uniform. lou: and he did just that by the way shaking hands of the cadets for hours after that address. that's it for us tonight have a great memorial day weekend, goodnight. maria: happy weekend, welcome to the program that analyzes the week that was and how its positioned you for the week ahead i'm maria bartiromo coming up in just a few moments cisco chairman and ceo chuck robbins, my special guest, we will talk about the economy and tech today but first, adam shapiro is standing by right now in the fox business news room with the big headlines impacting everything from wall street to main street. adam? adam: thanks, maria. it looks as if the looming trade war between the u.s. and china has been put on hold. the chinese announced plans to buy more farm and agricultural products from the united states while the u.s. is working to lift sanctions on chinese

telecom giant zte in fact president trump says there is a tentative deal in place already, but he adds a different structure is needed to craft a total trade deal with china. despite a huge oil sell-off this week and news of the cancellation of the u.s. north korea summit the three major indices still managed to finish in the green thanks to a strong week in the utility, telcom and industrial sectors. in other trade news the white house is investigating whether to impose huge new tariffs on imported cars and parts. the trump adminitration is seeking a 25% tariff on national security grounds, nearly 1 million american jobs are tied to autos and auto parts manufacturing. more bad news for general electric the stock dropped 7% this week after its ceo, john flannery, said that the already watered down dividend wasn't safe. it was the biggest drop for ge in nine years. for a brief moment this week netflix became the largest entertainment company in the

world. the online streaming giant passed disney in market cap briefly thursday, netflix shares are up 71% just this year, and as we enter the holiday weekend u.s. drivers are looking at the highest gas prices seen in four years. the national average is nearly $ 3 a gallon, about $0.60 higher than last year analysts say the price could actually settle over $3 a gallon for the summer. maria back to you. maria: thank you, adam it was a volatile week for stocks investors reacting to worries over trade deals the federal reserve, rising oil prices, and of course earnings news as well. how should you plan to navigate the week ahead? the founder and chief investment officer of the bon ton group is with me, joining me right now david great to see you. >> great to be with you. maria: thank you for joining us so they basically signaled we are going to see another interest rate hike in june in the june meeting and then of course all the worries about trade, how are you positioned right now? >> well we have been somewhat defensive in kind of a moderate

balance positioning most of the year so we are probably early getting defensive and then right now you could say okay well it's a good place to be but the problem is bonds are not really diversifying from equities very well. i think that people have to understand that if the market is vulnerable because of rising rates, then you're bonds and stocks are heavily correlated together so it's affected the way you want to think about asset allocation overall fear about the market on the stock side we're very heavy in energy which has helped us quite a bit. maria: that's great. and heavy in more defensive-type stocks which has helped except for with names like consumer staples and telecom. those have lagged. maria: energy, the price of oil all the way up to what? 72. >> 72 on wti. that's right and yet a lot of the energy stocks had really kind of held back, chevron and exxon just started to rally more this last month, but we think there's a huge disconnect to where the whole energy sector not just commodity price- sensitive ones. maria: we have the jobs number out a week from today a week

from this weekend. the economy has been doing better. almost full employment. you have the federal reserve earlier this week say yeah, we are signaling that we will see another interest rate increase in june. good move? >> well it's kind of inevitable we watch the fed futures market quite a bit. the june one has been pretty well priced in so what's interesting now is december now the fed futures market point about 50% chance of that happening it would be much lower so that fourth rate hike on the year is the one that could be more material. i'm suspect if they'll really do it but it's so far in advance anything can happen, but one thing i'd really encourage viewers is when we talk about the economic data, we are so centered on the consumer and center of that appointment number but i really think that it's the capex, it's what's happening in business investment that matters. if the business tax reform works as well as i believe it's going to and early indications show you're going to see it in business investment which takes a little while. the unemployment number comes

every month it's a big headline issue but really, it's not moving stocks. it hasn't for a long time. i think if you start seeing industrial production, capital goods orders, these are the things that we're so lacking to the entire obama administration years, right now if you see that's will represent the next leg. maria: and it doesn't matter to you if we see a consumer that's iffy this week lowe's fell apart others as well. tiffany did really well. >> yeah and of course that's the thing about the consumer space is that you have -- maria: bifurcated. >> and then with lowe's you have ceo changes. maria: that's true. >> the high end of the market functions different than low end so i think the consumer and the retailer are two different things and people often put them together. maria: david great to see you. thank you so much, the author of crisis of responsibility. don't go anywhere cisco chairman and ceo chuck robbins is next on wall street. it took guts to start my business.

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save $300 on the x350 select series™ tractors with the purchase of a mulchcontrol™ kit. maria: welcome back. cisco, the worldwide leader in i t networking and security the company last week reported an impressive beat on both earnings and revenues 2.6 billion in earnings on revenue of $12.5 billion, it failed to wow investors though with the growth outlook the stock actually traded down initially, cisco also disclosing its using repatriated funds to pay down debt. making some analysts wonder if it will have less cash for acquisitions. what does cisco business tell us about the broader spending and state of the economy joining me to help answer that is the chairman and ceo of cisco chuck robbins good to see you. thanks for joining us. >> thanks for having me. maria: what are you seeing based on your vantage point in terms of growth in the economy today? >> first of all we were very pleased with the quarter.

we obviously grew 4%, 12.5 billion we had a record quarter from an eps perspective we had a record quarter relative to our capital return to shareholders. we continue to see the acceleration of the product we launched last summer in our core franchises which is the fastest ramping product in the history of the company. maria: wow. >> and we continued to see success in our business model transition, so we announced that we have now 5-point # billion dollars in deferred software and subscription business on our balance sheet up 29% and a third of our business is now coming from recurring and we just made a lot of progress so i was very confident in the outlook for next quarter shows continued strength and increasing top line revenues, so overall we're very pleased. maria: i want to talk to you more about the shift that you talked a lot about on the call toward recurring revenue but first when you look at the overall quarter, and business spend right now, corporations

have to spend on security, on it , we know that but for a lot of years businesses were sitting on cash, because of regulations, because of the broader economic outlook. what are your thoughts in terms of businessman agers right now. are they increasing their budgets toward this kind of spend? >> yeah, maria i think the big difference is that for the last two or three decades, it and technology has been seen as, you know, the responsibility of it was to enable the strategy that the company rallied around, so the company would build a strategy, and the it organization built a technology to enable that and today, things are completely different now. technology is actually at the heart of every strategy of every company, every city every country around the world, and so technology is no longer something that i spend when it's convenient. it is at the heart of everything everybody is doing. i think you'll see a much more

consistent it spending environment from our customers and then when you also look at the importance of cybersecurity as we connect billions and billions of new devices the entire focus on security continues to increase which is another area our customers continue to spend on. maria: so what's the outlook then for the rest of the year and into next year? >> well it feels like right now notwithstanding major macro geo political issue that we're operating in an environment as you and i talked about in davos where there's probably the most consistent optimism around the world when you look at customer segments you look at geographies , you look at emerging countries this past quarter were positive and we also have the rising dollar which has impact on emerging countries and they tend to be more volatile but i think with the importance of technology, the increase in cyber spending and the current strength of the global economy it feels pretty good right now. maria: you repatriated money

from overseas to the u.s.. >> we did. maria: tell us about that and what you're expecting to use this money for of course you've got to work out buybacks and stock dividend increases is that right? >> well so we repatriated $67 billion and we've now completed that so it's back in the u.s. and what we announced is is that our capital allocation strategy wouldn't change but we accelerated it so you saw us last quarter we announced a dividend increase now that happened to be the quarter where we typically do that on an annual basis but we had a pretty aggressive dividend increase and we la nounsed we're going to increase our share buybacks and obviously we continue our m & a strategy that we've deployed for many years and our m & a strategy wasn't impacted really by the dollars being overseas because of the debt markets and the access to debt so we have not, there hasn't been a single deal that we wanted to do that we weren't able to do because of our cash

being overseas but it certainly gives us more flexibility. maria: what kind of deals would you look at in the coming year for example? is it more towards cybersecurity is it toward networking? i mean, where are the areas in the business that you'd like to grow from acquisitions? >> we would look at anyone that makes sense and really the way we think about acquisitions is that we want those that are complementary, they either make our existing franchises stronger or they help us extend our franchises or they move us into an adjacency that's very connected to so if you look at the areas that are really important it's across across the portfolio but i'll call out security and we can talk more about this architecture that we've built but obviously security is a very important priority for our customers and it would be a high priority for us from an m & a perspective. our customers are dealing with ironically a more complicated it

world today than they had five years ago and i say ironically because the whole notion of public cloud was going to simplify all of technology and the reality is between public cloud and the explosion of iot and the continued investments in private data centers the network actually has to play a more important role than it ever has so policy and helping our customers navigate this multi-cloud world is another area for us. maria: i want to talk more about security so important for our viewers and for your business of course but let's take a break. before we take a break how long have you been in china? >> oh, we've been there for almost 25 years. maria: i want to ask you about china that seems to be the conversation of the moment, more with chuck robbins when we come right back we'll talk china as well as m & a. stay with us.

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maria: welcome back we are back with the chairman and ceo of cisco chuck robbins with me this weekend and chuck just a moment ago you said you've been in china for 25 years. can you talk to us about your experience there because it seem s like right now, this is the topic that the u.s. and china having debates, arguments about trade. how have you been treated in china? >> well i'm shocked that we're actually going to talk about this maria. maria: [laughter] >> we've actually been treated i think reasonably fairly in china over the years. when we go into countries we actually want to obviously drive our business strategy in china but we also focus on being a responsible citizen in the

countries in which we operate so we've also had corporate social responsibility issues we've driven education initiatives in china to help educate students and technology areas but overall , we have experienced a reasonable atmosphere there for a lot of years. there have been ups and downs and complications usually driven by geopolitical dynamics but overall, we're doing great work with smart cities going on there we are working with telco community there, we're working with cities and small and medium and large enterprise customers, so overall it's a reasonable environment for us. maria: was it the right move for china and the u.s. to coming together to come up with some kind of a plan for zte? i mean, the issue of a national security is real and it feels like this deal of china buying more stuff from the united states whether it's agricultural products or natural gas doesn't address the real issue for american business and that is the best of intellectual

property and the forced transfer of technology. you know, for us in china, i've not experienced any demands for forced technology transfers we have a joint venture there where we're providing our technology that's being integrated into broader solutions. maria: so you didn't have to give up your technology? >> we have not and we wouldn't and so i think that when you look at the overall trade environment right now, i think it is critically important for our two countries to coming together because getting this resolved is good for china and good for the u.s. and good for the global economy and relative to zte when you look at what's going on there i'm not privy to any of the issues that they have been accused of, i'm not aware of any of the facts, but i think that to the extent that our government believes there's a reasonable outcome there and it helps solve the broader trade issues then it's a reasonable discussion to have. maria: where are you seeing growth how is the growth for cisco in china? what about the growth across the

world? you mentioned emerging markets earlier. obviously the u.s. is most important for cisco but tell me about the growth where you're seeing it in the world. >> when we think about growth we look at it across our customer segments our technology areas and then geographies as well so we saw growth across most of our technology platforms and we saw it across the world across most all regions. we saw again the emerging countries they grew 7% this past quarter which is good but as we said earlier you've got the ris ing dollar that tends to make the emerging markets a little tougher so we'll see how that evolves in china in particular, we had good business in our core switching politician and our core networking portfolio so it was a very unique quarter where we saw consistent growth across customer segments with the exception of our telco segment which has been slow for probably seven or eight quarters in a row now the rest of our business was pretty consistent.

maria: cybersecurity is obviously quite important. >> it's huge. maria: really one of the important spends for ceo's today what are you seeing in terms of the security part of the business. >> for us it grew double-digits this past quarter and we are the largest cybersecurity company in the world although it's a very fragmented market, and just to give you some data, we actually blocked 20 billion threats every day on be half of our customers, so we see a huge number of threats that come through to our customers and we see that in a very unique way because we take in threat intelligence from endpoint devices from e-mail from the network itself, and from the cloud, so we have a unique view of the threat landscape. maria: this is pretty incredible what you just said 20 billion threats a day that you are see ing and that you're blocking. where are these threats coming from? is this malware what are the threats, chuck? >> yeah, a lot of it's malware. that still is the predominant

threat vector that we see. we examine 125 billion pieces of e-mail on a daily basis and there's a very high content of that that is spam but there's, that's where the malware comes in and obviously, when you think about how these threats become real inside of organizations a lot of time it's simple things. first of all people click on links or attachments that they should not and also you just have simple password management, just a lot of basic things and sometimes you have real inside threats that are problems but overall we think the customers need to really think about a holistic architecture because in the old days the way we did security is we defended a perimeter and in this new world there is no perimeter to defend so the network has to play a really incredible role in actually providing that defense going forward. maria: there is a feeling out there a narrative that some people are saying that by the end of 19 going into 2020 we will likely start seeing

beginnings of a recession thins will slow down quite a bit. is that on your horizon? do you see that? >> i think if you listen to the economists you can find them on this side of that argument and this side and both of those people are probably more expert in this area than even i am so we're going to continue to execute on the things we execute on. we would certainly not hope to see that happen, and we'll see how things play out. maria: and it feels pretty good some people say that we're seeing policies out of washington that have helped very much. was that one of the reasons that you repatriated money back? are you seeing your customers benefit from the tax cuts and the roll rollback in regs? >> yeah our customers can spend more time when they don't spend it on regulatory issues when they look at how they are implement more technology create competitive advantages certainly the tax rates have given our customers a higher degree of confidence the repatriation the

only reason we repatriated the funds was because of the tax changes, so i think all of that has been favorable for business and has helped create the environment that we're in right now. maria: construction great to have you on the program. thank you so much. chuck robbins is the chairman and ceo of cisco. don't go anywhere march wall street right after this. money managers are pretty much the same. all but while some push high commission investment products, fisher investments avoids them. some advisers have hidden and layered fees. fisher investments never does. and while some advisers are happy to earn commissions from you whether you do well or not, fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments.

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are covering the world, that'll do it for us right now thanks so much for being with me have a great rest of the weekend i'll see you again next time. >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now, it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. at the end of the show, i'll

give you critical tips you need to know in the massi memo, because information is power and the property man has got you covered. [ woman vocalizing ] thanks for joining us. i'm bob massi. if you've ever looked around your house and thought, "you know what? i need to downsize," well, you're not alone. but more and more, well, people are taking that to the extreme. tiny houses -- i'm talking 95 to about 170 square feet -- are becoming more popular. there's even movies and tv shows about them. >> the kitchen, the living room, the bathroom, it's all included in that small square footage that, for most people, is the size of their master bedroom. >> they're usually mounted on 20-to 27-foot trailers and can be towed pretty much anywhere. some call it a fad. some call it a movement. but it seems clear that many of those deciding to live tiny, well, they're doing it

as a direct result of the housing meltdown. they just don't want to spend their money on things like mortgages and be saddled with debt anymore. mario soto lost his home in the financial collapse. >> i lost everything. i put almost $300,000 down payment, taxes, insurance, mortgage, everything, and it was gone. >> he began paying off his debts and started over, but didn't want to go down that same path again. >> i realized, well, what if that happens again? that was $300,000 i'll never see again. someone else got it. but not me. >> he decided he wanted to build a tiny home. his last construction project? a birdhouse in fourth grade. >> about a week later, it fell apart. >> but he reached out to the tumbleweed tiny house company, and they helped him build his own. now, on the tumbleweed website, you can order already-built tiny homes, or you could start from scratch. >> the minute i saw one of their tiny houses, i said, "this is it. i'm doing it." >> tumbleweed provides the floor plans, options for just about anything

you could think of to make it uniquely yours. >> the plans have details of every piece of material you need. it was a learning process. but my house hasn't fallen down yet. so i think i did a pretty good job. >> mario, let's go see your tiny house, buddy. >> let's go check it out. come on. let's do it. welcome to my house. >> thank you. okay, so show me around. >> i have a pretty cool kitchen. we have a nice sink right over there. cook soups. range hood, stainless steel. >> big sink. >> it's a big sink. this kettle gets the heat that is naturally being generated. and instead of it going to waste, it's converting that heat into electricity. >> from the outside, it might not look very high-tech. but inside, it's a different story. >> my phone allows me to open my front door, control my air conditioner, actually run my tv. i have air sensors in here that sense the air quality, humidity, and the temperature. >> mario says his saltwater batteries can power his home for 20 years before they need to be replaced.

it looks like a bunch of batteries, like from a golf cart. >> they are actually similar in the sense that they provide power. once i get solar panels, which will be on the outside behind me, i won't have to worry about power. 100% i will be off the grid. >> and then a place to sleep. >> a place to sleep. gotta sleep up there. >> bunk bed. >> my tv, because you gotta have a tv. >> 55-inch. >> when i'm cooking, i like to watch a good movie. or maybe i'm listening to music. i can actually swivel it out. >> so what's underneath the bunk here? >> it's a really nice mirror. >> and behind the mirror? >> there's a lot of things. let me show you. so all i do... open it up. this washer and dryer, it's ventless, gasless. >> where do you take your shower or your bath? >> check this out. roll it back. now i have my shower hidden in the back. pull it right back in. and there we go. >> all the amenities of home, my friend. >> all the amenities of home. >> but many tiny house owners, you know, they're running into a big problem. there's no place to put them.

>> arizona and, uh, many other states aren't regulated for such small dwellings. >> zoning laws vary from place to place. but many cities and towns have things like minimum size requirements for homes. >> and these tiny homes do not qualify. >> that could make finding a spot for your tiny house very difficult. >> even the rv parks turn them away because they're not technically motor vehicles. uh, so they can't find anywhere to plant them. >> sarah was living in louisiana when she saw a documentary about tiny houses. >> i knew a friend who was in carpentry. the next day, we went and bought an auto flatbed trailer. >> she bought some supplies, enlisted some friends to help, and started building. >> we didn't really have any plans drawn up. we just knew the idea of what we wanted to build. um, we wanted it to look like an old acadian-style house representing home. >> so this was actually -- became a passion of yours? >> it did, yeah. yeah. i really -- i enjoyed waking up and spending hours on it and going to sleep exhausted,

like, cuts and sawdust. and it was great. >> so this is sort of an extension of where you came from? >> this is my house from home. it's the blueprint. so a large part of the house is the kitchen because, um, i need -- i love to cook. and so the propane stove and it actually works. i probably fill the propane tanks up every few months, and it costs about $40 to do that. the water works and the hot water works. i think that's really important to see because every piece of this was, like, hard to do. >> sarah found some land to put her house on and was assured by the realtors that it would be the perfect fit. but the city, of course, disagreed. >> i bought a piece of property in south phoenix and, um, put the house on it. then i went to the city to get the permit. and they wouldn't give it to me. initially, they said the house was too small. and we had looked at the universal building codes. and it was -- it was fine. >> how many square feet is this? >> 160. but it's probably like 110

walking space. the city said that i couldn't, um, live in my own house on my own property because it needed a foundation. it couldn't be on wheels. they wanted me to take a crane, lift the house up, take the house off the trailer, which they didn't understand was, uh, built on the house. >> there's so few people involved in the tiny home movement that they don't really have a lot of power to regulate, um, pushing the state to have places where they can zone them. >> i was trying to sell it. and then, um, someone graciously offered me their backyard. and so that's -- that's how i'm able to live in it and enjoy it. >> how many people have you had in here at one time? >> i think we had about, like, 30, i'm gonna say. >> 30 people in a tiny house? >> mm-hmm. so it doesn't hinder you from having guests. everyone has to be comfortable real quick. >> still to come on "the property man," i'm standing in someone's backyard right now. yep. this is a backyard pool. and the story of how it got here is wild. plus, there's a lot you need to know before buying or

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♪ >> welcome back. i'm bob massi, the property man. across the united states, there are more than 10 million residential pools. most of them don't look like this one. but i'm gonna tell you what you need to know if you're considering installing a pool of any size or if you're thinking about buying a property with a pool. but first, if you want to talk about pools in arizona, you turn to red rock contractors, run by rick chafey and brett blauvelt. the folks at red rock design and build some of the most insane pools you could ever imagine. >> we recently worked on a project. we had a pool up on the roof, back of the house. actually has got a acrylic panels. you can look out and see into the backyard.

all glass tile. just gorgeous. got a couple in hawaii we're doing where you can look out onto the 18th golf course and out to the ocean. um, we've done some really cool edge details where we, uh, bring the water up to the deck level. >> ♪ ♪ ain't nothin' but a party goin' on in here ♪ >> i'm not standing at some resort. this is a residential backyard pool, believe it or not. how did this all come about? >> uh, like any other residential backyard pool, we got called to come look at a project. it's an outdoor oasis and -- and it's almost a water park. you know, it can be a studio at night where you can have the biggest party you've ever had. or it can be a kids' play pool for, you know, 100 kids. >> there's a 60-foot tube waterslide. >> it starts at the top of that waterfall, comes down through it. has a couple, uh, skylights in the top to let a little bit of light in. >> 15 different fire features and more than $250,000 worth of controlled lighting and automation. >> waterfalls, water slides, cantilevered sun decks. basically what you'd find in a resort or even a club in las vegas. >> while the pool deck and the walls, they're made up of 8,000 square feet of limestone.

>> some of the features of the backyard were inspired by las vegas themselves. the water walls at aria are now part of this backyard. we kind of recreated that in the setting that's the right size for here. and we've got a lazy river that goes around, uh, rock waterfalls that we can jump off. got barstools in the pool. we've got cooler built in, serving center. >> the sound, video, and lighting system rivals any bar or nightclub. >> we got three large tvs above us that face all the pool areas. so you can be out on the sun decks and actually can see all you want to see for tv. >> there's another tv here also. >> absolutely. out of the back of our bar, we bring up another tv. >> that's crazy, man. >> so, once it gets at the top, we can turn this and actually face any part of the pool. >> ♪ ain't nothin' but a party goin' on in here ♪ >> it's controlled by 17 pumps that combine to more than 75 horsepower. we've talked a lot on the show about energy-efficient homes and things like that. when you do something like that, can you make it efficient from a maintenance perspective? >> absolutely. i mean, there's three parts

of that. one is making sure the design can be efficient. this, obviously, when everything's running, there's nothing efficient about this. we're running huge pumps, lots of water. but we only run them when we need 'em. so we're only using these when we want them. but during the normal operations, we use energy-efficient pumps, very large plumbing sizes so the hydraulics are superefficient. >> walking up the bridge over the lazy river. i mean, this is crazy. how many times you go through different designs? >> i mean, on a -- even on a simple-as-this bridge, we probably designed four or five or six different models of a bridge. we have amazing software programs. so we're able to put most of this in photorealistic design and come up with being able to see this in the customer's eyes from any perspective. >> it took about 600 tons of boulders, nearly 1,000 yards of concrete, and 9 months of construction for the red rock team to create this oasis. >> so now that we're at the top of the heap here, i mean, i'm looking to see how large these boulders are, man. these -- you had to bring these in by cranes? >> uh, by cranes and by trucks. i mean, the boulder behind you is probably about the size of a cadillac, about 25, 30 tons. so we're talking

a massive amount of weight. >> how did you place them? >> it's somewhat of an artwork to place them. you've got a massive crane that takes four or five spotters, three or four guys working to set the rocks to get it all right. we were here 30 days with a crane just placing boulders. >> but what was here before? >> this was a grassy knoll. the owner built a basement with the house originally, put a bunch of that dirt in the backyard, and just had a nice sloping hill in his backyard. and so we took that from there, ripped it all out, and started building out way up. we're about 550, 600 tons of boulders on the job. there is hundreds of yards of concrete. you know, an average backyard pool, 30 to 50 yards of concrete. it should have probably taken a year and a half. we were out here about 9 1/2 months. >> wow. >> but we were fast-tracking really hard. on any given day, we probably had 70 to 100 guys working on this job. >> obviously, the palm trees would be brought in by crane, also. >> we actually went to l.a. and chose those palm trees ourselves, picked 'em off the mountain, then had them trimmed and brought so we could get matching pairs in the right size. we obviously wanted you, when you came back here, to be awed as you entered the project. and that's part of what pools do for properties, right? it's the curb appeal. when you walk into this house, it's kind of hard

to walk back here and not go, "wow." >> now, clearly, you and i are not gonna be putting something like this in our backyard anytime soon. but there's a lot you can learn from experts like rick before doing any kind of pool project or buying a house that has a pool. we've got that information for you up next. [ woman vocalizing ] how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab.

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>> welcome back. i'm bob massi. i'm standing in an unbelievable backyard pool designed by red rock contractors out here in arizona. now this one is a bit outside of most folks' budget. but no matter what your budget is, there is a lot to think about when it comes to pools. the average cost of putting in an in-ground pool

is about $39,000. but that is just the upfront cost. maintenance, upkeep, and repairs are usually not cheap. >> with any pool, there can be value or there can problems. if it's constructed well, your maintenance can be minimized quite a bit. but many pool projects are poorly designed, very inefficient, and -- and can start to deteriorate very quickly and be very expensive down the road. >> rick's wife, linda, is the owner of southwest image realty. >> a lot of first-time pool owners will not really understand what a pool involves, the maintenance, how it affects your electric bills. >> one question i get a lot is, "will a pool increase my home's value?" the answer, as usual -- it depends. there are a lot of factors, including where you live. >> a lot of times, it's more about overall outdoor living, which very common in arizona. >> mike christensen owns peak one builders. they design and build custom homes with pools and spas. >> i'm not sure i buy in to the theory that if you put a pool in, it actually increases the value of your home. >> it's tough to say.

um, if you probably would have seen this backyard before, you probably would change that statement. but i think it's really dependent on the property. >> well, if i put a $40,000 pool in my backyard, it's not gonna add $40,000. >> right. >> if you spend $40,000, it might add $20,000. but that's really not what they're after. they're after that family fun time. >> a pool is not an investment. it is a lifestyle. there is considerable cost and sometimes aggravation involved. so what you need to be thinking about is your family's enjoyment. >> trying to create an environment that can kind of meet multiple needs. so you can be there and not swim. you can also be swimming. the kids can be playing. but the adults can be hanging out somewhere else. and just get everybody in the backyard to stay at home. >> you hear a lot of horror stories about pool contractors. >> ask for references. uh, make sure he's licensed and bonded, um, and insured. it's extremely important, no different than the inside of the house. >> if you decide to install a pool, think about placement, shape, size, and how it will fit with the rest of your home. >> when you walk in, it needs

to feel like it should be there. and it can't overcome you or be a little postage stamp, either. >> bigger is not always better. >> a majority of people really think too large. and -- and until we actually finish the pool, it doesn't seem like it's big enough sometimes. but when you do it right, when you walk in the backyard and -- and really draws you back in here and makes you want to be a part of this yard. >> when potentially buying a property with a pool, you've got to dig a little deeper than normal. ask a lot of questions. do you look for the repair history of the pool? >> it's actually required that they disclose what they know about the pool. you know, there's some times we still have some flipped properties going on where the owner might not know anything about the history of the pool. that's a really good time to get a special pool inspection done. >> don't forget about insurance costs. a pool increases your liability. and you want to make sure you're fully covered. when it comes to maintaining your pool, it's critical to have a company that knows what they're doing. >> it's one of those markets that's very easy to get into. it's actually easy to stay even if you're not good. you want to look for guys that have spent some time on education, that understand the operations,

the efficiency, the hydraulics. and then get some references, talk to who you want to hire. don't go for the lowest dollar. you're gonna live with this for years and years and years. >> the good news? as technology improves, costs come down and things are becoming more efficient. >> energy efficiency is very key right now with pools. >> a lot of people are getting more educated, too, on what makes plumbing systems efficient. and that comes down to pipe sizing and the hydraulics brought by that. >> a variable speed pump's, uh, extremely important. you do get rebates from the power companies for those. and then the led lighting, which consumes very little, uh, power. >> so even just by changing the pump alone from an older 5- or 10-year-old pump can drop the price of operating the pool 60% to 80%. >> when done right, a pool is not just a hole in the ground filled with water. it should be a key part of an entire outdoor living environment. and when we come back, we've got the massi memo with a lot of tips, so stick around. [ woman vocalizing ]

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we came with big appetites. with expedia, you could book a flight, hotel, car, and activity all in one place. ♪ so allstate is giving us money back on our bill. well, that seems fair. we didn't use it. wish we got money back on gym memberships. get money back hilarious. with claim-free rewards. switching to allstate is worth it. ♪ >> welcome back. i'm bob massi, the property man. and it's time for the massi memo. people always want to know if a pool will increase a home's value. and that depends on many factors, as with everything. it's in the eye of the beholder. some buyers want a pool and look at it as an asset. some only see expenses and headaches

and will avoid them like the plague. you really have to base your decision on how it will affect your life. if it's going to bring enjoyment and relaxation to your family, then it's usually worth the expense. if you're buying a property with a pool, find out as much as you can about the condition, the maintenance cost, and repair history. find out if it's going to affect your insurance costs. and don't get caught underinsured. okay, time to answer some viewer mail. anita from valencia, california, writes... well, first of all, as it relates to h.a.r.p. ii, h.a.r.p. ii and h.a.r.p. i was prior to, as you said, 2009.

all i can tell you is the theory behind it is they believe people from 2009 forward knew enough about the real-estate crisis and feel that that's the operative time, 2009 and before. it is not fair. and i wish they would just abolish that and let people refinance their loans like someone like you who's keeping it current. as it relates to other programs, call a mortgage broker that's competent. and the reason i say that is they're always changing programs, federal programs and internal programs of certain lenders. and maybe they will be able to help you. you have to stay on top of it because there are always programs available that may fit your needs. thank you for the mail. that's all the time we have for today. be sure to send me your property stories, questions, or pictures of your property bloopers. send them to... and don't forget to check us out on facebook and twitter. there's also plenty more information and videos on our website...

i'll see you next week. [ woman vocalizing ] >> lou: good evening, everybody. our top stories, president trump did exactly what he promised when he began the task of trying to denuclearize kim jong-un's north korean regime. kim tried insults rather than honest negotiation and president trump withdrew the united states from any other summit with the chinese puppet. little rocket man faces a choice get serious about denuclearation or face oblitization.