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- [00:01]
A
This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales using automation, analytics and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more@accenture.com Spotify this episode is brought to you by Facebook. So you were scrolling on Marketplace and there it was, the bike you'd been searching for. You sent a message and it turned out the seller was super chatty, kind of funny, and an avid cyclist. The next thing you know, you're in a cycling crew. Well, a community cycling group. The thing about Facebook, you might find more than what you're looking for. From a browse to a bike ride. You this summer. Find more on Facebook.
- [01:00]
B
Welcome back to the Rich Habits Radar, our Friday episode of the Rich Habits podcast, where every Friday morning we're coming at you with the biggest headlines impacting you and your money. This episode is brought to you by public.com My name's Austin Hankwitz. I'm joined by my co host Robert Croak. And the three things sitting at the top of our Rich Habits Radar this week include big tech spending a trillion dollars on AI infrastructure next year, SpaceX, recent earnings call, their first earnings call since being a publicly traded company and the hundred billion dollars of insider stock that's just getting unlocked for the very first time and recent US Jobless claims. Be sure to stick around to the end where we talk about what LinkedIn is doing about everyone suddenly using AI on their platform. Robert, let's dig into our first story.
- [01:47]
C
That's right. I'm excited about this episode. A lot of numbers, a lot of stats, and it's going to be great. 725 billion in AI CapEx spending for big tech across the five biggest AI spender Amazon, Microsoft, Alphabet, Meta and Oracle. 2026 CapEx guidance now totals more than $725 billion. That's up 77% from the roughly 410 billion they spent in 2025, and more than triple the 226 billion spent in 2024. Wall street analysts at bank of America are already projecting this number crosses $1 trillion in 2027.
- [02:26]
B
Yeah, let's talk about that big AI CapEx spending. So 725 billion in a spending for this year, a trillion for next year. Robert, that is such a big number. And Amazon is leading the pack at $220 billion, the number that their CEO Andy Jassy raised from their original 200 billion guidance that was issued during their Q2 earnings call last week. Andy Jassy blamed higher memory costs. Alphabet is next. They're spending about 200 billion. Microsoft guided to roughly 175 billion for this year. Meta raised the low end of their guidance. 135 billion with their ceiling at 145 billion. And then you've got the wild card, Oracle. Oracle's guiding for 70 billion of net of customer prepayments, which is roughly 90 to 95 billion dollar gross for their fiscal AI capex spend of 2027 Austin.
- [03:22]
C
That is a whole lot of billions. And this isn't speculative spending. These companies are sitting on a combined $2.3 trillion on contracted revenue backlogs. 2.3 trillion. That's remaining performance obligations. E contract signed by customers that haven't been fulfilled yet. And the number is up 16% from just last quarter, according to bank of
- [03:44]
B
America analyst Vivek Arye in Microsoft's commercial backlog. Robert, you're talking about this like remaining performance obligation. Let's break it down one by one. Microsoft, $678 billion of a backlog. That's revenue that people have signed a contract. Yes, I will give this money to you. I'm ready. We just need the Data Centers. Right. 678 billion for Microsoft AWS at Amazon at nearly half a tr. 496 billion. Right. We've got Google Cloud, 514 billion, Oracle. Now here's again this wild card. $638 billion of remaining performance obligation. But with Oracle, why they're the wild card is because half of that is coming from a single customer, which is OpenAI. OpenAI is definitely not public yet. And they also are not doing hundreds of billions of revenue, which means I don't know how they're going to Pay, you know, 300 billion Oracle like so that one's a little over here.
- [04:42]
A
Right.
- [04:43]
B
That kind of shows you how wishy washy some of this backlog can be. But regardless, it is nothing to sneeze at. You mentioned that 2.3 trillion, Robert, and it's such a big number.
- [04:52]
C
Yeah, I don't think because you know, everyone's asking us in the rich habits network, is this the dot com bubble and bust or the boom and bust? I don't think we're there yet, but it's definitely a pretty crazy house of cards when you think about all of these billions and tens and tens of billions they're being spent. But the revenue these companies are already generating from cloud and AI is accelerating and not slowing. So that's definitely a good sign. And over the last 11 quarters the entire cloud market has doubled in size. So that's very, very important to keep an eye on. But the quote that really stood out to me from Andy Jassy on Amazon's Q2 earnings call. He said this is a once in a lifetime opportunity and he had previously estimated that AWS could eventually become a few hundred billion dollars revenue business. And last week he upgraded that. He now believes it will at least double and that could very possib a trillion dollar annual revenue business for us in time.
- [05:48]
B
A trillion dollars of annualized revenue just from aws because of AI. Andy Jassy also made it clear that even 220 billion in capital expenditures, Amazon is still not expected to have enough capacity to satisfy all of their AI demand in 2026 and expects that same bottleneck to persist in 2027. So again, to fund this build out, Amazon is shedding cash like it's, it's never going. They're spending hundreds of billions. They even sold $25 billion worth of bonds in early July. The company's trailing twelve month free cash flow has now swung negative by $7 billion. So Robert, all the money that's coming into these high margin hyperscalers, it's going right out the door for Amazon here. Robert, they're pretty much saying I could go spend 200 billion of capex and realize half a trillion of revenue on the backside. That's a pretty good right. How about this Robert? I give you 200 billion and you give me 500 billion back, right? That's the business they're in right now. So Ro, what does this mean for our listeners and their money, especially the ones that own stock in these hyperscalers?
- [06:53]
C
Austin, I think this is the biggest single infrastructure build out in the history of capitalism. And the bet these companies are making is that AI compute demand is so insatiable that even 3/4 of a trillion dollars in a year won't be enough. I said that correctly. Three quarters of a trillion dollars in one year won't be enough. So the bull case is the backlog. 2.3 trillion in contracted future revenue gives you visibility that this spending isn't just a leap of faith, it's pre sold demand. The bear case is cash flow. Amazon and Alphabet have both tipped into negative free cash flow and Meta is expected to follow. And Oracle's credit was just downgraded. Closer to junk. So the question isn't if AI revenue is real. It clearly is. The question is whether these companies can bridge the gap between the front loaded spending and the backloaded revenue without breaking their balance sheets.
- [07:45]
B
Well Robert, you mentioned the dot com bubble. I think the key difference between this cycle and something like we saw in the late 90s with the fiber optic build out during this dot com bubble was these aren't speculative telecom companies hoping that customers just show up. They have $2.3 trillion of signed contracts saying demand is here, we need the compute, where are the data centers, we want to use it. We just like what's going on. So they have the demand. They now have to say, okay, we have your contract. We're now going to go build the things and do the things so that we can actually deliver the service that you want and realize that that that backlog as revenue on their books. Now another company that's doing a lot of this right now is SpaceX, Space X. They just reported their first ever earnings, Robert, as a publicly traded company. And today, whereas we filmed this on August6, which is a Thursday, $101 billion worth of insider shares have just now been unlocked. And funny enough, the stock is not crashing or it's actually green.
- [08:52]
C
Yeah, Austin, let's unpack this because there are three stories colliding here at once and each one in its own would be the biggest space and AI story of the month. So let's get into it.
- [09:03]
B
Yeah, this one with, with SpaceX is interesting. So like hold on to your seatbelts here. This is some funny, funny, fun stats, Robert. So first one, earnings, right? SpaceX posted 7.8 billion in Q2 revenue of 92% year over year, crushing Wall Street's expectations by about a billion dollars. Adjusted EBITDA, which is like you, ish for the company, tripled to 3.5 billion for the quarter there. The company is still unprofitable from a gap perspective. Generally accepted accounting principles. They posted about a $541 million net loss, right? But that's a massive improvement from the billion loss they had a year ago and the 4.3 billion loss they posted in Q1 of this year.
- [09:45]
C
Now let's look at where the revenue is actually coming from as we film this. StarLink brought in $4.3 billion in the quarter, up 66% year over year with operating margins of 39% better than analysts expected. The subscriber count doubled to $12 million with average revenue per user holding steady at $66 a month. Enterprise and government revenue. Think American airlines, Southwest, the US Space Force jumped 108% to $1.8 billion as well.
- [10:17]
B
Which means right now Starlink alone is on track for about 17 billion in of a annual revenue run rate, which is incredible. It's a connectivity business that did not exist five years ago. So shout out to them for just. Isn't it wild? You just build stuff and now, oh, I'm making 17 billion a year in just five years. How crazy.
- [10:35]
C
Yeah, but here's where it gets wild, Austin. SpaceX's AI segment, the compute cloud business, generated 2.6 billion in revenue, up 247% year over year. And they signed a $14.1 billion in new cloud service agreements just this quarter. And compute capac capacity grew from 0.4 gigawatts a year ago to 1.4 gigawatts today.
- [10:58]
B
Now, like other hyperscalers that are figuring out their capex, right, they're also burning a lot of cash right now. So they're not even profitable with this business segment that, that computing, you know, cloud business. They're actually burning $1.3 billion of operating losses there during the quarter. That's down though from the 2.5 billion last quarter, which is good. So trajectory is moving in the right direction, but it's still not like a profitable segment like starlink. Capital expenditures we're talking about X spend from other big tech companies hit $18.4 billion. Robert. 18.4 billion from SpaceX in this quarter with almost 16 of that 18.4 billion, just all on AI, well above Wall Street's 13 billion of expectations. That is an annualized capex spend run rate here of $73.5 billion for SpaceX, nearly double what analysts were expecting. So, so between SpaceX, we were just talking about these, you know, Meta Alphabet, Amazon, Microsoft, like between all of these companies like that, I mean, oh my gosh, this is unbelievable. Spending right now.
- [12:05]
C
Yeah, building the future is definitely expensive. So we'll be keeping an eye on this for years to come. And here's what Elon said on the call that really turned heads. He told analysts that SpaceX now expects to hit a $100 billion annualized revenue run rate by the end of this year, December 2026. Then he went further. He said SpaceX's projection for reaching 1 trillion in total revenue, not the ARR, but revenue had moved up from 2031 to 2030 and that there's a non zero chance of that being in 2029, which just blows My mind Robert, to
- [12:41]
B
put this in perspective, right, you talked about a trillion dollars of revenue in 2030 for SpaceX, Amazon, Walmart, United Health Group, Apple, Google, all of these companies are far off of that, right? Amazon, Amazon is like the biggest marketplace ever. Walmart is the biggest marketplace ever. And they're only doing 700 billion of revenue. Like if you take off like the marketplace side of it and you think like actually selling a good or a service to a customer, I think Alphabet or Apple are like the closest there and they're both around 400 billion. So you're just, you're more than doubling that figure for SpaceX selling this like these products. And so if we do some math, like to reach this 1 trillion of revenue in 2030, SpaceX needs to 10x their revenue profile from here in just 3 to 4 years. Elon pointed to these next gen V3 satellites, calling it an order of magnitude more capable than the current version. He said if monetization permit dropped by a factor of 10 that it would still mean a 10x increase in Starlink revenue. His quote is it's not out of the question that at some point Starlink will deliver a majority of the world' the Internet, which is a crazy quote to begin with. But like you mentioned, this 1 trillion figure, like it's just happenstance. Like that's just. No, this is bonkers.
- [14:04]
C
Yeah. I mean they're coming for the Internet, they're coming for the cell phone service, they're coming to own all the rockets and data centers in space. And you know, I think the biggest takeaway here is there's so many tentacles to what's happening within SpaceX with all these different revenue models and streams. Even if he gets it 50% right, it's still going to be a massive, probably the world's largest company that we've ever seen. And on the AI compute side alone, Musk said SpaceX is exclusive to Nvidia for its build out. Betting on Nvidia's Vera Rubin architecture, he set a tentative target of 20 gigawatts of compute capacity by the end of 2027. And here's the kicker. Up from 1.4 gigawatts today.
- [14:45]
B
That's crazy. Going from 1.4 gigawatts of compute to 20 gigawatts. Like that's crazy, Robert. This is just wild. And now if think about, you know, why does he want to do that? Well, it's because about 10% of that, you know, compute feeds Grock, which is SpaceX's in house AI model. But the rest, the 90% gets rented out to external customers, including Anthropic and Google. Two stories that we have closed here and talked about on the the rich habits radar and then the headline that sounds like science fiction. Here you go. Ready? Robert Elon says that SpaceX expects to start launching orbital AI satellites next year in 20, putting data centers in space to lower costs below the terrestrial competitors. So according to Elon Musk, not only will SpaceX be a trillion dollar a year business by the end of this decade, in three, four years, but they will also have data centers in space next year. And their compute business will be doing 100 billion in annualized revenue by the end of this year. This is either like the craziest things I've ever seen or heard my entire life or a has just unlocked productivity we've never seen before. Because like this is so hard to believe.
- [16:02]
C
Yeah. And now let's talk about the unlock. Today, August 6th, as we film this episode, 911.5 million shares worth roughly $101 billion became eligible for insider sales today. This is the first time pre IPO shareholders can sell in the public markets. So for Context, this stock IPO'd at $135 on June 12th and hit an all time high of $225 four days later. Later, then cratered back down to $107 by late July. A 52% drawdown I believe in six weeks. And right now as we film it's sitting at $110 a share. And despite the massive unlock, the stock is still in the green as we film this.
- [16:44]
B
But that overhang of like more shares getting unlocked, because remember, you know, you got to think about this for a second as these insiders that have worked at SpaceX for years or a decade or so, right? Their, their equity is now worth millions upon millions of dollars. I think we heard the story about there was a janitor or someone cafeteria that's now a millionaire because they got equity in SpaceX and so those people, they're going to want to cash out, right? And so you know, as everyone goes to sell stock, including early investors, that's going to put pressure on the stock. Buy, sell, demand, right? Supply and demand, economics 101. As a lot of people go to sell price should come down, which is what a lot of people thought were to happen. But to Robert's point right here, the stock's green today. And now another 900 million shares unlock after Q3 results come out in late October. So in my opinion that's going to be another big date to keep an eye on.
- [17:36]
C
Yeah, I think the next three months we're going to see a lot of volatility in the share price of SpaceX because of all this liquidity happening with all these shares and these people that have had their money tied up for years. But I still think it's something we definitely have to keep an eye on, especially if we get to that 80$85 mark. And COO Gwynne Shotwell dropped one more number worth paying attention to. She said SpaceX is targeting the $600 billion a year mobile customer base owned by Verizon, AT&T and T mob Mobile with technology that should put a cellular base station on the same gear that holds a Starlink broadband dish, which is just wild to me and really great because again, if economies of scale happen, maybe all of our cell phone bills come down dramatically and I anticipate us to be able to acquire quite a few of their customers. She said. So Austin, this is a big, big point in this episode. Break it down for everyone. What does this mean for you and your money?
- [18:31]
B
Very simply, SpaceX is trying to be three companies at once. They're going to be a launch mon monopoly, right? Think rockets, a global isp. Think they're, you know, satellites and an AI cloud hyperscaler. And the first earnings report shows that all three segments are growing violently. The bull case is that Starlink's 38 operating margins continue to fund the AI buildout. The 14.1 billion of new compute contracts proves that the enterprise demand is real. The hundred billion ARR target for December gives you a concrete milestone to watch. While the bear case is that the trajectory is just too much. At 73.5 billion annualized, SpaceX is spending at a rate that rivals a Microsoft and a Google. Companies with 5, 6, 7, 8 times more revenue than they have. Right? So free cash flow, it's negative. That's why they saw the bonds, that's why the IPO happened.
- [19:28]
C
Right?
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B
They need cash. 25 billion in bonds, that happened, you know, what was it just a month ago? Like what I'm saying here is they got to spend a lot of money to keep up. They've got some really frothy expectations and excitement. Right? The non zero chance of hitting a trillion in 2029, that's fun and cool, but that comes after spending a lot more money, money that they don't have right now. And so they're trying to like this goes back to what Robert was alluding to with our Big tech breakdown. You've got to balance, you know, keeping cash in the bank and the lights on, while also reinvesting into the underlying business with these capital expenditures because the demand is there.
- [20:07]
C
Yeah, and SpaceX is the only company on Earth simultaneously building space infrast infrastructure, global connectivity and AI compute at scale. So whether it can execute all three without the balance sheet cracking is the single most important question in the market right now. If Musk is even directionally right about the V3 satellite and orbital data centers. This isn't just a space company, it's the next hyperscaler with trillions upon trillions of dollars. I'm fired up for it. I know you are, Austin. We are keeping a hawk's eye on where the stock price is so we can make sure to nibble ride this wave over the next three, four, five years.
- [20:46]
B
Yeah, I mean, think about it like this, Robert. Amazon's a $3 trillion business right now doing about 700 billion of revenue. If you're telling me that SpaceX will be doing 700, 800, 900, a trillion of revenue right by the end of this decade, shouldn't SpaceX be worth 3, 4, maybe $5 trillion in market cap? Because right now it's worth about 1617. Right. So like there's, there's a clear if this actually takes. SpaceX is super interesting in my humble opinion, but it's a massive if. And that if is Elon Musk, the number one salesman in the world, the guy who can sell you the future without it even existing and then try to piece it all together. He's been doing this with space, or he's been doing this with Tesla, the robo taxis that, remember the humanoid robot dance party thing, and they were all teleoperated. So it's like, you know, take all this with a grain of salt. That's what I'm doing. And to Robert's point, I'm keeping an eye on this because it's important to keep an eye on and if it actually does come true, very cool.
- [21:49]
C
Yeah, definitely long term play, but we will keep an eye on it. So let's get into our third story, Austin.
- [21:55]
B
Let's do it, Robert. Today's weekly jobless claim came in at 199,000 for the week ending August 1, up from 1,000 the prior week. Now on its own, 199,000. It seems fine, but it's historically low even. But as we zoom out and stack it against other data points that will be dropping later this week, aka Friday, August 7th, it begins to tell a different story.
- [22:20]
C
Story yes. Yesterday ADP reported that private Companies added just 44,000 jobs in July, the weakest month since January, well below the 75,000 jobs expected and nearly cut in half from June's revised 95,000 jobs.
- [22:35]
B
Healthcare carried almost all of it at 36,000. Goods producing industries actually shrank a little bit. Trade, transportation and utilities lost 8,000 positions. Last month's official BLS report showed only 57,000 non farm payroll roles. In June, April and May they were all revised down by a combined 74,000 positions.
- [22:59]
C
So for the first half of 2026 produced just 552,000 total jobs, barely 92,000amonth in an economy that was averaging three times that two years ago. So consumer confidence isn't helping the picture either. The Conference Board index slipped to 90.8% in July, down from 92.2% percent its fourth consecutive month below 95. GDP grew at 2.1% in Q1, up from a crawling 0.5% in Q4 of 2025. But that rebound hasn't translated into hiring momentum just yet.
- [23:35]
B
Not yet. The Fed is watching all this, but keeping rates steady of course, with inflation being the priority, markets are pricing at a possible rate hike before the end of the year if prices don't begin to cool. So Robert, what does this mean for you and your money?
- [23:48]
C
Well, it means that tomorrow morning's July jobs is the one that matters. So if you're listening to this on Friday, August 7th, you should have read this news story already. Economists expect 83,000 payrolls and 4.2% unemployment, especially after that ADP Ms. Expect a hard repricing of rate expectations and volatility across the stock market. Remember, the markets don't like uncertainty and the labor market isn't in crisis. But the trend is clear. Hiring is decelerating while Big Tech is pouring three quarters of a trillion dollars into AI infrastructure. So the economy is splitting in two. One half is building the future, the other half is starting to feel the squeeze. And the last we want to do is have our listeners be on the wrong side of history. This is why it's never been more important to own assets and have a stake in the US economy by buying shares of voo, qqq, DIA and aiq.
- [24:44]
B
What a great breakdown, Robert. I could not agree more. You gotta have a stake in the US economy because hyperscalers spend a trillion dollars next year. That trillion dollars is going to leave their income statement. It's going to leave their bank account and enter the bank accounts of other companies. And by owning equity and voo, qqq, dia, aiq, you will be reaping the rewards of those other companies bringing in that revenue as profits prices go up. Hyperscalers realize all of this backlog, those prices go up. Like you have to be an investor, you have to have some skin in Robert what another great reminder before we jump to our radar points, gotta give a shout out to public.com this episode of the Rich Habits radar is brought to you by Public, the investing platform for those who take it seriously. Because on Public you can build a multi asset portfolio of stocks, bonds, options, cryptocurrency and now generated assets which allow you to turn any idea into an investable index using artificial intelligence.
- [25:46]
C
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- [26:05]
B
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- [26:18]
C
paid for by Public Investing. Full disclosure in the podcast description.
- [26:22]
B
All right, Robert, do you want to kick us off with your radar points?
- [26:24]
C
Sure, I'll write Rock it out. So my radar points are kind of all over the place, so bear with me. Today I just wanted to find some really kind of fun, different ones that weren't so locked in of the typical headlines we're seeing every day. And my first one today, my first radar point is Amazon to offer GLP1 weight loss drugs to Medicaid and Medicare patients through Amazon.com Amazon.com said patients with Medicare Part D prescription plans now have access to certain GLP1 weight loss medications through the Amazon Pharmacy. Oral and injectable versions from Novo Nordisk will also be part of that offering. And also on top of that, Zepbound and Foundeo pills will be available at a cost of $50 a month with free home delivery, Amazon said. And it's offering same day delivery in more than 3,100 locations and no prime membership is required. So I thought that was an interesting one. As the GLP1 market gets better and better, Amazon wants their piece of it and people love Amazon. My second radar point today is US mortgage rates rose to a one year high averaging 6.81%, pushing home sales to a five month low. I still think it's a great time to buy, but I want to share this to give people some perspective because mortgage rates reach this 6.81% and it's impacting buyer activity in cooling pending home sales across several major metropolitan areas. Gen Z shows nearly two thirds of young buyers are willing to totally relocate to entirely different cheaper housing markets to stay within their monthly budgets. So I thought that was interesting. And lastly, Zillow lays off over 500 employees as part of CEO Jeremy Wachtman's strategy towards a disciplined cost structure as they build their housing super app. And my last one today is pretty special to me because I'm really excited for the future of tokenized assets on the blockchain and I saw yesterday the headline that Platinum just got tokenized on the XRP ledger. Xrpl, which is a major expansion for precious metals and real world assets on the blockchain and the commodity token name as Setiko Platinum XPTA was launched by the asset tokenization platform Trensic and issued from the same company. So I thought that was pretty good news. Austin, we've been talking about precious metals as part of a diversified portfolio portfolio and Platinum is definitely in that category along with gold, silver, copper and all that. So we'll see what other of these precious metals get tokenized in the near future.
- [29:07]
B
What a great breakdown. Yeah, mortgage rates, those are kind of high. As someone who's building a house right now, not enjoying that. Thanks for breaking that down. I've got three radar points. I'm going to talk about LinkedIn and their want for their users to use less AI and what they're doing about it. I'm going to talk about data center REITs being the best real estate investment of the last three years and HOA foreclosures spiking by 40%, which I did not know. So let's walk into this LinkedIn. Let's start there. LinkedIn just rolled out a this seems like AI slot button that lets their users flag posts that they think were written by an AI bot. And they're planning to introduce a follow up feature that actually nudges the poster when people start flagging them. The scale of this problem is absolutely bonkers. Pangram Labs analyzed 57,000 LinkedIn posts from April to June and found that 41% of long form posts and 30% of all comments were entirely AI generated, which is higher than X, Twitter at 29% and Reddit at 13% AI is also killing its Enhance your Post AI writing feature and now blocks more than 200,000 AI generated span comments per day before they go live with this new button. So, like, I don't use LinkedIn that much because of this problem. I swear to you, Robert, every time I get on LinkedIn and it's someone writing a long post and I'm like, oh yeah, that was chat GPT great. And I just keep scrolling like it is. I don't use LinkedIn. It's. It's terrible now. Okay, so they're trying to fix that. Good for them. Now let's talk about data center REITs. Data center REITs, real estate investment trusts have been the best real estate investment for the last couple of years, according to new research from George Mason University. It found that these data center REITs have been the best performing real estate, not just for the last couple of years, actually, Robert, but for the last decade, averaging a 13.8% annualized return, double the 7.1% from all US REITs overall, and crushing the European REITs, which were pathetic 1%, which is like, kind of funny. So I thought this data was wild, especially as someone who has some real estate in his own portfolio. If you're someone that wants to own Data Center REITs, the two that I've seen as being most popular are EQ I X and DX LR. So go check those out if you, if that's interesting to you. Don't forget NEOS's I Y R I. We like that one as well. But regardless, I saw that headline, I was like, holy smokes, these data center REITs are really printing now. Speaking of real estate, Robert, my last radar point is the HOA foreclosures being up 40%. This is crazy. So according to the Wall Street Journal, HOA foreclosures hit 6,376 properties in Q1 of this year, up 40% from two years ago and rising faster than regular mortgage foreclosures, according again to that Wall Street Journal. So you're seeing the squeeze from both sides. Insurance premiums jumped for 91% of community associations, with 17% of those associations experiencing a hundred percent increase or more in their insurance premiums. While reserve funds that were healthy in 2020 have now been drained by soaring repair costs. HOAs filed more than 285,000 liens last year, up 9%. And in roughly 20 states, their liens carry super priority status, which means that your HOA can foreclose on your home even if your mortgage is Current. So like, oh my gosh. And this is a funny one. Floyd Mayweather, the boxer, he got hit with a default notice of over $25,000 in unpaid dues in Las Ve. So like you can be a famous boxer and still have your HOA knocking on your door saying, hey, give us more money because we are not satisfied. I've got an HOA in this neighborhood I live in right now. I hate it. They raised the prices like I kid you not. When I moved in this town home, Robert, my HOA was 125amonth. Now it is 2. 86 per month just five years later. Unbelievable. I'm. I'm over it.
- [33:18]
C
I love your radar points, but it's wild to think and maybe we need to launch a funding app that people can go on where they get their default notice and they don't have the 10, 15, $20,000 to save their $800,000 house. Maybe we need a funding app where we get first lien on the property or second mortgage or whatever it is and then we can help them out of this because it's crazy to think that there is a category H o a foreclosures that big for someone that owns this 4, 5, 6, $800,000 home and they're $15,000 behind and they get foreclosured on Floyd Mayweather. Stop posting all these pictures with you and millions of dollars when you can't even pay your HOA fees. Come on that' I'm so glad you shared this one today.
- [34:01]
B
Absolutely. Everybody, thanks so much for tuning into this week's episode of the Rich Habits Radar. We're so grateful that you come back every single Friday to talk about the biggest headlines impacting you and your money. With us, of course, SpaceX madness. We talked about the US jobless claims and this massive big tech spending. Don't forget, consider joining the Rich Habits Network. We are so close to having a thousand people now inside the Rich Habits Network. I can't believe we've hit this milestone of nearly a thousand, Robert, in just such a short period of time. Two years. We're coming up on two years. August of 2026 will be our two year anniversary for the network and we're so, so excited.
- [34:38]
C
Yeah, definitely. Austin. There's a few things that I want to add to that though is our retention rate. I was shocked to find out that our retention rate is over 95%. So even if you use that seven day free trial, it's awesome to see that so many people see the value and realize why they should stay. And, you know, to talk about this in depth, you have over eight hours of coursework, some incredible work that Austin and I put together, hours every Tuesday night of us doing exactly this, but doing a deep dive on the markets, real estate, mindset, business, all of these strategies, two hours every single week with Austin and I. But then also you have the school network. And then probably the icing on the cake is all of this investing we're doing. We're opening up the playbook of all of our deal flow to all of our Rich Habits members, allowing them to invest alongside of us in the SpaceX's of the world, in the Apptronics, in some of these cool companies that you're now seeing getting so big and getting so many headlines. So, Austin, it's incredible to see a thousand people have joined. We're, we're right there. I think we're at 996 as we film this. Have joined in the last two years. And they stick around because there's so much value in the community.
- [35:47]
B
Yeah, Robert, we actually just closed on a pre IPO investment. This was a series D of a company that's going to IPO by the end of the decade. It's a 3D printing home company. It's really exciting. And we're currently investing in a brain computer interface company, BCI Company, which is a competitor to Neuralink, Elon Musk's Neuralink. So if you want to invest into the future alongside of us, consider joining the Rich Habits Network and you can do that. Thanks everyone for joining us and we'll see you on our Monday episode of the Rich Habits Radar. Sam.