[00:00] appreciation smoke. You said earlier, when you were talking about figuring out your yield, when you were talking about what's a good deal in your market, you specifically did not mention appreciation or any type of value add. So I take that that's intentional. And can you explain to
[00:16] us why? Again, you got to remember what I've seen over 25 years. I've seen the crash up close and personal. I saw people with $10 million balance sheets go bankrupt, divorce, and leave the game. And as I said in my wealth formula, the whole idea of getting wealthy is you have to hold for 10 years.
[00:31] And appreciation is smoke. It's just smoke. It's not real until the day you sell. And I'm a long-term buy and hold investor. I will include value add if it increases rent. Like, for example, one of my greatest things is to buy a two-bedroom but convert it to a three, assuming the square footage works.
[00:49] So I will do the math, including make ready of adding a door, a closet, and that. and then I'll have the rent go from, you know, a two bedroom might be 900 to a three bedroom being 1450. I'll do that.
[01:01] Like that will be included, but I have to have the plan. I'm not, oh, it's got a new kitchen and bath. That doesn't give me rent. Are you kidding me?