Good morning, everyone. Im scott mcgrew. I have some video for you that is just so northern california. Its the morning meditation meeting taking place at a San FranciscoCompany Called calm. Sales are up and flows are downward dog. The company is led by a fellow named michael ack ton smith. Michael is serial entrepreneur from creating computer magazines as a kid to venting the popular childrens Online Social Network call emotion chicamoshi monster little child there says he hasnt got anything on. Why, he hasnt got anything on . The whole crowd was shouting. Were joined by John Schwartz of usa today. Are you a knight . I got an obe. Whats the difference. A knight is when you get the queen putting a sword on you. Yes, and this is the order of the british empire. I got to go the Bucking Ham Palace and i got this fancy medal and my mother is extremely proud . And she should be. Like auto knight light. There was no sword. I think there was some arcane kind of things im telling you allowed to do in the uk. I said you were unlikely only to be the person whos going to get us to calm down, and take a breath, to think about what were doing. You have been wily successful in so many Different Things. You dont seem like the person to sit still. I just love creating stuff. Creating this online world for children was an adventure, and now i want to take it to calm and meditation. Wont to make it accessible for everybody. Calm is having a moment in Silicon Valley right now. Its done very well. Given your experience with mo chicago, dont worry about being bad . We had an incredible roller coaster. It grew really fast. We were the hottest thing in the playground and in the hospital the next. Calm is timeless. Its a state of mind that sink valuable now. It will be in ten years, hopefully in hundreds of years. What made you decide tog from one extreme to something completely different . I went through quite a bit a stress and wasnt sleeping well and had a lot of headaches during some of the tricky times with moshi. And my good friend alex chu had been meditating for many, many years. I realized that theres a huge amount of Research Showing how meditation changes our brains and improves so many different aspects of our life. So i was completely sold and absolutely love it i believe the idea doing these sorts of things, taking a moment, being calm works. In many flasz Silicon Valley i find that hard that people would actually adopt that. When employees come in to your office and you onboard them, if theyre tape a, im going to work 17 hours, standard Silicon Valley stuff, are you able to pivot them or do you have kind of a frenetic office that just teaches . We moved in a mindful way. A lot of people need and find dmaelgs very, very valuable. A lot of people are skeptical and assume its woo woo or spirit, but once you explain the science, they get people excited about it. I tried think. The one you attach to your head . The one you attach to your forehead. You have two options. Super mellow as of youre stoned mode which i chose. Nothing to do with my personal life. Would you consider the kind of other version to get people to work harder . Do you think what i think . We might need to change our name if we did that. Calm and wired. I think theres enough to out of it focus on with calm. So much stress and anxiety in the world that we have our hands full. A lot of people point to our phones being with us as part of whats driving all that anxiety, stress, depression. I buy meditation, but i meditate on my own. Why is it better to have an app doing it . Is this like blue apron where i will learn to make recipes and i dont need you anymore . Sitting down and stilling the mind is not easy. The minds are racing. If you have a teacher that you can sit with, thats valuable. But the next best thing is an app. We have a developer in toronto that writes our content. People love listening to her. We have the detail calm. You learn something new and people love that. Are people having happier and more Productive Work as well as nonwork with an app like this . We believe so. A lot of science has shown that not only physiological improvement such as improving immune system, lowering blood pressure, but other benefits like increased attention and sleep. You said moshi monsters in london. But you did calm here. Why the transition to San Francisco, and in this day and age, was it an easy transition . I assume you came before the trump administration. But nonetheless weve had a bit of an issue . Weve had issues with brexit as well. California, wow, what a place to be. I have a u. S. Passport. For alex and i thought the best city in the world to launch that was here. What do you think that will do to lto understan london tech . I dont think its going to have to be too much of a negative impact, at least i hope not. Do you think the trajectory would have been different if you had moved to Silicon Valley and done it here . Interesting question. Im not sure. I think we were very ambitious with moshi. We thought we would continue growing up like this, so we learn some value lessons on the way. That roller costar has come down. Its relaunching and well be helping the feedback in london. I believe it will roar again. Michael ack ton smith is the ceo of calm. I tried it, i enjoy the. I move on to other things. I found a way to fast forward it, but i will learn it. Thank you for being with us. Thank you. Up next week, charity triesz shovel San Franciscos transit problems with press here continues. Is a terrifying prospect. Its becoming incredibly common and thats the biggest problem. Its not really about the kid sitting in a basement somewhere doing this anymore. This is about big, organized crime. Theyre going after absolutely everybody. These attackers are refining their skills detail to find new ways to work arn your security systems. But there are ways to protect yourself. The best Case Scenario is to have an Effective Security in place, protecting your network and miami. If a threat comes through, having a recent backup of your data is critical because you can recover that data. The worst way to find out about ransom wear is falling victim to an impact. We started getting calls to the help desk saying people tried to open up files that were enkraptd. Were trying to figure out the situation my wife tells me her water broke. My only pons was, okay. Barracuda made sure is it worst Case Scenario didnt turn out. We found all the files that had been encrypted and we just deleted them and i went straight to the barracuda backup. To the point of restoring to business as usual, it was sofd in under an hour. To learn more, visit barracuda. Com. Press here is available as a podcast on itunes. Welcome to press here. I added a new word to my vocabulary word. Legitimateny. A legitimateny i was familiar with the concept. Jeepnys have been around for 100 years. A latest iteration goes by charity, small vans that pick people up for about the same cost as a city bus. He created a charity idea after graduating from y come binnator. He sold the operation to ford. Ford bought your business, which was a business of cars or vans which ford makes in the first place. What did you sell to them. We are required by mobility in 2016. Which is also owned by ford . Correct. We created this service, a Commuter Service where commuters are crowd sourcing Service Areas for them to get to work and home twice dale. Would it be fair to say to trust in your particular system. The barrier to entry if you make vans is not very high . Theyre making the vans we operate. Were operating the service which is actually picking up and you dont give dropping off commuters in crowd sourced areas. Ford is a 114yearold company. They are incredible at making cars, but they as well as a lot of other auto makers are obviously seeing into the future and understanding that there are going to be other ways, there are other ways for people to get around cities, and they want to become a Mobility Company in addition to an auto maker, and charity is their first investment. Theres been a lot of this going on with ford and jm. There are 80 Companies Working on selfdriving cars. Im not convinced any of these companies can build software or consumer services. Is there Something Like me are missing about being ford is gachkt advantage. Charities arent selfdriving themselves. Right but the whole movement of this is where cities are going and we need to own it. Sure. I think there are companies very good making auto mobiles. I dont think theres a company that does both. Youre seeing a converge of, we can do the hardware, lets look for someone who can to the software. In between the hardware and software, theres operation which charity has done a good job doing not only in San Francisco but now in austin as an operationalizing and actual real service. The one thing that swreegz me is your company is . Three years. And you have 114yearold company that youre partnering with. How does that work . How do you reconcile those two cultures . How does that mesh . Ford started Ford Smart Mobility a couple years ago to address just this. Lets produce this unit of people that can think a little bit differently and draw the resources from the parent company, 114 years old but also be nimble many of you to quire, acquire, invest in Companies Like charity that can take us into the future as i have been constantly pressed, ive been to their research center. Tesla needs to be concerned. Its like apple in the macintosh. Its a group of people whove been separated out from the company who are free to think in any way they want to. They bought bikes, for instance. Theyre doing a ford go bike share in San Francisco. Nsa really exciting. But theyre looking at a lot of differentiate things, and ultimately want the city to be a customer of Ford Smart Mobility so that Ford Smart Mobility can say heres a portfolio of skprukts services you ought to be using to become a truly smart city in and arn the tradition and charity is the corner stone. You got less bushback from San Francisco than a lot of the other because there were other ones that cross the bridge at night or they have a luxury bus that all got shut down, but you didnt. No, we did listen to we from day one remain above board. The roads are governed by the state, so understanding what the cpu krurks relations were was important as well. We hired our drivers. Theyre w2 employees. From day one weve been contributing to the tax rules of the city and state. By remaining above board and not trying to do other things that may be in gray areas or shady, we were responsible stewards of the community. Parking south of market in San Francisco, i see this huge bus from cisco that picks people up and it creates a jam on bran in an. Your shuttle seemed to be smaller. How many do they seat because they seem less obtrusive. And how many of them are there . The rule is we dont shuttle buses or vans. We call them charities. Charity is using 14passenger, four transiting woon four. They can have negative externalties, these are vans. And these are very easy to use, white and yellow curb zones as opposed to having to petition and use red curb bus zones. They formed the perfect vehicle and i think thats another reason why ford was pretty attracted to our business modeling. Eventually do you think things like charity are going to be part of Companies Like uber . In china we see dee dee operate lots of Different Things to make tradition easier. Is this all going to get rolled up into the same company . I dont think so. He think Different Companies are looking at transit and mobility in different ways. I think ford is saying we got this 100 year history of building amazing vehicles, and the Technology Behind that, so weve check that box. And lets invest or purchase companies and invest in entrepreneurs that can operationalize and wasnt stay on the forefront and the frontier of technology and give them enough independents to do so. Youre in austin. Where else would be logical. In San Francisco its hard to get from the marina to other places. A city thats looking to reduce congestion and get out of their cars. The vehicle occupancy rates are too high. Well be in eight cities by the enof the year. Founder of charity, thank you for being with us. Thanks for being with me. A entrepreneur sells you a house you cant live in when press here continues. Buying a regenerate sproot good way to make extra must be. The money you charge rent covers the mortgage, maybe a little more and an investment. The problem here in the bay area is most of us are barely inferior our own house much less buy another. So you could buy a house somewhere else and rent that house. Affordable homes in places like tennessee and texas and florida. This is a website called roof Stephen Stock, and its the brain bhield of a real estate expert, gary beesly who founded company. Gary has long experience in real estate including hotel the. Florida, tennessee, texas, because theyre unexpensive. What might you choose those markets . First of all were trying to go to markets where people want to live. We look at economics of these places that is having rental demand. We look at places that have reasons for people to be there. And the returns, the rental yields quite good in the Affordable Housing market. Zblauf high demand in a low house price. You already got that research . You mentioned the income typically covers your expenses and a little more. Often its a lot more. The unlefrd yields are 5 or 6 or more unleveraged. Its attractive. Its also quite stable. How stable a market is this . How many people can afford to this . Theres about 16 million rental homes in the united states, 3 trillion of assets. A tenth of the housing Stephen Stock is rental homes. What percentage of those are owned by somebody outside the state . I can tell you that 70 of all rental homes are owned where the owner lives within an hours drive. Conversely through roof Stephen Stock, 93 of our buyers through our site are buying further than 500 miles from where the property is. Its the exact opposite. Were not just talking about your purchasing home and renting it out. Youre literally purchasing a home that still family in it that is currently renting. Youre buying from the landlord and youre the backgrounds new loord. Whats nice is people dont have to move out. One of the big issues when i was doing the institutional Single Family before, we didnt know how we were going to get liquidity because we didnt want to move everyone out and sell homes. And then people buy them and find new people to move in. It was quite disruptive. What are the cities . Atlanta, extremely popular, carolinas. Were going and getting a bunch more inventory. Memphis is a perfect example. The south for now . We were in zmoern southern exactly, women and children in las vegas. Florida has been quite interesting. Theres all sorts of different narcotics florida that are good. I want to buy a house in memphis. My family is there. Something like this seems like not the solution for me because you dont want to just a home just as an asset. I want to be able to go in it and stay in it myself. Can i buy the home and kick the people out out of the site i want to live you. Very high tech and San Francisco of you. To help my ailing mom, scott. In your opening soliloquy, not entirely correct. You can of course live in the house. But the people buying the homes through our site are typically not buying them to live in. The idea is that the family has a good history. We are having some people buy homes that have a longterm intensifying living in that market but they want to rent it out for a few years. You would just not renew the tenant. Gary, you supply the management as well . Im not going to get a call in the middle of the night that the toilets broken. You as an investor can make your Capital Allocation decision through roof Stephen Stock, have a nice diverseified portfolio. We have employees we certify them. You can rest assured we stretd property manage. We vetted the tenth and the house. Those are kind of the three legs of the stoochlt you dont have to worry about the toilet or repair and maintenance issues because that happens locally. Can i view the house somehow online . You can see it only. Fundamentally were trying to break down the geographic barrier to buying real estate. We have on our site a complete inspection report that has photos. We do 3d maps, you can see a 3d tour on the inside of the home. Wisconsin buying homes for my last company, there were two reasons we needed to get inside, to see if its a weird floor pan or good. And how much work is it going to take. You can monitor it on a weekly basis . You guys are creepy. Youre the property manage. You mentioned beijing. I would imagine that there is theres a lot of money coming up out of the china. Seems like a logical place to put it. Whether youre in bindle or anyone in the world. How many of your investors chinese. Quite a few actually. So far about 80 of our buyers have been institutional buyers, some have been foreign, some domestic. The balance is individuals that are buying a home like us. To get the marketplace started having institutional investigators come from all over the world is a great way too it. Its been pretty popular. We live in the samt hillsboro border. There are quite a few unoccupied houses from buyers in china. Were not huge fans of emp