants and save you headaches down the road. Paying attention to the small details in the beginning is a good way to make sure that you will have the right tenants moving in in the first place and be able to move forward with a rental agreement with less issues to worry about during their lease period. This may seem like a lot of paperwork in the short term, but there will be even more paperwork in the long term if you do not take these steps from the start of the process. This is also a good reason to look into possibly hiring a solid management company for your properties to handle all of the screening for you.

4 Things that your kids need to understand about money

When it comes to our children, we try to do everything that we can to prepare them for the future that we want them to have and most often the future that they want as well. There are four things that your child needs to understand about money and financial wellness. As a parent, it is important that you take the time to go over these four things and help them plan for a solid financial foundation in the future. When you take the time to do this, you are showing your child how to manage their financial wellness at a young age.

Asset and Liabilities

The first thing that you want to go over with them is the difference between an asset and a liability. Assets will put money in their pockets while liabilities will take money out. The more assets that someone has, the better prepared they are when anything takes a hit at their financial foundation. This is a reality that the world is seeing in full color right now with the current pandemic going on. When you teach your child to maintain as many assets as they can you are teaching them the importance of being prepared for whatever it is that the future might bring.

Cashflow and capital gains

The next thing that you want to go over is the difference between cashflow and capital gains. When you invest with the ideal of capital gains, you have no actual control over whether or not things go up or down. When you invest with the purpose of maintaining and building cash flow, you have the benefit of having a long term asset in place that you can have bringing you in funds on a regular basis.

Good debt and bad debt

You also want to discuss with them the difference between good debt and bad debt. Bad debt would fall under things like credit cards, vacations or other mundane things you do not necessarily need. Good debt is found in examples such as rental properties where the tenant would pay your debt for you and grow into long term cash flow. Most good debt like the provision of housing for others can also acquire you some tax breaks as well.

Financial self education

Make sure that your children understand that they need to have their own financial education as well. Having wealth and not understanding that wealth is useless at its core. You never want them to be in a position where they have to rely on other people in order to figure out what they need to do with their own money. When they have the knowledge to know what is best to do with their money, then they can move forward to having a better financial future.


Making sure that your children have a solid foundation for their financial future is important. It is your responsibility to give your best shot at a solid foundation in the future. Take the time to teach your children about financial wellness and they will forever be grateful for it. They will appreciate that you took the time to prepare them for their future.

Having a solid lease is your best game plan

Having a solid lease in play from the very beginning for each one of your tenants is the best game plan you can have as a property owner. You want to make sure that your lease is one professionally. This is an extremely important document and should be created by your personal attorney. This is not a document that you want to simply pull off of the internet and call it a day. This lease is the only leverage that you have over your tenant if they decide to stop paying you. The lease also needs to be concurrent with your specific state laws for the state in which the property is located.

Roommates and Lease Agreements

Make sure that if you do have a situation where roommates are sharing a property that you are renting out that they are all held equally responsible for maintaining the lease agreement. This makes sure that both parties are also responsible for their credit as well when it comes to the property agreement. Set standards strictly in your lease agreement for terms concerning smoking inside of the property as well.

Pet Laws and Service Animals

Make sure that you have strict pet laws in your agreements as well. You need to specify the types of animals that you allow to live on your property and also what deposit or pet rent will be charged for the pets to reside there as well. Make sure that you are up to date with service animal laws for your state and follow the correct laws to allow those with proper paperwork to have service animals with them in the properties that they rent.

The importance of being thorough

You want to be detailed, even overly detailed if necessary, when it comes to your tenants and the lease that they will sign to rent one of your properties. You want to be sure to go over the lease with them before they sign so that both of you are certain that there is a clear understanding of the agreement. You do not want to leave any room for any misunderstandings in the future. By being properly prepared, you are in the best position to protect your property and yourself if you have any future problems with your tenants including but not limited to them paying their rent.


Conclusively, a lease agreement is the most important part of the transaction concerning your property and the tenant or tenants that will be residing in it. You need to be fully informed of what they are signing and so do they so that there are no accusations of a misunderstanding in the future. You want to be absolutely certain that your tenants will be in full understanding and compliance with the lease that they sign with your property management company.

Options for Individuals Impacted by Covid-19

Join Ken McElroy and Eric Freeman from BeachFleischman as the talk through some options for individuals that have been impacted by Covid-19.

You can learn more about Eric at his firm’s website at https://BeachFleischman.com

You can also download a useful resource created by Ken to help work through your financial stress test. You can find the resource at: https://www.kenmcelroy.com/stresstest/

Episode Transcript:

Eric Freeman (00:00):
Thank you. Happy to be back and get more information out there.

Ken McElroy (00:03):
Yeah, there’s a lot of confusion right now. And so as you guys know, Eric’s a CPA. He has his master’s in accounting, uh, his firm Beach Fleischman does our tax returns. Most of them. We have what over a hundred. I think that you do right? Or keep us busy. Yeah. Yeah. So our firm, uh, we do, we do about a hundred tax returns with all our different real estate deals and our land deals and all that kind of stuff. And we meet with them quarterly. And by the way, if you guys don’t do this, you really should we meet with Eric face to face? Well, maybe not now, but quarterly. And we go over a tax planning and it’s a, you know, it’s a, it’s a very important day. We make a lot of tax moves that, um, um, but honestly, I, you know, I would never know about, you know, an Eric spends his time, you know, educating his clients and, and, and making those moves. But for today, Eric, what I wanted to talk about was this big confusion. You know, over rent or mortgages and like do do people need to pay their rent and their mortgages because you know, as you know, we have 7,000 residents and they, you know, living in an all our apartments and I’ve been talking to all my friends, you know that on commercial and they will, they will offer see on retail they are industrial and, and there’s all this confusion on the mortgage side and on the red side. Right,

Eric Freeman (01:26):
right. Yeah, it’s a great, it’s a great question because there’s so much misinformation potentially going on out there. So first it’s important to understand that a lot of what’s coming out as far as the rent and mortgages, the purpose is to assist people that can’t otherwise make their payments because of a Covid-19 issue. Whether it was that you’ve actually been tested positive for Covid-19 or you’ve been told to self quarantine because of being in contact with someone with Covid-19 or maybe you’ve lost your job or you’ve received reduced hours because of the business that you work for. Maybe it’s a restaurant or another retail type business that can’t operate right now due to, um, the various government restrictions going on. So that’s the purpose of these various mortgage and, um, rent forbearances. So the purpose is not to just like blanketly not pay because ultimately at the end of the day, we have to keep as much of the economy going as possible. Um, so first, you know, I’ll touch on the, the rent, that’s a big one. Um, rent, if you’ve been affected, the governor came out with an executive order, I believe it was last week, um, for residential, um, tenants that if you’re affected by coven 19, then you can request from your landlord, uh, a rent forbearance. And that mean that you’ve never pay the rent. It means that you can put off and defer that rent payment to give you enough time to get on your feet.

Ken McElroy (03:09):
And that’s, that’s just an Arizona, by the way. I mean, I know that some of these, it’s confusing because there’s different things happening in each state, right?

Eric Freeman (03:17):
Yes, exactly. And they’re all kind of happening. Um, it’s changing daily. And so even within our state, something may come out one day and then the next day it completely changes. As, for example, the list of essential businesses. We had a list originally and then, and then it came out and now we’ve, we’re closing the hair salon and then everything else. So it’s hard to keep up with everything that’s going on. But in general, if you’re still working, you’re still getting an income, you’re able to work from home. Um, then these, those types of rent, forbearance and, and the mortgage is not meant to apply to those types of situations.

Ken McElroy (03:56):
What’s interesting is we just had it, you know, every, every Tuesday, which is today, we have an hour and a half meeting with our whole leadership team. And, um, our COO, you know, is basically reporting on a daily basis, you know, April 1st rent collection. You know, cause we honestly, we were like, Oh, we don’t know and this all kinda hit everyone in March. We’re thinking, okay, well, March is paid, but you know, we don’t know is, you know, who’s going to pay in April? And, and the misinformation out there that we’re hearing at the property level is high. You know, some people are basically saying, well, I just heard that I don’t have to pay it off. You know, that’s their position. Right,

Eric Freeman (04:33):
right. Yeah, it’s very difficult. And I think as we progress, I mean, April 1st was scary, but May 1st is probably going to be [inaudible].

Ken McElroy (04:45):
Yeah. That’s actually what we’re mostly concerned with. What’s interesting, I’ll just give you a number. We collected 85% already and it’s April 6th today. And um, you know, rents were due between the first and the third. And, and so we felt very good about that. You know, we have some properties that are very delinquent and some that are, it’s in fact, Ross was telling me today though, our all our senior properties, you know, we have no delinquency. And I said, well, why do you think that is? He goes, well, the casinos are closed. And I don’t know if that’s the case or not, but, you know, it was an interesting spin on it. But, um, you know, it’s, it doesn’t, it’s obviously this is a national issue. This is an issue that affects a lot of people. And so it doesn’t really matter, you know, how much you make or where you worked or anything like that.

Ken McElroy (05:35):
A lot of this is it’s affecting everyone. And, and so the, from a landlord standpoint, you know, we have a, um, a plan that all people do gotta do is sit down and talk to us and then we work with them on a, you know, on a, on a payment plan. A lot of people have been doing that. Um, but very, very few have come in and say, Oh, we don’t have to pay it all. You know. So it has been a massive education process. You know, just on the rent collection side, you know, they’re the, you know, they are in a lease and, you know, they do all the money. Uh, we’re just trying to help do our part, you know, on letting them live there, um, at a much, much reduced rent and, and, um, and not have to displace anybody from their homes. You know what I mean?

Eric Freeman (06:19):
Yeah. I mean, I think, I think that’s a good message because ultimately I think we all essentially have to work together because if, if you’re not able to collect rent, I mean, those rents go to pay expenses that you’re obligated to as well. I mean, you’re, you’re on the hook to a bank. You’ve got utilities that are going to get paid so that, you know, they still have water and electricity and everything like that. And, um, and yeah, you may have some options to, to try and get a little relief from the bank just like they do, but at the end of the day, you’re still on the hook. Um, even if you don’t make that payment this month, you’re going to have to pay it next month.

Ken McElroy (06:56):
Well, we’ll, we’ll get, we’ll get to mortgages in a minute. I, you know, cause to me that’s like, that’s exactly where my head is, right? If I don’t care, I don’t collect the money from the residents that live in our properties. I’m certainly not gonna be able to make the mortgage, but before we go there, uh, you know, it’s interesting. I, I have a lot of friends in commercial real estate. I have friends that own office buildings and actually I’m, I’m an investor in that building and, and um, you know, uh, self storage and you know, some retail retail, retail’s getting clobbered. You know, I, I’ve got friends, you know, there’s a massive, there’s a big, big firm in Arizona and I won’t mention the name and they own 25 shopping centers and they’re collections our 10%, they have 90% delinquency. Do you think about that?

Ken McElroy (07:47):
Okay, well, right, so again, and I talked to a friend of mine yesterday, he’s, he owns a place in Mesa and Arizona and he’s got 14 tenants. And I said, how you doing? He’s like to have paid. And, and I said, who, you know, who, what ones haven’t? And he said, well, I bridal shop, there’s no weddings. You know, they haven’t paid, you know, a dentist they haven’t paid, they’re not, you know, working on antibody, the restaurant’s closed and you know, you just went through this whole list. And I mean, I was like, wow, like of course, you know, they’re, they’re not gonna be able to pay rent. You know, they’re not, they don’t have any customers. And so what I want people to know is that this red payment stuff, it’s, you know, what’s getting a lot of focus is this residential piece. But really the big, big issue is going to be on the retail and commercial. You guys have no idea. You know, those, there’s not the money to come in to pay for April, may and June rent. Um, you know, they don’t have it. And so they’re not going to, we’ll pay these mortgages and they sold the EAs lot of real estate, commercial real estate, I think. And potentially apartments are gonna eventually moved their way back to the lenders if we don’t get some kind of protection.

Eric Freeman (08:59):
Yeah, I, and all of those instances aren’t uncommon. All the, all the commercial clients that I’ve dealt with are in the same position where, um, tenants aren’t paying. And, and a lot of it’s the uncertainty, um, because we just don’t know how long all of these one government restrictions and everything else are going to last and when they’re gonna be able to open. So, um, in order to, to conserve cash, they’re not paying, I mean, you stop big companies like cheesecake factory came out with publicly that they’re not gonna pay rent on anything. And so that’s just kind of the state of the economy. And as people continue to be out of work as a result of these businesses not operating. Yeah. That’s going to trickle into residential right after. Um, probably a little, a little bit of a delay, but I mean we’re, we’re going to be at a point where we’re collections are definitely going to take a hit more so than they are for April.

Ken McElroy (09:54):
Oh yeah, for sure. I mean, I’m, you know, if, if you own a center that has cheese cake factor in it and they’re a big tenant and a big payer, and I’m sure they are, you know, we’re just fine before this. And, and, um, you rely on them, you know, [inaudible] these are longterm leases. The interesting thing on the, um, you know, what’s going to happen is what’s already happening is

Ken McElroy (10:17):
everybody’s going to pull these agreements out. You know, they’re going to be pulling these lease agreements out, they’re going to pull the rental agreements out. And, and though the banks are going to be pulling these loan agreements out, and the lawyers, they’re going to have a heyday on this because, uh, you know, the money is not coming in. I mean, if, if somebody is not getting paid, you know, as an employee, you know, they’re not going to go to cheesecake factory and eat and then they’re, you know what I mean? It just trickles all the way up to the person who owns the actual shopping center and then they can’t pay the bank. And so, you know, this rent thing, you know, it’s, uh, it’s, it’s unfortunate. I mean, you know, these, there’s a lot of people that are hurting right now and I get it. I, I, you know, but if, if these are, these agreements are going to come out and these personal guarantees and all these things and collections are going to be an issue for people and, you know, credit scores and all that stuff is going to be, um, tested here, you know?

Eric Freeman (11:12):
Yeah. And a lot of these agreements, um, loan agreements, I mean, there’s requirements for certain occupancy and, and rent collections and all that. And pretty much, I mean, a large majority almost all are probably gonna start hitting those. And the times when, when it’s bad is when the banks, and start looking at those now.

Ken McElroy (11:34):
Yeah. Oh, there’s, trust me guys inside of these loan documents, there’s a lot of, lot of detailing. And so for us, our occupancy time, but our collections the same thing. So, so anyways, so that’s on the rent. I think it’s important for people to know that, you know, as you know, there’s, there’s, um, uh, the, the rent is still do, you know, you can’t live somewhere for free and expect it to be free from, you know, somebody and, and so, you know, just do your best to work with the landlords or communicate with them the best that you can. Everybody’s hurting in this, and we’re all in this together. But let’s, let’s jump to the mortgage side because, you know, one of the things that we did as we, we, uh, we got on the phone with, you know, all our, our, all our guys that are hail our mortgages and there, um, they’re basically, you know, there’s all this forbearance word being thrown around, you know, and I know you’re going to talk a little bit about it, but, you know, we got on the phone with them and they said, listen, you have to prove, you know, that you’ve been affected.

Ken McElroy (12:36):
And you know, this is like two weeks ago, well, we didn’t even know when April rents were going to be. Right. And so now we kinda know, you know, um, you know, what’s happening, but we don’t know what’s going to happen in may or June. And so this, you know, this forbearance issue is, is yeah, it’s for us. We, there’s no money available because they’re like, well, you know, you have to show that you can’t pay, you can’t pay. Right. And, and, and so basically we’ve just kind of shelved it for now as we kind of navigate everything. What are you seeing on the mortgage side with some of your clients?

Eric Freeman (13:11):
I’m, I’m seeing exactly what you just mentioned. Um, both on the residential, well on the, on the commercial side for sure. I mean, people are getting the same message from their bank saying, yeah, you, you received the March rent, which is meant to cover your April 1st payment. So we’re not going to do anything at this point. We’ll check in later. Uh, and see if you’re affected. On the residential side, there was part of the, the cares act where, um, for residential mortgages that are federally backed, that you’re supposed to be able to request from your bank 90 days. Um, for Barron’s, um, being the word that they’re using. Um, but what people don’t realize is that at the end of 90 days, banks have the option to either have you pay in a lump sum. Those not 90 days worth of payments plus the payment that’s due at that time or some of them may spread it out.

Eric Freeman (14:13):
But what I’m hearing from people that are actually reaching out to their banks as most are asking for a lump sum at the end of the 90 days. Oh wow. So, um, that makes it pretty difficult because if you’re, if you’re out of a job or something else and you, you don’t have any income for these 90 days, we’ll hire, how are you going to have, have four months worth of payments, um, request an additional 90, um, at the end of that period. But again, it’s all the banks still going to expect it to be repaid. And, um, at this point I think it’s a little unsure whether what kind of late and things they would charge. I mean, hopefully, hopefully they’d be a little easy on it. But, um, really it’s up to the banks as far as the late fees. I don’t believe there’s any requirement, um, for those to get waived. Um, and things like that. And credit reporting, I mean, yeah, I mean things are likely still going to be reported to, to the credit agencies,

Ken McElroy (15:12):
right? Right. So if you got a two or $3,000 mortgage a month and you kick it down the road, you’re, you’re looking at, you know, eight or you know, call it eight to $12,000 lump sum that you’re going to Ole at some point in the, you know, who knows when you’re going to get your job back. And you know, obviously if you’re going there to get forbearance now, uh, that’s interesting. I don’t think I knew that. So, so the banks really have a hammer on, on the landlord. They’re on the homeowner. I mean, you know, they’re just basically going to say, Hey, sorry, you will oldest in a lump sum. That could happen. Right,

Eric Freeman (15:47):
right. I mean, that’s, that’s what it is right now. And even more difficult than that is the volume that they’re dealing with right now. Um, my understanding is it’s pretty difficult to get them demon, get someone on the phone to get this going in the first place. Um, you’re talking about hours to get in touch with them and then, and then you’re finding out the have to make the payments anyway, which I mean, in a way makes sense. I mean, you’re, you’re not just forgiven, um, these amounts, but you know, and things are changing daily at this point. So whether, whether there’s some other kind of assistance that may come out, should this continue to last for another few months? Um, it’s possible. I certainly wouldn’t expect it at this point. Um, but you know, it’s possible.

Ken McElroy (16:34):
Yeah. So I’ll tell you what Eric, thank you by the way. Yeah. The, the, on the commercial mortgage side, it’s super confusing and you know, they’re throwing it on the back end of our, of the loan. But, um, you know, it’s, again, it’s still do it. It’s not, uh, it’s not forgiven. Like, you know, kinda like we were talking on the rent side. So, you know, as things change, you know, what we should do, Eric, is we should jump back on here and just keep communicating to everybody as, as these laws change. So maybe, uh, maybe in a couple of weeks we can jump back on and kind of update this cause as you said, every single day, like just yesterday, uh, we had a new executive order that covered commercial, you know, and, um, you know, that that wasn’t included in there in the original one. So every day new stuff comes out in every state and, uh, maybe, um, maybe we can communicate this a little bit more to help people navigate through it.

Eric Freeman (17:28):
Yeah, I think that would be a great idea.

Ken McElroy (17:30):
Right. Great. Well thanks. This was a great topic, Eric. I know we got two more topics guys. We’re going to talk about, you know, if you’re an employee, you know, what are your options and the other one is a, if you own a business, what are your options? So, uh, stay tuned. Eric, thank you so much. As always. I appreciate it. Thank you. Stay safe. Yep.