➡ The housing market is facing challenges due to financial issues and insurance problems. Many people can’t afford homes, and houses are staying on the market longer. Insurance companies are cancelling policies for trivial reasons, making it harder for homeowners. Additionally, people are selling their insurance claims and properties, indicating a shift in the value of home ownership.

➡ The article discusses the impact of insurance issues on real estate, potentially lowering prices and slowing sales, especially for properties damaged by fire. The author also thanks Mr. Jordan for an invitation and highlights his impressive collection. Lastly, the author reminds readers to join their email list, check out their private channel ‘iAllegedly Live’, and to like and subscribe to their content.

Hey, it’s Dan. Welcome back. You’re watching Iallegedly. And I’ve got a good one for you today because I was invited out by a man that owns a car collection that is unbelievable. And Mr. Jordan, Tim Jordan, has a grand opening for his car collection and he invited me out to Santa Ana, California to check this out. And it is unbelievable. But what we’re going to talk about today is the mortgage blacklist. And this is something that Fannie Mae and Freddie Mac don’t want you to know about. But there are condos and housing tracks and places like that that are absolutely blacklisted that they will not finance.

And if you want to buy a place there, you’ve got to get your own financing, which should be the kiss of death for people. And people should, you know, steer clear. Anyways, a lot to cover in this video. Hit the like button. Subscribe to the channel. But I’m going to cover all this. I’ll put myself in. But these cars are just unbelievable and he’s having a full car show outside. We’ll go take a look at that as well. Now, I’m going to put me in the corner and walk through the show. And you can watch me as you look at all the beautiful cars.

But the blacklist that Fannie Mae has put together is absolutely paralyzing home sales right now. And the thing about this is that it started with condominiums right now. Condominium sales have been affected in a huge, huge way. In 2021, Surfside, the condominium complex that killed 98 people collapsed and they were underinsured. They had $50 million insurance policy on that complex. And they had over a billion dollars in claims, obviously, rightfully. You know, no one can argue with that. But the thing about this is that ever since then, it put condos under a microscope. And the thing about this is that, here, let’s just use California alone.

You know, these condos are underinsured. And we have two, I want to call them famous because they’re here. One’s here in South Orange County. One’s in North Orange County. And they’re both what they call leisure world. And leisure world is an adult community that’s got everything from apartment buildings, to high-rise condos, to duplexes, you know, to basically freestanding homes in these different communities. They have basically labeled this area as uninsurable right now when it comes to Fannie Mae. And they are really, really wreaking havoc on people with this. And what’s wild about this is that you get all these different associations.

There was one lender that finally agreed to lend inside these two complexes a national cooperative. They finally pulled out. Now, the worst part about this is that they’re saying it’s two things. They’re saying it’s people don’t have the, they’re underinsured for the community. And in addition to being underinsured, these people have to do major repairs to their units. And the question is, is the association responsible for it? Is it the building? Is it the homeowners? Who’s responsible for this? And there are some communities in Florida we’ve heard about. Think about this, guys.

You’ve got insurance where they’re talking about people having to spend, you know, $150,000 or more to bring their house up to code. Well, some of these places, like in Leisure World, they’re talking about how you’re going to have condos that are going to require upkeep and maintenance. That would be $24,000 to $64,000 a year for three to five years. Okay, well, you’ve got another 300 grand to spend in your unit. Some of these places sell for $400,000. So, again, 55 and older community, but you don’t have it set up in such a way that these people could even get insurance.

Now, a couple cool things. You know, this story has gone on for years, and it’s kind of been, you know, hidden from us. And then you have, you know, Jonathan Lancer from the Orange County Register who did a story on it two years ago on this, about a couple that bought a brand new townhouse in Anaheim, California. They built these lofts in Anaheim. But there was a lawsuit against the builder. So, were they built with a substandard method? Did they cut corners? Well, whatever, we’re not going to, you know, issue you a mortgage on this.

Fannie Mae’s not going to insure that mortgage. You’re going to have to get a private lender. Which, if you can get a private lender, it’s more expensive. It could be 5% more in your interest rate for some of these private lenders. It is absolutely crazy. Now, the Brill family that was trying to sell their unit, they got caught up in this two years ago, and that was one of the stories below, talking about how they had no idea that somebody else’s issue. And another end of the complex, they had their house inspected, and, you know, had no issues.

But it made it so that they could not get a loan, and nobody would buy it. But what’s going to happen is this is going to paralyze people. And let’s just use California, because there’s a great interactive map, and it shows all of the condos, just in California alone, that cannot get insurance, cannot get Fannie Mae approval, and cannot get a loan for it. So, man, this is the kiss of death, guys, when it comes to real estate. And what’s going to start happening is this is going to carry over to conventional houses.

Now, how much is a condo here in Southern California? Guys, think about this figure, because it’s sickening. The average condo here in California, $721,000 per condo in California, in Orange County, where I live, where I’m walking right now. That is nuts, guys. Now, the problem with this is that it makes it so that, you know, if you can’t get insurance, you’re going to have to go out and get yourself an unconventional lender through Fannie Mae. Freddie Mac, the other source of federal government loan guarantees, they don’t report what these numbers are.

They have the same thing. They have similar numbers, but we can’t get those out there. We can’t get those from them publicly. Now, let’s look at Leisure World. South Orange County, 6,000 units, 6,102 units are affected by this that can’t get financing. Now, you can sit there, and I have people that write to me and say, Dan, if somebody’s living in a 55 and older community and they have to finance something, they’re doomed. Well, not everybody’s got it set up to where they can pay cash for a $700,000 asset. Let’s put it that way, okay? So, that being said, you’re going to see people that are going to have to get financing for this.

And the problem with it is that they’re just not going to be able to do it. Now, let’s take Florida out of the equation. Florida’s a frickin’ mess. Florida is such a disaster right now, guys. Everybody knows that you’re starting to see houses trade and be sold for less than the people wanted at a dramatically reduced price for people to get out of it. It’s happening all over the place. Now, with this insurance debacle, this is going to absolutely paralyze real estate. And I’m telling you, guys, you want to be a good seller? Go out and get your own financing for people.

Go out and get a method to get rid of this place, an instrument to unload your property. You do that, and you’re going to be so ahead of the game right now. So, with that being said, you know, it’s going to be interesting to see how this plays out. Because then you go to North Leisure World, and I have a friend who has a distant relative selling a unit there, and they’re starting to run into trouble in the escrow. And he’s like, oh, I’ll call you about it later. Well, this is what the problem is with the escrow, is that the buyer can’t get traditional financing.

So, what’s that mean? Well, think about this. You own a condo, and let’s say the roof is bad. Let’s say that it’s unsafe. Let’s say you have stairs. You’ve got a railing that’s bad that’s got to be fixed. People don’t realize what this stuff costs. I rented a place recently, and they had to do all the balconies, redo every single one of them inside the complex. It was well over a million dollars worth of work. But they had reserves, and they paid for it. With insurance, you want an insurance claim and cash for where there’s no debt for it.

That’s how it’s supposed to be, guys. But this, I’m telling you this right now, you’re going to see an absolute problem with this that’s only going to get worse right now before it gets better. Now, let me know what you think about this so far, because you haven’t seen anything. I hope you guys are enjoying the cars. And, you know, just a very, very cool place. Let me know what you think. This place is absolutely amazing. I had to do it with the insert because they’re blasting Elvis music. It’s kind of an Elvis theme location.

But, I mean, he’s got everything. Just, it’s unbelievable. But, Lenar Holmes, CEO, Stuart Miller, they had an earnings call on Friday, and Stuart said, hey, listen, you’re going to see weakness in the market for longer. So, now the home builders are starting to admit that there’s a problem. And you can talk about financing, you can talk about everything, but people don’t have the money to go out and spend, you know, half a million dollars in a Las Vegas home. They don’t have a million dollars to spend here in Orange County.

And the problem that you’re seeing is places like Florida where you’ve got houses that are just, you know, sitting on the market longer. You’ve got more houses for sale. You’ve got houses you cannot get insured. I’m doing all this expose on the fact that insurance is just such a problem right now. And you haven’t seen anything yet, guys. It’s the beginning of this. And it’s nice to have somebody, a home builder, actually admit, you know, what they’re going through. You guys, is this place unbelievable or what? This is some guy’s personal collection.

And it’s just unbelievable. Absolutely unbelievable. So, I really appreciate the invitation to come out here. It is just so cool. But let me know what you think about this. You know, interest rates right now, average home purchase, people are talking about 6.67%. Oh, this is fantastic. It’s the greatest rate. And standing in the corner right now. So you guys don’t hear all the music and stuff in the background. But, you know, let me know what you think about this so far. Let me know if you think that there’s a concern. You know, people that are trying to sell their houses, you’ve got to investigate.

You know, if you go and you use a real estate agent, go out and make sure this person has been around the block. Oh, Ted sells everything. No, no, Ted needs to understand insurance and the severity of everything that’s happening right now because it is unlike any other market and it’s only getting worse. Because of the insurance, because of everything that’s happening. The finance problems, everything. Imagine not being able to get a loan on your house. It’s something nobody ever thought of, you know, up until a few years ago. Now there’s more to cover on this.

And the next thing is the insurance. People are having such a difficult time getting insurance. And as I left the car show and I went up and looked at a house and I was laughing because they were, oh, you better move on it right now, Dan. Because we’re going to have multiple offers by the end of the day. And by the way, I was the only one in that house. Okay. Wow. Do you have a pen? Hurry. So the next thing is insurance, guys. Insurance is a real problem. And I found a great article about how even the best insurance companies that everybody, nobody has a problem with, AAA, the automobile club, they are going out and they are canceling insurance policies at a record clip right now.

And why are they doing that? The stupidest reasons you could think of. Now think about this. A couple goes out, they’ve lived in their house 30 years, never had a claim, paid their insurance on time year after year after year, and they get a letter from AAA saying, hey, listen, we see cardboard boxes in the backyard. Cancel your policy. Oh, those were cleaned up. You’re looking at a Google Earth image from two years ago. We cleaned it up. Not interested in coming out. Cancel the policy. People that have two grills, two barbecue grills in your backyard.

No, no, no, no. That’s a safety hazard. Well, okay. Is it? Is that a safety hazard? Because I don’t think that’s a safety hazard, guys. So, no, won’t write the policy. Gonna cancel it. So, lunacy, guys. How about, you know, there’s a volleyball court in the backyard now. Well, yeah, we had a party. Oh, is that when you guys took the picture? Yeah, no. Who was there? People having a good time on your property? Whoa, we can’t tolerate that. You know, people getting notifications that they have mold on their roof.

And, oh, you know, we had a drone fly over and there’s mold in the back. Oh, I didn’t know that. Okay, I guess I can get up there and get a power washer and clean that up. No, goodbye. Your insurance is canceled. So, terrible, guys. Terrible, terrible, terrible. People looking at things and reasons to turn people down. Structures that weren’t permitted. Things in your backyard that shouldn’t be there. Extra vehicles. Do you know that there were nine vehicles in front of your house? Yeah, the day that we took the picture. When did you take the picture? Was it during the birthday party when everybody was over at my house? Huh.

We don’t want to know about that. Do you see how unfair this is? How can we cancel your insurance policy right now? So, what used to be the American dream of buying a piece of property is not as important as it used to be, guys. It really is not. And I’m telling you, it’s peace of mind. Stack cash. Put money away. Save it for a rainy day because what’s going to happen is there’s going to be such a deal on these properties. My buddy lives in Tustin and he’s helping me sell some cars and one thing that we’re doing right now is he’s like, you’ve got to see this enclave of people that built all these ADUs.

And he drove me to this one track yesterday where these people did a great job. There were all these different properties where they had smaller units, had basically separate front doors, separate parking, did it right to where it was not cheesy in any way. They basically built a second residence on these people’s houses. Now, here’s the thing about being a single man. Guys, I could live in a 5,000 square foot house or I could live in a 200 square foot house. It would make no difference. But if I bought a house and it had an ADU already on there, I could live in the ADU and rent the house out.

I could do that in a second because I don’t have children. I don’t have, you know, I don’t have grandkids right now for that matter. So with that being said, that’s where things are at right now, guys. People are building these ADUs and that’s crazy because they’re being able to rent these things out. They’ve been able to live in them. There’s a real construction problem because in San Diego County, the county south of where I’m at, people are building apartment complexes. They’re putting three and four units in their building with second-story decks and no parking and things like that.

So the city finally said enough is enough. You’ve got to get things approved. You’ve got to get them, you know, written off by us. So with that, you’re seeing a lot of problems where people are selling the subrogation claims. Think about this. You were in the fire and your house was a total loss and it’s not your fault because you didn’t burn it down. Either the power company did with the winds or some other horrible entity did something to those properties. With that being said, people are taking their insurance claim money and selling them.

The first one was just sold last week and this was a big story in the insurance digest. Read the story below because it’s kind of sick, guys. It really lends people to believe that you’ve got people unloading properties right now and unloading the rights to things right now, which goes to the next thing. And that is Hugo Dowlinger was a man that lived in the Eaton area. He lived up above next to Pasadena and his house was there 21 years and he had to leave a wall of flames and he said, I can’t imagine going back.

So he contacted his friend who, Romero Ramirez is a realtor that had sold hundreds of properties in that area. Their specialty was in that Eaton area and he said, what can I get for my life? Well, what they did was they put this as a blank canvas where you could build a beautiful home and come make a cash offer only on it. Now think about this. You don’t have an insurance claim because you don’t have a homeowner’s insurance. You’ve got to clean the lot and they had people that went out of their way and the Dowlingers ended up clearing after the agent $603,000.

Now they said, this is enough money. Now, was it worth their two million bucks for their house? No. Did they get a pittance compared to what the house was worth? Yes, 100%. But now they can go and they can put that down payment down and start anew. So is that the right thing? Are you sickened by that? Because the thing that you’re seeing is that all these properties, all this land that’s out there right now is being sold and some people are building up, some people are not. But when you read the story, you’ve got people in their 70s that are like, hey man, I’m too old to do this.

I don’t want to do this anymore. I’m ready to retire. So, you know, what do you guys think about this? But this, it really is. The real estate problem with the insurance is going to paralyze sales and it’s going to bring the price down. Would you buy a land, would you buy a property in a scarred off land, scarred off land, it’s a fire, house is burnt down. You’ve got all the, everything left over from, you know, all the trash, all the debris, all the toxic stuff you have to remove.

Would you do that? You know? Let me know. Let us all know in the comments. I want to thank Mr. Jordan for inviting me out to this. It was very, very cool. What an amazing personal collection that he has. I mean, it’s just, it’s unbelievable, guys. Absolutely unbelievable. I want to remind you of a couple things. Please don’t forget to join our email list and don’t forget that we have a private channel called iAllegedly Live where we talk about everything that we can’t talk about here. So check it out today and don’t forget to hit the like button.

Don’t forget to subscribe to the channel, iAllegedly Live. You can sign up at iAllegedly.tv but check it out today, okay? I’ll see you real soon. Thank you for watching. [tr:trw].

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