Foreclosure Frenzy – Why Your Citys Next!

➡ Dan discusses various business news, focusing on the financial struggles of commercial buildings. Many buildings are vacant and owners are in debt, with banks starting to demand payment. He also talks about the rising cost of living, with businesses closing due to increased expenses and workers demanding higher wages. Lastly, he mentions issues with short-term rentals and the construction of multi-story buildings, which are facing financial and supply chain problems.
➡ The article talks about the ongoing supply chain issues and how they’re causing layoffs in various companies. It also discusses the rising cost of living, including increased food prices and housing costs, which are leading to more people facing eviction. The author mentions that high-end brands are also struggling due to these economic challenges. Lastly, the article hints at potential changes in the real estate industry, specifically regarding commission-based structures for realtors.

Audio, audio, audio. Hey, it’s Dan. Welcome back. This is I allegedly and cool morning out here, crisp and cold, but there’s a lot to talk about. So, you know, I want to cover a lot with the business news that’s been going on and want to share some emails and things that were sent to me and put it all into perspective. But don’t forget to like and subscribe to the channel.

First things first, guys. William wrote me and William says, dan, I don’t see the problem with these commercial buildings that you see, and I don’t know what part of the country is from, but I explained it to him via the email what the problem is. And I know this firsthand with talking to these foreclosure friends of mine, and that the banks have just not given people, you know, any heat that haven’t paid.

They have not leaned on them, they have not threatened them, they’ve just let them slow pay and, okay, you can give us a $1,000 here when you owe us 40. Okay, we’ll take it. And the interest is compiling. It’s just getting bigger and debt and bigger debt and bigger debt. That’s what you’re experiencing now. The banks are finally fed up. The banks are calling the notes in. And as these people go to refinance periods where, hey, April 1 of 2024, we’re going to refinance our building.

They can’t do it. They cannot do it right now. And the reason for that is that they have vacancies that are over 20%. I was talking to a real estate professional last night who flips houses and he says, could you imagine that we’re at 20% vacancy for these commercial buildings? It is end of days and it’s only going to get worse. And then you get, you know, news stories where they’re saying, hey, it’s coming back, it’s coming back.

But the problem with it is the banks are at Wit’s end. The banks are paying bonuses to have employees come work to get the foreclosures going. You’re going to see buildings being given back like you’ve never seen before. You’re going to see foreclosures like you’ve never seen before. And you can sit there and say, oh, it’s good. It’s no big deal. And then Neil Cash and Carey steps forward.

You know, that guy ran for governor here and people just forget that. And this guy is just, his word was no good, okay? And this guy steps forward yesterday and was talking about, you know, hey, we may cut, we may not cut people using. They’re mowing. I’m going to turn back around in a minute, but it’s. It’s very serious because everybody’s thinking that the magic panacea to cure this is going to be rate cuts, and it’s not.

What if they don’t happen? Well, they’re going to happen, Dan. It’s an election year. We have to do this. No, we don’t. We don’t. Okay. Pittsburgh. Pittsburgh wants to give tax breaks for vacant buildings right now. Now remember, they anticipate that over 24% of all buildings in Pittsburgh are vacant right now. You could see it as high as 50% in the next 24 months. But what they want to do is give a tax break to office building owners to have them convert this stuff to residential property.

That’s great. Well, the only problem is that smart city council member and smart business owner stepped forward and said, wait a second. The way that this is written, this is going to benefit empty car lots. It’s going to benefit hotels. It’s going to benefit people that are not going to convert anything. A hotel is not a house. A house is not a hotel, is what this person said.

And it made so much sense because they’re going to try to, you know, do smoke and mirrors and have bureaucracy fix something with no plan to it. Okay? So you’re going to see such a problem moving forward. Okay. And I just want everybody just to understand that because you haven’t seen anything yet. The problem with the $20 an hour, it’s coming to a city near you guys. You’re going to see this.

And the problem that you see is that people that do every type of job want to get paid more. Right now, I should get paid over $20 an hour to do my job because that’s what the fast food workers are getting now. You had the fosters freeze clothes a couple days ago. That was bad news. Well, one that just happened in northern California was a place called Mod pizza.

Mod. And I’m really familiar with this because there’s one in Huntington beach. It’s great. But it’s one of those places where you walk in and they have the, you know, the dough. What do you want on it? You want regular sauce, you want red sauce, you want white sauce. And they make your pizza. It’s a thin crust, but it’s really, really crispy and good and tastes great. Five of those cloves.

But last time I was in Mott, I was sitting there because they were nice, but there were seven people working okay, so think about this, guys. You know, I’ve had people write me over and over and over again about the increase in the expenses. You’re going to see these pizzas go to $25 a piece to make your own pizza. It’s crazy. And nobody can afford this. Now. Olive garden steps forward and says, we’re no longer a mid range restaurant.

We’re high end. Olive garden. High end. Let’s go out. Let’s get dressed up. Going to Olive garden. So craziness, guys, craziness. But you’re seeing more and more closures because of this. The Quaker Oats plant in Danville closed by 510. People lose their job because it would be cheaper to close it and move the manufacturing facility than it would be to maintain the Quaker Oats facility. How sad is that? How sad is that? So, you know, the best of all these businesses.

I mean, it’s just going to wage. It’s going to place things out of. You’re just going to see people go out of business like you’ve never seen before. You know, burglars stole $30 million on Easter Sunday out of a Silmar cash facility. I mean, back in the day, we used to hear about these places and, you know, you’ve seen Goodfellas and all these other movies where somebody gets robbed.

But there was a facility in Silmar where $30 million was stolen over the weekend. Okay. They got into the vault, opened it up. Nobody knew about anything until they got into the vault on Monday. So, inside job. Yeah, you know, it was. Somebody had the password. Somebody didn’t trip the alarm, but it was $30 million in cash. And the employees that they start interviewing who didn’t want to go on cameras, like, we had no idea there was $30 million here.

This was like, we thought it was like, atm money and certain small businesses that would park their cash there. Well, somebody knew that that Easter Sunday, nobody would be here, nobody would be around. And they got $30 million. $30 million with stuff. You know, you’ll see a movie about this someday. So, you know, you’re starting to see graffiti problems in downtown LA. Were these condos. There’s a $2 billion condo project.

Graffiti it all over Hartford, Connecticut. The mayor cracks down and says, listen, you guys have got to fix these abandoned buildings that are just, you know, the graffiti festival. And we have to do something to keep our city pretty. Nothing’s being done, guys. Nobody’s paying a price for anything right now. Nothing. So read these stories. The stories are all below, guys, but craziness. Guys, we’re seeing lots of stuff.

Oh, local, close to home. Santa Ana, California. Okay. More of a hispanic city. It is a working class city, most of it. You’ve got one section that’s really high end. Okay. They just passed a law earlier this week, no more short term rentals. None. None in the city. So people that do this, people that want to have, you know, extra income, all the people that tried to fight this with city hall fell on deaf ears, just didn’t listen to it, because we don’t need this in our city.

We don’t need these people here, and they won. So you’re gonna see this as more and more of a problem. Dozens of people stepped forward and said they’d have to sell their properties if they weren’t allowed to rent them out. So do you believe that? Is that gonna be the end of stuff like this? So we’re gonna see. We’re gonna see. So we are seeing mortgage demand drop off a cliff right now.

And every time I talk about this, I get destroyed saying, you know, real estate sales are up, Dan, everybody’s doing great. It’s just a matter of time until things turn around. Okay. Okay. So multifamily properties, the five story buildings that you guys see, those dormitories that are going up, and I don’t care if you live in Davenport, Iowa, Georgia, you live, you know, here in southern California, these things are all over the place.

And the problem with it is that they’re running out of money. They cannot complete these things. You’re going to start to see supply chain issues. Remember three years ago, 2001 to 2021, how bad the supply issue was. I’d go out to look at the boats. You’d see hundreds of boats out there. And we’re going to see this affect the east coast like we’ve never seen it before with that one port being closed, and just a matter of time until we have these supply chain issues as we enter spring, which we shouldn’t have, things like that as we do this.

So, you know, more layoffs in three different states. You know, they have these laws that if you lay off more than 100 people, you have to give them the 60 day notice, and you’ve got an e commerce fulfillment company ship month. It’s going to lay off 148 people. You’ve got who else? There was two other ones. You’ve got lightweight solutions. Al Udyne, 193 people, with Iudyne having around 2300 employees.

And then staffing company is going to lay off another 230 people. So where does it end, guys? You know, all we’re told is that, you know, everything’s great as far as the employment, as far as the jobs, everything is solid. You have nothing to worry about. But then you see, you know, another thousand people to get laid off like it’s nothing. So, you know, let me know what you think about this stuff so far, because it’s just, this is a matter of time, guys, until this all catches up to us.

It really, really is. And do you think that the interest rate thing is going to be the thing that’s going to fix it? I am telling you, if you sell the negative right now, if, if you are in divorce, if you are in foreclosures, evictions, the eviction crisis has gone through the roof. I have all these people that are like, dan, in my building, there are people that are like, hey, we’re looking for a place to live.

We’re about to be evicted and we want to join and live with somebody else. You’re starting to see families step forward and ask to move in with other people because they know what’s coming in the next 30 and 45 days. A terrible way to live, guys. It’s horrible. It’s very, very sad because you haven’t seen anything yet. And remember, the economy is great. Go buy an electric vehicle.

Everything’s fantastic. You have nothing to worry about, okay? Except eating. Okay? And every single person, I’m telling you this right now, we could just do the channel of all channels where it’s just prices of stuff and how people are getting over charged and clipped for everything. And every hamburger joint in California raised their prices some as much as $2 a burger. Click, click, click. And again, you don’t like it, leave.

Have a nice day. Okay? You know, my brother reaches out to me, he says, are we going to start seeing more and more coupons? And we are, because Burger King’s got a coupon deal for like a burger whopper, fries and a coke that’s under $7. And I’m like, well, that’s crazy because you look at the price in the store and it’s $14 for a Whopper right now in the store.

So you know what’s gonna happen, guys? What’s gonna happen? We’re supposed to get rain today and over the weekend, so we’ll see if that happens. A couple things that I thought were fast, fascinating to end the video on for you guys and a millennial in Singapore. This guy, he forged his mother’s signature on her Rolls Royce, okay? She’s got a twelve liter, you know, twelve cylinder Rolls Royce.

That was. Think about this. He sold for $660,000. Is that top of the line Rolls Royce or what? And he also sold her mini Cooper and forged a signature. He did this in Singapore. So talking about a guy that’s gonna pay, they don’t mess around in Singapore, so they’re going to give him some issues, if you know what I mean. And remember the kid that got, like, whacked? Remember that? He spray painted a wall and got whacked? I wonder what they’ll do to this guy in Singapore.

So final, final thing is that even Lululemon, you know, all you beautiful women out there that wear the Lululemons that make our day, and after day after day, that company’s having trouble. Is the high end fashion brands gonna suffer? And I’m like, well, yeah, maybe. What about high end fitness brands? I think high end anything right now is gonna take a toll, and we’re all gonna experience what it’s gonna be like to see this stuff suffer.

So please don’t forget to hit the, like, button. Just a real quick video today before it starts pouring down on me and, you know, what do you guys think? You know, I love stories like that with William Wright and me. And explain it to me when it’s not bad here, because you don’t know it’s bad. That’s the thing. You know, think about this. When you have these buildings that cannot be refinanced, it is.

It really is for being complicated. It’s a very simple business. When you have a building, what’s your vacancy rate? What are you charging for rent? What’s the maintenance? What are the expenses? Add them up. Okay, well, we can refinance that. We can get you a better rate. Only problem is you can’t get a better rate. Right now. It’s basically doubled. You know, there’s so much talk right now about how housing prices have gone through the roof and mortgages have gone through the roof.

Right now you’re seeing stuff where mortgages have basically doubled over the course of the last few years. You know, who’s going to be able to survive this? Who’s going to be able to make right now? And all this talk about the realtors. Oh, my God. I’ve gotten. There’s a lot of talk that they’re going to throw out this nar settlement, and the latest one, and I can’t verify it, so if anybody has any real ammo on that and that they want to get rid of this commission based structure for realtors, let us know, because I would love to hear about that.

So please don’t forget to hit the like button. Subscribe to the channel if you are on the email list. Check your spam filter because an email went out yesterday. Okay? So I will see you guys very soon. Bye. .

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