One of the limitations of this format is how shortened the convo is. If it was a podcast, it warranted a 2 hr long episode. We didn't even get into federal pumping of money in markets inflating asset prices or to friedberg's question.

WOW..Another great show. Adena smashed the show esp her own intro. Great content for the general public. Very inspiring person and wish her well! Revelant and useful questions and commentary by the panel. Thank you to all the team.👌

I feel spoiled every time I am about to drink some tea thinking about what should I watch a new all-in video drop, I feel so lucky

WE WANT PALMER LUCKEY!

This would have been even better as a 60min segment... Adena was great, and this topic can have endless constructive discussion right now.

Love the vibe and energy from Adena!! And Her intro was fantastic!

Very well done folks, the root cause of this housing problem in 1031 exchange and step up basis for heir. Wealthy americans keep buying the houses, keep taking 1031 exchange to defer their capital taxes and keep increase their wealth by buying even bigger/multiple houses. Once they die all the capital gain they differed in their lifetime die with them. And their heir can sell and pay absolutely no tax. we need to stop this

@mattkreiser3644

Жыл бұрын

Fact

Adena's Q&A resonated the most with me as a founder. Her statement around not 'turning to' investors I 1000% agree with. We are the ones building these companies. We didn't cause this bubble. I think a 1-on-1 with her, no presentation, just fireside chat, would be awesome next time. Also great to see a female unicorn founder at the event.

I have been in the real estate development and investment business for 30 years. If you cannot afford to save a 3% FHA down payment then you probably are not ready to buy a home in the first place. Read the Better Business Bureau reviews on the company. Her model might work great in an appreciating market but with current real estate conditions and interest rate spikes I don’t see her models working in this current market when you go onto her site and look at available homes they are forecasting pie in the sky appreciation. Ask Zillow how those financial models worked out on their homes. What they are not discussing which is the most important subject it’s the investment funds from Wall Street and the tech industry that have exacerbated the ability for anyone to buy a entry level home. That is the real problem. She has a great story and the concept is well intended but not sure if her business model is going to make it….

Great one! I love listening to knowledgeable people discuss their passions... incredible! She had me hooked with ya'll.

Did she say $168k -> $338k was a 200% increase?

@brandonna606

2 жыл бұрын

Hahah yeah prolly nervous

@anthonyholland8549

Жыл бұрын

She also said 1963 was "almost 50 years ago". Try 59 years ago.

@chillones9574

Жыл бұрын

ya you take 168K *200%(2) equals 336k it ok guys, she got this.

@brandonna606

Жыл бұрын

@@chillones9574 No, that’s only a 100% Increase from 168K

@brandonna606

Жыл бұрын

@@chillones9574 the key word is “increase”. You have to add 200% not multiply

Accessibility for literally anyone to buy a home is what makes prices go up especially in the face of limited supply.

@brianz5922

Жыл бұрын

I disagree with that. How much money can ordinary family could impact the market? Like the data she provided, it's top 50% investing home makes prices go up

@Ehralur

Жыл бұрын

The problem is not that these people can't already buy a house. The problem is that they're being overbid by investors.

@ImATeapot_418

Жыл бұрын

@@ml6719so the solution is to keep the bottom 50% from homeownership? Tf outta here. Primary residences > investment properties

Adena’s presentation was very insightful. One of the best of the AIS uploads so far, imo.

Awesome founder and great frugal approach. I think this company will be successful but those fiscal performance slides were from 2019-2022. I wouldn’t extrapolate future performance from that time period.

Thanks for another video. You really have been putting out 🤣… no seriously I love listening with my ear buds while working, it’s great to see things debated from different perspectives and not just a one sided debate. Keep up the great work and the content booming. Congratulations on All -in Summit. Bullish AF on your content !! ❤️🚀🌕🕺👏

Anciently, like 20 yrs ago... people ran from the Bear market, into bonds. Today Bonds suck, so maybe commodities? What better commodity than a home? She nailed it's history as the keystone to generational progress.

@ttb1513

Жыл бұрын

A home as a commodity? Not very liquid. And you lose a good 6% if you decide you want to sell it. But yes, bonds suck. I just wouldn’t jump into the housing market at these prices.

@sudosuga

Жыл бұрын

@@ttb1513 Yeah. Fortunately Divvy, REIT's etc. offer fractional opportunities. Or cash flow a few rentals.

I absolutely get the leverage point but these S&P 500 returns seem questionable. If you look at a timeframe beginning 1999 or 2001 you see higher returns than the ~150% you see in the chart. Feels like the data was picked to begin at the height of the dot com bubble (peak March 2020).

@marcialabrahantes3369

Жыл бұрын

data selection is always susceptible to cherry picking :)

It would truly be a shame if the All In Summit was a one and done thing. This is quite a remarkable event.

This is very interesting concept. Loved the talk

Keep it coming guys :D

WE WANT LUCKY PALMER STOP HIDING JAYCAL

@awdrifter3394

Жыл бұрын

Probably the Big G won't allow it.

I actually loved this guest, despite some comments I noticed. Never knew of her priro to this.

She’s the best. Intro was legendary

wow I agree with j cal boring topic but she makes it a lot more exciting. love her attitude about her business. stay frugal, no investor will save it.. she and her team are the ones who made it and will run it. total boss, one of the best AIS clips, sad i waited so long to get to this one!

One of the best FREE contents out there from the bests who’s done it 👊🏼

@Nick-xo5mm

Жыл бұрын

Free for us at least. pretty sure they get speaker fees. Lucky for us :)

Confused as to why she doesn’t know her exact burn rate

@PeterNooteboom

2 жыл бұрын

I assume it fluctuates. She probably knows it, but seemed to present it as a range.

Divvy sounds like a cool company, I have to wonder though what's pros and cons when compared to a conventional mortgage.

@Travie68

2 жыл бұрын

From what i understood, the company makes a cash offer (which is preferred and gets you a better deal) and you can pay off your house the company

@Liberto26

2 жыл бұрын

As she mentioned Divvy effectly owns the home and allow the client to buy in at only 1-2% of the value up front. They can continue to buy in over time or cash out of their equity

@lamdrewpleasse4667

2 жыл бұрын

It is for people who don't have enough money for a downpayment on a conventional mortgage. For people who would otherwise rent, basically.

@mdel310

2 жыл бұрын

I understand all that, but how do they make their money? Have to imagine its more expensive then just saving up the money yourself and buying on your own.

@matthewkelly4107

Жыл бұрын

@@mdel310 they probably have much better borrowing rates than their customers. They could extra charge for the equity component the customer is building, if the customer can afford that.

How does Divvy make money? Are they betting the housing price to go up in 3 years so when they resell the house to the renters they make up the difference? And what's in it for the renters? A portion of their rent goes into the equity?

Great talk.

Loved loved loved this!!!!!!

Upvoted for adenas intro

Great analysis!

Great speaker, very relevant topic

wow, this was good, best of summit

Honestly, JCal, should’ve had Kim-Mai Cutler to speak on this with her and Make this an informative 60mins long lol. Love when Kim-Mai talks about this subject. Adena did great tho!!

Chamath is interviewing her like he's looking for an opportunity to get in lol

@SebastianPatten

2 жыл бұрын

I thought the same thing

@rainisfree

Жыл бұрын

Nah, he clearly knew her company was extremely flawed and didn't want to make her look bad publically

Surprised that impact of hiring freeze wasn't discussed in depth. There is no way ppl can afford to keep paying forever the mortgage rates on homes they overpaid for. Not every one is in IT. And if they default all he'll breaks loose.

@akcj875

Жыл бұрын

And what about boomers who will be moving to retirement homes. That's a lot of inventory.. most boomers can only afford nursing services in retirement homes...not at home

@akcj875

Жыл бұрын

Also new housing will be hitting in 2024

Quarterly events could spark incredible conversations and progress

Great presentation and Q & A interview to follow. My favorite one yet. Great stuff Adena and Divvy!

What a class act!

Adena's intro was great. And everyone on that stage will continue with their already successful lives, so kudos to them. But I only see this service contributing to all of the ills Adena highlighted in her slides.

Shame they only asked softball and macro questions. How does Divvy finance all of these purchases? What happens to buyers if they have to sell their home below the purchase price? What was her rationale behind being a private company instead of a non-profit if the company is indeed "very mission-driven"?

Me in a recession: market collapsed maybe i can afford something finally Job market: hold my beer...

@mdel310

2 жыл бұрын

Haha never lucky

that intro was 11/10

Adena is strong! Her intro was fire 🔥 And her business seems to be brilliant: Make lots of money while servicing under served demos. Fantastic.

Yeah she's awesome!

That intro was FIREEEEEEEEE

what is the #AIS stand for? its very confusing since there is a lot of AIS acronyms out there, why is this not #AIP?

@Bladou

2 жыл бұрын

All-In Summit, the 3-day event this video was recorded at.

This does not end well.

Homes use to be affordable most everywhere that was not "prime" real-estate in the USA, then Realtor agents turn into this "career" the career need to be supported so now every piece of land "prime" real estate. They building houses in my moms little town for 345k+ the population makes 35k yr lol, her home was 85k, 2000, people offering cash offers of 285k, clearly something sus is going on. well low and behold if their a problem the rich investors have a fix. We have cash offer, which means no housing pricing dropping ,period. WIN WIN. that's how you rig a game,two-sided coin.

Episode ?: Jason is sort of here.

Excellent

Wow! Adena is a star!!! I could have watched hours with her!

Anotha one! Lets go

Oh man... The state of America... Still though as always, so glad for these pods! They show us the good, the bad, the UGLY truth about living in the #1 economy in the world.

@nickratti5796

Жыл бұрын

If you go to another country you’ll find that financing is significantly harder to get and prices relative to income are significantly higher

22:48 the answer to Chamath's question goes underappreciated here. remember, the mortgage market is two sided. if a lender underwrites a loan below criteria, GSE's wont purchase it in the secondary market. In turn, the lenders are stuck with it on their books. Through QE, the biggest buyer of mortgages in the secondary is the us government. Now with tapering, rising cost of capital, and lenders being far too comfortable playing with other peoples money, I fear DTI requirements are actually going to get worse before better as lenders ween off and have to step up to the plate with their own balances sheets. TBD.

@jkrzeminski

Жыл бұрын

rising home prices, rising interest rates, stagnate household income levels, unadjusted DTI requirements. this is a recipe for disaster. down payment doesn't even need to be in the equation. it all comes down to ability to repay. this is where the majority will get disqualified.

@jkrzeminski

Жыл бұрын

and if conventional wisdom holds true on large down payments to solve for this, how does the un-asset holding middle reach this goal? In an inflationary period, i sure hope its not in cash. so its a securities play in a cooling market? the length of this runway doesn't seem to square with prime homebuying age. no wonder we've seen a rise of pump and dumps / quick turn strategy in the retail trading market.

NIMBYism is absolutely NOT an American only issue. Massive amount of it here in Ireland despite us having a huge shortage of housing (12 years after having far too many houses). Disaster.

@definitelynotnick2454

Жыл бұрын

Same here in Canada in the most progressive cities. People love to preach how accepting they all are until in hits their doorsteps.

4:24 Maybe they didn't have enough time to adjust the numbers for inflation?

She killed it !

If the investment funds were not pouring money into houses prices would not be nearly this high

The all-in sentiment index :)

7:40 she says a 100% increase is a 200% increase. Bit of a difference there.

just dont understand how it makes money in the future. what if we have a prolonged down housing market like 3-5 years?

Divvy essentially adds itself as another layer to skim people from owning houses. Thanks but no.

@definitelynotnick2454

Жыл бұрын

Well yes, but that's a little unfair of a characterization. You have to understand this is essentially a new way for low-income earners to turn your rent payments into investments. I would much rather have my rent going towards my future and someone skims off the top than a landlord taking it all.

@patienceisalpha

Жыл бұрын

@@definitelynotnick2454 predating on low income people. How is that different than a payday loan. So much for the Robinhood story

@LevelofClarity

Жыл бұрын

@@patienceisalpha From what it sounds like, for Divvy’s target demo it is either this or renting. This sounds better than renting as they get to build equity. There are definitely a lot of questions that need to be answered to know for sure whether or not it makes more sense than renting. But at least someone is trying to serve people who would otherwise not have the ability to accumulate home equity.

@patienceisalpha

Жыл бұрын

@@LevelofClarity that's because they add a premium on top of the house price. It's expensive to be poor.

@kirathekillernote2173

Жыл бұрын

@@patienceisalpha If you view everything from the lense of victim/victimiser or predator/prey, nothing cam happen irl. Unless the low income segment somehow magically becomes high income, or as bernie sanders put it , we need to make the bottom 99% the 1%, which is absolute nonsense btw, it's winner gets all economy. But obviously there is no reason why restriction to capital in the present moment hinders your ability to leverage and get a home. There is a clear opportunity here, and people who like to build things use opportunities to make money (& solve the problem).

This sounds like an excellent solution to help families find homes! Wonderful!! Truly wonderful!!!

Absolutely fantastic podcast. Just WOW! Adena is the real Captain America! P.S. JCal, don't feel bad as I also thought this one was going to be boring but was blown away at how good it was.

She said y’all

10 million second homes and only a 1-2 million “shortage” with retirements getting blown out tells me the housing shortage corrects this summer

Friedberg didn't even get to talk.

graphs are so good fro the brain

29:35 XD

Fantastic !

Basically everything she said was wrong. Housing and education were more a commodity when she was raised and went to college. Now housing is at highest income to valuation level and education a luxury good. Both need to be commoditized. The story of her parents coming to America and leveraging an appreciating asset is the story of American cap rates maturing to look like europes/Australia/Canada. For societal progress elite/private equity must accept multifamily housing as a commodity not a 5 year hold into equity multiple. Elite should store wealth and maintain inequality through ownership of ever progressing technologies and relinquish old forms of control like control of housing stock. As long as Blackstone wants to own multifamily housing and return strong irr/equity multiple to LPs then her effort is gap fill at best.

Hahah nice intro hilarious lol!

I'm not seeing the substantive difference between what she's doing and what banks/mortgage companies already effectively do? When you make a mortgage payment, you're also building up equity and if you want to cash out your equity, you sell your home. Maybe you save some time and money since her company covers the closing costs, but you're ultimately paying for it anyway through the payments to the company. The big difference seems that her company is focused on the piece of the market not qualified enough to get a traditional mortgage. This seems to be destined to doom like it did 15 years ago.

@benshore9407

Жыл бұрын

Yeah I agree, also divvy is taking on the risk with investor capital, luckily they raised a lot of cheap capital but in the future, they will likely have to take down rounds and the venture and property market cools.

@bentang247

Жыл бұрын

They take more risk than the bank would in a traditional mortgage due to lower down payment requirements

@st89

Жыл бұрын

@@bentang247 but that's my point, those are the risky mortgages that led to the collapse in 2008

Her: why don't poor people don't invest. poor people: enough money to buy a food. This rule only for rich people.

Steady Mobbin

@allin

2 жыл бұрын

first!

@steadymobbin.

2 жыл бұрын

@@allin 😁

Did I put the pieces together.....directionally this is about a $200mm revenue company, LOOSING somewhere between $60-$75mm per year and she puts a base, target and upside case together, with UPSIDE case being cash flow positive, and THIS is a Unicorn? What revenue does she need to be at a margin profile to justify, can she even get there? Having said that, the VC community were handing out the term sheets like candy.

Every single person in this country has the opportunity to become a millionaire. It's just that so many people choose not to be. $8 for your Starbucks per day is $240/month that could dollar cost average any index fund. $400 car payment? Try $300 car payment and put another $100/month away. The majority of people just do not want to make the sacrifices nor let time work for them to become wealthy.

sarcasm detected by besties

Husing MARKET WILL CRACH

okay Adena is amazing

Could you please add contact information? Web, Twitter

HOW YOU GONA EAD ??????????

It’s marketing. I think she did a good job

The first quarter was a wealthy person saying wealthy people own too much wealth, the second quarter was an infomercial, not sticking around to see how I can waste my time listening to the back half.

Adena puts forth an argument that lacks perspective. Here’s some info to consider before going and blaming the rich for all of our “money problems.” For starters, in the past twenty years poverty has been declining at rates never seen in human history. And the majority of people who have created wealth are earning it with their own hard work. Opportunity is there for more ppl than ever before. If you live in the US, your money problems are not the rich’s fault, it’s your own fault for not working hard for it. Check out Dave Ramsey’s millionaire study and it will prove my point. We need to stop telling ppl they are victim’s of an unfair society. This does no good and creates entitlement. Go to college to pursue a career that has a future. Work your tail off to make something of your life. Invest in a home and other assets as soon as you can. Make the most of what opportunities you’re given and the gifts you’ve received from above.

This chick just called Tiger Global stupid money…twice. Good luck raising your next round lol

Does anyone see Sacks in the audience? Bueller, Bueller, Bueller.....LOL, I think JCal left that empty white chair conspicuously at the end to make a point.....

The household wealth distribution chart is disingenuous without more data points. 1963 is too close to the great equalizer of the world wars to know if wealth is actually historically more or less unevenly distributed.

why does she seem like a typical social justice warrior? Glad elon is coming into squash that

Is this is not just evidence that Americans no longer have the easy opportunity to build wealth through homes and now must find a new opportunity with the same or better impact.

Please Chamath save CLOV

@gonzales2011

Жыл бұрын

He is asking the right questions

@Ryuohmaru01

Жыл бұрын

@@gonzales2011 are you in?

Her optimism is infectious...but I agree with Burry. Once the bottom of the financial markets is reached, housing is going to crater.

Hilarious line, “On stage with the besties in a minefield of testies.” Glad to see a female mixing it up as a business leader and promoting some cool innovative ideas.

@qoshcompany3465

Жыл бұрын

it's testes

@tskyrhonda

Жыл бұрын

@@qoshcompany3465 bestease

can you get mortgage and use the money to invest into the stock market? if not, that might be also why people don't invest into stock market as much?

@chillones9574

Жыл бұрын

you would not want to get a "loan" of any kind to "invest" in the market, My 18 year old (20 now) invests in a roth401k and a TD amertrade account, step your game up little homie.

@andyy6481

Жыл бұрын

@@chillones9574 but why is getting a loan make sense for a house and not the market? Clearly data shows that the market give u more return just buying the top tindex etfs for example.

@chillones9574

Жыл бұрын

@@andyy6481 you also are paying on loan, the interest rate on a loan also hurts the ROI for stock. A home loan gives roof over head. If took loan out last year for stocks instead of home how can you not see where you would be up shit's creek without a paddle. Good luck.

@andyy6481

Жыл бұрын

@@chillones9574 yea but the interest have been near zero for a few years so if you were able to lock into some low interst loan than you don't really need to worry about it, also the data shows you can get 5-10% annually on average just with the index ETFs. On the other hand you have to pay for stuff to fix up the house all the time and the property tax each year.

She was fantastic. Would love to see more female bestie guests in the future.

Marvelous guest. I was gonna pick on her not knowing her numbers, but it is surely a reflection of collaborative team reliance

Given the numbers, house prices, interest rates, customer payments, etc. I don’t see how her business works.

It’s hilarious watching them speak about all this like it’s all on the up and up ….. we see what’s going on ….. just keep circulating all the money amongst yourselves and your classes kids….. we see …… keep failing and fucking up everything….. and keep giving yourselves chance after chance…. Just changing who’s kid is in charge of whatever new company you spin up …we get it. But never give anyone else any opportunities once so ever…. We are so sorry we put a wrinkle in the party you have all been having for so long ….