Dan Fleyshman

And so I just wanted to talk about some of the realities from a financial perspective of what's happening in Los Angeles and what's going to be happening over the next few years. Hopefully just a few years because it might take five to 10 years to rebuild. Tens of thousands of acres have been burnt.

And what people don't realize is how massive that is on the rebuilding side and the rules and laws in California and specifically in Los Angeles. So I want to talk through some of the business sides of these things. We all know that there's been inefficiencies with some of the politicians. I'm not going to get into governors and mayors and those type of things and what's happened there.

And what people don't realize is how massive that is on the rebuilding side and the rules and laws in California and specifically in Los Angeles. So I want to talk through some of the business sides of these things. We all know that there's been inefficiencies with some of the politicians. I'm not going to get into governors and mayors and those type of things and what's happened there.

What I want to talk about is the reality of rebuilding in Los Angeles is going to be very, very, very tough. It already takes way too long, one to two years, just to get permits and approvals to make a building or a house. Well, the difference is they're already overwhelmed and now tens of thousands of homes, hundreds of thousands of people have been displaced.

What I want to talk about is the reality of rebuilding in Los Angeles is going to be very, very, very tough. It already takes way too long, one to two years, just to get permits and approvals to make a building or a house. Well, the difference is they're already overwhelmed and now tens of thousands of homes, hundreds of thousands of people have been displaced.

So from a sheer math perspective of those people that are gonna now go get an architect to design their new home,

So from a sheer math perspective of those people that are gonna now go get an architect to design their new home,

hopefully get insurance money which we'll get back into later and then apply for permitting this is going to be very very intense for many many reasons the construction companies are not going to be able to handle it they're going to be very overwhelmed there's not enough architects and designs to prepare to create tens of thousands of designs right because they're not making track homes outside of people you know making apartment buildings but individuals that are going to try to rebuild their homes with hopefully insurance money there's a big problem there

hopefully get insurance money which we'll get back into later and then apply for permitting this is going to be very very intense for many many reasons the construction companies are not going to be able to handle it they're going to be very overwhelmed there's not enough architects and designs to prepare to create tens of thousands of designs right because they're not making track homes outside of people you know making apartment buildings but individuals that are going to try to rebuild their homes with hopefully insurance money there's a big problem there

They have to have the capital to pay for designers, constructions, redoing everything, buying tile, furniture, supplies, kitchen, like redoing their homes if they get their insurance money. And if they don't, most people don't have that type of cash.

They have to have the capital to pay for designers, constructions, redoing everything, buying tile, furniture, supplies, kitchen, like redoing their homes if they get their insurance money. And if they don't, most people don't have that type of cash.

Even if you think that they're rich and they live in a $3 million house, it doesn't mean that they have $3 million in cash to rebuild or that they would. The other problem is, well, there's been a rule that happened, a new law that happened years ago.

Even if you think that they're rich and they live in a $3 million house, it doesn't mean that they have $3 million in cash to rebuild or that they would. The other problem is, well, there's been a rule that happened, a new law that happened years ago.

that if someone loses their house in a fire, if they don't rebuild it within two years, the new property tax goes into effect of the new valuation of the home. Well, for a vast majority, especially in places like Pacific Palisades, Hollywood Hills, Malibu, a lot of those people inherited their home or bought it many, many decades ago. Let me give you a math example.

that if someone loses their house in a fire, if they don't rebuild it within two years, the new property tax goes into effect of the new valuation of the home. Well, for a vast majority, especially in places like Pacific Palisades, Hollywood Hills, Malibu, a lot of those people inherited their home or bought it many, many decades ago. Let me give you a math example.

Let's say someone inherited their house or bought their house for $2 million, but they live in Pacific Palisades or Malibu. That $2 million house is likely to be $6 million, $7 million, $8 million, $9 million, $10 million, and sometimes a lot more than that.

Let's say someone inherited their house or bought their house for $2 million, but they live in Pacific Palisades or Malibu. That $2 million house is likely to be $6 million, $7 million, $8 million, $9 million, $10 million, and sometimes a lot more than that.

And so they've been paying their property taxes based on a $2 million house, which could be around, let's call it $20,000 to $30,000 for the year. $40,000, $50,000, $60,000, depending on the area. If their new house takes more than two years, which it will, for obvious reasons, it takes way too long for permitting in Los Angeles.

And so they've been paying their property taxes based on a $2 million house, which could be around, let's call it $20,000 to $30,000 for the year. $40,000, $50,000, $60,000, depending on the area. If their new house takes more than two years, which it will, for obvious reasons, it takes way too long for permitting in Los Angeles.

And now they're going to be inundated at the permitting departments to try to approve these places. They don't have the manpower for it, which is very scary to think about.