Summary

A new law has initiated the most significant transformation in the real estate market in decades, impacting homebuyers, sellers, and industry professionals.

Highlights

•  The new law is reshaping how real estate transactions are conducted, introducing major changes to buying, selling, and financing homes.
•  Market volatility is increasing, as the law affects mortgage rates, property values, and investment strategies.
• ️ Government regulations are tightening, aiming to stabilize housing markets but also creating new barriers for first-time homebuyers.
•  Real estate agents and brokers are adapting to new compliance standards, changing the way they operate and interact with clients.
•  Innovation in real estate tech is accelerating, as companies race to develop tools that help consumers navigate the evolving market.

A lot of people have been talking about the big and beautiful bill, and while a lot of people have their opinions on it, really the only thing that matters is that it’s passed and it’s part of our economic reality for the next few years. So, in this video, we’re going to chat about what you should be investing in based on this bill.
Yeah, I think that, you know, obviously a lot of people are still upset about it. Uh some people aren’t. Um and uh I actually agree with both sides, right? Like you but it is what it is. It’s past and so there are some things that you should be paying attention to for sure. Um if you’re going to take advantage of it because it’s here, right? That’s you can negotiate that.
It’s definitely here. So there are definitely some things that uh we want you to be able to take advantage of as we move forward. We’re going to be talking about this at Limitless. So we’ll be there this week. Yep. Hopefully see you guys in Dallas. You’ll see us live. We’re flying out tomorrow. We’ll be there all week.
So, let’s jump into it. So, let’s talk about what is in the big and beautiful bill. So, you basically you have your tariffs on imports. Uh 10% is the baseline. Obviously, Trump’s negotiating all that still. Um corporate tax cuts from 21 to 15%. Massive energy deregulation and fossil fuel incentives. Bonus depreciation and border infrastructure spending.
Yeah. So, specifically when it comes to real estate, what does all that mean? Essentially, obviously, if you have a business or you’re a real estate professional, please make sure you know because you can’t just buy real estate and not be a a real estate professional to take advantage of some of these things.
Uh, but that bonus appreciation, uh, the cost cost segregation, all that stuff is huge. Um, you guys might know that bonus depreciation, uh, under the Biden administration went from 100 to 80 to 60 to 40. uh now went back up to 100. So what does that mean? What that means is as you start to renovate things, uh so the bonus depreciation, one of the things as I’ve been explained is it’s considered a land improvement.
So uh I’ve talked a lot about billboards in the past. So think of um the when we buy our billboards, they’re on leased land. So that means you don’t own the land. And that means the actual structure with the digital face, that’s an actual land improvement. So that land improvement is considered uh part of bonus appreciation.
So why don’t you explain what bonus appreciation is because I don’t think everyone knows. Yeah. Essentially means that you can write off 100% of the expense that year. Now it doesn’t have to be billboards. It can be do lots of things but essentially you have to check with your tax professional but when you spend money to rehab something improve something again land improvement um then it might qualify underneath this bonus depreciation and why is that important? It’s important because in the case uh we bought a billboard this year in
Columbus, Ohio uh it was about a million bucks and it uh it does about 250 grand a year in cash flow. So now that million dollars, not all of it, but a majority of it we can actually ride off. So so uh so almost the entire investment because we actually don’t own the land, we actually have a lease.
So uh so this is a really important thing as you start to invest in real estate. Um, as you’re starting to look at what to invest in, um, I think it’s really, really, really important that you take a look at some of these depreciation categories. And again, make sure you check with your tax professional.
Uh, we will have a tax panel on this for Limitless for those of you who might still be confused. Some of it is confusing, and I’m not a tax person, but I do know because I asked, uh, that there are lots of things related to real estate that fall in this category. Yeah. And multif family is one of those things and so is things like intangible drilling costs you know if you’re in an oil rich state uh flex warehouse space uh and uh those kind of things as well.
Yeah. So so might be a strategy. So one of the strategies for us moving forward obviously and it should be for you is um find out what qualifies in the bonus depreciation um and cost segregation and then develop a strategy for that. So as part of that, so not only just looking at cash flow and those kinds of things, but looking at the the appreciation part as a strategy because I can tell you from my own personal experience, a lot of our investors, especially now after Ross and I have been doing this for almost 30 years, um, a lot of them
probably started out like some of you looking entirely for passive income and cash flow and that kind of stuff. But now as things are transferring uh down to maybe their kids or or maybe they’re just want to pull some cash out um they start to look at people start to look at the tax benefits and the tax purposes.
So so less about cash flow and more about tax. Now this is obviously if you’re getting a little older um but there’s an entire industry of people that are concerned about tax because they make a lot of money. Um, and so this this can be an excellent strategy for you uh if you’re if you utilize that on the front end and then build a uh investment strategy around that.
Yeah. And the second thing you should focus on is just rentals in general, but you have to look at what rentals are going to do good right now. And you’re going to have to go to rentals that obviously have a strong migration, which we’ve always talked about. But now that they’re putting so much money towards these border towns, that is going to up the infrastructure there, right? If there’s going to be more jobs around the border, then those cities are going to flourish and they’re going to need rentals that they might not have yet.
Yeah. So, as an example, Ross and I, uh, many of you might have heard of, or maybe not, a little town called Sierra Vista, Arizona. Now, it’s oddly enough, it’s near the border of Arizona and Mexico. And uh and so being from Phoenix, uh obviously I knew about Sierra Vista. Now most of the time you probably wouldn’t be looking at building there, but Ross and I or buy by there.
Ross and I bought uh land and we built like a 250 unit property down there. We still own it today. Um and it it’s in a border town. And why would we do that? There’s a couple reasons. One, there’s a military base there called Fort Wuka. Port Watuka um has um uh it’s it’s an information base among other things.
And so, but also guess what’s in that town? The a border patrol headquarters. Not the border patrol headquarters, but a border patrol headquarters. So again, to Denil’s point, so if you start to take a look at some of these little towns, you might find these opportunities where they’re starting to um you know, add more people to shore up some of these kinds of things and and I think that’s kind of the point here.
So we’ve been doing that in Sierravest. We’ve had it’s been wildly successful in what I would call a third tier town because you got Phoenix, you got Tucson, which is actually second tier, and then you got a little town like Sierra Vista. So sometimes these little towns can be extremely profitable. Uh they can also go boom and bust pretty quickly uh with the strike of a pen because I’ve also been on the other side of that uh where you have uh military bases deployed and all of a sudden you lose a bunch of people. So be careful. Um it’s it’s not
for the faint of heart sometimes. And you can see this too with um energy production zones since energy is such a focus of this bill. So, you know, Texas, uh, North Dakota, Oklahoma, they’re probably going to do pretty well on housing needs right now because energy production is going to be up. Also, you know, your industrial and flex space because, you know, these tariffs are going to bring so much uh many jobs into the US.
They’re going to have to have places to make and store all of this stuff. So, industrial and flex space is going to do really well in the next few years, right? Which, by the way, they’re on fire right now. you guys, they were already on fire because of the what they call last mile distribution. So, last mile distribution is like basically you order something on Amazon at, you know, at at 9:00 a.m.
and you basically want it by two. Uh, well, if if where whatever you’re ordering is, you know, across the US, uh, it’s it’s going to be much more difficult. So, last mile means that they’re and this has been going on for a while. They basically are taking those goods uh that you would have normally bought and they’re they’re bringing it to a city near you, you know, and and so that you can get it much quicker, faster.
So, the industrial areas uh industrial uh communities has been on fire for a while. The one thing I want to mention about energy and this is kind of new uh and it should not be too much of a surprise but I think in a year now from now you guys are going to see um the the power grid the power needs for AI is unbelievable.
So these these data centers um even nuclear power and I know a lot of people um you know uh are against it. I’m telling you, um, you’re going to start to see I, in my opinion, if you just take a look around the world as compared to the rest of the world, we’re lagging behind on nuclear power.
Now, I’m not a I’m not the person to say is it good or bad. I’m not uh same with coal or you know, hydroelectric or any of that kind of stuff, but I can tell you this, we have a severe power need. Um, one of the panels that we were doing in um, at Limitless this week, um, the one of the one of the experts is in the industrial commercial industrial uh, uh, area in the Dallas uh, in the Dallas market and they said they can’t build these things fast enough and it takes six years to get power.
So power starting to be something that I think you’re going to uh, you’re going to see more of an issue. um and uh the government and uh local and federal are going to have to jump in. So, so I would keep your eye around these kinds of power centers because they’re creating massive jobs. I know for a fact that Meta, Google, they’re doing massive, massive campuses for AI in areas like Memphis.
Um and so so as you start to look at just you just want to be ahead of this obviously like in Memphis they’re already under construction. So you already know there’s going to be people there. So you already know there’s going to be um a need for housing uh both on the on the purchase side on the rental side. So whenever whenever something like that goes in uh in Phoenix it’s it’s the Taiwan Semiconductor Plant, right? It’s going to bring like 10,000 plus jobs.
So, it’s going to be a boon for that area. So, th these are the things that you need to be watching with this administration, you know, um and people are going to be taking advantage of of these tax policies, these loopholes, these things. Um and and also just technology as it continues to grow. Absolutely.
And something else to look out for is commodities and hard assets. And we’ve al already seen this with the run on gold and Bitcoin right now. Um Trump came out today saying that he wants a weak dollar because a weak dollar is, you know, better for the US. But a weak dollar also means that things like crypto and gold um and real estate can all go up when the dollar is weak.
Right. Right. So so if you take a look at one year ago, gold for example was just about a little over 2,000 an ounce. Today it’s you know over 3,000 an ounce. So, why would gold go up $1,000 in one year? Now, again, I’m not advocating you go buy gold, but you need to look at the whole picture, right? And the same thing with Bitcoin.
So, what happened um when the dollar becomes weak, people start moving uh their money into other kinds of things. And so, that’s the that’s the important thing. I’m not I’m not pitching Bitcoin here. I’m just trying to tell you that when Trump comes out and says he wants a weak dollar, it means something to other pe it means it means some to people that hold dollars.
It means something to people that are actually getting paid in dollars. Um and it and and it also means something if your retirement is based in dollars or even if you’re have a savings account in dollars. And so um so just just know that if that’s a strategy of the government that u there are things that you can do to to you know to move the needle around to not be at such a disadvantage to let’s say in the savings account because what that really means is that your dollars if they’re in savings are going to buy you less right
essentially that’s what that means. Absolutely. And then there are certain small businesses that are really good in this kind of economy. You do have to remember our economy is slowing down. So luxury businesses are probably not the first thing you should be reaching for. But with the big beautiful bill, there was a lot of um things that passed that certain businesses are going to do really well.
So let’s talk about um the first one is obviously any kind of industry in the US, right? Any kind of domestic industry that was coming from China but now has to be done in the US is going to be a good spot to be in. whether you’re actually operating the business or just owning the real estate, either one. Yeah.
So, we just had an we had a dinner with a friend that actually manufactured things here, moved it to China about what, four or five years ago. And uh when when the tariffs hit, uh he had a uh I think he had four or five million dollars of inventory over there that now he’s having to bring into Canada. And so now he said that he’s having to bring the manufacturing back to the US which is exactly uh obviously what this administration wants.
So what does that mean? He went he had a lot of employees. He went down to you know just enough to be able to manufacture in China. Um and and then um now he’s back here again. So what it’s done is it it’s he’s buying all the stuff locally having it made manufactured locally. Um, and a lot of these businesses that are buying things from another country and even having them assembled here, they’re out scrambling right now trying to figure out how to how to how to keep their business going locally.
And sometimes that’s with another country. Uh, but sometimes that’s locally. So, so that’s what Denil’s talking about. And this primarily whether you believe it or not or whether you uh agree with Trump or not, it’s happening. So, he’s definitely trying to bring jobs back into the US. Now, how much they cost, whether that’s going to be inflationary, different topic.
But from a housing standpoint, you just need to know that this is happening right now. We’re we’re seeing a lot of friends and family that are um having to figure out how to get their stuff made locally to survive because most of their business was done outside of the US and then assembled here or distributed here. Absolutely.
And then the second one is going to be blue collar services uh like HBAC, plumbing, all this new uh energy production and facilities and you know all the industry coming back to the US is going to put more demand on those services and also going into a weaker economy that is one thing people need is their AC fix their plumbing done.
You know these aren’t um you know luxury purchases. And mark my words, guys, like these are the next 10 year, the next decade’s millionaires. I’m telling you right now like like AI is wiping out call it that entry levelvel white collar you know um which is unfortunate for sure but uh but if you call a handyman you guys already know this like uh you know our handyman went from basically 30 or $40 an hour to 50 to 60 to 70 I think about 90 now right in a period of I don’t know three or four years and so uh you know that that that older trade. My
dad did this. U you know, the the the the the colleges kind of um I guess absconded from all those young kids that would have normally gone into those trades because back in my day, there was a whole system of of journeymen coming in and and working with trades and uh but that that’s gone. So, um there’s a huge huge gap of people.
We’re seeing this in the maintenance side of our apartment buildings and I know plenty of people are having this and this this next decade. It’s the year for people that know how to do the electrical, plumbing, HVAC and those companies are on fire right now. Y and and then um to Denil’s point that’s just going to get even more because now a lot of those products I’m talking about the physical products um they’re going to be made here locally.
Um, so I think if you’re investing, starting, considering, uh, that’s that’s a market that’s not going away. It’s severely under supply. Absolutely. And we also need to talk about the energy support businesses, right? Because, you know, we are so used to having white collar jobs, accountants, CPAs, marketing, all these things.
And they’re not mentioned in this list. This is getting back to blue collar. So when you have energy businesses, you need businesses that you know support them like diesel repair, machine repair, you know, all these kind of things. So when you are looking to start a business, that could be a great business depending on your area is things that can support these energy businesses.
Yeah. Or real estate uh in markets where that’s heavy. I’m telling you these businesses. Uh we had a friend actually trying to buy um he he started a a um low voltage company and then and then he actually ended up in the AC business. Um and he’s been starting these little businesses and he’s crushing it and he’s been trying to find others and he can’t find anyone that wants to sell right now because there’s way more business u than than that’s needed.
Absolutely. And then if we get into the next one, it would be um you know, food and service businesses in boom towns. You know, we’re even seeing this a little bit in like little Cordelane up here. There’s a lot of food trucks and things now because there’s not a lot of infrastructure in some of these towns and rent.
Who wants to pay that kind of rent? Who wants to pay rent? So, there’s a lot of different, you know, food service businesses that are going to be catering to these smaller towns where they don’t have a lot of options. I mean, sometimes we drive into towns and they’ll pay like five restaurants. Yeah. You know. Yeah. Yeah.
Yeah. Yeah. So, I think that’s something to watch, too. As the food costs, the labor costs and all that stuff goes up. I think you’re going to start to see a little more mobility here because uh again, I know we’re in the rental business, but rent and overhead is a huge piece that crushes a restaurant. You know, uh food is also a piece, but um you know, most of most small businesses um if they’re not really well located, they really struggle.
It’s really really really interesting. Um, and you know, they have to have heavy marketing and all that kind of stuff. And sometimes they just don’t know how. Um, and and so I think you’re going to see a lot more of this. This is another industry that’s going to pop up. And we we you know, we have one area in town here that’s brand new that they basically just uh took an open parking lot and set it up for food trucks.
and they’re basically there um there’s like 10 of them uh with an area you can pull up and park and just sit out on picnic benches and stuff like that. We’re starting to see more and more and more of that. These kind of started kind of um a little bit like in Austin and Dallas. We you know we’ve seen these along Congress before. Um but now I think you’re going to see it a lot more because you anybody can have a parking lot and create a food truck court, you know, for people especially if it’s in a it’s in in a in a really good area.
Yeah, absolutely. So let’s talk about some things that you don’t want to invest in, right? Because a lot of people are looking at starting businesses in this kind of economy. So any kind of ecommerce, right? they’re getting crushed and a lot of them unless your margins were amazing are, you know, having to go out of business because it doesn’t work domestically, right? I’d be careful in that.
I’d be careful with virtual assistants, be honest. I mean, I know that that industry just kind of got ramped up. And I know, you know, we’re talking about eight $10 an hour stuff, but now chat GPT, the bots, um, accounting, um, you know, HR, all that stuff we’re starting to see, uh, creep in. The bookkeeping is insane what you can do now.
Um, you know, just by putting that stuff. You know, I had a we had a friend the other day that went and got his blood work done and put it into chat GPT and said, “What, you know, what would the doctor tell me to do?” And it kicked out a whole protocol. Well, based on a certain doctor. Yeah. Based on a certain doctor. And then he took it to his doctor and it was pretty darn close.
It wasn’t exact, but it was close enough. So, it’s very interesting. So, I talked to the doc. I’m like, you know, so what does that tell you? Like all of a sudden, you know, so so these these things, they don’t seem like much, but they’re starting to creep up. Yeah. And based on the big beautiful bill, you also need to be careful with green energy because obviously Trump is not for green energy and he doesn’t like it where that was very popular under Biden.
So that was a lot of money went into that. So not a lot of money is going into green energy now. So I would not go in that direction. Yeah, you heard him. He just went on a rant yesterday about the windmills. He doesn’t like the windmill. He made this big deal with the UK, which many of you might know about now. U obviously around the the the trade uh which is actually going to be huge for us, right? Uh oddly enough, it made sense when he said it, but now they’re going to have we’re they’re going to have to we’re going to have our cars for
sale there and all kinds of things for sale in in Europe. Um which is um obvious now that he said it, but but he’s talking about these windmills. He said basically they have a eight year eight year span. Um you can’t get a uh they’re expensive to maintain. Uh you get basically less than 10 years out of them and then uh he said that the blades and all the all the components or stuff are toxic and they’re all made in China.
So now it’s Trump. So I mean this was Trump. Yeah. Yeah. Yeah. So we’re not entirely sure. We have to fact check all that. But that’s what he said. So, he’s like, to your point, he is not going to be pumping this um green energy and he hasn’t went after this yet, but I would be careful with the offshoring.
Um I wouldn’t be careful if you’re going to hire somebody offshore because you can just easily make that switch. But if you’re want to support a b start a business that is offshoring um its work, you know, that is something else that this administration may go after because they really want it to be America first.
So, so I guess what we wanted to go over is the big beautiful bill. It’s not just about stocks or, you know, bonus depreciation. It really is about you taking advantage of the tax laws because we’re really big on that, right? Because everyone always says, “Oh, this isn’t fair. That’s not fair.” And that’s fine.
But really, you just have to play by whatever set of rules the administration that’s in power gives you. And this is a good blueprint for you when you’re looking to get started in something. Yeah. And take a look at the whole picture. like like for those of you who might be heavy in gold, uh one thing that we have a sponsor, Monetary Metals, which we’ll show you right now, like there’s a way to monetize that and lease it out. So, take a look.
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So the Fed’s meeting, a bunch of earnings reports are coming out. The jobs reports coming out. So limitless. We will definitely know what how the economy is doing in the next few days based on these big week by the way. Like this this in my opinion, this week is going to set the tone for the next six months. Now, not just because of Limitless.
Obviously, we got all kinds of people coming to that. Hopefully see you guys. If you’re in Dallas, there’s still some tickets. limitlessexpo.com. Uh we love to see you guys there. We’ll be there all week um down at the Gaylord Texans. Uh but um this week is big because uh you know, as you guys know, Trump is all over Powell and I don’t think Powell’s budget, right? No, it doesn’t seem like he is.
It doesn’t seem like it, but um yeah, you never know. I mean, there’s definitely more pressure on him to lower rates this time than there has been in the past. So, it really could go either way. Most likely he’s going to hold. Um, but you know, you have your jobs report coming out and I was reading too and we need to look back on this for next week is it’s not just about this job report but the edited job reports from the last two months, right? So, we need to kind of see because they always edit the job reports, you know,
then readjust, right? So, what the readjusted numbers were because that’s going to be really important too and that is something the Fed has to consider is the readjusted numbers as well. Yeah. So, hopefully we’ll see you guys this week in Dallas. Appreciate you watching as always and let’s crush it.