The REAL Reason Blacks are Poorer than Whites.

hey everyone it's me meet Kevin and today we're talking about why black people are statistically

poorer

than a white people and the

real

reason

might come as a shock to you and the entire cost of the video is not no it is not you buying a course or a t-shirt although you can do that down below if you want it is you smash that like button today there are almost 82 million households that own

real

estate unfortunately that leaves around 45 million households or somewhere close to 100

million people who don't own

real

estate you might be thinking to yourself wait Kevin white is owning

real

estate matter and what does this have to do with

blacks

and

whites

and passive income while I sleep I want that money while I sleep well here's the thing the New York Times tells us that if

blacks

and Hispanics owned

real

estate and REITs a similar to a white folks than the racial wealth gap between

blacks

and Hispanics and white people would narrow by 33 percent almost instantly

now right away that should be pretty shocking simply the fact that

blacks

and Hispanics don't own

real

estate as much as white people contributes to a massive wealth gap you might be thinking to yourself wait a minute

real

ly is is is there

real

ly that much of a difference between the homeownership rate well let's zoom in a little bit and let's look at what Harvard tells us about the homeownership rate in 2017 according to Harvard 72 percent of

whites

owned their own homes yet only 43

percent of

blacks

owned their own homes the national average is about 63 percent for home ownership but you can see the massive favor goes to white people that own

real

estate where

blacks

and Hispanics historically don't own as much

real

estate as white people see naturally you might be asking yourself wait a minute Kevin okay like who cares about the homeownership rate like just because you own a place doesn't mean all of a sudden your net worth is higher you know you could just does

well invest in mutual funds or Vanguard index funds or whatever well unfortunately at least statistically that's just not the case see the New York Times also tells us that the average expected net worth of a homeowner is 195 $1400 compare that to tenants tenants have an expected net worth of just $5,400 that means homeowners have statistically 36 times the net worth of tenants it doesn't even matter if everybody invests in Vanguard or Tesla stock the same tenants are 36 times

poorer

than homeowners and black people and Hispanics own homes way less than white people do now some of you critics out there might be thinking to yourself well we'll come on Kevin it's 2019 home values are like super high right now okay fine that's fair let's go back to some other research I did just for you kind of folks which I appreciate you I still want your likes I went back to 2011 and found that even in 2011 the median net worth of a black household was seven thousand one

hundred thirteen dollars for Hispanics it was eight thousand three hundred forty eight dollars for white people it was over a 111 a thousand dollars like what think about that for a moment why is that fair black people $7,000 Hispanics $8,000 white people $111,000 are you kidding me like no it's not fair it should not be that way so I decided to go on a little bit of a mission I decided to find out why is this what is causing this and no I'm not suggesting everybody just be a homeowner

tomorrow I don't think that's gonna solve everything to just go out and buy a house it would be a mistake to do that especially without the proper education but you do keep in mind that even Harvard does say that homeownership is positively associated with better housing safer neighborhoods better jobs better schools better opportunities to build wealth and well overall statistically homeownership is driving some massive value but let's now get into the corrupt

reason

s why I think

this is all the way it is and how we could change it I think there are two pretty nasty and corrupt

reason

s why there is such a wealth disparity between

blacks

and Hispanics and white people the first

reason

is think about it this way when you have decades and decades of racism and segregation what happens white people get to buy

real

estate and black people and Hispanics don't thanks to old school redlining laws that said banks will not lend in certain areas and crazy nasty stuff like that

see the New York Times says white people are much more prepared to buy houses because they have parents that are not only educated in

real

estate or have experience in

real

estate but they could just give downpayment money to that white children but see it gets even worse than that because you might say to yourself well come on a black person or a Hispanic person has just every equal opportunity to just go ahead and walk on into a financial advisors office and get educated about their finances

and

real

estate well unfortunately that also doesn't work that well see financial advisors don't always have the legal obligation to give you the best advice for you in fact there's a lot of confusion around whether or not a financial adviser is actually a fiduciary or not that's known as a fiduciary relationship it's just some fancy legal term that says you have to do what's in the best interest of your client well financial advisers and people that sell you mutual funds

or stocks or you know other kind of bond funds whatever all these securities they sell you just aren't always obligated to give you the financial information that's in your best interest and even when somebody is a fiduciary in one case they might not be in another combine that with the fact that when people go to financial advisors they usually don't

real

ize there's something known as revenue sharing and that is when a financial adviser recommends a product to you they get a

commission on that product it's not as transparent as

real

estate now I know a lot of you might think well come on when you sell a house and

real

estate you get a commission as well right but the Commission is much more transparent in

real

estate and legally agents are held to that fiduciary obligation now they say have to do what's in the best interest of their client now I don't want to get into a debate about whether or not you know financial advisors are bad

real

estate agents

are good that's not what I'm trying to say I'm just saying that it's not that easy for people to get

real

estate advice because there are a lot of convoluted and messed up things that make it very hard to understand if you're actually getting good advice that's because there's no money to be made from a financial adviser and

real

estate unless they're also a

real

estate agent unfortunately even on the

real

estate agent side not all

real

estate agents know about

real

estate investments so where are you full circle back to if you don't have an education or some kind of aid or knowledge in

real

estate investing how are you possibly going to invest in

real

estate if you don't have a family that understands

real

estate you don't know if you can trust a financial adviser to tell you about

real

estate you don't know if you can trust a

real

estate agent about

real

estate let's just be

real

about it all now all of a sudden you just get

fearful and you're thinking to yourself wow how much ever supposed to learn about

real

estate you know what I'll just keep renting in fact this is where things get even nastier you might think okay well well maybe I'll just I'll just read you know online about

real

estate well then you get people like this guy Ramat Sethi who wrote an article in The Observer about how people were telling lies about

real

estate investing and half-truths he takes the position that he's anti

real

estate investing and that you're better off renting and so he says that you know people lie about

real

estate investing and now when I broke apart his numbers where he gives this example and says hey well look here's one of the

reason

s you don't want to invest in

real

estate if you buy a $300,000 house it's gonna cost you a million dollars over 30 years that was with this argument that he made well when I break apart those numbers and I look at wait a minute how does he get

to those numbers they

real

ize oh my gosh he had two paths the numbers with thirteen thousand six hundred dollars in renovation and repair costs every single year like every investor watching this video right now should have a heart attack and go no no no $200 a month it's like $2,400 that's like a fifth of $13,600 average investor does not spend that much money on

real

estate that's insane either Roberts talking to people who buy

real

estate wrong or they spend crazy amounts of money

renovating

real

estate in the wrong ways because they're watching too much HGTV problem is he doesn't make that distinction so now all of a sudden it's like well no freaking kidding why we have a problem with the wealth gap in the United States you can't get educated and then you're like well wait a minute you can go to school well you ain't learning about

real

estate in high school let's be

real

about that and then it's like well what about college great maybe

you'll be lucky and you'll learn about

real

estate in college although you probably won't instead all you'll probably get is saddled with student debt which student debt now sits on your qualifying shoulders so to speak it makes it so you can't qualify for

real

estate anyway it's super hard to actually get educated on

real

estate investing now I have something super exciting to show you it's right here in front of me but before I do let's obviously come up with a

summary here and say folks it should be super freaking obvious at this point that a lack of education clearly leads to a massive widening of the racial wealth gap this is basically like a new form of racism in 2019 in the United States it's unacceptable that this gap is so wide and what should you do right now no matter whether you are black white Hispanic or whatever it does not matter what should you be doing right now you should consider getting educated in

real

estate no you don't

have to buy my courses which are linked below or attend my in-person live

real

estate investing crash courses you can watch YouTube videos for free you can get

real

ly inexpensive books there endless ways for you to learn about

real

estate you don't have to listen to everything I say take what you like and I you'll learn something also shout out to Ricardo here that sent me this amazing a letter for feedback for the New York City I'm over it tour event that we just had this last

Saturday that was the

real

estate investing crash course the all-day event next up is Chicago know that the New York City once sold out we actually squeezed the hint of another extra two seats in the back just to get a few extra people in in the back that

real

ly wanted to come I'll just quickly also mention that not only is a Chicago next and it's about to sell out after that we have Seattle Austin Miami San Francisco Charlotte and Atlanta and a few other locations I would love to see

you there and

real

ly hope to be able to teach you what I can about

real

estate investing alright folks here it is I couldn't have done it without you it's because people like you press that red subscribe button and I am so grateful for you thank you so much for making that red button gray please if you haven't done that yet please do so because a look what it has led to this is so motivating to create more content for all of you it's the YouTube play button ah shiny ah so I think

oh look it's like a mirror to I can see how I anything I teach hahaha yeah looking forward to producing more videos present it to meet me-80 what you