SPEAKER_00: hey everybody hey everybody mommy's back mollywood back in the house and the gods have gifted us with a beautiful present adam newman has been funded again and the funding amount and who funded him

SPEAKER_01: molly it's like the greatest gift the gods exist i believe in the afterlife they have given a

SPEAKER_03: sacrifice to the great god of molly coming back from i believe i got to miss all of the dire

SPEAKER_04: business of last of the world yes the end of the world and i get to just roll right in to news that a16z has written its largest single check ever to adam newman for his new residential real estate startup flow not to be confused with his other crypto project flow carbon it's i i could not

SPEAKER_09: be more thrilled and of course just on time mark andreason uh and his lovely wife comment on how

SPEAKER_11: multi-family housing in atherton how these two stories drop in the same 10 days i mean fate

Chamath Palihapitiya: loves irony it's gonna be a great show so great stick with us this week in startups is brought to

SPEAKER_16: you by linkedin jobs a business is only as strong as its people and every hire matters host your first job for free at linkedin.com twist trip actions was built to help businesses scale without travel and expenses being a pain point it's the only all-in-one travel corporate card and expense management solution go to tripactions.com twist to sign up for free and get a 500 amazon gift card after making your first travel booking or paying off your first one thousand dollars of liquid spend and odoo is a fully customizable and fully integrated suite of business apps that lets you build and scale your stack as you build and scale your business your first app is free forever and right now odoo is offering one thousand dollars off your first implementation pack at odoo.com slash twist that's

SPEAKER_18: odoo.com twist hey everybody welcome back it's monday and i think somebody's got some monday energy welcome home sister oh my god i missed you guys my big sister is here that was a long one turns out

SPEAKER_20: vacations do what they're supposed to do they make you miss your house your homies and your podcast

SPEAKER_22: nice that's great i was a little worried i was like molly gone for six podcasts what's gonna happen and i realize great we've got such a you and i are so strong individually and we've got such strong producers and we've got such a strong bench of guests that when one of us goes away for a couple of

SPEAKER_23: days it's actually kind of like a ratings bonanza like because the producers and everybody rally to like okay we got to beef this up because hey one of the all-stars is gone it's like the the bench steps up right the other players get more shots on goal there's more ball to go around and when i went my rafting trip for three days you had didrabosa on uh somebody else slipped in alex wilhelm thank you alex will then you're gone and we had an incredible uh crypto round table with vinnie lingam last

SPEAKER_22: wednesday uh and uh sandeep madra which we're gonna do every two weeks i was gonna say please can i

SPEAKER_26: get in on that like i want to do that again too that sounded that was so fun i got big round table

SPEAKER_28: energy going i would you know after the real estate one i feel like the real estate one what do you think monthly would be good yeah do you know definitely yeah that would feel like a monthly back to your

SPEAKER_31: roots because that's what you used to do is the news round table yes and you did on buzz out loud

SPEAKER_33: right it was always a how many people and also twit like it was always a four people three people so it's it feels like you can you can get a nice uh ball movement going so and then i also had

SPEAKER_28: howard lindsen on um who hates me but you know he's wild he's a wild man and he hates me

Chamath Palihapitiya: but he loves my j trades nick's favorite guest howard lindsen so it's nick's favorite guest nick's favorite guest because he just teed off on you next favorite guests are the ones who hate me

SPEAKER_42: no no which is at this point howard lindsen fascinating sacks free bird sacks on the margins

SPEAKER_44: it's like why does everybody hate me all of a sudden what did i do i asked for a couple extra points

SPEAKER_46: for being ceo and now i'm the most hated guy in pocket i've never had a bestie to hate hated ratio

SPEAKER_48: like this it's rough not gonna lie it's hilarious listen it's a rough listen at this point another

SPEAKER_04: one of my favorites parma like another dude what's going on i got a stone cold cinderella text while i'm on the beach in no i was cruising around mexico city i'm in the middle of like a food tour i think i'm on a bike or whatever and i get this message that's like what is going what is jason trying to

SPEAKER_55: even do with palmer lucky out here and i was like oh god i am off the grid and none of this is my problem even if i were on the grid like why are you texting me i don't even want to get into it but oh my god yeah i will tell you i did not go back and look at the archives i did not i just i'm letting

SPEAKER_11: that one just go on by let it go let it go yeah but yeah no i'm getting a lot of inbound on episode 91 of all in let me just tell people like uh we break each other's chops on the show i'm okay

SPEAKER_61: it's okay for people to i'm the chief chop breaker on the show because i will cut it be no it's fine all the guys came uh at me pretty hard because we went over the same things we go over every week but

SPEAKER_28: people were like hey jake how why did you sit out the the sax monologue the sax monologue well i i in a

SPEAKER_66: way i don't like talking about politics i'm more and more moving to this independent position which is kind of where i started my political leanings which is i just like to be an independent critical thinker i don't like to be part of parties i voted republican in my youth like in my 20s i voted uh and into my thirties pataki giuliani when he was sane and um bloomberg who was a republican uh and so

SPEAKER_33: but a bloomberg's a republican in the way like clinton's like a bill clinton was a moderate

SPEAKER_23: kind of uh but people are really trying to pin me that i said you know what i i don't have enough information on this mar-a-lago search for me to feel like i can make a definitive decision i i think you could wait until after we have the stuff released or even a couple of months i'm not saying everybody knows i'm not a fan of trump i hate the guy but i just said let me see what happens if i just lay back and i think i proved my point largely which is like it's going to just lean to one side gotta be a monologue and i don't really want to uh speak about politics and like just be the defender of the left and then be pinned as like having trump derangement syndrome you know i'm gonna want to be cinderella i don't want to be cinderella like you right i find my politics i have no home right now i'm not at home and either he's probably very uncomfortable with both

SPEAKER_66: parties positions on spending on interfering in people's lives like both parties want to interfere

SPEAKER_33: and like just get way too involved in people's lives i'll leave it at that like between roe v wade and people's rights and you're mostly talking about the one party right now but yeah yeah that's true i'm talking about one party but also with the freedom of speech stuff like you know which the other party don't no longer believes in as much as they used to like it used to be and then the working class yes you know like i feel like the left has abandoned the working class and they've abandoned freedom of speech and i'm just like where was my party do i even have a party now i don't freedom of speech neither party cares about limited spending neither party cares about staying out of people's lives it feels like everybody's up in everybody's life i'm just like i don't want to talk about it anymore i find the whole thing gross i find the the polarization gross i hate the media most of all

SPEAKER_11: both sides i was listening to fox during this whole thing you got a media break i hope oh yeah well

SPEAKER_75: i tried but there was a lot happening would you get pulled into the twitter where you just yeah did

SPEAKER_31: you late night watch some news no i just was twitter i just twitter how are you not gonna look

SPEAKER_03: at twitter when that yeah fbi situation is happening i was like uh it's so brutal well you know it's just

SPEAKER_66: like i i and we just give this little media commentary here i was like i bet you if i turn on fox they're gonna be talking about hunter biden hillary's email of course and i was driving up to tahoe

SPEAKER_24: and whatever else who knows i kid you not i turn on fox and it's exactly that hunter biden hillary's email so then i'm like i bet you if i turn on

SPEAKER_23: msnbc it's going to be them talking about he's going to jail and like just exaggerating this thing and blowing it completely out of proportion before we even know what's up because we all know like this

SPEAKER_66: has been an ongoing issue with you know people take there's people on the left who have took stuff like there was that famous guy who was i guess part of uh clinton administration the one who went to jail

SPEAKER_88: yeah he didn't i don't know if he went to jail this is not there's nothing he put them in his

SPEAKER_89: pants right well no of course not this is a large number of documents but there was another guy who

SPEAKER_23: was like going to the archives and ripping out the 911 stuff and putting it in his pants and socks

SPEAKER_22: and he was on the left i'm like this this seems to be happening on some regular cadence people take documents they're loosey-goosey with this stuff and then it seems like the fbi and then there's the

SPEAKER_55: president of the united states like come on sure you don't execute a war anyway it's a very different conversation what i will say is that i think we all want to be we all do want to be free of the exhausting nature of the discourse right now there doesn't seem to be any political any benefit personally or otherwise into wading in and trying to debate because one side has one set of information and the other side has another set of information and never the twain saw me right it feels like no minds are being changed like i listened to sax and i'm like i know you read that here here here you heard it here right like it feels like you could just literally go back and find the talking points and probably the email that got sent out and and it doesn't matter you know if you could have jumped in and said hey i hear what you're saying about the fbi being corrupt and acting in this way or whatever but you do know that they also acted against hillary clinton right at the end there james comey did and you know that like the current director is a trump appointee and so on and so

SPEAKER_98: forth but it doesn't matter however it's all tribal yeah there is this ongoing question about like what it whatever what gets accomplished if no one takes a side i you know i think i'm taking the side of

SPEAKER_23: let the you know uh legal system take its course right i think that's a pretty good one and don't

SPEAKER_103: assume you actually know everything because you don't yeah that's what i was saying is like i

SPEAKER_33: we don't how can you make a judge i mean i it's fun to play the speculation game you could play the

SPEAKER_28: speculation game as long as i'm fine with playing speculation and say here's like possible scenarios

SPEAKER_23: a b c you know b a d you know you can literally go through the permutations of the possibilities and just admit like no none of us know exactly what's going on here right we don't know but you

SPEAKER_22: know it's uh i just hope it ends because now i got the seeking sneaking suspicion that the justice department's not going to say anything because they're so close to the election and so now we're

SPEAKER_33: going to have another six months of just full-on media social media cable news 24 hours at bay debating

SPEAKER_24: the each a little drip drab for ratings and i'm telling you i'm not participating this time i'm going to wait it out i am not participating let's see what the justice department comes up with i trust them i trust the fbi overall i trust the department of justice overall yes can are there bad cops there's always been bad cops are there bad actors in politics yes there are bad actors there i think

SPEAKER_105: we just wait it out and say hey there's other more interesting things to talk about and that's what i would like to do is talk about the more interesting things while we figure out

SPEAKER_107: while the justice department figures it out great good news because there's some good on today's show oh my

SPEAKER_40: god i mean just when you thought he was out whoo he's back in what is have you seen the rick and

SPEAKER_55: morty uh episode that is like a takeoff on heist movies and they just keep going and rounding up the crew and every single person that he goes and talks to is like you son of a i'm in

SPEAKER_111: it's just i love a good heist movie roundup uh we get all the characters together exactly that's

SPEAKER_92: adam newman right here you son of a all right well i'm in say i i saw this going past my feed this

SPEAKER_11: morning and it was like you know praise jesus uh uh molly comes back and we all of a sudden have a

SPEAKER_22: full docket hallelujah as you gear up for q4 the big fall is coming you're gonna need to have the best people on your team to make sure you're firing on all cylinders q4 is critically important for all of

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SPEAKER_66: something for free adam newman has raised money for a startup called flow 350 million from a16z

SPEAKER_127: at a valuation over for a billion dollars they're not launched they're not launched it is also

SPEAKER_55: from what we can tell it's also not flow carbon the company that he had been starting that was going to like use the blockchain to track carbon credits okay we don't think it's that although there has been no official end of that company and nor is it flow the crypto project that which is a separate independent which is a separate independent crypto project got it that also i think is backed by andreson and had a big spike today as a result of this this is none of that this is a whole new

SPEAKER_131: unlaunched real estate venture oh i love it so good so good i mean and better and better and better

SPEAKER_55: yeah okay let's do some fun details via the new york times the 350 million dollar check that a16z wrote is the largest single check this firm has ever written into a startup wow things we know and i believe this is a list this is a comprehensive list of all of the things we know about flow the company and there are four whole bullet points here five adam newman has evidently purchased over 3 000 apartment units in miami fort lauderdale atlanta and nashville he is planning to make a sizable personal investment in flow in the form of cash and real estate assets and the idea i think is that flow will quote operate the properties newman has bought and also offer its services to new developments and other third parties so it's like a property management like when you buy a i got house and you rent it out on verbo it's just like that i'm assuming no no i think what this is

SPEAKER_28: going to be it's going to be a community remember he was doing we live yep i thought this is a great idea i had talked about this on the show i had this idea years ago because i got obsessed with micro

SPEAKER_33: apartments new york had approved like this concept of creating micro apartments it was very polarizing because people were like oh great a family of five is going to live in you know 250 square feet and

SPEAKER_66: it was like no these are more like dorm rooms for 20 something so like yeah that's what's going to happen it's going to wind up being families of five i'm like okay calm down everybody more housing better

SPEAKER_33: but the concept i had with micro apartments which i think is what this is going to wind up being was what if you had a bunch of micro apartments and then instead of them having like bathrooms in them you go down to a gym and there's like common showers and a gym because when i lived in new york a lot of people lived in illegal lofts and they would use you know the toilets in the you know in the office building or whatever common toilets they'd have a sink maybe and then what they would do is

SPEAKER_22: they go to the gym every day and they take the shower there it was like a classic new york yeah yeah

Jason Calacanis: i mean it's community living it's it's like correct commute you know again we go back to he was on the kibbutz he was on the he wanted to have the way kibbutz is when you're talking he was on a kibbutz

SPEAKER_23: sorry oh kibbutz sorry i misheard so that he was on the kibbutz which i guess is maybe where kibbutz

SPEAKER_24: comes from right he grew up on a commune so i think that's what this is commune living it's communal living without a doubt but without a doubt that's what he's doing and then what i think to be clear

SPEAKER_55: still like old school yes you know it's a it's like an hoa combined with property management it sounds

SPEAKER_66: like and i think it's going to be that you can leave one and go to another one so that was the

SPEAKER_28: other idea i had was what if you built these micro apartments uh with the you know showers downstairs in the gym kind of situation and it was super cheap but you bought in for i don't know two hundred thousand dollars right that's what it costs to be a member of this but you could stay in any one of 50 of them around the world and when you left one they would ship your belongings to the next one

SPEAKER_66: so you'd say hey i put my stuff in the boxes you know same size boxes they ship to the other one they put your boxes in the room so imagine like that level of service where you could or maybe you bought two units and you could give one to your friends or whatever so that's what i have a feeling is going to go on i'm guessing here i'm speculating but he did we live and to be clear

SPEAKER_98: there's no way for us to know like there are no exact details of the business plan at least as reported

Jason Calacanis: in the new york times they presumably presented them to a16z to get the 350 million dollar check yes

SPEAKER_171: yeah so that's what i take this is i think it's a pool of apartments that you'll easily be able to

SPEAKER_33: move around i just want to also point out that 350 million dollars is the size of most venture capital firms that's number one so the scale of this investment is extraordinary in venture number

SPEAKER_22: two investing in two startups because they led the 70 million dollar round of the flow carbon

SPEAKER_24: crazy blockchain which actually doesn't seem that crazy we talked about this actually maybe a reasonable idea so let's say they led usually you do half if you're leading so 35 million they've not put 385 million into the second most disgraced founder of the last decade after i guess theranos right you'd say it was theranos i mean i'm sure there's plenty of other ones but i'm saying

SPEAKER_66: that's coming yeah yeah yeah like over a billion dollar company number three this breaks jason's law

SPEAKER_22: which is it states that any startup that raises money at a billion dollar valuation before they have a product uh you're going to lose all your money and it might turn out to be a fraud now i've been saying this for a long time we got a lot of examples of this quibi failed don't think it was a fraud theranos

SPEAKER_24: failed completely a fraud we work um never became worth a billion dollars before they had done like you know the milestone rounds nicola nicola then what so that's three what's the one in florida that was doing ar still hasn't released a product i believe magically yeah magically yeah good one again i'm not saying it it is a fraud but it might turn out to be a fraud or complete mismanagement you know what we consider a fraud here in this day and era this this era of we have to reinterpret every word like what is a recession what is a fraud what is this what is that so i think we know what a

SPEAKER_11: fraud is but okay it could just be complete mismanagement if we want to say theranos was completely mismanaged and nicola was just bad luck okay fine but i i would say probably fraud i mean

Jason Calacanis: they were convicted of fraud so yeah in this case i think we have a safe legal definition which is

SPEAKER_55: yeah actually they're going to jail so am i allowed to say it was a fraud you're allowed to you're also allowed to say whatever you want you might get yelled at by your besties but you can still say

SPEAKER_160: whatever you want yeah exactly it might be uh a fraud uh if you have been convicted and are going to

SPEAKER_24: listen i've booked a ton of work trips in my day both for myself and my teams and it is a massive headache think about how much time you waste with the overhead i have to track receipts i have to approve the vendors reconciliations all of this nonsense there are so many issues you have to deal

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SPEAKER_121: it drives productivity it takes out drama and it keeps the employees safe and they feel cared for the team of agents there provide amazing 24 7 travel support and you get 2 cash back on every purchase and you don't have to be involved in all this craziness trip actions.com twist to sign up for free and they'll give you a 500 amazon gift card after you do your first business travel booking or you pay off your first 1k in liquid spend okay so if you use the product they give you the 500 amazon gift card

SPEAKER_22: as a thank you and you want to make sure you do that at tripactions.com twist interestingly mark

SPEAKER_55: andresen himself was like you know wrote a blog post explaining why uh he placed this bet and among other things mark is back blogger mark is back and we're gonna get to the housing part of this in a minute but one of the things he did point out was like everybody wants to forget that we work was

SPEAKER_98: a great concept that is an ongoing concern right it's an existing business that seems to be doing pretty well it is not all the things that it was uh promised to be back in the the day and there was

SPEAKER_55: unquestionably mismanagement what i mean i'm just pointing out what he said when he talks about why he wanted to found uh why he wanted to support and fund adam newman again here it is and so we are excited to partner with adam newman and his colleagues on flow which is a direct strike on precisely this

SPEAKER_98: problem the residential real estate problem he says adam is a visionary leader who revolutionized the second largest asset class in the world commercial real estate by bringing community and brand to an industry in which neither existed before adam and the story of we work have been exhaustively exhaustively chronicled analyzed and fictionalized sometimes accurately oh uh-huh for all the energy put into covering the story it's often underappreciated that only one person has fundamentally redesigned the office experience and led a paradigm changing global company in the process adam newman they're backing their guy and then he goes on to say we understand how difficult it is to build something like this and we love seeing repeat founders build on past successes by growing from

SPEAKER_55: lessons learned for adam the successes and lessons are plenty and we are excited to go on this journey

SPEAKER_19: with him and his colleagues building the future of living fantastic i have to say kind of agree i mean we're so like torn on this right because we weirdly kind of agree

SPEAKER_98: i think i think everybody's come around with like uh everybody on our team anyway especially producer

SPEAKER_204: nick is like well we kind of love him he can sell anything i mean here's the thing the guy's a madman

SPEAKER_205: and he's audacious and you're looking for an audacious person to swing for the fences and build a

SPEAKER_28: hundred billion dollar company we don't have enough of those people and so is adam newman a huckster pt

SPEAKER_206: barnum on his worst day sure did he get completely off track and become a mega uh narcissistic insane

SPEAKER_76: horrible leader yes did he learn from it of course how can he not well well we'll see that's the right that's tbd i guess did he learn from it don't know how do you think the conversation went between the

SPEAKER_214: two of them i think that's a great question i think he came adam uh what lessons did you learn from your last experience mark no private jets this is time no private market cannabis is now legal yeah

SPEAKER_217: my pilot he rips the bong i have a new pilot he rips the bong he flies the g550 like autopilot so smooth no private jet until we eat with the positive i have my own jet myself bought me three jets okay

SPEAKER_54: they're all gonna have stuff driving it's okay come on mark come on mark i knew we had to i knew we had to get nick in here this is his guy that's my boy dude i'm anyway you know i like adam newman because

SPEAKER_221: he's not he doesn't pretend like he's someone else he is exactly who he is it's a level of authenticity

SPEAKER_03: that is that is arguable how like he's he seems to be pretending to be a businessman when in fact he is

SPEAKER_225: a lunatic cult leader i think he's pretend hold on millions of people go to we work still

SPEAKER_227: that's true i mean that's 100 true like pretending to be that's 100 true if i was going to get it off

SPEAKER_98: i mean that's the first thing i do is look for we work and they went feels like starbucks like he created they created a genius brand that is absolutely true but you cannot tell me there were business fundamentals happening there there absolutely were they're profitable for the first

SPEAKER_235: couple in the beginning nuts in the end in the beginning and then they went nuts he lost his

SPEAKER_33: mind this is okay i think i can split the difference here what you're saying molly is he is what was the word you described him like a lunatic cult leader yeah okay lunatic cult leader is adjacent to mission driven founder i'm just putting it out there i know i agree lunatic

SPEAKER_243: call leader there's no mission driven founder it's kind of overlaps about 20 i agree he's steve jobs

SPEAKER_49: with bad unit economics thank you adam newman is thank you steve jobs with bad unit economics

SPEAKER_55: absolutely being amazing that is amazing amazing it is true like i mean you there's only so much

SPEAKER_22: margin in real estate um i think it's gonna i'll be honest i think majority chances it works i think

SPEAKER_23: there's controls in place here's what i would like to say board control somebody has to leak to me what the board and governance is here that's what that's going to be the detail that matters because if i have a feeling that those 3 000 apartments you notice it said those were already bought i think adam newman has quietly bought those 3 000 on his own with his own money because what he

SPEAKER_24: made like a two billion dollars or something that's what it said yeah so he was going to or

SPEAKER_03: hadn't it was sort of like fuzzy language about how he had invested but yeah unquestionable

SPEAKER_28: he bought the option on them and put down a big deposit like a couple of hundred million dollars because let's say each of them if there's 3 000 and they cost what 200 000 each 300 000 each you know that's what i would guess so a thousand at 200 000 be 200 million 3 000 would be 600 million so if he bought 600 million dollars worth of units um and he does the same play where he buys the units that are distressed or in like that not the cool area and they turn it and they gentrify it and make it the cool area by their existence that's a pretty dope model it's a pretty dope model like i was like who wants to be in fort lauderdale it's like well if adam newman makes fort lauderdale cool

SPEAKER_121: and it's a party by the pool with a bunch of young people all of a sudden it is cool so that he's kind

SPEAKER_55: of like a club promoter he can make it he can make anywhere cool i mean if apartment living became like the the real thing that's true here like it's just look it's fun to talk about adam newman because he's a larger than life personality and i think we all agree that we do sort of unironically love him in this pod even if we wish we didn't if there is a model to be created that allows for residential living to feel like a community to be branded where when you go to rent something you know what you're gonna get you don't have like a bunch of brokers taking a big in new york city yeah you know you've got and then you roll in and the amenities are always the same like you could starbucksify basically urban living like yes people will want that it will be awesome and it will be awesome for like young people just starting out it'll be great for people who maybe want to retire but don't want to go to like whatever that place is called in florida like there's a ton of potential to reimagine residential real estate in this way what's it called the pines or something like the crazy old people

SPEAKER_263: yeah what is that called yeah it's pretty crazy you know what i'm talking about yeah exactly i know

SPEAKER_20: exactly it's called like the pines or the blades but like my friends and i are always talking about

SPEAKER_55: how we want to have a lady commune because the men die first oh yeah that does happen actually yeah but like i think there is there's increasingly this idea of communal living as being awesome but it's really it's hard to find it's i don't know i like it somebody has to organize it and then the

SPEAKER_269: person who organizes it is a cult leader who winds up having like six wives

SPEAKER_171: and doing something crazy it's kind of the downside here's here's what i think is going to be great

SPEAKER_61: here you know you never heard of these places this place is gonna you know the guns the mania yeah

SPEAKER_11: i mean nexium i mean kind of always includes a crazy cult leader who yeah um and polygamy or whatever

SPEAKER_29: fusion id hm and our uh in our one of our noties points out someone should have had a real-time

SPEAKER_23: reaction of masa when the news broke oh no masa's on his way by the way i just got a text from that kid who tracks jets moss is jets on the way to manhattan to go meet with him the valuation

SPEAKER_278: is now 40 billion he just put that's why he sold all his uber shares he's putting 8 billion into it

SPEAKER_00: at a 80 billion who's crazier the crazy man or the person who backs him here's what i will say yeah this

SPEAKER_23: is going to be great if he takes like some you know terrible apartment complex in phoenix and then turns it into like remember the standard hotel they made it like really funky and cool and they had a lot of like cool vibes going on there and it was a vibe imagine he does this and like you go back to the beer kegs and there's beer kegs on the weekend by the pool and it's included and there's uh a pizza oven and there's a grill and somebody comes out and grills a bunch of stuff and makes pizza which was

SPEAKER_22: his thing like hey we're gonna have beer and pizza like the beer and pizza playbook with young people by the pool is fine that's appropriate that's cool at work it leads to some issues you know obviously people drunk at work not not a great look but people drunk on the weekend

SPEAKER_24: it's at your house it's not like a big deal like you you can choose to have some beers by the pool or

SPEAKER_55: whatever so i think he's gonna imagine like the digital nomad thing but you want to do it for a year at a time or something if you know that you could go to any city in america and rent an apartment from this one brand and it will always be the same experience yes yes there's something there there's something there kind of cool all right yeah so there's something i don't know if it's a

SPEAKER_171: great business i'll be totally honest i think i don't know if it's a great business sounds yeah

SPEAKER_55: really expensive you gotta like you're so at the mercy of economic conditions that you can't control such as the price of you know housing stock rents all of this other stuff and i'll tell you something

SPEAKER_28: okay yes well before you transition to the obvious i just want to also say i'm guessing four to five venture capitalists who would hear this pitch from adam newman at a reasonable valuation would invest and i just you know if you're a founder and you're willing to go big and be audacious yeah it counts for more than your mistakes so this is a key learning audacity trumps misbehavior or shenanigans audacity trumps shenanigans this is jason's law number two if you're audacious it forgives a lot dear god because the thing that is in short supply is audacity no uh audacity plus well i mean yes

SPEAKER_33: you gotta have some success you have to have some credibility yes yeah so audacity credible audacity

SPEAKER_28: thank you for the punch-up credible audacity trumps shenanigans is what i'll say people like you get away with a lot of shenanigans if you have credible uh execution and audacity credible audacity trumps misbehavior full stop in our industry i'm not saying that's the way i would have designed it i'm not saying i'm on board for it i'm just telling you the truth as i see it on the field this is what

SPEAKER_11: happens on the playing field oh yeah the all-stars have one set of rules lebron has one set of rules they're going to call fouls on the bra you know against you know whoever's covering lebron in a different way or you know than they do against you know jr smith without a doubt and look true story

SPEAKER_55: i try not to be incredibly impressionable but if adam newman stood in front of me and tried to sell me anything i would write him a check absolutely like the guy it's like a magnetic i mean talk about

SPEAKER_03: a cult leader it's like a like things come out from the eyes i'm just like yeah sure i'm in release

SPEAKER_303: your anger molly i know it's all coming to pass as i have was seen i pray that i never have you turn

SPEAKER_136: into a sith lord i would have bought the resort timeshare like the whole thing seven years ago on

SPEAKER_278: marketplace molly would be like who's funding these people who's seven with these people is the round

SPEAKER_309: open can i just put like a cool 850 into the is there yeah it's a one percent of the room in flow

SPEAKER_160: feel like this fits under the sustainability mandate yeah it does it does it's dead it's housing density oh my god call me adam don't call me i will write a check i can't be trusted molly speaking of housing

SPEAKER_61: density i i kind of feel like mark was just talking about housing density and the housing crisis so

SPEAKER_24: weird fate loves irony go before we get to the ad it makes our team so happy to see our partners celebrate big wins and i was so thrilled to hear about this huge funding round for our partner oh do really great stuff from julian and the team especially in this crazy venture market it speaks a lot to the incredible product they're making and you know right now you've got a lot of sas apps maybe you don't need all of them check out odoo suite of business apps because you're going to save money and you're going to get more done with less effort using odoo means you don't have a bunch of different sas subscriptions weighing you down everything you need is already inside of odoo all you have to do is flip a switch and turn it on when you're ready and they'll only charge you for the apps you're going to use odoo has over 40 main apps and over 16 000 apps from their open source community we're talking about sales accounting marketing automation hr website builders and so so much more you can have one customer support contact all your data in one place and all of your apps will be supported by that same customer support team that 20 different ones and here's the best part your first app is free forever and odoo is offering a thousand dollar credit on your first implementation pack amazingly

SPEAKER_319: generous a thousand dollars right now odoo.com twist odoo.com twist here is a direct quote from mark

SPEAKER_98: the uh andreessen blog post explaining why uh a16z places 350 million dollar bet quote okay shelter is one of our most basic needs in a world where limited access to home ownership continues to be a driving force behind inequality and anxiety giving renters a sense of security community and genuine ownership has transformative power for our society when you care for people at their home and provide them with a sense of physical and financial security you empower them to do more and build things solving this problem is key to increasing opportunity for everyone he says that we have these two models right this is how it starts our nation has a housing crisis the demographic trends driving america's housing markets are impossible to ignore our country is creating households faster than we're building houses checks out structural shortages and available homes for sale push housing prices higher while young people are staying single for longer and increasingly concentrating and highly desirable urban centers there are these two historical models in housing the first model is you own a home you call your own typically with a multi-decade mortgage near your current employer if you can find a house as

SPEAKER_93: these locations often aren't building new housing if you can afford that house as housing prices in many

SPEAKER_324: such places have skyrocketed it's yeah totally we all live in the bay area yeah all true things about the housing market i agree 100 with mark's assessment i agree 100 with mark's assessment he also

SPEAKER_89: he wrote that it's time to build blog post it's time to build time to build so this all checks out right he framed the problem so succinctly probably haven't heard a better summary than that summary so good two he wrote a very passionate seminal essay of his career it is time to build the rallying cry to

SPEAKER_236: solve this this exact level of problem continue molly yes exactly yes also mark andresen oh and his wife

SPEAKER_98: okay recently opposed strongly what a proposed housing plan that would legalize the building of about 130 units in their hometown of atherton yeah by 2031 atherton is a hella rich county the richest it's america's most expensive zip code median sale price of 7.4 million dollars in 2021 which is 26

SPEAKER_55: percent larger than the next highest zip code so the planning department proposed to modestly increase

SPEAKER_98: the zoned capacity of atherton legalizing the construction of smaller multi-family properties

SPEAKER_55: in a few places a little over 130 units total to describe this problem that is so well articulated here if you can find a house as locations aren't building and if you can afford that house

SPEAKER_98: because the prices have skyrocketed it is unclear whether mark andresen or his wife laura wrote this email that was submitted via public comment to atherton's mayor and city council but the andresen

SPEAKER_330: family sent this email it was either a joint effort or one or the other and this is their true feelings

SPEAKER_61: yes yes true feelings subject line i can guess it right based on what you said i can guess yep we support uh dense housing it is time to build this is a fundamental problem it is unfair in society i know

SPEAKER_28: laura's passionate about equity and equality and on these social issues and mark clearly it's time to build so go for it you have a hundred percent of our support the andresens definitely in one branch of the

SPEAKER_03: multiverse that happened but this okay this is not that who's playing loki in that version of the this is the alligator loki branch got it where the subject line of this email said all caps immensely

SPEAKER_40: against multi-family development wait a second immensely against body of the email quote i am writing

SPEAKER_98: this letter to communicate our immense this is in all caps objection to the creation of multi-family overlay zones in atherton please all caps immediately remove all multi-family overlay zoning projects from the housing element which will be submitted to the state in july they will massively massively decrease our home values the quality of life of ourselves and our neighbors and immensely caps increase the noise pollution and traffic all right that's what their email said yeah i gotta just um

SPEAKER_127: take a minute to grok all this because i thought it was time to build but here's what i'll say

SPEAKER_33: respectfully the andresens are billionaires many times over on both sides and what people don't understand here is famously laura's father was the major developer of santo road in silicon valley he owned swats of property and their family continues to own those so this is coming from a landowner beyond

SPEAKER_23: just their home or their primary residence if it is that but i'll also point out it's also false

SPEAKER_22: if you were to build 20 units into and these are townhomes by the way this isn't like a six-story

SPEAKER_157: apartment building yeah which by the way in redwood city which is the town above atherton they have

SPEAKER_23: built a ton of beautiful apartments i've been inside one of them i went to a poker game in one

SPEAKER_89: they're gorgeous they're you know perfect for somebody in their 30s with one kid you come downstairs you can walk to the movies you can walk to boxes over there you could walk to your office it is perfect urban living it has had zero impact other than to take redwood city and make it a more desirable location because of these units the traffic is fine in that area i've driven through that

SPEAKER_24: area constantly i've gone to sandhill road stanford university boulevard to my friends homes all over atherton there is no traffic problem in atherton zero traffic problem and if you were to build 20 of

SPEAKER_33: these what it would do is people don't realize this it's three thousand dollars a square foot in atherton these apartments would go for two thousand dollars a square foot which means a the smallest of one bedrooms would be let's say 1200 square feet maybe that would be like the smallest you could make a

SPEAKER_28: two bedroom which would make it a 2.5 million dollar two bedroom this is not going to bring in

SPEAKER_31: it's all this would do in atherton but it says massive it says in all caps no no it would make 2.5

SPEAKER_33: million units that would be available to developers or associates or maybe you know junior partners or

SPEAKER_24: the staff at injuries and horowitz at a16z the people who would live here is people who work for a16z who make you know maybe they got a dual income family they make three or four hundred thousand a year combined and that four hundred thousand dollars entitles them to make a 10k a month payment on their you know or five to yeah 10k a month payment on their mortgage for their 1200 square foot 2.5

SPEAKER_28: million dollar apartment that's what would happen i just think this is like the level of hypocrisy

SPEAKER_04: that's just so it's breathtaking it's breathtaking let me let me quote you from it's time to build right because it's time to build isn't wasn't even only about like we got to get manufacturing back and

SPEAKER_55: quote we can't build nearly enough housing in our cities with surging economic potential which results and crazily skyrocketing housing prices in places like san francisco making it nearly impossible for regular people to move in and take the jobs of his future his wife laura ariaga andreason actually teaches a course at sanford called philanthropy inclusivity and leadership i mean it just is like you're being pretty nice about it like it is this is the grossest hypocrisy like you can if you want to be a nimby and assume that your money entitles you to never have a neighbor cool but don't pretend

SPEAKER_364: you're the other thing yeah that is disgusting it's yeah it's not cool i mean come on disgusting

SPEAKER_262: housing right okay i'm gonna let you go molly i mean you you have shrunk feelings on it i think you i don't think you're right too relaxed yeah welcome back from your vacation i don't got no all

SPEAKER_368: the filters are gone the hypocrisy here is just stunning it's it is it is gross i'll say that i

SPEAKER_28: think they need to sit and rethink their position and understand that all housing uses units help and i've lived in a number of communities with this same situation where they're zoned only single family and now in california they're saying you have to be multi-family you could have two units per lot

SPEAKER_23: you can't stop multi-family development so what's happening is each of these local cities whether it's brandwood bel air or up here atherton or redwood city has to submit plans to have multi-family units because it's this past in california's legislation california does not build because

SPEAKER_28: powerful rich people like the andresans or anybody else own large amounts of property multiple

SPEAKER_24: units whatever or just a large property period you know and it's a you know for them it's not a major asset and they also have homes everywhere else according to you know public information that you read about in the news and i think they i think they all moved to nevada didn't the didn't ben and um mark say they were moving to nevada and that was going to be like their hq and they were kind of out of silicon valley and they were going to be a nomadic venture firm so they're not even living there anymore yeah maybe uh but you know you have to take a moment here and just think about what's best for

SPEAKER_28: society and along the corridor of public transit what should happen is if you want to have public transit you should have to have within the let's just pick a a number i'm making a number up here two miles let's just say one mile within the 20 blocks around that station there should be a zoning which is 20 stories sounds crazy right 20 stories oh my god but it's within one mile around it and all those people can go down and they're in walking distance under 15 minutes you know some probably on average they're six seven minutes right it takes 15 minutes to walk a mile something like that so on average the people in that area would be seven minutes away from mass transit in other words they would have to walk there's no reason to get in a car take longer to pull your car out a parking spot and park it again so they'd be within seven minutes of mass transit this is the obvious solution so what they should have said to this was hey at the caltrans station or if we build bart down it goes down to millbrae now if they build they're planning to build it to go down around all those train stations reasonably

SPEAKER_24: build 20 stories make and that and those would become worth you know a thousand dollars a square foot they would come down another level from townhomes because this is what they were fighting were townhomes which are kind of like a bridge to you know getting a single family home the the one before that is obviously an apartment a proper apartment in you know five six you know even up to 20 stories this would solve everybody's problem this would make life so delightful and the easiest way to convince any rich person to do this is do you want your chef your nanny

SPEAKER_23: your housekeepers your firefighters your teachers and your own children to be able to live and have

SPEAKER_24: a path to housing within 20 minutes your team at Andreessen Horowitz who have to come to the office wouldn't it be nice if they could be within 20 minutes of the office and not have to suffer and then this argument about work from home molly would go away you know why work from home is so polarizing because if you're the boss you pick the location of the headquarters and you pick it within a 20-minute drive right that's how this is done i put our office on sixth you know and in in soma because it's the first exit off of the exit ramp coming up from the bay i picked the location i'm the ceo i get there quickest people who are coming in uh on bart had to walk 15 minutes to the bart station the boss picked if it would have been better actually for everybody if we put it right above a bart station if i did it again i would have done it that way after seeing my team suffer through you know having to take bart and then walk 15 minutes each way getting on and off and that's

SPEAKER_55: the way people need to think i bought this book just based on a thing i saw on twitter called lines how zoning broke the american city and how to fix it by this guy named nolan gray who's a city planner who basically argues that zoning itself is a flawed policy now people who are honest about this do acknowledge that because supply and demand is a real thing if you build more housing there is a possibility the housing prices could go down that's true because there will be more supply so you may not continue to benefit from artificially inflated prices in places that currently have you know extreme housing restriction like there will be a period of adjustment to that and i'm not going to try to pretend that you know maybe in a hundred years if enough houses were built in atherton it might

Jason Calacanis: immensely decrease the value of the properties there if you don't want that to happen sell now

SPEAKER_55: like it's not that's the fallacy here but the idea of building 130 units immensely decreasing right like you make a place more desirable you have more but people nobody this is why housing does not get built in america because it is not confined to the andreessen family this mentality this idea that like yeah i definitely want more housing to exist i think that's a great idea but not

SPEAKER_23: in my backyard i mean like put a number on it it's like we're going to have five percent more units

SPEAKER_28: a year so every 12 years we'll double the amount of housing okay that's too much great we're gonna

SPEAKER_66: have two percent every 35 years we'll double the amount of housing in the area number of units right

SPEAKER_157: that seems reasonable you know and there's a and there's a certain density that becomes reasonable

SPEAKER_33: but this is all because we're you know single family zoning in california you know that has been um eliminated so now you can have multiple units on a property etc there's actually really

SPEAKER_22: one test case for this the one major city that has no zoning is houston they have no zoning codes now dallas has like 30 so like that's what the guy was tweeting about that's the tweet that got me to buy

SPEAKER_93: this book as he was talking about how houston is like so vibrant i had totally forgotten until you said

SPEAKER_28: it that that's the city he was referring to and so this is what people and then the areas outside of austin also have like a very permissive where if you buy you know 50 acres and you want to make it you know this section's commercial this section's residential this section is uh a retreat center you know you can kind of do what you want within reason and they're very pro at your land so i think what will happen is california is because they're clenching up like this and they're anti-development they're going to go through this you know anxiety for the next decade or two this is why i think california is not rebounding in our lifetime i think this will be a fight that is so intractable molly that i don't think california survives the next 10 to 20 years i think it's going to be infighting

SPEAKER_20: like this for another 20 years you don't think california survives the next 10 years no expand on

SPEAKER_24: survive but it's not going to thrive i think it's going to be these kind of issues yeah you know homelessness drug policy housing multi-units uh taxes all of this stuff is it's it's so um intractable

SPEAKER_28: here yeah and it's so um the the dynamics are like this right like the andresens the you know folks in

SPEAKER_24: san francisco who want to have you know very permissive drug policy or no drug policy other people who want it to be you know lock everybody up for their first offense like this kind of tone i don't think changes and if it does i think it takes 20 years i think it's intractable i think a lot of people like one side has to leave the state and i think that's what we're seeing is one group is just going to opt out of this and i think you're seeing affluent people opt out of it and so i do

SPEAKER_03: think this is going to be a challenge for the bay area i yeah hard to say it's i think that that california does have a lot of very intractable problems there's no doubt about it i don't see mark henryson leaving the state like they're going to fight for their enclaves no i think he has already

SPEAKER_28: i think that's the thing is he's out ben horitz and market recent have bought homes in las vegas and are cutting down on board memberships december 9th 2021 recently the bay area-based venture capitals ben horowitz took part in a popular post-pandemic pastime updating the locations on his linkedin profile goodbye california hello las vegas mark andreason has also purchased property in nevada the individual real estate decisions are a sign of significant if slow motion shift at their company the prominent venture capital partners and horowitz now andreason horowitz also said this

SPEAKER_33: year that they were going to go nomad uh no yeah i remember that i remember there so andreason

SPEAKER_24: hearts ditches physical hq the headquarters will be in the cloud so i think this is all a part of this process of people saying you know what i'm giving up on california and you know or i'm i'm gonna invest in other places right there was the famous hedge fund guy from chicago he said he couldn't get talented

SPEAKER_02: young people to move to chicago because of violence and because of chicago it's cold and he moved to

SPEAKER_55: miami i think or whatever so i will say the atherton fight does appear to be recent also you're also i

Jason Calacanis: think that's true i mean but these are people who have the luxury of diversifying they can keep the house here fight against new buildings so that the you know so it's a good investment and then buy

SPEAKER_391: houses somewhere else look what i just got somebody just leaked to me the flow deck oh my god

SPEAKER_127: all right let me pull up a couple slides for you molly oh my god live life in flow confidential what's happening here hold on let me just take let's take a look next slide oh look flow atherton

SPEAKER_396: they're playing flow to atherton we flow we flow atherton here it is everybody confidential this is

SPEAKER_157: for a16 only we flow this is slide number 323 we jumped ahead in the deck molly this is side 323 of

SPEAKER_24: 987 it's apparently it's a long deck but flow is coming to atherton and uh oh look and flow is coming

SPEAKER_398: to the wall in saudi arabia they're gonna make a wall well you know the wall is that big saudi project

SPEAKER_400: where everybody's gonna live in the well so flow will be part of that you'll be flowing through the wall apparently oh my god okay one more new geniuses oh look they've just repossessed mar-a-lago

SPEAKER_46: and it's in the flow network now oh look at that it's in the flow network so you're gonna be able to flow as a member from mark and dreesen's old mansion which is the flow inventory

SPEAKER_315: to saudi arabia and back to mar-a-lago young people what could be better

SPEAKER_336: there's your flow molly shout out presh for the deck shout out to presh you damn genius presh

SPEAKER_408: what's my idea flow mars pretty great flow mars good one that was that flow mars was on my short list too i don't know what other flow locations you want molly was like what's happening i was like

SPEAKER_59: go tell molly what you got me you got me good um congratulations to adam newman uh congratulations adam newman don't call us otherwise i'm getting blocked by mark andreason on twitter i have a feeling

SPEAKER_55: i'm getting blocked by mark andreason and honestly i think i'm fine with it i think mark

SPEAKER_22: should this is what i think mark should do is i this is my advice to mark i know he listens

SPEAKER_66: where people clip this uh on his team i think he should come out and say listen um i know it looks

SPEAKER_22: bad but i said and i've actually rethought it and i talked to adam newman and actually i think we should

SPEAKER_24: collaborate and um i realized that was like a short that was a knee-jerk reaction because we are concerned about traffic and you know we would be concerned about density here but i think there's

SPEAKER_22: reasonable density and looking at it i think we could put in like 500 units and i'd love to get the

SPEAKER_24: contract for that for flow and put those in flow inventory he should just totally come out and say he's reconsidered his position and uh it's a really good learning moment for him i will point out also

SPEAKER_22: on my twitter feed i noticed um that another founder who is in the a16 portfolio named ali resnick

SPEAKER_23: he tweeted about what this meant for his company so ali resnick is the founding ceo of a startup called belong which is a vertically integrated home management rental platform a16 put 5 million

SPEAKER_28: into it in 2019 they participated in their 50 million dollar seed this year and um this is uh i guess one of those conflict situations you hear about and so to just look at his tweets today mark p mark announced a16's investment in flow i'm tweeting i'm reading ali's tweet and i got many

SPEAKER_55: questions ali resnick writes uh just some thought i thought i would clarify he says our thesis is similar we believe in a better and different future for home our approach is different he writes i believe in a future where homes are in the hands of real people the trend here is concerning

SPEAKER_98: at the pace at which hedge funds are bidding for homes in the usa 10 of the housing stock will be owned by three corporations by 2030 he says so we have built join belong is the twitter handle for belong a vertically integrated system for home management that empowers small homeowners to own more homes and provide extraordinary service to residents in addition with each on-time rent payment belong residents saved towards home ownership so not dissimilar to get dibby yes very similar which adina heffitt's company potentially very similar in some ways to flow but here's some more differentiation he says flow on the other hand owns and operates large multi-family uh end-to-end apartments flow owns property belong doesn't belong is a system that empowers small owner homeowners to own more homes we work exclusively with real people that are small owners so he says that these are

SPEAKER_55: potentially complementary and he says i want to welcome extraordinary investors like p mark and

SPEAKER_28: entrepreneurs like adam to the home space and is that a red balloon at the bottom i think so emoji yeah it's cute so like that's sort of evoking the monster from it i guess the balloon the balloon red

SPEAKER_429: balloon is that the monster from it with pennywise oh god creepy come on i went as a horrible i went as

SPEAKER_11: pennywise uh to a halloween party that's not right i had an outfit that was so scary and i put it on

SPEAKER_432: and my daughter was having dinner and i jumped out into the kitchen and she screamed i was so scared

SPEAKER_278: and it was like a really i shouldn't have done it but it was very funny i didn't think it was that

SPEAKER_61: scary casual ptsd if this is her if this is the total summer for ptsd from her childhood which i think it

SPEAKER_435: is it's you know it's basically like a tuesday based on my brothers and i ptsd from our childhood

SPEAKER_03: i mean we all read it way too young we all saw jaws way too late too young like a little you know

SPEAKER_40: yeah traumas a little little movie trauma a little horror based trauma is not the worst thing that ever

SPEAKER_439: happened here's my take on what he's saying um he's pissed he's this is uh this is like he's also

SPEAKER_445: like we got 5 million and he got 300 million yeah this is how could you do this to me i can't believe

SPEAKER_24: it you gave that maniac 350 i'm sitting here building a real business you gave me 5 million you didn't even give me a heads up we're going after the same group of buyers this is absolutely uh a stab in the back and this is why you have to be very careful when you invest in startups because

SPEAKER_02: you know one founder i guarantee you they didn't clear it with him by the way uh they just did it andres just did it based on the tone of this i could be wrong but on the tone of this he's kind of saying like i have no choice but to respond to this and so many of my friends are asking me did injuries and put me out throw me under the bus now andreason probably said hey listen we'll support your next round it's all good right so he's kind of in a no-win situation if he says like this is not cool then you know he loses injuries and he's already lost injuries and

SPEAKER_28: they placed a bat on here so it's this is a no-win situation for him obviously uh but it feels like they're going after the same customer which is somebody who needs a place to live who's a young person who wants to build equity towards a home so these companies are in fact we could sit there and say like oh you know iphone is different than android and it's like yeah they're super different

SPEAKER_11: one's open source one's proprietary one's cheap one's expensive but yeah you don't buy both

SPEAKER_33: and so these customers will not buy both so based on the would you buy both test of competition

SPEAKER_28: this fails it and that's that that's the lens i look at it would you buy both now if we invest we invested in a story time app for kids and com has sleep stories for kids as like one of 20 things they do you would buy both yes you can completely see somebody buying both com has 20 different features this one had like one little niche feature baby massage and um

SPEAKER_66: baby story time and it was very young babies in fact not even kids you know like 12 year olds or eight year olds so i think that's what i try to do is run the both test would you buy both and this one

SPEAKER_03: fails it hands down so yeah feels not good um i mean this is a this is a personality this is a cult of

SPEAKER_55: personality investment full stop right it's like it goes back to what you said about the the audacity somebody you know i think this is a little bit of a it's not a false equivalency but it's a little frustrating but you know an investor and builder pointed out that like if you look at the size of the average vc round of funding an all-female led team averages 6.8 million dollars in investment and an adam newman team led team including we work is 1.5 billion dollars like they're just giving this guy the money like you know sort of thesis be damned right like or like the the business idea as we have discussed there could be something there without

SPEAKER_98: a doubt clearly some but they have ignored every other obstacle in order to fund adam newman let's

SPEAKER_55: be very specific if somebody else had brought this to him they'd be like oh we have a competing company in our portfolio and it's capital intensive and it's i actually believe that yeah i actually believe

SPEAKER_28: your assessment of that if if if you or i or some other entrepreneur who you know if a credible entrepreneur came but it wasn't adam newman but you know let's call reasonably credible i don't know like another second time founder right yeah they had sold their company for 50 million or 100 million right but it wasn't adam newman level success i think they would be like you know what we yeah we'll pass on this we have something here it's it's not that strong of an idea it's got unit economics issues but if you can bet on somebody who still has energy and here's the other thing adam newman has something to prove it's a redemption story and so you put all that together i think it's a great bet by andresen if i'm being honest i think this is going to be a 10 extra for them if you if you told me to you know if they got it's a billion dollar evaluation they put in 350 so they own 35 of this at least a bit over a billion over a billion okay let's say they own 25 of this or something i don't know i'm gonna say 25 if they own 25 of this and it's worth a billion three right now you don't see adam newman making a 13 billion dollar company again i think that's

SPEAKER_262: what we were trading at around 10 billion last time i checked i could see it it's a 13 billion it's

SPEAKER_182: still real estate still real estate it's still real estate and it's still here rents i don't see a

SPEAKER_55: like i'm sure that there's like a membership play here like you pay something like an hoa you know but i still don't know how you get to 10x returns on fundamentally real estate yeah please

SPEAKER_171: yeah i can figure it out here if they're but if they can stick to their knitting which is buying

SPEAKER_33: under market properties but getting free premiere location because of the design of them which is

SPEAKER_24: what the standard hotel did and other people did they would pick a location that was a little off the beaten path not 57 street manhattan but you know somewhere else they pick that location that's distressed let's call it they get it at you know the apartments in that unit go for let's say 1500 a month they make it really cool and hip it doesn't cost them anything to do that it's like really de minimis to do it it's more about style now they can charge 2100 for it they get an extra four or five hundred dollar premium on it that's profit now if you just said net net they made 200 a month in profit on it and you said that was a subscription and you called it a sas subscription okay 2400 in subscription revenue a year from this individual i mean what there's no the only other person to

SPEAKER_22: maintain their apartment you still own a building well that's what i'm saying is like what is the premium molly you can put on top of this for it being a hip location so with a young person we have it

SPEAKER_24: we have we have two young people here uh producer rachel producer nick fifteen hundred dollar a month boring ass apartment with no amenities and now you have one that has the design location yeah not a great location that's why it's 1500 because it has no amenities no location 500 more but 100 a week 125 a week would you consider i'm not gonna say do it but consider a place that had all young people and a party every weekend and was designed really hip and had a cool game

SPEAKER_474: room and a cool barbecue area rachel producer nick i actually looked into this and conveniently on the speaking startups last week on friday we did have somebody on that actually did this it's called goal house it's really awesome and the wholesaling i actually looked into doing communal living coming into the city because i didn't kind of wanted to test out new york um didn't know how long i wanted to be here and one cool thing i've noticed about communal living is that one of the only ways you can live in new york besides airbnb and not have a full year lease but the thing that got me was not having your own bedroom and having to pay a little bit more of a premium for your own bedroom so think if i had my own it didn't work out how much more was it that's hilarious 1500 right now no amenities pretty apartment and i think it came to if i had my own bedroom it was like two grand

SPEAKER_33: got it so you'd rather be on your own for 1500 than your yeah and it would be too bad okay so you wouldn't do it if it was 1700 would you do it i would definitely look into it a little bit more

SPEAKER_474: depending on location too yeah but i definitely look at i think two grand was a little too much but 15 was kind of more reasonable with having my own bedroom like i don't mind sharing my my bathroom

SPEAKER_387: my kitchen but the bedroom so for 200 more a month for 100 or 200 more a month you'd consider about

SPEAKER_24: 500 yeah for sure okay interesting so i that's what i think if it was a hundred dollar a month profit extra on top of it and they've got you know i don't know a million people living in these

SPEAKER_33: it's making a billion dollars a year in profits you know so i that's i think the vision they're probably

SPEAKER_28: looking at which is the same thing that happens that we works man they were at that we work on turk street we're paying six thousand dollars for a 15 by 10 foot area i mean it was 150 square feet

SPEAKER_92: 200 square feet and we're paying 6 000 for it and it was crazy whatever that is profit what's the

SPEAKER_11: margin there well i think what's the margin on owning real estate um well they might own it in a treasury that is separate than the pnl but if you look on the pnl it's really the rental of those

SPEAKER_28: and how much above market would be the profit right so that's that that was always newman's game and that's why everybody gave him all that money is because when he sold it to masa and he was like look green desk you know and then we worked to benchmark when it went from green desk to benchmark

SPEAKER_33: it was like we was green desk was somewhere out in bushwick or somewhere in brooklyn that's in

SPEAKER_24: williamsburg it was in williamsburg before williamsburg was really cool so it's pretty crummy location and but it was fun and so people were like that's fun yeah i'll pay a little extra than if i did it myself and it's abstracting molly if you can abstract the arduousness and pain which is what rachel just talked about not having to sign a lease you know just paying for it like you pay for starbucks that's another part of this yeah people don't want to be on the hook for a two-year mortgage

SPEAKER_55: a two-year lease mortgage whatever i 100 get the pitch like i would want to do this as a young person i get it as a like a smart real estate investment i'm not sure i get it as a 10x investment okay

SPEAKER_76: but i'm new here so i'm willing to i'm willing to defer i'm just thinking could there be a million

SPEAKER_24: people how many people are in weworks you know how many unique offices are in we work if there's a million of them and they make a hundred dollar profit per month from each it's a billion two in profits i'm just doing simple back of the envelope and so could they go from 3 000 to 30 000 to 300 000 to a million units and they have these million units and a million people living in flow spaces that's probably the audacious pitch and that would be a billion dollars in profits i i would also note

SPEAKER_16: that it seems like newman bought these units personally yes at least over a year ago in specific areas that are incredibly pro-housing the southeast and it seems like he bought them under market for what that is worth right now because people are flocking to these areas yes that's always his thing

SPEAKER_28: is arbor and if he makes a place he'll make it cool you know like look look what happened to austin a bunch of notable people move there and all of a sudden it's like okay it's been validated as a destination look at miami keith roboi a bunch of other people move there and all of a sudden it becomes kind of notable you know and founders front opens over it happened with new york sequoies opening a new york office like you know kind of people get places get anointed i mean that's

SPEAKER_387: why i want to leave california it's just like i think there's other places that are more exciting

SPEAKER_80: and interesting okay welcome home molly we missed you it's good to have you back partner i am delighted it's good to have you back delighted to be back follow us on twitter mollywood jason twi startups

SPEAKER_55: producers at this weekend startups.com we will take your scoops your leak drafts of uh flow drafts or any other yeah information you want to send our way any flow prayers love

SPEAKER_24: also i'm looking for jtrading yes so jtrading.com just do the hashtag jtrading or jtrade either one we look at them both i'm looking for an adam newman impersonator to randomly break into the show uh with phone calls and give me updates on flow so if our audience could go on instagram like there's one kid who i watch on tiktok and instagram who's amazing and he does howard stern really well and he does rami malik he does also um andy cohen he does howard stern he does the who's amount uh gold bloom jeff goldblum incredible jeff goldblum and i think he's got he's he'd be able to crush this but somebody find me an impersonator and then we'll pay them to come on the show or we'll shout them out whatever they want to just come in molly and we'll just have like a reoccurring segment of just adam newman coming on the show or just pay jared leto i mean i think after we could just pay jared leto to do this he's an angel investor right he's an angel of us which have jared leto come on in character would be so genius to just come on randomly and be like fry you know we do like tuesdays with

SPEAKER_440: adam um so i love it jared has not left character based on what we know about him he's

SPEAKER_395: probably he knows that that's good all right everybody we'll see you tomorrow incredible bye