Hello everyone and welcome back to the Broogly Channel. I'm the guy who makes videos on the Broogly Channel. And the name is Broogly, and in this video I am bringing you this month's installment of the fan-made Backrooms Level series. And you all did not disappoint. These are, I think, some of the best levels in this series so far, and I'm pretty excited for you all to see the ones I chose, because they're crazy. So without further ado, go sub to my third channel, Spoogey, and then let's get right into the video, shall we? First up for the video is called Level 981, or False Tranquility.  The level itself looks pretty safe actually when you first get here. You'll see a nice, scenic sidewalk that has cherry blossom trees on each side and fresh green grass as well. This path goes on forever in forward direction and the backwards direction, so you just take it a nice stroll in this level, right? Wrong. At the beginning, you'll think this level is safe until you start to stay here for longer, because once you stop looking at those pretty trees, you'll notice that you can't actually leave the path to get to the grass. So you're kind of stuck on this one sidewalk and that there's an invisible barrier keeping you on this sidewalk. You'll also start to feel electricity in the air and this electric field around you. And then after about 10 minutes of feeling that stuff, those cherry blossom trees will emit a toxin into the air. That's extremely dangerous. When you breathe in this toxin, which you literally will have to because you can't run away, you're stuck on the sidewalk, you'll start to notice a change in the level, a very dark change, you could say. It's pretty trees and grass and the sky will change to empty trees, dead grass and a gray sky and every alive thing from earlier will start to look decayed. The nice path you were on will turn into an old wooden plank path and it's rotting and cracking and full of termites. After an hour of being exposed to this toxin and on this level, you'll start to get very, very paranoid about everything. The trees will start to look like they're moving around and walking and trying to grab you and the pathway will look different too. And scariest of all, you'll start to see a figure dashing between trees on each side of the path. It's moving so fast that you really can't see what it is, but you kinda can, just not for sure. And this figure is called the Pestulence Keeper. Almost nothing is known about this entity's motives or about the entity in general, but what is known is that it's a pretty tall humanoid shape that has a huge swarm of bugs that make up the outside of its body. The entity is seemingly waiting for you to give up from all the paranoia and craziness that you're experiencing from this toxin and to just lay down and stop moving so it can attack you. Now once this entity starts dashing around, everything in the level is starting to go pitch black. The ground is covered in tar and the grass isn't even there anymore.   There is no outpost here, obviously. And to enter this level, you have to fall asleep on level 39 under a cherry blossom tree. And to exit, well good luck finding one. When you hop on the internet at your own house, your personal IP address is sent up into the cloud to whatever website you're on. And people or companies or spyware and whatever can literally see where you're at. They know you're there, which is why today's sponsor, NordVPN, comes in so clutch when it comes to protecting yourself online. When you use NordVPN, your personal IP is masked and it's hidden from all these malicious ads or spyware or hackers and whatnot. You can set your IP to pretty much anywhere you can think of by just selecting a country on the list. So if I go over here and I click connect to the UK, everything online will think I'm from the UK. And the best part is NordVPN will protect you without even slowing down your internet or your gaming or your streaming services. So you can do all those things worry free of malicious people and worry free of lag. It's 2022, y'all. Everybody should be using a VPN and NordVPN is a great one to use. And if you want to support my channel, go to NordVPN.com forward slash Brugley and you'll get a massive discount on the two year plan. And you get four additional months completely free. There's also no stress because you can try Nord risk free. Thanks to their 30 day money back guarantee. So check out NordVPN.com forward slash Brugley to get protected. Thank you NordVPN for sponsoring this video and let's get back to it. Shall we next up for the video is level 145 230 from Miko zero over on discord. This level is also known as level railway run out and it's classified as a class three difficulty with it being unsafe and unsecure with a pretty high entity count honestly. The actual level is an infinite railroad with trains that run along it constantly. This railroad cuts through scenic wilderness streams, hills and valleys and overall just dense forest. However, when you get to the level, you don't actually spawn on the train. You'll be in the wilderness near it where all the entities are. The train itself is moving decently fast, but you can manage to get onto it.  The weather here is always cold and snowy and the sun never fully rises. It's stuck at sunrise forever. And as I mentioned just now, the wilderness around the train is covered in creatures like hounds, Smilers, skin givers and other common ones in the back rooms. But you can avoid them by getting on the train. The entire level is infinite and it seems that new wilderness keeps being made over and over again. It keeps being generated. The inside of the train looks like a cozy retro interior with tables and booths and overall it's pretty relaxing. It's kind of like the train from Polar Express. To enter this level, you can jump through a window on level four and to exit, you have to get on the train and make your way to the front to find the stopping emergency break. And then if you pull it, you'll be sent out. But yeah, this one was a super liminal space type level. I really liked it and I hope you did too. Next for the video is level heaven from Capitan Pavel. This level has a survival difficulty of zero and is safe and secure with no creatures. Level heaven looks like an endless swirling maze of hallways and walls and roofs. All of them being made out of glass. The floor of the level is light gray and is the only thing that isn't actually glass. Since the walls and the ceilings are see-through, well you can see outside. And what you'll see is a very relaxing, pretty sky. And in the sky, you'll see clouds and that kind of deal and it's normally perfectly blue. There are not any entities in this level. It's just you and hundreds of miles of huge glass hallways looking out over an infinite sky. It's pretty chill if you ask me. To enter this level, well this is when it gets tricky because you have to unalive. Which is actually why this place is called heaven. Because there is a small chance that you'll be sent here if you do unalive in the back rooms. Because no one really knows where a person goes if they kick the bucket in the back rooms. But it is known that being sent to this level, heaven, is a possibility. To exit the level, you have to walk for miles and miles until you find a black door which will just randomly appear. Once you find that black door, you have to open it up and you'll be sent out of the level. Pretty neat, but I wouldn't try to unalive just to come here. And lastly for this video is level moon beach from Izzy. Level moon beach is classified as a class one survival difficulty and is safe and secure and is pretty vibey. The level is split into a few different islands with one main one being the center of attention. And this main island is full of lush plants and sand and all of it is covered in different shades of blue. The sky in the level only has a moon in it. No stars, no clouds, just a moon. Which never moves and it never changes and it casts a blue glow onto everything below it. There's actually a few abandoned villages on some of the other islands that surround the main one. And the houses in those villages are made out of a stone called a blue stone. Which has never been found anywhere else except here. It's indestructible and it glows faintly blue like all the other things here. And it's kind of worshipped by the entities that live here. There is one specific entity that worships them and it's the only entity that lives here. And there is no name for this entity but they're medium sized human oids that are bald and they wear rags. So kind of like a monk or something. These creatures seem to worship the blue moon in the sky and they have this blue moon relic stone thing in their camps. That they're very protective of. They kind of worship it and pretend like it's a god or something. Very interesting. They're pretty nice if you don't act them on you know you don't want to rough them up or anything. But in passing they're pretty chill. To enter this peaceful level you have to find some objects that are shaped like a crescent moon on any other level. And touch it and you'll be sent here. But yeah that was a pretty peaceful level if I do say so myself. However I don't really trust the cult that much. Anyways that's it for the vidya. Hope you enjoyed. Thank you for the submissions on the discord everyone. I appreciate it. If you want to submit a level go to discord go to the submissions tab and do it yourself. You might get featured in a video. Check below for the links to toogly and spooogly as well as anything else you need. Thank you for everything and I'll see you later. Peace.


You wonder my theory? What's the theory? I think one of the consequences of female empowerment, the sexual revolution, it's kind of minimized the importance of vetting a man based on his ability to be a potentially good father. Now it's just vetting a man for his ability to sexually please me, whatever that might be. And unfortunately, what that ends up being for an uncomfortable number of our women is things that are reminiscent of their trauma.  A lot of times we just pick partners that remind us of the trauma that you're familiar with or comfort zone, essentially.


The introduction of the first Dragonfly back in 2012 was an interesting move by Cable Manufacturer AudioQuest. That was followed up by the Black 1.2 that I reviewed in August 2015, see the link in the top right corner. In 2016 two new models were introduced, the Black 1.5 and the Red, both are reviewed here. The previous models have become rather popular, but they had one real shortcoming, power consumption. This rendered them useless with smartphones while the compact size and the software controllable analog volume control would have made them ideal for portable use. The two new Dragonflies, the Black 1.5 and the Red, consume far less power. I used a simple USB voltage and current meter to measure the current. The old Black 1.2 measured at 0.05A where the new Black 1.5 measured at 0.01A most of the time with short peaks up to 0.02A. The Red measured at constant 0.02A. How accurate this simple and cheap measurement device is, I don't know. But the difference between the old and the new Dragonflies should be 78% according to AudioQuest and these measurements seem to confirm this. As did connecting the DACs to my iPhone 6 using the camera adapter cable. Whether Black 1.2 gave a warning on the iPhone screen that it couldn't be used due to high power consumption, the other two worked flawlessly. According to information from AudioQuest, this is the result of a better microcontroller. Both new models have the same shape as the old one and the new Black 1.5 can be distinguished from the 1.2 version by its gold collage USB connector, gold lettering instead of silver and a Dragonfly Black 1.5 imprint on the rear. The Red has a shiny red finish and a Dragonfly red imprint on the rear. They both still do 24 bit 96 kHz as a maximum, just like the 1.2. This must be a deliberate choice since the ESS Sabre DAC chips used support up to 32 bit 384 kHz and even DSD. My guess is that it has to do with power and heat. Both Sabre DACs offer the ESS Time Domain Jittery Liminator that made the Sabre chips so popular. There are differences too. One of the reasons that the Black 1.5 consumes even less power than the Red is that the output voltage is 4.8 dB lower at 1.2 volts. That's still enough to properly drive the average headphones. My AudioQuest Nighthawk headphone and Sony MDR EX700 in-ears both played louder than I found comfortable. The Red produced slightly over 2 volts. You can skip the tech by going to the timecode above. Since the Dragonflies cannot be opened, at least I don't know how, I have to trust the manufacturer's information. That states that the Black 1.5 uses the ESS Sabre 9010, a 32 bit DAC chip that, as I mentioned before, is limited here to 24 bit 96 kHz by the microprocessor that precedes it. Like the old Black, it also uses a digitally controlled analog volume control. This means that when you change the volume on your computer or smartphone, this is digitally communicated with and executed by the Black. Furthermore, the 9010 chip is set to a minimum phase digital filter. The Red uses the ESS Sabre 9016 DAC chip, that is of even higher spec, having lower noise and distortion. That's also measurable when implemented in the Dragonflies. The signal to noise of the Black 1.5 measures at 97 dB while the Red measures 112 dB. And for instance the quantization noise is 94.7 to 96.5 dB. That's all nice but is it audible? The volume control in the Red is digital using 96 bit precision. Also new on both DACs or review here is that their firmware can be updated. I'm not sure whether I like the Black 1.5 over the 1.2. I find them not sounding identical but they are in about the same class. Isn't it amazing that for 99 euros you now buy a DA converter that outperforms a 500 euro DAC of, say, 10 years ago? The Black 1.5 has the advantage of consuming less power and therefore can be used with portable devices. But especially in portable use the Red sounds a lot better. I know it costs twice as much but you could also say it only costs 100 euros more. The Red is more capable of driving headphones and in-ears and funny enough that it became most clear when using a set of affordable Argon EP1 in-ears costing 49 euros. Connecting to my Set 3 the differences between the new Black and the Red were smaller but still were the 100 euros. In Set 2 the differences were bigger but to be honest I would not choose the Red for my Set 2. It belongs in my Set 3 and there it performs so nicely that I will use it as one of my references. Again, AudioQuest has improved the Dragonfly DAC but this time the progression comes in two stages. The new Black that offers about the same audio quality as the Black 1.2 but with a lower power consumption and the Red that has almost the same low power consumption and can also be used with smartphones but also has an improved sound quality. I would go for the Red and if you doubt, do realise that the original Black at introduction would set you back to 49. This happens go quick and I will do my best to keep you informed. So subscribe to this channel, follow my Facebook or Google Plus page or my Twitter account. You can also post questions but please don't ask me for buying advice. View my questions video to find out why. The link is in the top right corner. You find more information below this video in YouTube. If you liked this video, please give it a thumbs up and tell your friends on the web about it. I am Hans Beekhuyzen, thank you for watching and see you in the next show or on theHBproject.com And whatever you do, enjoy the music.


Ranger Bill, warrior of the woodland, struggling against extreme odds, traveling dangerous trails, fighting the many enemies of nature. This is the job of the guardian of the forest, Ranger Bill, pouring rain, freezing cold, blistering heat, snow, floods, bears, rattlesnakes, mountain lions. Yes, all this in exchange for the satisfaction and pride of a job well done.  One of the sciences he must have some knowledge of is, of course, botany, and he must also know something of soil chemistry. Poor soils make poor trees, and a good Ranger should be able to distinguish the symptoms as they make themselves apparent. Right now, Bill, Henry, Gray Wolf, and Stumpy are out in the forest taking soil samples, which they'll deliver to the lab at the State University for analysis. Stumpy is a little unhappy as he drives a pick into the frozen ground. Here's the story, the old diehard. If you dig in soil samples, I've never seen the beach. I guess as well, if you dig in hunks of granite is this stuff. If you get the pick in the ground, you can't get it out. Get it back in.  Stumpy's really singing a sad song over there, Bill. He's sure unhappy. I hear him, pal. In a way, I can't help but agree with him. Now you watch. Just tell him we've got enough samples now. Hey, Stump. Bill says you can stop. What's that you said? Look at big smile he have on face. He plenty happy now. And if I complain enough, you take pity on me and make me quit digging this here concrete. Why couldn't we do this at any other time of the year, except the wintertime, Bill? Not too easy, then. OK, fellas, you can quit the digs. I get the point. I wish you had my aching back, too, sonny.  Say, Bill, just why are we digging out these samples now, anyhow? Well, because there must be something in the soil in this area that's affecting the trees, Henry. A deficiency is some kind. It's not evident in a routine soil test. I'll take these samples over to Dr. Draper at the state U and see if he can find it. Yeah, and now that you mention it, some of the trees do look off-color. But right, Henry. And it's not from winter either. Well, see, it ain't. These here trees should be green as grass all year round. OK, let's bundle up the samples and take them over to the lab. Coranic solution reverts to one CC of soluble mass. Isn't that good enough? Looks like you'll have to try again. You don't have to call me that when we're alone, Melvin. Not when you've been calling me Gramps ever since you were knee-high to a Bunsen burner. It's your heart for me to get used to calling you doctor. It sounds kind of cold. Well, it's for dignity's sake, Melvin. I wasn't very dignified when we had pull-off fights not too many years ago, was I? Dignity or no dignity, Gramps. I think you're the best granddad a fella ever had. Say, I better get working on that artificial proto-synthesis. I'd rather you work on that new explosive formula, Melvin. You can start your own experiment as soon as you've completed developing my new theory of hypo-explosive reactions. But Gramps, I just wanted... Melvin, let's not start the day off with an argument. I have too much vital data to observe to get upset. Besides, we shouldn't be quarreling, should we? OK, Gramps. You win. I'll get started as soon as I change into my lab clothes. Boy, it's a good thing we can drive up to the chemistry building. This campus must be a mile long right here. Now, you said it, pal. Well, let's get those samples into the lab. I've got one box. Well, I guess I'll have to carry the other one, since you seem so reluctant to carry both of them. Well, I like that. Let's go, pal. It's good of you to bring me that soil, Bill. That's not what Stubby said when he was helping us dig it up with a pickaxe, Doctor. Yeah, he'd have used dynamite if he could have gotten away with it. Hello, Bill, Henry. Hello, Mel. Hi, Mel. How's the up-and-coming young assistant to Professor Draper? I'm not quite sure. I'll have to ask Gramps about that. You sound a bit discouraged, Melvin. You aren't having trouble with the explosive derivations, are you? Well, yes, I am. Melvin, how many times do we have to go over the basic proponents of the theory? I don't know, sir. You just don't seem to stick in my head. Hey, hey, what was that? What exploded? My experiment. Let's get over there. Henry, grab that fire extinguisher. Make it fast. Call a little more a fire killer, pal. Okay, Bill. Oh, boy, what a mess. It certainly is. If you'd pay half as much attention to real chemistry as you do to soil chemistry and agriculture, this never would have happened.  Please, Gramps, let's not open up that subject. I feel bad enough. Gramps, get here. Who turned in the fire alarm? I suppose someone who had the explosion saw the smoke. I'll let him off and tell them everything's under control. I'll help Mel clean up this mess, Bill. I'm leaving before I have an attack of apoplexy. Really did it this time. Do it up Brown Draper, they call me. Oh, I quit it, Mel. Anybody can make a mistake. Sure, Henry's right, Mel. By the way, how did the explosion occur? There's no explosive I'm working on for Gramps. It was made from a liquid. In the process, you extract the pure explosive by an alternating cooking and cooling method. I didn't release the valve in the pressure chamber soon enough. It must have been off about three minutes. How much explosive did you have, Mel? Five CCs. Wow. If you'd used a pump, we'd be halfway to the east coast by now. I guess so. Say, Mel, I noticed some tension between you and your grandfather whenever the subject of chemistry is brought up. Is it that noticeable? Well... I'm sorry, it's so obvious. It is getting to be a real problem. What is, Mel? Do you want to hear about it? Don't tell me unless you want to. It's really none of my business. It's a growing barrier between Gramps and me. Maybe you can help, Bill. Bill's helped a lot of people, Mel. I know. To make the story short, my grandfather and I have a deep affection for one another. After all, he's been father and mother to me since I was knee-high to a told stool. Well then, why the big problem, Mel? It's this. Gramps has his heart set on my becoming a great research chemist. That's why he's got me developing his new theory of hyporexplosives. He feels this will teach me research techniques. And, uh, you don't want to follow your grandfather's footsteps, huh, Mel? No, I don't. Didn't you major in chemistry? Yes, but I'm minored in agriculture. I've been in 4-H ever since I was a kid. I'm crazy about it. I see. Very few people do know it because Gramps frowned on my agricultural activities. Well, what is this to do with chemistry in your grandfather, Mel? The point is, Bill, I want to be an agricultural chemist specializing in the feeding of livestock. Well, that's a very worthy ambition. I wish my grandfather thought so. I hear the reports, Bill. I hope I didn't take too long. Thanks a lot, Doctor. Well, how do they look, Bill? Well, I'll have to compare them with my other charts first, pal. Then we'll know. Let me know how the comparison works out, will you, Bill? Sure, be glad to. Well, Henry and I'll be running along now. See you again a couple of months, Professor. Bill, there's something I'd like to talk to you about. Yes? It's a rather personal matter. If you've got time, it won't take long. Well, certainly. I'll run along, Bill. I'll see you at the office. You don't have to leave, Henry. I think you both have a pretty good idea what's on my mind. You mean, Melvin? Yes, yes. As you know, Bill, I love the boy as though he were my own son. I've given him a good home, education, opportunity. And now he's got some tomfool notion about being an agricultural chemist.  Well, the lads are born research chemist. Got the draper blood in him. And he wants to devote his life to feeding horses and cattle. He didn't make him breakfast food for hogs and sheep. How do you want me to fit into this picture, Doctor? I want you to talk to Melvin. Think of it, Bill. Here's a young man with the ability to be a great scientist in the field of chemistry. Then he's preparing to throw his life away on new diets for livestock. I see. You're pretty determined about what you want for Mel, Doctor. I'll make Melvin a great chemist if it's the last thing I do. Thirty CCs. Oh, Gramps. Melvin, I've just talked with Peter. He says you're going out to the ranch over the weekend. That's right. I've got to work on my feeding experiments. And what about this experiment? When are you going to complete it? The weekend would help shorten the time considerably. No, Gramps. But I've got to weigh the cattle I've been feeding and record the data.  You'll throw the cycle off? What do you think you're doing to my experiment? Oh, please, Grandfather, let's not argue. I'm sorry I can't stay. You're sorry. In one of these days, I'm going to give up trying to make a scientist out of you. I wish you would. I'm tired of it. Ranger headquarters, Ranger Bill speaking. Could you possibly come out? I want to talk to you. Oh, sure, Mel. I've been wanting to watch you work. I'll be out in about an hour. Bill, I can't tell you how much I appreciate you coming out here. I have so much work to do on my feeding experiment that will take me all of Saturday to catch up. I'm glad to come out, Mel. What is this feeding experiment you're talking about? Well, I've worked up a new feed formula for beef cattle. I make them grow faster and finish off and fill out much better than any feed on the market today. That is, I hope it will. What do you mean? Well, you see, all I have is the theory. Now I'm recording the actual growth data. You'll notice that I marked one feeding pen A and the other B. Yes, I noticed that the first thing. I guess I made the letters big enough. Well, pen A has the cattle who are eating my new formula seed. And pen B cattle are being fed standard roughage and grain plus a standard supplement feed. So now you're recording the growth made by each group of cattle to see if I was eating your special feed and make the gains that you say they will. Right. Now I'm getting the facts to prove or disprove my theory. If the facts prove I'm right, then I'll be able to give the agricultural world a better feed at less cost. Which in turn will give the rancher and farmer a higher profit. Yeah. This feed can be adapted for other livestock and poultry as well. Bill, I have something to show you. Yeah. Something that to me is very important. Will you read this? Sure. Well, this is an offer for a fellowship at the Agricultural College of the State University. Oh, that's wonderful. Congratulations. Thanks, Bill. There's only one hitch to in it. Oh, Professor Draper. Yes. If I accept this, it'll hurt Gramps deeply. I suppose it will. Your grandfather seems to be dead set against you being anything, but a research chemist, no? If you only knew how dead set he is. What really worries me is how Gramps feels. I don't want to hurt him, Bill. That is not any more than I have to. What do you mean by that? Well, I feel that I should accept this fellowship. It's what I've dreamed about. Agricultural chemistry is what I've always loved. I'm not a research chemist, Bill, but... I don't want to break Gramps' heart because of my own ambitions. Mel, don't let this throw you. I think the bond of affection that you two have for each other will straighten the thing out eventually. You think so? Even though Gramps is what you might say... well, stubborn? I think so. In fact, I'm sure it will with the Lord's help. I never thought of asking the Lord for help. I'm ashamed of myself. Well, the Lord can and will do great things if we ask Him, Mel. What do you want me to do? How can I help? You just keep on doing a good job with the lab. Don't give up your feeding experiment, either. I'll see what I can do to convince your grandfather. I hope you can. Let's pray before I leave, shall we, Mel? All right. Are you sure the Lord has a plan of His own to work this out? We want to be sure we're doing what He wants to do. Well, now you have the whole story, Ben. Yeah, I see. It's too bad to see a young man's ambitions thwarted because of our hard-headed old man.  No question about that. You've got the heart of the problem right there, Ben. Will you ask the professor to have Mel write the story? I certainly will. I'll call him right after lunch. I've been just thinking of it. The newspaper wants you to write an article on hypo-explosives. But, Gramps, you should write the article. It's your theory. Nonsense. You're working on it with me, aren't you? Oh, this will get your name right in public where it belongs. But, Gramps, I feel that I'm stealing your stuff.  You just get busy on that article. Okay, if you say so. I'll start right away. Do my best. I know you will. Wait till my colleagues read this. They'll know then that my grandson's a real chemist. He's got the draper blood in him. Dr. Patch, what do you think of young Draper's article on his grandfather's hypo-explosive theory? It'll be perfectly candid, doctor. I think it's poorly prepared. He's certainly not a chip off the old block, I'd say. And your opinion, Professor Conlon? Quite of the same mind, Dr. Matthews. I feel that Draper is wasting his time with his grandson. Well, who's going to tell the old man? I hope we don't have to tell him. You'll ask our opinion. Yes. I, for one, don't want to hurt Thaddu's. Point is, somebody have to tell him the truth sooner or later. Dr. Matthews, what's the general feeling among the professors about the fine article Melvin wrote? Well, Thaddu's, it's certainly all right. What I mean is... It can't come, Herbert. You can speak frankly. I'm sure you all agree that the article was well stated? Well, don't you? Speak up, man. Ethadius, it hurts me to tell you, but since you insist I... What are you talking about? What hurts you to come? Well, it's the consensus of opinion that Melvin has very little to recommend him in the field of research chemistry. Very little to recommend. A huge consensus of opinion is that. Who are you talking about? Your colleagues at the university? And how about you? I must say I'm in agreement with that opinion.  A lot of them. Why, I've taught every one of you from knee-pants. This is an assassination. They're ruining Melvin's career. Oh, your blustering won't help, Thadduius. It won't change the consensus of opinion one-eyed. What? Melvin just doesn't have what it takes. Bill, I'm sure they're trying to put one over on me. They? Who, darling? I don't know, but whoever it is must think I'm not only old, but unconscious as well. How do you mean that? Well, somebody prompted Ben into asking me to have Melvin write that article. Yeah? Just to prove that Melvin is not a research chemist. I think he is. Just so I wouldn't stand in his way to accept the fellowship he's been offered. Well, I'd say that was a shrewd guess, doctor. But what this person doesn't know is that I can pull one out of the hat too. What do you mean? Well, I've asked Melvin to bring me a sample of this cow feed that he's working on. And I'm taking it to Alden Temple. He'll tell me whether or not Melvin's a chemist or a cattle dietitian. The theories, I give it as my considered opinion that this theory of your grandson's uncattle feeding is useless. And I would say that he has no talent in that field whatsoever. It's no use. I just can't get ahead of Gramps. Alden Temple told Gramps my cattle feed wouldn't even make a good batch of birdseed. Hey, keep that chin up, young man. You're not discounting the Lord's part in it, are you? Perhaps I am, Bill. But I can't forget that Alden Temple is the best cattle expert in this part of the country. Yes, Alden Temple is an expert cattle judge.  Are you sure, Bill? I'm positive. He's interested only in the finished product. Not how you grow and develop it. Of course, he may think he knows, but he doesn't. So right there, Bill, Alden Temple proved that my colleagues were wrong. Melvin's not a cattle feeder, Bill. He's a chemist, same as his father and his grandfather. Personally, I wonder about that, Doctor. Well, there's nothing to wonder about, Bill. It's simple as ABC. Certainly, the article he wrote wasn't perfect. But the theory and the data are by no means fully developed or tested in the laboratory. Professor Draper, suppose someone could prove that Alden Temple is wrong, that he's wrong about Mel. That's impossible, Bill. The man's an expert. Yes, he's an expert, all right, but not in cattle feeding. What? What do you mean? He's an expert in judging cattle. There's no one better. But he knows very little about the formulation of feeding and the preparation of diet to put the prime finish on cattle. Well, are you sure, Bill? I'm as sure as I know my own name. Well, I can't believe it. The man must know something about the feeding of cattle. Yes, he does know something, but not enough to give scientific opinion. Now you take a group of scientists who specialize in dairy feeding. Who are you thinking of? Well, there's Horace Pendleton and several others from the University Agricultural... Horace Pendleton? With that old C-shell is too crabby to give an opinion. Why do you mention him? For only one reason, Doctor. Because he's a genius in food chemistry, both for humans and livestock. I got it, fellas. Plane to your headquarters, Bill Jefferson speaking. Bill, this is Horace Pendleton. Oh, yes, Doctor. How are you? Just fine, thank you. Bill, my understudies and I have completed our work on Melton Sampers. That's good news. What's the verdict? Well, I'd rather hold that down till I can talk face to face with that old grisly bear, Thaddeus Draper. What is Granson there, too? Now, you make arrangements for meeting at two o'clock this afternoon here at my laboratory. I certainly will. We'll be there. Melton, is this dietetic preparation all your own work? Why, yes, Doctor Pendleton, it is. You receive no help from anyone? No, sir. I dreamed it all up myself. I didn't tell a soul what I was doing. Sounds to me like you disapprove of this preparation, as you call it, Horace. Is that right? On the contrary, Thaddeus. What? I personally think it's a fine piece of work. You must be joking. You should know me well enough by this time to know that I do not joke about matters of science. Bill, did you hear that? Yeah, Mel, I did. Horace, I'm telling you, the lads are research chemists, not a cattle feeder. Now, you listen to me, Thaddeus. And remember, I'm your senior. This feeding formula your grandson developed shows genius. Your grandson would be wasting his time as a research chemist. Do you know what you're saying? I've given Melton the benefit of all of my knowledge. I want to make him the greatest research chemist in the field.  That's why his father... That's what you're wrong. You're on the way to ruining your grandson's future. I'm doing what? I said you're ruining his life by trying to force him to do what you want him to. Robbish! He's a draper, isn't he? Yes, he's a draper. And it's a name to be proud of. But you can't pour his life into a test tube and drop a reagent in with it to make it do what you want it to do. Your grandson is not a laboratory experiment. He's a man. Melvin, is that what you think I'm doing with your life? Pouring it into a test tube? Tell me. I... Don't put him on the spot, Thaddeus. He thinks a great deal of you. But his life and ambitions aren't scientific data to do with his euclides. That's all I'm going to say on the subject. Bill, shall we go? Science has no business interfering at this point.  I'll try, Gramps. That's a promise. I'll make full use of my fellowship and try to be an associate professor just as soon as I can. Now, I want you to be proud of me. Dad, too, if he was living.  Don't say it, Gramps. Let's forget all about it. Yeah, you're just like your dad, Mel. And every day I'll thank the good lord for a grandson like you. Say, look at Bill Jefferson over there. He looks like the cat that swallowed the canary. Well, Bill kind of helped. What I mean is... Sure, I know all about it. You do? You aren't angry at Bill, Gramps? Angry. And I should say not, son. I'm grateful. The young guy hard is bad enough, but an old one is ten times worse. Well, it was nip and tuck for a while, wasn't it? But Mel finally won out without hurting his grandfather, with the lord's help, of course. Well, we'll see you next week for more adventure with...


G'day, my name is Joe, I'm from the Philippine Fibergade. Philippine, it's heavily known for our events. We get a lot of people down here at different times after the weekends. High populations could be a bit of a challenge due to the amount of people we have down here at one certain time. This is making sure we have adequate members available to turn out. And also making sure we got able to get resources on to the island in case of any emergencies. CFA's involvement in the GP is very important for the fact of having that fire protection outside of the track. And also the knowledge of some of the people involved in the organisation of the event to make sure everyone that attends is safe. So, we're pretty lucky down at Phillip Island. We've got our own three resources down here, our pumper and two tankers. The best thing about being a volunteer at Phillip Island Fibergade is being able to assist the community at a time of need and coming together each week to train at social events. It's a lot more than what I could ask for.


All right, let's let's take a look here. All right. Here is my subject matter today. Is this on? Okay real estate It's really on now Can it be added to a Boglehead portfolio? Should it be added? How should it be added? Let's talk about it. Something we don't talk about a lot first some I am not a financial advisor I'm not an accountant. I'm not an attorney. I'm not licensed to do anything in the great state of Maryland So this is all for your entertainment and information only. I have conflicts of interest I own a for-profit company called the white coat investor. Some of our advertisers are real estate investing companies I'm not going to mention any of those today, but be aware. I have that conflict of interest The only company I'm probably going to mention today is Vanguard, which I have yet to get to advertise with me So I don't have a conflict there Okay, here's what we're going to talk about. We're going to talk about the case for real estate in general Then we're going to talk specifically about the case for private real estate Following which I'm going to present the most important slide in this presentation. I call the real estate continuum All right, first the case for real estate The first reason why someone might want to invest in real estate is because the returns are high Okay, when you're building a portfolio, you want multiple high returning asset classes Maybe you want some lower returning ones as well. So what are we talking about? We're talking about stocks We're talking about real estate. We're talking about small business Maybe some speculative asset classes out there might have higher returns But real estate returns in general are similar to stock returns, but are a little bit more easily leveraged and once you leverage them The returns tend to be higher Second reason low correlations Okay, when building a portfolio again, you want lower correlations between your asset class If they're higher than about point eight, you're not doing a lot of good ad in that asset class at all Correlations of course go from minus one up to one and the lower the better when it comes to building a portfolio For example between us and international stocks. It's anywhere from point five to point nine four with bonds It's almost zero with commodities. It is zero Bonds to commodities actually have negative correlation in comparison Comparing us stocks to us publicly traded real estate investment trust the correlation is about point four or five And if you compare that to private real estate, it's as low as point one seven That's a good reason to invest in the asset class The third reason real estate tends to be very inflation resistant. These are real assets. They tend to go up in value with inflation The value of income of course income property is highly dependent on the rents that you are charging and collecting And so as inflation rises and you can raise the rents then that provides some inflation protection at least in the long run It's also easier to pay back fixed fixed rate debt with Inflated dollars and if you have a bunch of low interest rate fixed rate debt like a lot of people right do right now and Inflation goes up that can be a really great place to be sitting in Real estate also has relatively high cash flow a higher percentage of your return tends to come from income than from capital gains That's not always a good thing, especially if you don't need the income But it can be useful for de-cumulation years and also for replacing earned income during the working years Another great thing about real estate is that it's a little bit easier to add value You're extremely unlikely to add value to your portfolio by studying and picking stocks If you have not learned that yet you will learn it this weekend But all real estate is local an active management has the potential to work better with real estate than it does with stocks You can also boost returns aka earn money by doing the work yourself When something needs to be done that introduces some aspects of a second job Which a lot of people find not very attractive about real estate investing, but it is an opportunity to add some value Another awesome thing about real estate are some tax advantages, which frankly are unfair They're unfair tax advantages.  It's like 39 years still overly generous That warehouse is not going to wear out completely in 39 years And then when that depreciation is recaptured at a sale, it's only recaptured at 25 percent for those of us in the highest tax brackets That's a great deal. Take the break at 37 percent pay it back at 25 percent If you get real estate professional status, which admittedly is not all that easy to get or you take advantage If you're doing short-term rentals the short-term rental loophole, you can use passive losses to offset your earned income I know doctors High-powered surgeons whose spouse qualifies as a real estate professional who pay no taxes on their clinical income because of depreciation from rental properties Mutual funds unfortunately can't pass through their capital losses, but a partnership investing in a real estate property can do so You know those depreciation losses are really only losses on paper, but they can pass them through to you Opportunity zone funds are another excellent way that real estate offers some tax advantages Basically allows you to pay less on capital gains that you get from that real estate But the very most tax-efficient way to invest in real estate is to invest directly in properties that you buy depreciate and Exchange rather than sell into another property a bigger property usually and then depreciate some more exchange it into a bigger property and Finally you die without ever selling anything Well, if you never sell anything you never pay capital gains taxes your heirs get the step up in basis of death It's incredibly tax-efficient all that depreciation sheltered income and then nobody ever pays the capital gains taxes So that's one of the cases for real estate of these unfair tax advantages Okay, so we're talking about the case for overweighing real estate because most of you own real estate investment property Whether you like it or not The total stock market index of vanguard owns three to four percent Real estate three to four percent of it is composed of these private publicly traded real estate investment trust However, ninety percent of real estate by dollar dollar value is not Publicly traded. It's not on the stock markets It turns out investors only purchase about 22 percent of single family homes and only three percent of those are purchased by large Institutions, they're not on the markets. It's a completely separate economy from what we're investing in in vanguard index funds If you compare that to non real estate businesses You'll see that there's a few thousand publicly traded businesses in the company in the country But there's 27 million total businesses However, the truth is almost all of those are one-person businesses, you know 21 million of those only have one employee and 80% of profits when you look at non real estate businesses 80% of profits in the country are coming from those publicly traded businesses from stocks That's not the case in real estate So the idea is that if you overweight real estate in your portfolio more than a total stock market index does That's a little more representative of the real economy and real wealth in the country Okay, so enough about real estate in general. Let's talk now about private real estate Okay, what is the case for private real estate as compared to just investing in real estate investment trust that are publicly traded on the stock market Well, you still get high returns. They might not be higher returns as we'll discuss momentarily You get lower correlation and perhaps better risk adjusted returns You may collect an illiquidity premium. You certainly should by theory whether you do or not. It's a different question You may get lower expenses of a lot of these, you know There's a lot of regulation when you were publicly traded on the stock market It costs a lot to comply with all those regulations However, when you're involved in these smaller properties syndications, etc You can have those regulated according to regulation D, which is a much lower barrier as it's upsides and downsides There's fewer regulators looking at it, but it costs less to comply with it So you may have lower expenses in that regard. You're also often investing in smaller properties You know a duplex just isn't going to fit into a publicly traded REIT It's too big. It needs to invest too much money. It's not going to buy the duplex down the street from you That might not be the case with private real estate It tends to be a less analyzed market fewer people picking through it fewer analysts looking at it And of course in these sorts of partnerships or whether you own it directly the depreciation has passed through right to your tax return Okay, but here is where the rubber meets the road 2022 is not a great year for most of us, right? These are my actual portfolio returns from 2022 If you look at my overall return is about minus 10 percent US stocks were down about 16 percent small value did a little better International did about the same small international did even worse Bonds did not have an awesome year in 2022 either and you know I bonds were like one of those rare bright spots Well, if I look at my private real estate compared to my public real estate that year My public real estate got hammered right along with the stock market did even worse minus 23 percent But my equity real estate did about 9% and on the debt side. I did a little bit better than that nine and a half percent To me that goes hey, you know, there's something here Maybe we ought to be looking at this a little bit more closely Those are various hand-selected investments and how they did in that year, you know, someone did quite well But on average, you know about 9% that year So our private returns actually higher This is a good question and the answer is it depends. I think the best answer is probably not on Average, but the risk return risk adjusted returns probably are a little bit better Because they have lower correlation with stocks and bonds once you incorporate it into a portfolio. It may do better But the returns don't actually have to be higher for it still to make sense to invest there All right, so here is a comparison in four sectors of the real estate investing space You know retail and us office and industrial and apartments. We're comparing private and Public okay, so the red line is the REITs the publicly traded real estate The blue line is the private and as you can see it varies a little bit by sector, but more or less It's about the same However, when they look at these things more specifically in studies You'll see a lot of studies that come back with data like this and you'll see here The second thing down there are these publicly traded REITs and they did pretty darn well over this time period Which is about 20 year time period, you know, it's up there 10 and a half 11% ish And if you go down about halfway, you'll see unlisted real estate. This is the private real estate. It did not do nearly as well It's about what 8% Okay, so it was higher in that study for the publicly traded real estate and Numerous other studies have basically shown the same thing, you know time periods are all a little bit different But it's basically the same thing. You'll see that the public real estate did better than the private But then you start looking at studies where they look at incorporating into a portfolio to take advantage of the fact the Correlation is lower and this study from Utah he et al concluded that the optimal portfolios had higher weightings of direct real estate investments as opposed to REITs and that the optimal Portfolios containing REITs are outperformed by those containing direct real estate investments. It's not all about returns If you look at the sharp ratio Private real estate according to Black Creek anyway has delivered better risk-adjusted returns for investors over the last 20 years Once you adjust it for risk and by risk they mean primarily volatility and The reason why is is the correlation is just much lower You see over the last 20 years compared to the 10 years before that the correlation of the stock market With publicly traded REITs has gone way up and it's gone up a little bit for the overall real estate market But not nearly as much. So it's just much lower correlation and This is kind of interesting data too when you look at this You'll see there's a little bit of a lag, you know, because the stock market is marked to market daily it goes down first and Likewise publicly traded REITs go down first and then the private stuff kind of follows it so there's a little bit of a lag there and If only private real estate didn't have such high transaction costs and such illiquidity, you might even be able to take advantage of that This is interesting too once the stock market gets pounded once publicly traded REITs go down more than 20% Compared to their net asset value Then they do much better than private real estate over the next one to three years That's what this graph is showing. So something to keep in mind there All right, enough about private real estate Let's talk about the most important slide in this presentation the real estate continuum and This is what it looks like On the left side, you will see people who are basically real estate developers. They go to the city They get a permit they break the ground. They dig the hole. They build the building. They, you know, they're it's ground up construction And then you move along to the next category.  Okay, it's you're kind of running a hotel business here All right, this is Airbnb. This is Burbo, right? People are renting your house for three days or seven days something like that Next to that comes long-term rentals. You still own the whole thing, but you're now renting by the month or by the year After that is a turnkey property Basically, you still own the whole property, but you're not doing any of the work You've hired it all out somebody else finds it. They put the tenant in it. They manage it. They repair it They sell it. They're doing everything. All you do is own it After that we're getting into the more passive types of real estate investing the next couple are available only to accredited investors Meaning an income of at least 200,000 for each of the last two years 300,000 is a couple or a million dollars in investable assets. We're talking about syndicated properties so the idea here is 99 investors go in together and they buy a 200-door apartment complex because none of them can afford it on their own number one and number two You get this, you know Some sharing of expenses a little bit and you get professional management None of those 99 investors are being called when the toilets clog. It's a passive investment to them It's mailbox money that comes in every quarter But you own the property directly and it's a partnership and so the depreciation is still passed to you a Private fund often now structured as a REIT even though it's still private It's just you know 15 or 20 of these you put 15 or 20 of these apartment buildings into one fund And that's what a private fund is and then of course at the far end are the publicly traded REITs that show up in your total stock market index as You move from left to right along the spectrum You will see that you will require less experience. You will have less hassle You will get more diversification and as a general rule you'll get more liquidity However, you're giving up control. You're giving up tax benefits You are paying more layers of fees and you probably All of if all of this is done. Well have lower returns because of that So there's not actually a right or wrong way to invest in real estate But there is a right way and a wrong way for you to invest in real estate You've got to match yourself up on that continuum with what makes sense to you You know if your goal is you hate your job and you want out as soon as you can and you'll do anything to do it The answer might be building an empire of short-term rentals On the other hand if you're like I'm a retiree and I want to play golf for 12 hours a day And I don't want to do any of this real estate stuff the right answer for you might be I'll just take the real estate that's in the total stock market index Or maybe I'll just add a little bit of the vanguard REIT index fund that sort of a thing And everyone else has got to match themselves along that spectrum somewhere Real estate of course is not mandatory. You already own it whether you want to or not Okay, so what we've talked about real estate while optional is a great asset class and often the first alternative That gets added to a portfolio Private real estate may not have higher returns than public real estate, but it does have some other advantages There are lots of different ways to invest in real estate You don't need and you certainly don't want to do all of them. I promise you Make an honest assessment of what you want from your real estate investment before making it But you can invest in real estate without getting toilet calls It is not always a second job if you look at that spectrum all of our real estate investments My wife and mine are on the far right side of that spectrum, you know Some of them are private and some of them are public, but nobody calls us for toilets I assure you and That is not the only way to invest in real estate Real estate investing should not be a get rich quick scheme, but it can be a get rich quicker scheme It's still going to take years, but using some hard work some leverage You actually can reach financial independence earlier most likely doing that and Of course passive income is a great term. It is often not nearly as passive as it looks All right. Thank you for your attention. Let me Thank you