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Ryan Burk: Chasing Money, Discovering Happiness & Tree-Hugging Real Estate

My guest is a farmer, a surfer, a yoga lover and including a father but don't let these titles lure you down a certain path because he's also an incredibly successful real estate investor and all-around good guy.

My guest is Ryan Burk.

In our show, we're talking about chasing money, discovering happiness and tree-hugging real estate. Let me give you a big disclaimer before I go a little bit deeper. I'll give you a little taste of what you're about to experience.

This show is what I believe to be a very enlightening show. For you, this may be your first exposure to something of this nature and I'm excited for you.

Let's say for those that have been around the block a time or two, you're going to definitely appreciate this show. In it, we talk about why and how to use fear as fuel. We also get into asking the right questions and how a lot of us don't ask the right question.

We may ask questions, but we don't ask the right questions and when you do, you get a big benefit. We also get into generational wealth. This is an incredible insight on the real estate market and how to capitalize on the big opportunity that's coming up.

We also get into a little bit of the mind-body connection and how to optimize yourself and the power of mental reps and why you want to do them.

With that said, let's get to it.

Ryan
Ryan, you're laid up in pain. You've got $100,000 in mortgages you’ve got to take care of each and every month. You've got projects out the wazoo like you are getting after it. You're the epitome of social media, hustler, achiever, don't sleep, get after it, but there's a toll happening in you. There's a big burden put on you, so much so that you've got physical pain. You are fighting to get out of bed each and every morning. You can't even lift your kids. I want you to take us back to that moment. You're here now and you’ve got a big smile on your face. You've passed through that. Take us back to that point in your life. Tell the story it should be told. More importantly, how did you save yourself? How did you transform yourself into the rock star that you are now?
It's interesting to go back into that because it was a painful time in my life, but it's important to process pain and take a look at your pain and understand that what's coming up is also coming out. Many times in life, as things come up, we want to push it back down or we don't want to sit in that feeling. We want to get rid of it fast. We live in a society where take this for that or take that for that. Get rid of it. Don't feel it. It's interesting. Now, these feelings are coming up again. For me, I wanted to be wealthy. I thought that that was going to be the key to my happiness. I spent a lot of time chasing money, chasing relationships. Luckily, because I'm blessed, I was in the right place at the right time. I found the right people to show me the way. I started making a lot of money. As I started making more and more money and climbing out of the rat race and to the top of that mountain, what I learned was that I still wasn't happy. For some reason, I thought that all this money was going to make me happy and it was to change everything for me.
When I started making all this money, I realized I still had this void inside. I realized that it wasn't the money that I was seeking. I was seeking fulfillment, I was seeking significance, and I thought that the money would make me feel that way. Ultimately, it was having to step into my purpose. That's where I found my significance. For me, I put so much pressure on myself and I had many real estate projects going on, all large projects, mini subdivisions, lots of luxury, in $3 million to $5 million price points. Lots of cosmetics going, 15 to 20 houses going on at any given time for five years straight. Like you said, $100,000 in mortgages every single month. Being in the Bay Area, it was something that I could've never budgeted for in my deals because what happened was, we came across a year, it was the worst winter we'd had in twenty years.
Dustin
Winter metaphorically or is there snow?
Ryan
Not snow, but rain. It did not stop raining for seven months straight.
Dustin
That's going to kill your projects.
Ryan
All the projects were new construction or additions and literally the ground wouldn't dry up. I had 8 to 9 months of $100,000-plus mortgages that I'm paying. I couldn't get any work done. There was nothing happening and it got stressful. On that same time, I teach people how to real estate invest. I was traveling around the country as well doing 30 to 40 weekends a year. Being gone, but also having to be there, dealing with all the stress and two new kids, which can get challenging as well. You go from husband and wife to each other's everything to now you take a back seat and it's all about the kids. For me, it was like realizing my childhood. I was seeking acknowledgment and validation and that's a whole other topic. These are things that I was looking for.
As we started having kids and I started spending less and less time with my wife because it was all about the kids and I was gone a lot between these seminars and all these projects. The stress got so bad that it manifested into physical, hip and back pain. Lots of hip, pelvic, glute pain, which is interesting because they call that area the mat of the body. This is where we push everything under the mat. Feelings and emotions that would be considered the lowest vibrational feelings like shame, guilt, fear, anxieties, things like this. This is what we push it under the mat. It manifested into physical pain to where all of a sudden, I couldn't do anything without being on painkillers or muscle relaxers. My whole life came down to pain killers, muscle relaxers. Because I was depressed where I was drinking, it's that whole cycle. My kids and wife would have to step over me. I would be laying on the ground. It got to the point where it was bad. I couldn't even pick up my kids. I couldn't even work out. I couldn't do any of that. I couldn't surf. I couldn't get in the water. I couldn't do any of the things and that was my medicine that helped me feel alive.
One day, I had this insight and I realized that it was all repressed emotions. I started studying the mind-body connection. What I learned was that I had something called TMS, Tension Myoneural Syndrome. The mind-body connection is the most amazing connection out there. The brain is powerful and is trying to help us much on a daily basis that what it does is when we're not dealing with emotions and we keep pushing them down, what happens is the brain goes, “You don't want to deal with this. You don't want to think about this. What I'm going to do, because I'm your friend, I'm going to create symptoms,” whether it's body pain or disease, cancer. It’s all of these different things. “I'm going to create this symptom to distract you so that you don't have to think about these things that you're telling me you feel are more emotionally disastrous.” For example, cancer. If you ask someone, “What would you rather do, deal with your repressed emotions or have cancer?” Consciously, they would say, “I'd rather deal with my repressed emotions.”
Subconsciously, what happens is because our brains weren't designed to make us happy, our brains were designed to outrun predators two million years ago. Happiness is a choice. Your brain is always going to pick what it feels what the less of predator is. Something like chronic back pain or hip pain or a disease or whatever it is, your brain's subconscious mind feels that's less of a predator. There are emotions that you haven't dealt with your whole life that you keep pushing down. I started studying the mind-body connection and I started creating more of a relationship with myself and started learning about mind-body medicine and learning the doctors inside of us. If we can get ourselves back to homeostasis, not just through our thoughts, through meditation, learn how to slow your brain waves down, things like that, but not through our thoughts, through our nutrition.
The gut is connected to the brain through the vagus nerve. What a lot of people don't realize is we used to think that serotonin was made in the brain, but 80% of it is made in the gut and then it flows up through the vagus nerve into the brain. If your gut is out of homeostasis and you're not taking care of yourself, it's hard to be in control of your thought loops and your thought pattern. If we can take ourselves back into homeostasis, the doctor lives inside of us. Our bodies are designed to heal. What I learned was that through this mind-body medicine that I started practicing, I healed myself. The same brain that created this condition where I couldn't even move is the same brain that healed me.
That's where I became obsessed with neuroscience energy, quantum physics. It was cool because all of that started intertwining back into my real estate investing. Now it's like tree-hugging capitalism, if you will. Real estate investing from a hippy standpoint or hippie mindset. It's cool. I started realizing that like me, some people are poor that all we have is money. We spent all this energy chasing money. If some of us are lucky enough to get all this money and have all this unlimited amount of money coming in, what happens is all these other areas of our life go out of balance and we're not happy. We thought it was the money. What I started learning was that wealth is not in finances. Wealth is in many different areas of your life. It's like, how do you create wealth in all areas of your life and how do you create balance? That's the most challenging part. How do I create balance? You know it, Dustin. There are a lot of people that make a lot of money, but they're on their sixth divorce. Their kids aren't talking to them. They're completely out of shape and physically and mentally they're not there.
That's my thing. How do we create wealth and all these different areas of our life so that we're completely balanced? The lead for me was do good, make money. I believe that money is energy. It's an exchange. There's nothing real about money. We don't even use money. We're taught to save something and hold onto something tight that's going down in value, which doesn't make sense because you usually don't save things that are going down in value. You would save something that's going up in value that there's not a lot of. Yet the money is going down in value and we're printing more of it than we ever have, so there's an abundance of it.
Dustin
I'd never slowed down to think of it that way, but you're exactly right. We're taught like we want to save from the old school. There's nothing there to save and it is going down in value. When you put it together, it logically makes sense. I never went down that road before.
Ryan
It's a dangerous road to go down because if you go down it, this is a whole other topic. You start to realize who runs the country and who owns every single industry. The same people that benefit from us saving money are the same people that own the central banking system. They also own the Federal Reserve. They also own food. They also own big pharma. They also own energy.
Dustin
We've touched a little bit on that throughout our genre. I definitely want to have you back to talk about that. I want to ask you two things because I never got this opportunity. I’ve never made this opportunity. Going back to the mind-body connection and sickness, whether that's a runny nose or a bigger disease. You’ve got kids. I’ve always wanted to ask this of somebody. Kids come in and everyone knows kids go to school, they pick up these germs. They make you sick. From everything you've shared and things that I’ve read, sickness comes from within. How do you juxtapose those thoughts of people saying, “Your kids got sick at school and they got home and they brought you that?” Where's your stance on that? You still have stuff going on in your life. Maybe your kids got sick from school and they bring that home. If you were balanced, if you took care of yourself, you would be impervious to that. What's your thought there?
Ryan
Being sick is all those conditions, that's a purge. That's your body purging and getting stuff out. The body is smart, intelligent, it doesn't want to hold on to stuff. Runny noses, coughing, yawning, crying, throwing up, going to the bathroom, these are all purges. Our bodies are getting stuff out. Back to the question, your kids come home and they're sick. I used to be the guy like I'd sleep in separate rooms because I was a seminar speaker. I’ve got to have my voice. I can't have a sore throat. Studying the brain, I always tell everyone our biggest challenge is that your brain wasn't designed to live here in San Diego in now. It was designed to outrun predators two million years ago.
We were designed to live in caves. What happens was when a predator comes, we go into fight or flight. What happens is when you go into fight or flight, every system inside your body shuts down because your body goes, “You don't need your immune system. You don't need your digestive system. You don't need your cannabinoid system. You don't need your respiratory system. You don't need any of these systems. You need all your energy to run as fast as you can and get away.” What most people don't realize is when you're going, “I can't get sick. Stay away from me.” What happens is you're going into fight or flight. By going into fight or flight, there are chemicals that go along with it, cortisol, adrenaline, epinephrine, norepinephrine. These are good in short bursts, but not long-term. What people don't realize is your nervous system is always sitting on the sidelines going, “Should I freak out? What's going on?” By you going, “I can't get sick,” all of a sudden, your system goes, “Let's freak out. Let's go into fight or flight.” The reason why most people get sick in those scenarios that you created, if you ask me, is because they're in fight or flight thinking about it and their immune system turned off. They can't fight off those bacteria.
Dustin
I love this because this is driven more by science. I had heard a lot of people talk about this in a more woo-woo sense, meaning what you think, you attract. I can see that like, “Don't be sick,” the brain doesn't recognize, don't know what’s in front of it. It's be sick. It's been more of attraction, but the fact that you broke it down scientifically, there are these things going on. Your immune is freaking out. You're on red alert. Things shut down. That makes more sense. I can jive with that versus like, “If I say don't be sick, I'm going to get sick,” or something like that. I love how you broke that down. I want to ask you about balance. That's another thing. Balance, that's one of those hot topics where some people say, “You’ve got to get in balance.” You said that. Number two, the other end of that spectrum is there is no balance. There are that yin and yang. It doesn't exist because once you're balanced, you're dead, some people say. Where do you stand in that spectrum? What's your belief here? Can one be balanced?
Ryan
It's an ever-evolving belief. That's the thing. The more I learn, the more I realize I don't know that much. I feel like you can be in balance, but you can also be focused on being in balance that you're out of balance, because now you're back in fight or flight. I miss my meditation if I don't mind it. I’ve been meditating every single day for the last couple of months, now I missed my meditation. What if the business meeting doesn't go because I miss my meditation? It isn't right. I didn't do my yoga. I didn't go surfing. Now you're back into fight or flight. You go out of balance. For me personally, I’ve done much inner work. What I’ve realized is that, and this might sound a little woo-woo. We've all heard that everything is supposed to happen. Everything is meant to be.
What I’ve learned is that the universe is mathematically perfect. If you look at nature and you look at the algorithms around nature and how the universe works, how things grow, Tauruses, Fibonacci spirals, all of these different things. You realize that everything is coded, our destiny is coded. It's an algorithm in the universe. As we realized that, we realized that we're always trying to resist. Why is this happening to me? What if I go this or maybe I should go that way? If we can surrender to the flow and say, “Some things are going to happen in my life that I wouldn't have picked that as a chapter in my book.” I wouldn't have written that chapter in my book, but in order for me to truly evolve to be the best person I can possibly be, I have to go through challenges. I have to have struggle. I have to have adversity because that's where all the growth happens.
As long as I can surrender and know from the big picture that it's all happening for me, not to me, and I can ask the right questions while that's happening to me, that's the challenge. Most people ask themselves disempowering questions so they give themselves disempowering answers all day. If we ask ourselves empowering questions, we're going to get empowering answers all day. If I can go with the flow and when things don't go the way I planned, if I can take a step back and say, “It's okay. I wouldn't have chosen this, but it's happening for me. What's emerging from this? What am I supposed to learn from this?” I feel that's balance. That's what balance is. It's easy to go out of balance, but as long as you know that you're out of balance and you're okay with it, you've balanced again in essence, if that makes sense.
Dustin
I’ve become aware of this methodology because you could be a victim and you could say, “I had to file BK or whatever.” You could look at and say, “What's the lesson I'm supposed to learn?” I’ve realized that. I’ll tell you at the moment when stuff hits the fan. That's not the first thought that occurs. When I slow down the brain, the emotion, all that, I can do that. One of the things that you said that's critical to this process is asking the right questions, empowering questions. Did you get any tips or magic bullet questions? I don't call it methodologies for asking the right questions of ourselves.
Ryan
First of all, it's important to understand that every single one of us has thoughts and every single one of us has a little voice that goes on inside of our head. Some of us, maybe we call it the inner Woody Allen. It's this relentless, judgmental, won't let up. We all have a little voice. We all have thoughts, but it's important to understand that we are not our thoughts and we are not our little voice. We have them, but they're not us. People go, “What do you mean they're on us? The thoughts are happening inside my head. The little voice is inside my head. How's that not us?” You have thoughts and you have a little voice, but it's not you, who am I then? You're the person that realizes that you have a little voice and you have thoughts, but it's not you. When you can get to a point where you can observe them, observe the thoughts and go, “Interesting. I had a super negative thought.” For example, real estate investing. Someone who's new, who's like, “I want to change my life. I want to get into real estate. I want to create wealth, but I'm so scared to get started,” what's the biggest fear you think? They're afraid they're going to lose money.
What happens is that thought of losing money, what they're already doing is they're creating a disaster movie of what their future might look like. They're already imagining it in their mind. They're seeing themselves losing money. The brain doesn't know the difference between real life and make-believe. It doesn't know the difference between an experience you've had or an experience you're merely thinking about having. It doesn't know the difference whether it saw an image through the eyes or saw an image in the back of that. That's why you can wake up from a dream. Have you ever had a dream where you woke up in your significant other, did something that upset you and you woke up and you weren't upset, you were upset, you were hurt, and you're like, “This is on.”
If you wake up now, we're getting into it and it hurt you. They didn't do it. They didn't do anything to you. All your brain saw was the image of what they did that upset you. It released the same exact chemical, which is a feeling. It only takes 90 seconds to take over your whole biochemistry. It releases the same exact chemical inside your body as if it happened. It made you feel that way. If we can understand that we're always going to have thoughts and science says we have about 60,000 thoughts a day. Neuroscience, which is crazy, 95% of them are the same thoughts you had the day before. If you can get to the point where you can do the work, and it's not easy. This is maybe another topic we could talk about doing mental reps because it's like going to the gym. We've got to learn how to do reps. We've got to build that mental, emotional intelligence muscle. Ultimately you say, “I have thoughts. I'm observing them.”
As you start observing them, you don't have to buy into them and you don't have to release the chemicals. If you understand that the brain doesn't know the difference between real life and make-believe, most people are either living their life based on something that happened in their past or they're living their life based on something that they don't want to happen in the future. We're suffering our memory or our imagination and it's keeping us from living in the present moment. If we can get to the point where we can observe all of these things happening and label them and say, “Life's going to go up and down,” I know that. That's a sign of life. Look at a lifeline. If you're alive, it's all the way up. All the way down, all the way up, all the way down. If it's flat, what happens? If we can understand that and say, “It's going to be up and down.” During the downs, if we can change our focus and say, “This is awesome. I'm struggling. I'm frustrated. I wouldn't have chosen this to happen. I don't know exactly why it's happening, but I know it's happening for me. If it's not happening to me, bring me the lessons. I'm open.”
If you asked that question and say, “I'm open,” you've opened yourself up to a whole different frequency of answers. The best way to explain this without trying to sound woo-woo, hippy-dippy is it's like a radio station, a conduit tower. Everything comes in through the conduit tower. If you want to hear what's happening through that conduit, you have to tune into the frequency that it's playing. You can't listen to hip hop if you're tuned to a frequency that only plays country music. That's where the resistance up. I don't want to listen to country music. I want to listen to hip hop. Why can't I listen to hip hop? People don't realize it's because your frequency isn't there. It's not a vibrational match. What do I do? I change the station. I have to change the station to tune into the frequency of what I want to receive. Back to what you were saying, the Law of Attraction from a science standpoint, from quantum physics. Most people are like, “Why can't I get what I want? I’ve tried to visualize it. It's not working.”
What happens is for most people, they think about what they want and they get excited. Because the brain was designed to live in caves and outrun predators, instantly, he goes, “What if this goes wrong? What if that goes wrong?” It's going to pick the worst-case scenario. They get excited about what they want and then they spend the rest of their day thinking about what they don't want to happen if they tried to go after it. What they want and what they're thinking all day is not a vibrational match, makes it from the conduit tower. In order to truly be in alignment with what we want, we have to police our thoughts and we have to make sure that our thoughts are serving us.
When we start policing these things and we start realizing, “I'm imaging disaster movies of my future, I'm creating fake images. I might as well create fake images of good things.” Instead of sitting here thinking about losing money on a real estate deal, I'm going to get relaxed and visualize them sitting at a closing table in an escrow office. The escrow officer basically pushes a closing statement in front of me and says, “I need you to autograph right here.” As you look down where you need an autograph, right next to it, it says, due to seller, and that's the largest amount of money you've ever received in one life or at one time in your life.
Think about that because every thought has a chemical. If we have feel-bad thoughts, it's going to release feel-bad chemicals like cortisol, epinephrine, norepinephrine, adrenaline, which again are good in short spurts. If we have feel-good thoughts, then we're going to release things like dopamine, serotonin, oxytocin. We are the pharmacist. The pharmacist lives inside of us. We’re the alchemists. We get to choose. I know it sounds easier said than done. This is where the mental reps come in. As soon as you go, “Interesting. I'm scared.” Your body is always going to tell you what you're thinking by making you feel in some way. You go, “I'm scared. I have anxiety.” Where do you feel anxiety? You feel it right here, bigger stomach, gut, which is interesting because the gut is connected to the brain through the vagus nerve. They call it the second brain. The gut has the same amount of neurotransmitters as a dog's brain. It's that intelligent. You go, “Interesting. Anxiety.” Anxiety is a fear of emotion of the future.
If you go, “I have anxiety. Stop. What am I thinking?” You go straight to brain and go, “Interesting. I'm thinking that I'm about to lose money. I have anxiety because that doesn't feel good.” There you go, “Stop. Does this feel good? No. Do I want to keep thinking this? No.” What do I do? Change my thought to the exact opposite thought of what you were thinking. If you're thinking about losing money, change it to you're making money. Change it to you're walking into the bank for the third time that week and you're making a deposit in. The bank teller looks at you and goes, “What do you do? You're in flip flops and surf trunks every day coming here and making deposits. This is crazy.” Think about that.
As soon as you did that consciously, you did a rep because you realized as an observer, that your thought wasn't serving you. You changed your thought. You changed the chemicals and you did a rep. You might have to do 1,000 of those a day. Some days you only have to do two. The key is if you did two yesterday and you felt great, but now you have to do 1,000. Don't judge yourself because yesterday was much better than now. Am I going backward now? I don't understand. Try to be peaceful and go with the flow as much as you can. I like to imagine myself as a buoy in the water. I go up when the water goes up, when the tide goes up. I can't control the tides. As a surfer, I want to because certain breaks will only break on certain tides and you only have a certain window to surf and the tide doesn't match that window. There's nothing you can do except going up when the water goes up, go down when the water goes down.
Dustin
A big thing that helps me, for those that haven't done the reps, myself included, when that thought happens, the chemicals get released. It feels me and it impacts me. Some people are more heady. They're less EQ. For me, I feel I'm an emotional. It hits me hard. We get what you're saying. Logically, the thing that helps me is detach. Getting to that point at attachments, I can ask those questions and your questions weren't hard. The questions, they're simplistic like what am I feeling? I'm feeling bad. Detachment and then acknowledgment, you opened up the interview saying a lot of people trying to repress and we're taking pills and all that. You have to acknowledge, “I feel crap.” Before, I used to hide that stuff. Detachment and acknowledgment of helping people embrace that, those are the things that have I found early in my journey that has helped me embrace what you shared.
Ryan
Be okay with feeling crap. “I feel crap and I felt good yesterday, but I feel crap now.” It's okay. Treat yourself, your little two-year-old. If they feel crap, what are you going to do? You're going to baby them. You're not going to judge them. You're not going to ridicule them. We're hard on ourselves. It's okay to feel it. This is what I say to myself every day, whenever I'm feeling. What's coming up is also coming out if I let it. The fact that I'm feeling that means it's trying to come up and out, but we live in a society where we don't want to feel it, so we push it back down. What's coming up is coming out. Let's let it come out.
Dustin
I knew it would be fun and exciting and I thought we'd talk more tactical. How do you do this in real estate because you're a successful real estate investor? I'm curious about your teaching style. You teach a workshop or a class or work with people one-on-one like myself. How do you imbue this knowledge into the tacticalness of you've got to write an offer and you’ve got to rehab the property and then you've got to list it and sell it? How do you bring this essence to your teaching?
Ryan
What I like to do is to inner weave in and out of actual technical real estate investing strategies and teaching and help people understand that real estate investing is all about learning how to trade risk for profit. That's what you're doing. You're trading risk for profit. In fact, in a lot of cases, when you know what you're doing, the more risk, the more profit. Risk is naturally designed to create fear. Fear because our brain was not designed to live in San Diego and be happy now. It was designed to outrun predators two million years ago, like I keep saying, and make us play small and keep us in the cave. We didn't take risks. Our dad took a risk and he got eaten by a lion. We saw that.
It's important to understand that because fear becomes present, there's a rational fear and there’s survival fear. They're completely different. Survival fear is, “I'm getting chased by a lion. Every system is shut down. I'm trying to get away as fast as I can because I'm about to die.” Irrational fear is, “I’ve never done this before. What if something happens that I'm not in control over that I don't plan? I'm scared.” The brain only sends one danger signal. The body doesn't know the difference between a rational fear or survival fear. The same feeling when you're going to feel getting chased by a lion because you're about to die is the same one you're going to feel because you’re presented with your first opportunity to do a deal, but you're scared. It doesn't have to be a stop sign.
By doing the reps, we can use fear as fuel. With my teachings, I teach a lot of mind-body science so that when people start feeling these things, they don't have to take it personally anymore. That's what it is. It's like, all of a sudden we can go, “I'm scared. My body and mind are working exactly how it's supposed to. This is great. I'm alive,” and then go back to the questions, the rep. “Am I getting chased by a lion?” “No.” “Am I about to die?” “No.” I'm scared because I’ve never done this before, but I’ve gotten good at things that I haven't done before. I don't recommend going out and investing in real estate without mentors and without getting educated. It's not smart. If I have the right people around me and I have the right people guiding me and holding my hand, then I can keep doing the reps and I can use the fear as a feel, and then I can get out, I can do a deal. You know what happens? You go, “I did it and I'm good at it and I liked it.” What do you do? You do another deal. Before you know it, your hands are out holding other people's hands, going, “I get it. I was there. I got you. Grab on. Let's do this together.”
Dustin
I can imagine sitting in your workshop. I can paint that picture in my head of how fun and exciting that would be. I want to ask you this tactical and a lot of people you know here at the Bay Area, the prices there seem ridiculous. From a heady part of our conversation here, do you feel the Bay Area can support itself? What are some things that you're thinking about hedging if there is a downturn there?
Ryan
I feel the Bay Area. The Bay Area has its own bubble within a bubble because of the tech. Technology is not getting any smaller. It keeps getting bigger. With all the Millennials that continue to graduate and they're getting into these tech positions, what's happening in San Francisco, median sales price is $1.5 million. That’s crazy to me. That's a starter. No off-street parking, no back yard. What's happening is everyone's getting squeezed out of Silicon Valley and into and out of San Francisco and into all these other areas becoming gentrified. There's a lot of false appreciation within it. I study market cycles though, I studied macroeconomics, and I studied someone by the name of Phil Anderson.
I’ll throw out a book. It's a life-changing book. It's called The Secret Life of Real Estate and Banking. It's all about you go back to the last 200 years and there have been eleven recessions. If you go from recession to recession, it's never been shorter than seventeen years, it's never been longer than 21 years. You average it out at 18.6 years. It's an 18.6-year cycle. If you look at every recession, 13 to 14 years up correction, 3 to 4 years down. There's always a mid-cycle slow down the middle of the 13 to 14 years up. As the mid-cycle slowdown happens, what you'll notice is credit starts getting easy again and they loosen money. We deregulated lending. Subprime is back. It's called non-prime now. Google that. Non-prime stated incomes back 500 credit score.
Dustin
Are we making the same mistakes again?
Ryan
It's going to be bad. If you understand the concept controlled chaos, one of the most profitable things for the people that run the country is to draw a bunch of risky loans and make a bunch of money on the interest that you know is never going to get paid back, collapse in the economy and get all the real estate. If you look at the five families that run the country, they own 95% of the assets. How do they distribute all that wealth and assets? It's through controlled chaos. My buddy got a $2.2 million loan in Orange County, it's a bank statement loan. Credit score, bank statements, no tax returns. What happens is they loosen money. Notoriously, you have a mid-cycle slowdown and then all of a sudden money gets loose. Based on the last cycle, we're around 2000, 2001, right when subprime hit. If you look at all these loan products, what is that going to do? It's going to create all these buyers that we have that haven't been able to buy or all these new buyers that are self-employed because the Millennials don't want to work for anyone. They're self-employed. This is going to create one of these. Based on history, we're looking at around 2025.
What I’ve been doing is I’ve been acquiring a lot of C-class real estate, which is basically the year it was constructed 1940s, 1950s and then adding value through adding bedrooms, adding accessory, dwelling units as well. Separate structures, but it's still considered single-family. I am adding the value, cashflowing, borrowing against and going and doing it again. I'm also acquiring a bunch of commercial over here. I'm doing a bunch of syndicated deals with the boys upstairs and stuff that and participate in that. We're getting all the depreciation. What this allows me to do is get to a point where if I decide I'm out, I'm going to sell at the top of the market as subprime starts booming. We get 3 or 4 years of the boom.
I'm going to be able to sell all my C-class and sit on my cash, but my capital gain is going to be eliminated by all my depreciation commercials over here. As the market collapses, that's when it's an all you can eat buffet with no one around. I'm going to be able to go back in and buy all A-class real estate, which is constructed 2000 above, and then we're buying C-class and ride the next 18.6 years up. People can get rich flipping houses, but generational wealth comes from timing one cycle right. That's for great-great-grandkids who are benefiting from those things.
Dustin
You've got a roll and I could probably go six hours with you on one conversation for sure or multiple conversations. I appreciate you being on. We haven't had a guest back, but you might be the first. You may have set the bar for coming back. I appreciate the conversation, especially the first part of our conversation. I want to hear more about that. For people that want to continue to real estate conversation, they can check out what you're doing over at
Ryan
The best place to follow me and follow what we're doing, my family and everything is Instagram and that's @RyGuyBurk and you can get me to follow there. You can see what we're doing and it's cool. We bought a farm, so I'm a first-time farmer. You get to see me messing off all this stuff up on the farm and hanging with the animals and the whole deal. It's good.
Dustin
I appreciate you making the time. I know you’ve got interviews and things and business appointments to run to, but I appreciate you taking the time to be here. I’m fascinated by the conversation. I appreciate what you're up to in the world.
Ryan
I appreciate you as well. I want to say thank you. I'm a big fan and thank you for doing what you do, what you're bringing to the table. I feel it’s important for people to get ahold of the variety of information you're bringing and the types of education. That's my hats off to you.
Dustin
Thank you.

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