AI Is Moving In. Rents Are Moving Up. | 624

Keith examines why renters made up nearly 80% of U.S. net household growth last year, and how housing supply explains the gap between rents falling 8% in Austin and rising 17% in San Francisco and Chicago.  Terry Kerr and Matthew Van Horn of Mid South Homebuyers join to discuss new-build rentals under $200K in Memphis, Little Rock, and North Texas, in-house property management, duplex deals, and financing incentives with rates bought down into the fives. The episode closes on the AI buildout reshaping Memphis, where xAI's Colossus, Anthropic, and Google are driving billions in investment and a share of the new tax revenue back into surrounding neighborhoods.  Episode Page: GetRichEducation.com/624 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: [email protected] Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  FAMILY to 66866  Join Mid South Home Buyers' one-time, free live webinar featuring Keith Weinhold on September 30 at GetRichEducation.com/MidSouth to learn how Memphis' economic expansion could create new real estate investment opportunities, and have your questions answered in real time. Will you please leave a review for the show? I'd be grateful. Search "how to leave an Apple Podcasts review"  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— GREletter.com  Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Welcome to GRE. I'm your host Keith Weinhold. U.S. rent growth is led by cities with AI investment and those with a lack of new housing supply. Then we're talking about new build properties for under 200k that cash flow and with mortgage rates that are bought down into the fives today on Get Rich Education. What if I told you that one of America's strongest cash flow real estate markets is also becoming the new brains and brawn behind AI? That city is Memphis, believe it or not. In September 30th, we're going to show you why the smart money is paying attention now, along with an investing opportunity you won't want to miss. Join me, Terry Kerr and Matthew Van Horn of Mid South Homebuyers, the largest turnkey company in Memphis with more than 6000 homes under management, for a free live webinar the likes of which I've never done before. We're going to look at what billions in new investment could mean for jobs, housing demand, neighborhood appreciation, and your portfolio. Everyone who attends live will also get exclusive access to the best deal terms Mid South has ever offered. Reserve your free seat at getricheducation.com/midsouth again, that september 30. Don't say we didn't tell you. Save your spot at getricheducation.com/mid south.   Speaker 1  1:33   You're listening to the show that has created more financial freedom than nearly any show in the world. This is Get Rich Education.   Keith Weinhold  1:49   Welcome to GRE from Davenport, Iowa, to Smethport, Pennsylvania, and across 188 nations worldwide. I'm Keith Weinhold. You're listening to Get Rich Education. Hey, near the end of today's episode, I'll announce where I'll be appearing live and inviting you to join me. But first, most real estate headlines that you see out there for quite a while now, they tend to focus on just how difficult buying a home has become amidst higher prices and mortgage rates-it's kind of an old story by now. But for investors, the other side of that story is what matters. When fewer people can buy homes, well, more people have to continue renting them. Only 6 million of America's 50 million renters can afford to buy the median home. In fact, so that means then that only 12 percent of America's renter households can afford the median home. That is just remarkable, and that's exactly why they have to keep renting, but you know what's more remarkable is the growth of this group of people itself. Last year, the U.S. added an estimated 898,000 renter households, but only 234,000 homeowner households. That's per the Census Bureau. All right. So then, renters accounted for nearly 80% of the nation's net household growth. Gosh, that is staggering. Well, let's look at the rent change and their factors in some of America's largest cities over the past three years, in Austin rents down 8% over the past three years, lowest anywhere. San Antonio minus 4% Denver minus 1% and then you got a couple cities, Phoenix and Dallas that are even no rent change the past three years because they've had some overbuilding. Raleigh, North Carolina, up 1% Nashville, Orlando, and Houston all with rents up 2% over the last three years. Still pretty modest. Jacksonville, Tampa, and Charlotte each up 3% Atlanta up 4% Miami also up 4% Los Angeles and Memphis both up 6% Seattle has had rent growth of 8% the past three years. Boston really with a lot of growth in tech jobs and not much new supply added. So Boston, Massachusetts, 10% rent growth. Philadelphia, 11% rent growth. New York City, famously not adding much supply. Rents are up 14% since 2023. San Francisco and Chicago leading the charge rents up 17% in both San Francisco and Chicago over the past three years. Now the biggest reason for the variability in rent change since this time it's largely the same reason for capital price change, for appreciation level, and that is the factor of supply. You know, remarkably, the eight cities that have built the least, they have the eight highest rent growth stories, and most of those are higher cost coastal markets that have high building regulation. I mean, sheesh. That's where approving new housing can take longer than choosing a speaker of the house, and that's how already expensive markets remained resilient.   Keith Weinhold  5:57   Namely, I'm talking about places like New York, Boston, Chicago, and San Francisco, and then you've got these pandemic-era magnets like Austin, Phoenix, Dallas, and Nashville. What these places did is they attracted residents and developers along with them, but yet they've all got really slow rent growth stories, like I just outlined. So what really happened here in these pandemic-era magnet places, again, Austin, Phoenix, Dallas, and Nashville, is that builders showed up like food trucks at a music carnival, and eventually the construction wave caught up with demand. Then you know we got to look at the Sun Belt. A lot of people talk about the Sun Belt like it's just one market or one place, and of course that's not true because I just told you about how Atlanta and Miami rents rose 4% the past three years. Well, a number of other places in the Sun Belt just stayed about even, but it's really the tech hubs like Boston and San Francisco, that are just surging, really soaring with rent growth amidst the AI boom, because they've really been the beneficiaries of that. So yes, apparently even the people building our robot replacements then need a place to live. The robots themselves don't pay rent yet. It's rarely been more apparent that real estate is local when there's this 25% Grand Canyon between Chicago and San Francisco's 17% rent growth, and then Austin's 8% loss. And again, I'm talking about that period just over the past three years. Now rent declines-that's something that really doesn't happen very often.   Keith Weinhold  7:48   They tend to be even more rare than a loss in overall home prices. But you know, rent declines-they can create buying opportunities. What happens is that softer rents-they pressure your current cash flows for sure, and that hurts, no doubt about it. But over the longer term, what that does is that discourages new construction, and then that sets the stage for tighter supply down the road. So that is really the rent growth story the past few years in the United States. We're going to discuss rents and prices some more, and then the excitement of the profound amount of new AI investment into a place where you might not be thinking about it in, and that is Memphis. Listen to what SpaceX, Anthropic, and Google are all in the process of doing there, and what that could do to rents. We'll talk to the premier provider of Memphis rental property, and they also place your tenant and they manage it for you, so that all you do is little more than collect the monthly rent check, and they also offer this in Little Rock, Arkansas, and more recently in North Texas, founded in 2002, Mid South Homebuyers they are one of America's original turnkey real estate providers, and you know they're quite possibly the oldest major provider that still operates today. We're going to talk to the man that actually sets the rents there, and in fact, Mid South is so renowned and respected that for a long time, if you wanted to own rental property from them, there was a waiting list that once reached 24 months, and frankly, in that scenario, investors would just kind of settle for the first property that became available-that doesn't happen anymore. There is no waiting list, and you actually have a choice now. Let's talk to this week's guests. Back on the show today, the Memphis-based team that has provided more. More income property to GRE listeners than anyone in history. They were first on the show with us almost 12 years ago on episode nine. It is Mid South Homebuyers founder Terry Kerr and director Matthew Vanhorn. It's a warm welcome back to the show.   Terry Kerr  10:18   Thank you so much, Keith. Always love being on your show, man.   Matthew Vanhorn  10:22   Yeah, so glad to be back, Keith.   Keith Weinhold  10:24   You know, I was talking with you earlier, and you had brought up something that struck me as interesting, and yet it could be true that when it comes to cash flow in real estate, we are living in the good old days. Now, nationally, cash flow has been challenged because purchase prices and mortgage rates are both up, and rents haven't quite kept up proportionally. But there, in the markets that you deal in, you can still get it with a small down payment because you do have a high ratio of rents in proportion to a low purchase price. Some of them still under 200k for a good rental single-family home, and incentives that get your mortgage rate into the fives. So tell us more about how we could be living in the good old days now.   Terry Kerr  11:09   Well, you know we're very fortunate to be working in some towns where the price to rent ratios are still super favorable comparatively. You know you mentioned that you can get into a house for under 200,000, we even have new construction houses that folks can get into for under 200,000. Yes, one of the other ways that we're able to make the deals pencil out and make it to where these are definitely the good old days is through a promotion that we've had going on for a bit called the Triple Five, where we buy the rate down into the fives and have a 5% management for five years. So these are definitely the good old days here at Mid South.   Matthew Vanhorn  11:51   One thing that you preach on your show, Keith, is about looking at history over hunches. Right, and when I look at the history, everyone. who comes to me now says, "Man, I wish I had bought 10 years ago. I've yet to hear anyone say, "Man, I wish I'd bought less 10 years ago. Never happens, you know. And 10 years ago, well, 10 years ago was 2016, and a lot of people say, "I wish I had bought more then, and the reality is, a lot of people were scared to buy then. You know, their times were uncertain then. We were unsure where things were headed then. Always, and maybe people looked at our prices back then as they started to hit $75,000 for a home, and thought, man, things are getting expensive. But my belief is truly, Keith, that 10 years from now, people will look back and say, man, I wish I had bought more 10 years ago. I mean, we're living at an incredible inflection point. I believe in history, you know, where we know that the world is changing with AI and with various factors that are happening. We're on very much the cutting edge of all of that. You know, I don't have a crystal ball, but I just believe that 10 years from now, people will say, "Man, you guys were so lucky to be able to invest in a time when AI was in its infancy, and like before prices had skyrocketed, like they are now in 2036. That's just my belief, Keith. Looking at history over hunches, there,   Keith Weinhold  13:31   I very well believe that could be true. The truth is, for you as an investor, when you buy a property, it's pretty likely you've paid more for that property than anyone has in history, and it's also pretty likely that when you sell that property down the road, you are going to sell it for more than anyone ever has in history. People always think that times are uncertain, and they're going to continue to feel that way because nobody can know the future, of course. And Terry, you talked about your incentives with the triple five. That's for someone that makes a small down payment where they can get their mortgage rate bought down into the fives. They get five years of property management at 5% and we're big fans of leverage here. However, if someone wants to pay all cash, you also have an incentive known as the Forever Five. Tell us about that.   Terry Kerr  14:26   Yeah, so the Forever Five for somebody who pays cash, they will get 5% property management forever because they are not getting the benefit of the interest rate buydown. So we want to treat our cash buyers fairly as well, and that's been very popular.   Keith Weinhold  14:43   And if you, as a cash buyer, participate in the Forever Five, and then you go on to refinance the property, maybe to pull cash out after you've closed, you still get those incentives for the duration of your ownership of the property.   Terry Kerr  14:56   Absolutely.   Keith Weinhold  14:58   Now, Matthew, interestingly. You talked about an inflection point. We'll get into that later. There is a clear inflection point with Memphis and with AI. But before we do that, why don't you talk about your core business and some of the markets that you serve and what the drivers are there?   Matthew Vanhorn  15:18   Yeah. Right now, when you invest in Memphis, you are investing in stability. We still have great cash-flowing assets in Memphis for as low as $100,000. We have great cash-flowing assets in Little Rock for as low as $120,000, and even Texas, we have assets there for as low as 215,000, which I don't expect you to see those kind of prices in the future. I think we're at a very lucky point where you can get into Texas for as low as 215. We're still seeing strong cash flow in our markets, especially with our triple five promotion. I mean, we've looked and listen. We realize it's harder to find cash flow than it used to be. That is true, and that is why we've rolled out this triple five promotion, where it really helps these deals pencil for our investors. It gives you five years of reduced property management. It gives you 30 years of a fantastic fixed rate on your interest, and my belief is that your rents will continue to grow faster than your expenses. So that five years from now, even if there is a property management adjustment in year six, which that would adjust to the normal rate of 10% or for investors who have more than six homes with us to 8% I believe that you're going to be in a much better place six years down the road because of the factors we know that rents increase, your resident pays down the mortgage, and I believe that this happens at a rate that's faster than your expenses grow.   Keith Weinhold  17:02   Talk to us about what you're doing as far as new build versus resale properties, because so many providers today are finding that they're doing more volume of new build than they are of resale properties, and this is really a good, important, fundamental thing that people like you are doing because amidst the national housing shortage, there's an even greater shortage of those entry-level properties. So now that you've been doing new build for a little while, tell us about that and what kind of effects that makes. How good that is for the investor. How much longer tenants are being retained for a longer duration in the new build property versus resale, and just more about that new build versus resale.   Terry Kerr  17:46   Sure, man. So we got into doing new construction, you know, out of necessity, and also because our investors were asking for it, our renters were asking for it, and so also we couldn't find as many rehabs, and you can't force a good deal to come onto the market to find for rehab. And so we went on a absolute tear for dirt. So within the last 12 months, we picked up over 400 vacant lots, and so we kind of have the dirt stacked up for the next while, and we're doing that in both Little Rock and in Memphis. And so, what we've seen on the leasing and on the acquisitions for our investor side is that our residents absolutely love it. We could ask more in rent than we're getting for these new construction properties, but we're tempering ourselves because we know that what makes a property cash flow for the long term is lease renewals for the residents. So in Memphis, as an example, our average rent for a brand new three-bedroom, two-bath, 1400 square foot house is 1450. And Matthew, what's the price point on that? Is it like 198,000 bucks? Is that it? That's right. And so they're just flying off the shelves from a rental standpoint. And like I said, we could get more in rent and still sell them at that 198 or maybe more. But we're wanting to make sure that we're leaving enough meat on the bone all the way around the horn, and to your question, Keith, about additional length of resident stay, we haven't been doing new construction long enough to really have good data points on that. But if the interest in the new construction product by our residents is an indicator of length of resident stay, it's going to be longer than our rehabs.   Matthew Vanhorn  19:42   Yeah, and another thing that I think that's interesting is that we are often building these new construction homes in the same neighborhoods where we have done our newly renovated homes, and so that continues to bring up the value of our renovated properties. Which I think is a beautiful thing that not all investors have connected the dots on yet with what we're doing in these neighborhoods. I think it's a beautiful thing because some residents are going to prefer that four-two new construction, like Terry mentioned, and other residents are going to prefer to pay a little bit less and get that three-one ranch-style home that we love so much here at Mid South,   Keith Weinhold  20:24   and you, the listener, you might be wondering about really properties, including new build income properties for under 200k. But I can attest to you that I have walked inside these properties myself with Mid South home buyers, several of them, so we're not just talking about the glossy brochure version of how a property looks. This is real with the low purchase prices in Memphis due to them being the transportation hub of the nation and an awful lot of other reasons. But the whole thing that makes this stick together for you, the investor is the property management, and you you never hear anyone rave about their property manager, seemingly. But with your management and making this hands-free for the investor, I have got to say I don't think I have ever heard one complaint about you guys's property management. So tell us about that. When someone gets sort of enamored with owning in one of your markets, Memphis, Little Rock, or with what you're doing in Texas, tell us about that handoff to the property manager and how important it is to have that in-house management. Because if there ends up being some construction or rehab problem, you know the manager isn't pointing fingers at somebody else because the renovation and the management is all done in house.   Terry Kerr  21:46   Yeah, absolutely. It's super important to have it all in one house, so no one's pointing fingers at someone else. And really, Keith, it all boils down to value. It's the biggest piece, and just how I mentioned a few minutes ago about how we could get more in rent for the properties than we do, but we know that the properties need to continue to stay occupied, and reducing turnover is the main thing that's going to make an asset perform. And so that's kind of the foundation of where we start as a turnkey outfit, and then it's just treating our residents, treating them with the respect that they deserve, answering the phone when the you know heating element goes out on a water heater and getting it fixed quick, and so delivering value from a rent to property ratio, if you will, and then also just giving really good customer service to the resident because if you do that, the property is going to perform.   Matthew Vanhorn  22:42   I was blessed to work on the management side of the business for 14 years before jumping into the sales seat. So I know firsthand, you know how important it is to make this work for the resident. So it's not like the residents have interests and the investors have interests that are misaligned. We have to make this work for the resident to make it work for the investors. And like Terry's saying, when we provide ultimate value to the resident, our investors thrive. And so, at its core, it's it's some very basic things that we do here, Keith. That I think make all the difference. And it's just spending the time is one of the biggest thing. It's literally just answering the phone when residents call. It's just the basics that I think we do so well. And to spend that time and to answer the phone, you have to have an actual staff, you know. And here, just down the street at our central office, you can walk right in, right up to Gabby's desk, and she can help you with any of your concerns if you're a resident. And I think that's becoming so rare today, Keith, to see that level of service on the property management side. So many property managers want to do just the bare minimum, and they're really just looking to extract value and to just move on. We, the most of the people who work here, Keith, we have, I think, about 120 employees, and a lot of them aren't necessarily thinking about sort of the sales side like I do. They're simply thinking about the mission they have for taking care of the residents of Memphis and Little Rock and Dallas, and that's really all they think about, and that's why this is successful.   Keith Weinhold  24:23   I was laughing earlier. I just find it funny how you put that. Like the bar is so low for property management that oh my gosh, this manager picked up the phone on the first try. I can't believe it. Like that's how low the bar is for property management, and your management there has been superb. We're going to talk more, including how Memphis could be on the precipice of being both the brains and brawn behind AI, including why data centers can be good for communities. More on that when we come back. You're listening to Get Rich Education. Our guests are Terry Kerr and Matthew Van Horn. Of Mid South Homebuyers, I'm your host Keith Weinhold.   Keith Weinhold  25:03   What if you got your mortgage loans the same place I get mine? You sure can at Ridge Lending Group NMLS 42056. They provided GRE listeners with more loans than anyone because Ridge specializes in investment property. They'll help you build a long term plan for growing your real estate empire with leverage. Start your prequal and even chat directly with President Chaley Ridge. While it's on your mind, start at ridgelendinggroup.com. That's ridgelendinggroup.com. Let me ask you something: If you've worked hard to build wealth, is your money positioned to actually support your goals. A lot of accredited investors leave capital sitting in cash because it feels safe, but inflation and missed income opportunities can quietly erode its value. Freedom Family Investments offers freedom notes for investors seeking structured income backed by real estate. It's a straightforward approach built on real assets, not speculation. In full disclosure, I'm an investor myself. What I like is that their team walks you through how it all works, so you can decide if it aligns with your portfolio and income goals. Every investment carries risk, and nothing is guaranteed. But with a track record of consistent, on-time investor payouts, they built real credibility. Go to freedomfamilyinvestments.com to book a clarity call, or text family to 66866. That's family to 66866.    Naresh Vissa  26:36   This is GRE Real Estate Investment Coach Naresh Vissa. Listen to Get Rich Education with Keith Weinhold, and don't quit your daydream.   Keith Weinhold  26:53   Welcome back to Get Rich Education. We're talking with founder Terry Kerr and director Matthew Van Horn of Mid South Homebuyers, the provider that's provided our listeners with more income property than anyone else in history for years. That popularity created a wait list that was often several months long. I'm pleased to tell you that there is no longer a wait list, so you, the investor, can get a deal done in a pretty short period of time. One reason for that, to Terry's point, is the fact that more new construction has been brought on since they weren't able to buy rehabs at the pace that they wanted to. Since we are in a housing shortage, how do you stop the shortage? You build new. One thing that you're building new are duplexes as well. So tell us more about the duplexes that you offer because sometimes that interests investors to buy one income property and have one loan with two doors.   Terry Kerr  27:53   Sure, absolutely. And you know, Keith, actually, we just bought a whole street of duplexes. We bought 18 duplexes, and talk about forced depreciation brought the whole street up, and it's actually located. We have other duplexes besides these, but it's actually located just three minutes from here on the Green Line. Really coveted place to live. You can just hop on the Green Line and ride your bike all you know all the way. Well, goodness, about 100 miles or more. Yeah, duplexes are rare here in Memphis, and we've been fortunate to stumble across a good chunk of them.   Matthew Vanhorn  28:30   Actually, in Memphis, there was a moratorium on building duplexes for over 40 years, and so that's part of why they're rare. Wow, is that you just weren't allowed to build them for a long time, so when we're able to come across them, it's a great thing because we know investors love them. And the fact that we're able to grab 18 right here in Midtown on the Green Line, right by our huge library, which is is an awesome place, we're really excited for those as well as the other duplexes. Like Terry said, we have others available, but be looking out for those Waynoka duplexes. Yes,   Keith Weinhold  29:04   amidst the housing shortage, I have seen many U.S. cities these past few years with zoning changes allowing duplexes to exist where only single-family residential properties could previously. Tell us more about the duplex rents and prices.   Matthew Vanhorn  29:21   Yes. So Waynoka duplexes, as an example, these are 2121, so a two one on each side of the duplex. They're compact, so I think they're about 700 square feet on each side. They are priced on the rent side at 925 a month per side, so 1850 in total rent, and so those are going to be selling for around the 220 mark.   Keith Weinhold  29:50   Okay, those are some really attractive numbers. They are ratios that work. There inside Mid South, you've done an awful lot. More to help grow your team and help better serve investors on the investor side. Now, you know, frankly, I really never look at how you're marketing yourselves to buy rehab properties over there on that side with what you're doing. But actually, sat down and had lunch in person with your marketing director a few months ago. You've got a new website now, and so much of that is the interface with the investor in the white glove service that you offer them in order to make it easy for investors. Tell us more about that.   Matthew Vanhorn  30:34   Yes, we're really proud of the new website that we've rolled out. It really is designed to make buying as easy as possible for investors, and not just buying easy, but to understand the process as well as you can, to understand and do your due diligence as well as possible from the website. And so, one thing that you'll notice is that with each property now, you can click a run profit projection is a button on each property, and it brings out a detailed pro forma. You can get downright nerdy in there. Adjust different inputs on different down payments, different interest rates, different loan products. You can toggle back and forth to see the cap rates on cash versus leveraged, and like I said, you can get downright nerdy with it, which is nice. It's something we did not have before. The pictures are really crisp on our new website now. We have available homes on our website, which is a fantastic thing for investors. Previously, with the waitlist system. We would show our website, and investors would go on there, and they would say, "Hey, there's nothing available. Right, and so that was the biggest problem. We have different markets, different products. Texas, as an example, it's going to be more high growth. Memphis is going to be more high cash flow, and so different investors have different parameters. We can actually match you to what you need now.   Keith Weinhold  32:02   You guys have such a good reputation, and also you've been offering turnkey rental properties longer than any other provider I know of in all of the United States. But because your reputation preceded you in the past, I think some people would stay on your wait list for a few months, and then as soon as one property came available, they would just take it, regardless of what it was, and they still tended to rave about your service. But today, you actually have some choice.   Terry Kerr  32:31   We do, we do. In addition to providing extra properties through new construction, we've also been fortunate to, you know, continue to develop our banking relationship. So we would not have been able to to do what we've done by ramping up volume if it weren't for our good lender partners. So, cheers to that!   Keith Weinhold  32:49   Right, and these banking relationships are what allow you to offer interest rates in the fives to investors. Well, Matthew mentioned it earlier that we really are on this tipping point, this likely pivot point where AI has really-you could have long called it the brawn behind a lot of what moves America-that being Memphis, being that transportation hub that you are-but it's also now positioned to be the brains of AI as well. I mean, perhaps the biggest infrastructure story in America is now happening there in Memphis, the most affordable major castle market in America, and I don't know that anyone has connected these dots. So it's an exciting time. Tell us about that.   Matthew Vanhorn  33:37   It is an exciting time, and I think you're right. I think investors at large have not connected those dots, like you said, Keith. Right now, if you've ever used Grok, if you've ever used Claude from Anthropic, it's being powered right here in Memphis, Tennessee. I don't know if everyone knows that of how much money that Google is pouring in to Memphis, how much Anthropic is pouring into Memphis? How much SpaceX is pouring into Memphis? It's really phenomenal. It's dramatically raised the amount of tax revenue that we've been able to generate, and that tax revenue benefits the city. And so we're already an advantaged market when it comes to investors, and this AI infrastructure I think poises us to be even stronger of a play, especially for those who get in sooner rather than later. While it's the good old days, Keith.   Keith Weinhold  34:36   We have seen what AI can do to a rental market. Now, I'm certainly not projecting this on Memphis, but San Francisco has seen two-bedroom rents up 26% year over year due to this influx of AI money that you're talking about.   Matthew Vanhorn  34:56   Absolutely, and we have been seeing rent growth in. In Memphis, and I think that's interesting because I've heard investors as I go to different conferences, and they say, "Yeah, rent in Memphis has been kind of flat. And what a lot of people tend to do is they look at reports that talk about what has happened over the past, let's say, two years. And so a lot of investors they want to invest when they get that report, and it says, "Hey, rents are up 26%. Well, once you get the report, it may not be the most optimal time. I'm blessed to be on the cutting edge of the knowledge here, you know, because I'm part of the property management company. In fact, I set the rents personally still on these homes, and so I see them ticking up, Keith. I'm not saying it's necessarily San Francisco style here, but I do see the rents ticking up here after a little bit of a period where it was a little bit flat in 24 and 25.   Keith Weinhold  35:57   Yes, we are talking to the man that sets the rents on this huge collection of properties that we have here. Memphis is now home to the world's largest AI supercomputer. That's XAI's Colossus, the biggest single-site AI facility on the planet. You touched on it. Anthropic is paying 1.25 billion a month to run Claude on it. Google just signed a deal worth up to $30 billion starting october 1 in one year. Therefore, XAI became the second largest taxpayer in the city after FedEx. And sometimes you might wonder, okay, but will that translate to that community, to that local neighborhood, well, the city has committed 25% of the property tax revenue from those sites to infrastructure in the surrounding neighborhood. So this is a multiplier effect that we're talking about in Memphis.   Matthew Vanhorn  36:54   That's it exactly. So the neighborhood where SpaceX has built these facilities, and so they built Colossus, which alone was the largest supercomputer in the world. Then they built Colossus Two, which was even larger than the first one. And by the way, they're prospecting a third facility. Guess the Colossus Three. So already the biggest. Then they built a second. They're about to build a third. And these are in the communities where we're already investing, Keith. So these are communities that are already great neighborhoods where we have great blue-collar working-class renters who love their homes from mid south, take great care of them, and now they're going to get the benefit of that 25% of a huge number in tax revenue going into improve the infrastructure in their community. So you're talking better streets, you're talking water treatment, you're talking money going into schools, which is super important. It even goes into just cleaning up the community, which is directly helpful to our property values here, and so I'm really excited that we're seeing this growth here in areas where we already were investing, Keith. So we were lucky enough to already be ahead of this even before we recognized this growth headed to Memphis.   Terry Kerr  38:19   And one of the nice things about that is, is we've already got hundreds of houses that we're managing in these neighborhoods, and so all this new growth is just benefiting the investors who've owned in these neighborhoods for many, many years.   Keith Weinhold  38:33   There is clearly some momentum here, and at worst, it provides some real ballast under the greater Memphis economy. Before I ask you two, if you have any last thoughts, I would like to cordially invite you, the listener, to an exclusive free virtual event with all three of us live. It is next Wednesday, the 30th. The event is called Memphis: The New Brains and Brawn Behind AI. Why the smart money is moving now. Sign up is open now and is complimentary at getricheducation.com/midsouth. So therefore, the webinar takes place the night before the new Google money starts flowing in to Memphis on October 1, and at the event you'll see actual properties, real cost flow numbers, and Mid South's best deal terms ever. Like we touched on earlier, with those rates in the fives and five years of property management at just a 5% rate, and these incentives are all available exclusively to live attendees. It ought to be really cool. Again, it is next Wednesday the 30th. Sign up at getricheducation.com/midsouth. Any last thoughts, fellas?   Matthew Vanhorn  39:52   We run regular tours here in Memphis. You can come visit us on site, and most people don't come. Visit us on site, but we love it when you do. So, if you are interested in seeing us firsthand, want to put your boots on the ground here, please sign up for a investor tour where we'll show you the facility here where we're sitting, show you the warehouse, we'll show you the process of renovations, we'll show you a junker home that we just bought, we'll show you one midway. We'll show you the final product. We'll show you renovated homes. We'll show you new construction, and give you a great grasp on what we're doing here at Mid South.   Keith Weinhold  40:30   That website is midsouthhomebuyers.com. Yes, I have done that tour with you guys. Yeah, it's interesting that you take us into the Junker home first, and that way we can see chronologically how you go through the process until we're in a newly renovated one near the end that's beautifully done. I still remember how much those hardwood floors shined in your product there. Yes, you, the listener, are cordially invited to join us September of 30th, a live event, all three of us. That is getresuceducation.com/midsouth fellas. It's been great having you back on the show.   Terry Kerr  41:07   Thanks so much. Thank you.   Keith Weinhold  41:14   Earlier in the show, I mentioned Memphis's 6% rent growth over the past three years. When you break it down per Zillow, that's just up 2% for Memphis multifamily, and it's up 9% for Memphis single-family rentals. Besides all the good stuff happening in Memphis, it has excited some people when they recently extrapolated their mega successful model out to the Dallas-Fort Worth metro and surroundings. For example, in Princeton, Texas, where they offer brand new construction, a two-bed, two-bath single-family home renting for 1675 a month and selling for under 200k. It's 192k. In fact, next week on the show, I will discuss what happens to real estate when stocks crash, and I'll talk about a lot more. But September 30th-that is the day of our event. It's also the day before substantially more AI investment dollars start pouring into Memphis, and the good old days could very well be investing here before that happens. Join the three of us for an inside look at why billions in new investment might be creating a pretty rare window in Memphis real estate. You're going to see actual properties, real cash flow numbers in Mid South's best deal terms ever, followed by a live Q and A, and it's available exclusively to attendees. Again, you can sign up at getricheducation.com/midsouth. Until next week, I'm your host Keith Weinhold. Don't quit your daydream. daydream.   Speaker 3  43:04   Nothing on this show should be considered specific, personal, or professional advice. Please consult an appropriate tax, legal, real estate, financial, or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.    Keith Weinhold  43:32   The preceding program was brought to you by your home for wealth building, getricheducation.com