Jason Hartman examines the state of America’s current society. He goes into the population growth and the demographics behind the population and its impact on real estate in the future. In the interview segment, Jason welcomes Quint Studer, author of Building A Vibrant Community: How Citizen-Powered Change Is Reshaping America and the founder of Studer Community Institute. The two discuss how Studer was able to transform various parts of Florida and how it can be done in many other places using the same strategies he outlines.
Do your research. There are some providers out there. I mean, this is true not just in real estate, but in general and sales that just wants you to get information from them. Do your research, and you’ll come to see, I think, at least for me that Jason, you, you look out for your clients, you I mean, I with my investment advisor, there were things that I was looking at initially, and there was absolutely no pressure there was okay, yeah, keep asking questions, do that research it. And not only is it better sales, because you have a competent client, but also you become more knowledgeable. So I’d say do the due diligence, constantly investigate, ask questions, and also just look at the big picture. I think about that all the time. You know that they’re going to be hiccups. I’ve already experienced some hiccups, and I haven’t been investing that long. But overall, even with those hiccups, it’s still profitable.
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more or less And freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:35
Welcome to episode number 1361 360. And of course, once again, Happy New Year to everybody listening. It is going to be a pretty exciting year if you ask me. I’ve got good news and bad news. And of course, it depends on which prognosticator you’re listening to right. Some say the economy is going to Be booming this year. Many say we are in the roaring 20s. Again, again, we had roaring 20s 100 years ago was it was commonly called, who knows? Who knows who knows what’s going to happen, right at the end of the day. It’s a bit of a roll of the dice. It really is. The bad news is that long term, you know, when you take and you do the lag, the demographic lag, Harry dent, our economic demographer has been on the show many, many times. Doesn’t say it in that way. But essentially, that’s what it is right? You just extrapolate from population growth. And of course, when you look at population growth, you have to look at a few things. It’s not just people having babies, its births, its deaths, and immigration, those three basic things are the basic components of the population trend, birth, death, immigration, or out migration, right, that could be another one and we When you look at that, at least the birth component of it, that one of the three major components of that triad, and you take that leg from 33 years ago today, which 33 years old is the typical area, you know, give or take where people buy a house. Okay, at about 33. And you look at that, you see that the home buying market right now, and for the next several years is looking good. It’s looking good. There’s a lot of demand for properties. But the long term, you know, we’ve got all these lefties talking about overpopulation. Well, that’s not the trend, folks. The trend is like the name of that book, empty planet, okay. The birth rate overall, is not looking good in the sense that if you want to perpetuate the species. So 33 years from now, that’ll be three years after you make the last payment on that beautiful, wonderful 30 year fixed rate, awesome artificially low interest rate loan that you’re going to get from a property you buy from us at Jason hartman.com slash properties, that loan would be paid off three years earlier. And that depreciation cycle on that property you buy today or this week or this month, that would have already run. You know, ideally, you probably don’t keep your properties past 27.5 years, because that’s when your depreciation schedule runs. But whatever. Those are long, tangential discussions, but the long term trend in demand for housing is not that great. When you look at the birth rate, and you take it out 33 years. Now, that’s the bad news. But you don’t have to worry about it. Don’t worry about it. It’s not going to affect anything you’re doing now. That’s a hugely long term thing. In fact, some of you listening might think you’re not even gonna be with us in 33 years. Hey, I hope I’m still here. I hope you’re still here too. And we’ll be on episode number 96,253. I don’t know, that’s a rough guess. But whatever, whatever episode number it’ll be, and you’ll be having it download directly into your brain. You won’t even have to listen to me, just the knowledge itself will just download instantly into your brain. Pretty darn cool, huh? So those are some things to think about the long long play for real estate as far as the birth just one of the three triads part of the Triad for the birth rate is not looking great. Okay, but that’s many decades into the future. So it’s nothing we need to think about right now. However you say Jason, but you have this other podcasts. called the longevity and biohacking show. Well, aren’t people going to be living longer? Yeah, probably probably a lot, lot, lot, lot, lot longer.
Jason Hartman 6:10
In fact, many say and I don’t know, you know, it’s sort of this is wearing on me a little bit because they’ve been saying this for a while, but, but maybe this time is different. Many will tell you that we are on the verge of some major, major discoveries, or maybe not discoveries, but innovations in terms of longevity. You know, it’s not just about lifespan, but it’s about health span as well. So, that’s exciting, but it has huge implications for the economy. Number one, I say it’s an inflationary pressure. Now you have to mix that with everything else. There are some deflationary pressures out there for sure. But overall, that in and of itself would be inflationary and would also mean higher. demand for housing. Look, if these people don’t kick the bucket, they still need a place to live.
Jason Hartman 7:06
Rather than a plot in in the cemetery, right? They need a place to live. That means they can rent it from you. So that’s good. But if you look at the past decade, wow, it is absolutely shocking how the construction, just, it was just a mnemonic. I mean the homebuilding industry in the 2010s. It was like asleep at the wheel almost. housing starts were historically low in the 2010s. If you compare it to the 1960s, they were much higher. I mean, the lowest point of the 1960s was ever so slightly lower than the highest point of the 2010s. In terms of home construction, the lowest point in the 1970s was Higher, then the highest point in the 2010s of housing construction. This is unbelievable. Unbelievable. There’s a shortage of housing
Jason Hartman 8:10
like, wow. Wow, good news for you because the value of anything is determined by scarcity and utility. And guess what housing has both better than almost everything else, scarcity and utility, the 1980s. The lowest point of the 1980s, at the beginning of the decade was just slightly lower than the highest point of construction in the 2010s. Same is true for the 1990s and certainly for the first eight years of the 2000s. Now of course, when the great recession hit, everything came to a halt you like my sound effects are pretty lame, aren’t they and during the 20 henss, we came out of the Great Recession, you know, construction has been steadily rising, but it’s still, it’s not even close to where it was before. So we’ll talk about this more, but there’s just a structural part in the bomb shortage in structures. Okay. And that’s good for you. That’s great for you. So today is the 10th episode show. And our guest is going to talk about vibrant communities. And, you know, this almost didn’t have to be a 10th episode show where we go off topic talk about something of general interest, because this is, to a large extent about real estate, but we put it in the 10th Show Category, because it’s also about societal things, sociology. Interestingly, one of my favorite subjects and I never even took it in college. Actually, I sort of did. I signed up for a sociology class just because I find the topic so fascinating. And I went to two classes and then I dropped it because the teacher was such a brainwashing PC liar that I just I couldn’t deal with her you know I thought it was absolutely ridiculous it was everything was with had the spin of the professor. These colleges nowadays are just yeah. Don’t get me started on this. Okay it’s absolutely ridiculous it’s totally ridiculous the way the way the college brainwashing, debt enslavement industrial complex has has gone and that was many years ago by the way that I signed up for that sociology class. It was not even recent. I can’t imagine how much worse it is today. But hey, without further ado, let’s get to our guest go to Jason Hartman calm connect with one of our investment counselors. Let them help you make the roaring 20s. A roaring decade for you. That’s what we’re here for. We are now 15 years in to helping investors invest nationwide I’m approaching 10,000 real estate transactions That’s a big number bigger than anybody else you’re going to hear from with any other podcast, I bet my numbers bigger. So that means more experience. And you’ve got it right here on this show, and with our company and our great investment counselors to help you make your financial freedom dreams come true and help you reach your financial independence state. So, more on that at Jason Hartman calm Of course, but without further ado, here is our guest for today. Let’s talk about vibrant communities.
Jason Hartman 11:33
It’s my pleasure to welcome Quint Studer. He is founder of Studer community Institute, and he is also co owner of a minor league baseball team, the Pensacola blue Wahoos. He’s author of several books including hardwiring excellence, purpose, worthwhile work and making a difference and building a vibrant community how citizen power change is reshaping America.
Quint Studer 11:56
Quinn, welcome How are you? I’m fine. Thank you very much Jason. Be on your So
Jason Hartman 12:00
good to have you. I believe you mentioned you were in New York City today, but are you do you live there or in Pensacola or somewhere else?
Quint Studer 12:06
I live in Pensacola, Florida. Okay, I’m gonna be doing a lot of work lately and ended up in New York City today.
Jason Hartman 12:12
Fantastic. Well, that’s a place I own some properties. And we’ve done some business, quite a bit of real estate investor business there over the years.
Quint Studer 12:21
So let’s start with the community issue if we can, and then let’s just talk more generally about how we can all become more excellent. You work with a lot of smaller cities, or maybe they should even be called towns, population under 70,000. People I believe, there’s a bit of a brain drain, I think in in this category. Tell us about that. And you know, what’s changing or how and why it should be changed? Sure. Well, thank you about 2004 while I was with my company I own I was talking to Jim clip to the chairman the board of the album, because he was looking at what I did is healthcare and he shared with me that they had just done the biggest study ever on economic development. Why do some communities thrive and some don’t thrive? It wasn’t based on location was based on some other characteristics. So I got very interested in that. And then I also as I traveled all the time, I would notice communities that were just popping and communities that weren’t and that came back to my hometown of Pensacola and we were in, we weren’t popping, and a group of us started getting together and implementing some strategies, which led over the last 15 years to us this year being named the 15th most desirable city to live in the United States by US News World Report. The 17th best place for a startup company by golf horizon, American Planning Association, vacationing Palafox, which is our main drag one of the 10 best streets in America and strong towns just last week named us a strong town recipient or the strong strong recipient this year. For Building a sustainable community. So that’s sort of what we’ve done. And I’ve learned that now a documented system like building a vibrant community. So other communities can reverse that migration. Because real key is to get keep your challenge will get your challenge back.
Jason Hartman 14:15
So what cause Pensacola to turn around by dad and by the way, as real estate investors era, I’m very glad to hear all of that stuff. What caused the turnaround?
Quint Studer 14:24
I think the turnaround was really four key components. Number one is truly looking at your downtown as a placemaking. And we learned this from Pat Wayland, who’s deceased now that Asheville is really trying to control you so many that vacant property is the right thing in the right location, to create a great community the wrong thing in the wrong location can kill a community. And then you get into these four points you have to program at the community. You know, people think it just happens and what Gallup research showed is young people want a vibrant Downtown. So they’re willing to leave the big cities because they’re too expensive. there’s not as much opportunity, but they don’t want to go to a place that doesn’t have some of the same vibrancy as the bigger city. So you need to program the heck out of it. The most small communities to start, you have a programmer. So we recommend you get somebody that wakes up every day says, How do I get people down here? The second thing you look at is then how do you create those small entrepreneurs, those retailers, those people in bars and restaurants, and that takes a lot of training, you know, even though they’re willing to do it, you have to really build this skill set. The third thing is you have to make sure even though you don’t think you need it, you have some pretty good office space, most talents, so well, we got an empty office space. Well, all of a sudden you build or you rehab a building that’s really cool. And you find out people do want to be downtown or office space. And the fourth is Jason, which is the toughest, but you do get it once you show what’s worthwhile. There’s two residential, you know, people always say well, if we had more residents downtown, but they’re not going to come downtown if you don’t give them a good reason to come downtown. So we built you talk about real estate, our first 258 unit apartment, we built our first one at 30 something years, just 100% occupancy and the average time a lease is a bag is 42 minutes. And here
Jason Hartman 16:19
42 minutes. I love that. Yeah. Okay, so the first go back to the first one, let’s just go through those drill down on them a little bit more if we can. You said have a program. What do you mean you you have someone or a whole department that’s dedicated to the mission of making the city or the town attractive? What did you mean by that? You just had to have a program.
Quint Studer 16:45
What happens Jason is people are going to come downtown, that there’s nothing downtown. So you really sit here and say what’s going to bring people downtown Of course farmers markets have become very popular, but things like unphysical we started out The gallery night where you close your streets and it ends up being sort of a family thing from about five to nine and then more of an adult type the entertainment from nine to about midnight. We do what we call sort of a slow rides with bikes or with runners on we have something called food fest was just a 12 days, our downtown, it’s constantly thinking, what events can we have down here? We had a chalk thing where people came down and did chalk art on the sidewalks. It’s just I’m constantly thinking about what event or activity can we have downtown it’s going to bring a lot of people downtown and then the stores start to see we start getting foot traffic and then the early movers start coming in, in the retail and entertainment area. So retail now that you mentioned that is obviously going through what is known as the retail Apocalypse, very much struggling competing against the online component. What is changing In the retail world, I mean, actually, that’s the wrong question. The question should be what is working? Is it really kind of the retail entertainment concept? Where people kind of hang out? It’s not really where they sort of focus on core shopping, if you will, is it the complexion of retails really had the change? I think that’s a little bit of it. I think certainly when you see now restoration hardwares put restaurants in their places. So that’s part of it. And I think what happened is the online shop and personally hitting the malls and the big box players, more than anything. And I think what you see in downtown’s today, is what I call the shopping experience. So for example, you have an olive oil store where you can buy that online, but you can’t talk to somebody about how to use it. recipes to target take back so we’re really seeing this more the sense of place and shopping. They’re looking for that experience. They’re looking for the chef to come out of the restaurant and talk to them. You know, they’re looking for things that You can they can go out on the street, they can sit out on the Sunday and on the sidewalk and so on. But it’s really this service is what you’re looking for. Because if they want service, many times, they can come to the small mom and pop shop, which sorta are what happens in downtown. Now they’re just shopping for price and they be online is the place to go. So I think downtown specifically have a great opportunity to create an experience that people can’t get when they go online or even to update.
Jason Hartman 19:27
Okay, good. What’s the formula for the residential? I mean, he’s got one apartment complex sounds like you know, the 42 minute rental time, which has just phenomenal and 100% occupancy. It sounds like there was a shortage to begin with. And you just sort of satisfy that need or, or what was was there anything unique about that apartment offering?
Quint Studer 19:51
I think a few things and yeah, there was a shortage, but no one really knew it, because there wasn’t availability. So people really didn’t know was there a shortage We’re fortunate, I believe, you know your real estate, you do good market research. So we did very good market research. What we found out is once people saw the fun downtown, the walkability of the downtown, the entertainment downtown, now they want to live downtown. And so we really basically did market research and found out what are you looking for? We wanted a diverse housing stock. So we wanted enough studios, we might have one bedroom, two bedroom, a few three bedrooms, there’s really want to make it inclusive. And so when we did our market research, it showed that we had lots of opportunity for residential, but they wanted amenities. They wanted to close to Palafox so they could walk to it. And it’s been interesting, of course, seeing that this first one was so successful. Now there’s a number of other ones and it did something else, Jason that I didn’t think about so two weeks ago. There’s a young man that said, by so many people moving into the apartments, that also opened up housing stock that normally would be available elsewhere. So we’ve seen our assessed property value in our community 34% new investments go up 67% in the last five to six years, since we started really focusing on making this downtown a place to go but like I’m saying the places around downtown also benefits because their housing stock now becomes more available. So you have new housing stock in your openness of existing housing stock.
Jason Hartman 21:27
Okay, good. Any other tips or concepts on you know how to address changing lifestyles make rentals more attractive to people? Please share any anything else you have their
Quint Studer 21:39
show, I think we did something else, which I think we didn’t know it was going to be this powerful, which is something called civic engagement or civic civic conversations when we started bringing in expertise around the country, so we brought in the Donald suit to talk about parking. But Chuck marone to talk about strong tones, the Jeff’s back Talk about walkability Ed McMahon to talk about community character, and like challenge to talk about social equity, trout McComber to talk about how to create happy cities and about once every month, we bring in somebody like that, because you got to communicate and educate your community, that slowing down traffic is not bad, it’s good. Reducing lanes is good. You don’t need parking requirements. And these are really boring concepts to a lot of people in the community, and then push back. But by educated community, the Civic IQ, not only was there not pushed back, it was pushed forward and how to make our streets safer, more bikable and so on. And I don’t know if anyone would show up and we actually have a facility that seats 275. And we always come close to filling it many times we overflow it. So we put them on live stream, and our last ones in the getting somewhere between six and 7000 people watching this online stream
Jason Hartman 22:57
that’s amazing and how many people How many voters For example, I give us a relationship? You know, what’s the per capita viewing rate participation rate
Quint Studer 23:07
on that? I think when you look at voting, ironically, that’s another thing. We did a community dashboard. Our registered voters have gone up to 16%. In the last couple of years, there’s all of a sudden, people, they don’t pick up the phone to call washington dc or they stick capital, but they want to have a local input. I think what we’re really trying to do is people are hungry, to have input. And we’re just amazed we brought in a company called scape out in New York to look at our waterfront downtown, which is basically was industrial and really wasn’t accessible. And they end up coming in and spending a day with our community and ended up now creating a whole project to make our waterfront more accessible. It was really through a lot of civic engagement. So I think that’s been our biggest surprise people can go to the P nj.com dash civic con, and they can look at all these tapes, all the speakers and so on because Well fortunate that the local newspapers pesco NewsChannel, really partnered this and really stepped up their local coverage. But most papers are reducing that we’ve got a local newspaper, they actually increase their local coverage. And that’s been a big help.
Jason Hartman 24:13
Very, very good. Very good. What else do you want people to know about the communities, the civic engagement, anything, their advice to small towns and how to make them better and more prosperous and beat the brain drain problem.
Quint Studer 24:27
I think you’ve got to really invest heavily in what I call skill development. You know, 80% of small businesses don’t make it five years. So even though you can get people to start a business that doesn’t do much good at they’re not going to last. So we created monthly programs using a lot of local talent. such things as maximizing social media, how to hire better, how to figure out cost of goods, how to do process improvement, how to create better customer service, how to satisfy customers around happy and week long So many small businesses. And then the other thing that small businesses want is mentoring. So we created a system called roundtables, where you can sign up for a roundtable once every 90 days, you get together with a mentor that we assigned to that roundtable to sort of help you be successful. And in my book five with new partners that have a whole chapter on, you’ve got to really grow that because 99.9% of all jobs are going to develop locally. But these people need skills. And that’s probably I think one of our huge wins is giving people the skills and challenge plus it breaks networking opportunities for these small businesses so many times don’t join a chamber. They’re too busy, don’t go to rotary, they’re too busy, won’t go out of town for a conference. They’re too busy. So we really, I think, hit that sweet spot. And that is really getting the small businesses and getting them training every month to run better operation.
Jason Hartman 25:51
Yeah, that’s great. You know, it’s just so nice to hear. community, the concept of community something that has just been ravaged away and In today’s world with, you know, all the technology and everything we’ve got, let’s switch gears and kind of wrap it up with hardwiring excellence, purpose worthwhile work making a difference? I think that’s one of your top selling books. Is that your first one?
Quint Studer 26:16
Like first one that’s like one of these record starts with their first album as their best seller, then they keep trying to duplicate it. Yeah, that was that was I wanted to write a textbook with passion. And it was truly about how do you create consistent culture in an organization that attracts and retain talent, and then get them to consistently do it, even when the boss isn’t around. So they can have a place that just has unbelievable, great customer service. So get to capture the hearts of your employees, before you can capture the hearts and minds of your customers. And that’s what hard wiring excellence is all about.
Jason Hartman 26:52
But not just from a business perspective from a general life perspective. Right. You know, maybe Right,
Quint Studer 27:00
wow, I don’t think people can separate. You know, one of the myths that somebody told me when I was growing up, which didn’t help me as a leader, is they said, you have to separate business and personal. People can’t do that. And I go into that workplace. You know, I have somebody that works for me, I need to know something about what’s going on in their life. Because the number one reason somebody puts a job, my boss doesn’t care about me. And it’s a great, great places for people to work. They start there, and even practicing those things at home. And they find that drive a day. If I have a better professional life, I’ll have a better personal life. And that’s how you really create loyalty in workplaces today.
Jason Hartman 27:37
No, no, no question about it. Good stuff. Good stuff will give out your website and tell people where they can find your work.
Quint Studer 27:43
One website is do the ride.org and the other one is biography partners. Fantastic. Well,
Jason Hartman 27:49
Quinn, thanks for joining us, and thanks for all your hard work.
Quint Studer 27:52
All right. Well, thank you, Jason. I appreciate the opportunity.
Jason Hartman 27:56
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