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The information in this podcast is for educational and entertainment purposes only. By listening, you agree that the hosts and producers are not liable for any actions you take or fail to take based on this content. Welcome to the Paul Morris Podcast formerly known as Radical Wealth Plan. I am your host Paul Paul Mark Morris and I am going to talk to you today about the massive move out of SaaS, which is software as a service. Huge shift in the way Internet and online investing is taking place. And really that shift, a lot of it I believe will go to hard assets and that definitely includes real estate. Last week I sat down with a friend, an Internet entrepreneur who has a nine figure net worth. He built his wealth doing what most people said couldn't be done and that's online digital at Internet speed. And what he told me he was thinking about now shocked me. He's talking now about hard assets, real estate, and specifically multifamily people always need a place to live is one of the things that he said, and I've heard that a thousand times, but from him it meant something totally different. The implication wasn't just real estate is safe. The implication was the game is changing and smart money already knows it. We are in the middle of one of the biggest economic shifts since the Internet itself. This particular entrepreneur built several massive businesses selling software, selling products on the Internet, selling software as a service. And in fact he sold his last business to Salesforce, a company that I'll talk about in this episode to show you the shift. He sold his company to Salesforce for $785 million and if you don't know who that is. It's Mike Lazaro, also known quite well along with his wife, Mike and Cass. That's the conversation that I had. I had it on the Paul Morris podcast. If you haven't seen it already, you definitely should. And now I'm really talking about the fallout from that conversation that, that the research it caused me to do and also talk about a very specific shift. When I was on the podcast with him, he wanted to come on the Paul Morris podcast and talk about real estate, which makes sense. But since I had him where I wanted him, which is I can ask him questions. I was, I asked him. Okay, look it, I'm not an Internet expert, but what I'm seeing is something crazy, something different, something that is, you know, a complete new revolution and that is agentic AI. All right, hang on one more second. And I'm going to keep going with that. And in that shift. Now let me, let me redo that one. A little piece. Okay, so agentic AI is not brand new. Folks that were really sophisticated programmers really deep into AI were using agentic AI a year ago. If you go and you look on YouTube and you'll see people talking about agentic AI and how they have AI agents doing things. Now let me, let me just say what agentic AI is now. Roll it a little because it's AI that doesn't just answer questions, but actually does things. And agentic AI is dismantling the software business models in real time. Stop it there. So when you use AI, your, you're sending out a prompt. That prompt is going out into the world. It's searching for an answer. It can think alongside of you. Obviously it's much, much more sophisticated than a Google search. People are using AI. I'm using AI to research things, to, to help it be an expert alongside me in business decisions, to be even a board of advisors for me. These are things that, that people are accustomed to using AI for. And agentic AI, while I've heard of it before, it's like, okay, so this takes over your computer. It can start clicking through things, it can go out and actually do things for you. It can think and continue down a path. It can complete tasks down the road. This is something that was very, very complex and, and complicated to execute. That all changed. It changed initially with something called claudebot. Claudebot was founded by somebody named Peter Steinberger. He's the brains behind it and he was a high ranking employee of claude, which is the AI model that's owned by anthropic But Claude Bot was something totally separate and aside, it is not owned by any of the major players, it's owned by a foundation. And so it's totally open source and it's not controlled by big corporations. Now Claude rightfully so I would say sent a cease and desist to Claude Bot because the name is so close. It was creating some confusion and the they changed it to Multbot and it created this whole spiraling thing. It basically what it did was it brought a lot of attention to this thing called claudebot. It's now called Open Claw. It's a totally separate thing from the AI models. And in fact it created a bidding war for this particular gentleman who created it, who has now gone to Open AI. So the creator, the former employee of Claude that created Claude Bot separately, has now been hired by OpenAI. This is all just sort of underlying information. But I will say this to you right now. If you go and you try to buy a Mac Mini anywhere in Los Angeles, you cannot find one on the shelf. Now you can order them and you can get it delivered to you in a week. So it's not on total backorder. But the reason why you cannot get a Mac Mini is because so many people are now learning how to use Open Claw and that includes me. So a year ago I was never thinking about spinning up agentic AI simply because I don't have the expertise, I don't have the time to do it. I couldn't learn how to do it without quitting my day job. And right now I have openclaw spun up, created my own agentic AI and it's out there doing tasks for me. The reason why I'm doing it on a Mac Mini, there are other ways to do it is so that it's totally separate and apart from my computer, so it does not have access to my email. If things went totally sideways with this agent, it's not going to delete a bunch of my emails or do anything on my computer. I'm not ready for that yet. But I was able in a period of time to actually create an AI agent that could go out and do things. And right now just having it do basic things for me, but it absolutely can go out and book flights for you and all sorts of things. It can do competitive, competitive analysis. Look out, see who's in your particular space, what are they doing online, what, what things other creators are putting out that, that what pieces are taking off, what pieces aren't taking off. Create a dashboard to follow competitors and their success with Each piece of media that they, that they put out, this can all be done pretty simply by agentic AI. So it's a, maybe a long way of saying that finally agentic AI has become so accessible that someone like me, who uses AI regularly, but I am not a computer programmer at all, cannot program anything. This tool has created a path for me to create AI agents, and that is something revolutionary. As more and more people are able to do this, you're going to see jobs displaced, you're going to see software as a service displaced. In fact, as I was doing this, I was thinking to myself that, you know, I could, I really feel like I could, I could spin up my own CRM using agentic AI. And, and I haven't done that yet, but probably by the next time I record an episode of the Paul Morris podcast, I believe I will have done that. And that caused me to think back about my conversation with Mike Lazaro, who sold his company to Salesforce for $785 million. And, and, and Salesforce is the biggest, most expensive CRM, which is a client relationship management tool and has a multi hundred billion dollar valuation. And I was thinking to myself, you know, maybe if I were a person that, you know, invested a lot in stocks or knew how to play the market, I would, I would, you know, I would sell, I'd buy short on, on Salesforce, only to look into it and see that this huge correction has already happened. The value of Salesforce has gone down so dramatically in the last few months, and I've got the stats on it for you to prove it. So just to put that in perspective, Salesforce, which was 16 months ago worth $337 billion today in March 2026, is worth $179 billion. That's $158 billion worth of value erased just in the past 30 days. Companies like HubSpot, much smaller company, down 28%, but erased $4 billion in value. Salesforce down roughly about another $50 billion in value. Just in the last 30 days. This tech sector has lost somewhere between 400 and $500 billion. To give you an idea, that is the core gross domestic product of reasonable sized countries like Denmark, which has a gross annual gross domestic product of $400 billion. There's just a major, major shift happening and the question really is, where does this money go? Where, where, where do we invest? What's a safe haven? And like Mike was saying to me on the podcast, people are always going to need a place to live. So yeah, there are data center plays and real estate plays, and that a much more basic one is right back to multifamily housing, which is what we talk about all the time on the Paul Morris podcast. One of the, one of the most interesting things is if you look at the, at the earnings reports for Salesforce, their. Their revenue is actually up. So they're not. The stock market is not pricing in revenue, which is obviously very important. Salesforce is selling their AI agent into their current. Into their current customer base, and they're. And as a result of that, their revenue is up. So here's a company whose revenue is up but whose value is. Is sinking. And that's because, you know, the SaaS model is you. You sell a company 20 seats in this impressive CRM and the company grows, it grows from 20 to 40. Now you sell 40 seats. This is a business model that's worked for 20 years. And the market is looking at this and saying the business model is broken. And it's broken by OpenClaw in combination with AI and what OpenClaw can do with AI. As recently as a few days ago, I truly believe this isn't a brag, and I might be wrong because I haven't done it yet. I truly believe I could spin up a CRM myself. And I am not a developer. So in order for me to do that six months ago, I would have to pay a development team at least 50 grand to build a basic CRM. I now believe, you know, in two or three work days, someone like me could actually do that. So that is. It's not a change. It's a seismic shift. So here are the three real estate plays in this digital economy. And the first one is something that a lot of people are talking about, and that is the ever increasing need for big data centers. The question is, how do you get into that game? And I don't have an answer for that because it's such a huge scale game other than investing in REITs. So the leading REITs on this are Equinix and Digital Realty. These are, these are the top two. You can look up, look up and do research on more of them. I definitely do not buy stocks to buy real estate, but it's a, it's a fair enough play. And they're running at like a 2 to 3% dividend, but year to date up, you know, 17 to 20%. So I'm never sure if, you know, that's the performance right now. If we buy today, that performance has already happened. I'm not sure where it's going to go from here. I, I, I think that the markets price in a lot where things are going. So I'm not sure if if this massive growth is already priced in or not. So you really have to ask a financial advisor or research it yourself if you want to get into the, into the big data space. You really has to, you really have to ask a financial advisor if you want to if you want to chase the data center space which clearly is going to be growing through REITs because it's just not something that, that I can feel or touch any more than I can feel or touch stocks and other sectors and I stay away from it. But let's talk about the other two real estate plays and Play two is multifamily as the bedrock the boring thesis. But the numbers behind it right now are extraordinary. People always need a place to live. That doesn't change. New multifamily construction starts are down 70% from their peak. One of the lowest levels in multifamily starts since 2013. The pipeline for 2829 deliveries dramatically smaller than anything from 2020 to 2024. Meanwhile, demand for rental housing structural and permanent. Why people keep renting the 30 year fixed mortgage right now at about 6.10. Homeownership math doesn't work for a huge swath of the market. Home prices haven't meaningfully corrected to adjust for that higher interest rate. First time buyers are priced out. They rent and could be forever tenants. It's what I'm now calling a renter's economy that demand doesn't soften. And also the debt wall that I've talked so many times about that creates opportunity. Multifamily loan maturities jumped 56% in 2026 versus 210026 billion in multifamily loans are maturing in 2026. And many owners that bought in 2021 or 2022 on inexpensive debt and optimistic projections. They can't refinance so they're forced to sell. Fundamentally sound buildings are hitting the market. This is the opportunity. Well located apartment buildings come to market because the owner's loan came due, not because the building or asset is bad. Buy real assets at adjusted prices with better going in yields than 2021 offered. Distressed apartment sales. The volume is now almost $14 billion the last rolling 12 months. That's up nearly a billion dollars from 2020. This window will not be open forever, but it is something to look at right now. As this debt matures, Construction starts down 70% from peak demand is permanent Debt stressed owners are selling sound buildings at adjusted prices. If you know what you're doing in multifamily, this could be the moment. Now here's play number three and it's the migration economy. This is one that I haven't really heard people talking about. AI doesn't just disrupt software companies, it disrupts where people work and therefore where people live. When AI handles data entry, customer service analysis, reporting organizations ask, do we need massive downtown offices? So office vacancy rates hitting historic highs, the answer is playing out in real time. But the secondary effect is subtler and also more interesting. The professional class is becoming locationally flexible in ways we've never seen. AI is creating new jobs, not just destroying them. Infrastructure implementation, supervision, AI management. These jobs are in secondary markets. So smaller cities, lower cost of living, proximity to data center campuses, AI related job creation, concentrating in secondary metros, not just San Francisco, Louisiana, New York City. So again, markets to watch. Raleigh, Durham, Columbus, Ohio, Indianapolis, Salt Lake City, Nashville, Tennessee still growing despite correction. Strong universities, good infrastructure, growing tech presence, Workers no longer tethered to coastal cities. The investment thesis. Residential real estate in these markets are still undervalued relative to coastal markets. Strong in migration trends, favorable supply, demand, economics. That's a 15 year tailwind for a smart long term investor. AI is making the professional class locationally free for the first time ever. The cities that capture those workers over the next decade will see real real estate appreciation that makes today's prices look like a discount. This is why when I interviewed a nine figure Internet entrepreneur, he was asking about multifamily. It comes down to something fundamental. And that's when the rules of an economy change rapidly. The assets that hold value are physically real and functionally necessary. Land, shelter, infrastructure, the Internet disrupted retail real estate. AI is disrupting office real estate. But AI cannot and will never disrupt the fundamental need for housing. You can't download an apartment, you can't stream a warehouse. You can't stream the fiber and power that runs an AI model. That's what you can stream. The rotation is happening in a world where software moats are eroding. Hard assets hold value more cleanly. And the people that see this clearly are the ones who built wealth digitally. They understand better than anyone that software advantages are now temporary. They understand the pace of change and they're moving toward real assets. So here's five clear takeaways what this means for you. Number one, if you're not watching how AI is changing business economics, not just in tech, in your business, you're already behind the people who figured out the Internet early made fortunes. The the people who figure out agentic AI early will do the same. Second, the real estate opportunity right now is as good as it's been since 2011. Not because of exuberance, the opposite. Market distress plus adjusted valuations equal motivated sellers. And that creates opportunity in fundamentally sound assets. Multifamily, industrial, select, commercial. The third takeaway data center investment 1 trillion projected in North America for 2025 to 2030. This is something that I don't fully understand how we at the consumer level are going to take advantage of, except for investing in REITs, which I mentioned before, and that is something that I would rely entirely on a financial advisor for. But it's definitely a sector that's growing. The fourth takeaway. Think about where people are moving, not just jobs. The broader migration. AI enabled location flexibility is real. So secondary markets will outperform primary markets in residential real estate over the next 10 years. Watch Indianapolis, Nashville, Charlotte and cities like that. The secondary markets where housing is still inexpensive relative to the coastal markets right now. And number five, and that is my original thesis proving out to be even more correct right now. And that is people need housing. Supply is shrinking, rates are slowly going down. Rent growth projected to accelerate into 2026 and beyond as as supply fades. Time is on your side if you buy right now. The AI economy isn't a threat to real estate investing. It's a catalyst. It's creating the infrastructure demand, the capital rotation and the housing dynamic that makes the next decade one of the best environments for real estate investors in an entire generation. This started with a conversation with Mike that stuck with me, a guy who built serious wealth at Internet speed, moving now toward hard assets. That instinct isn't fear. It's not thinking technology is bad, it's wisdom. Understanding that in periods of rapid disruption, the most durable stores of value are the ones that are rooted in physical necessity. Like land, infrastructure, shelter. AI will create enormous wealth. It already is. But wealth won't be evenly distributed. The people who understand where the infrastructure lives, not just the software layer on top of it, but the physical world underneath those are the people who will compound through this transition. Every great technology wave creates new wealth. But the people who get truly wealthy are usually the ones who own the physical infrastructure underneath the digital revolution, not just the software on top of it. I am Paul Mark Morris and this has been the Paul Morris podcast. If it resonates with you, share it. Someone needs to hear this right now. If you want to go deeper, let me know. The things you're interested in, and let's build together.