Foreclosure Frenzy

➡ A real estate developer named Michael Stern took a $240 million loan to build the tallest building in Brooklyn, but he couldn’t pay it back, so the lender is going to take over the unfinished building. This is becoming a common problem, with builders not being able to finish projects because they run out of money. People are also having trouble with insurance, both for their homes and cars, with some being forced to pay for expensive insurance they don’t want. Lastly, the economy is unstable, with warnings of possible inflation similar to the 1970s.

Hey, it’s Dan. Welcome back. This is I allegedly, and I got a good one for you today because I am up on the cliffs in Corona del Mar, and this was just an absolute beautiful morning. Look at this place. Absolutely stunning. But you’re going to see something that’s going to happen on June 10. That’s going to happen more and more and more often. And we’re going to get right into it.

Please hit the like button. Please subscribe to the channel. And today, Chuck Norris is sponsoring the video. Now, first things first. Real estate developers, okay, there is a man named. Let me get this right. Michael Stern. Michael Stern was going to build the tallest building in Brooklyn at 93 stories and nine. DeKalb was what the name of the building is. The building has been under construction. One thing that rich people do that’s incredible is they get something called a mezzanine loan, which is basically like a signature loan.

And it’s the type of thing. Hey, listen, I need this to pay for some improvements to my projects. I need to finish this. I need it for advertising, whatever. Well, Michael, or Michael went out and got himself a 93. Excuse me. Got a $240 million loan from Larry Silverstein. Now here’s the thing. He didn’t pay for it. Got the loan in 2019, and the building remains unfinished. Now, mister Silverstein’s not gonna take it anymore.

He’s gonna foreclose, and that’s the end of that, okay? So it’s time to pay up or else. Okay. That’s where they’re at. So now, here’s where this gets creative, okay? Is that Michael Stern, the developer, he has done everything he can to get himself right with this program, okay? He’s tried to figure out ways to sell off the rental units in the building. He’s tried to sell off different sections of it and just to create cash to get the construction completed.

The construction is not going to be completed right now, so they’re going to foreclose on it. Now, here’s the thing. Most of these UCC type loans that go to foreclosure, this is not to be boring stuff. Usually it goes back to the lender. So Silverstein Properties is going to end up owning this building. What do you do with a 93 story building that’s half finished? Seriously, what do you do? The problem is, the bigger these projects are, the harder they fall when you have higher interest rates, because mathematically, it does not pencil out.

Look at these houses on this hill, by the way, behind me. Is that sick? You got 25 $30 million properties you got this guy with his infinity pool right there, which is just absolutely stunning. And then you got some mook with a camera walking in your backyard. What happens with this? It’s going to get worse. Now here you’ve got a project in Montana, got a builder in Montana and still has snow on the ground around the project.

And guess what? Not going to be able to complete it. Don’t have the money to complete the houses. People have put deposits down. Things are half done. People have picked certain amenities for their custom homes that aren’t going to be completed. Once again, you’re going to see this happen more and more and more as we move forward. It’s just. It’s going to happen. So what do you do? Found a great article below about what happens if your builder goes bust again.

You’re going to see this happen more and more often. One thing that we’ve talked about that people don’t put pen to paper to is when it comes to buying a house. Okay. A lot of people buy the house and then just, okay, my payment’s going to be x. Okay. And then they have an impound account which takes the money out and pays your property taxes and your insurance.

And then at the end of the year, they realize that they have a shortfall in the payments that they’ve made. Okay. In other words, the property tax is much higher than what the builder said they were going to be. People are having trouble hand over fists with this. The next thing right now with this is when it comes to the insurance on these houses, people are having difficulty getting renewals right now.

We’ve talked about that. They’re having trouble getting insurance in the first place. But here is the problem with this. If you have to go to like, the state program, like fair here in California, it’s a minimal amount of insurance. It’s horrible. And the price is not cheap. It’s not inexpensive. Try filing a claim with that, too. It’s a disaster. Remember back in the day, we’ve talked about Wells Fargo and how they would stick people with different programs, open up accounts, do all this shaky, and, you know, scammy stuff? Well, they got caught for all that stuff.

One thing that they did with people was they would say, hey, Dan, get your car from us. And then they would stick people on the payment with insurance that was very high priced and had very little coverage. So people were like, I didn’t want to have insurance. I have my own insurance. And people were double dipping and paying both of those. And some people realized, you know, a year later that they had paid for insurance twice.

Well, I want a refund. No, sorry, you get a refund on insurance premiums. So this is a real problem. Okay. Now, this is happening right now more and more often with car purchases right now because the banks are not. Look at that, guys. How beautiful that is. The banks are going after the cars if you don’t have insurance. So you have to have adequate insurance for your $60,000 vehicle or they’ll come pick it up.

Now. Wow. That’s extreme. Well, no, that, or you buy our insurance that has very little coverage and is very expensive. People are getting stuck with that. Again, nobody can budget for this. No one can budget for this. Now you’re seeing this happen more and more often, and it’s happening with the insurance. It’s happening with everything. How does the average person or average family go out and plan financially? You don’t.

You get paid every two weeks. Here’s how much money I have. Oh, by the way, next month you’re going to need another $780. Huh? People don’t have that money right now. That’s the biggest problem that we’re seeing with this right now. Look at this. Absolutely incredible. So share your thoughts on this stuff, guys, but you’re going to see more builders go out of business than ever before. Okay? And you’re going to see this at a record clip.

And again, people, I got to get into a house. I got to get into a house. Why? What is the rush right now? Unless you have to move, you have tax situations. You have things like that. Why not just wait? Why not just slow down and get yourself a better deal? Seriously. Let’s talk about our sponsor, Chuck Norris. The legendary actor has been in Hollywood for decades, and he has maintained his health and his physique.

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You have to look at the numbers that we get and take them with a grain of salt right now because we just got our durable goods numbers. And guess what? They were revised down. They thought that they went up two and a half percent. Uh oh. No. They only went up 2. 2%, which is huge. Guys, what are durable goods? Durable goods are things in our economy that basically last at least three years, things you don’t have to purchase all the time.

That’s what durable goods are. Appliances, electronics, cars, things like that. That’s durable goods. So it’s not doing well right now. Now, another day and another warning. Jamie Dimon, man of the people, okay? He steps forward and he says, listen, I want people to understand that we could see 1970s inflation again. Okay, maybe so. But again, one day the economy’s great, one day the economy’s bad, and Jamie Dimon steps forward, and now we need to all be worried about it.

Okay? Make up your mind, man. Jeez. Make up your mind. Have you ever tried to hire somebody to pick up junk at your house? You know, you’ve seen that, hey, I pick up junk. I deliver this stuff. Well, it used to be very reasonable to have these guys do it because it was a dude in a truck, and now it’s become a business and franchises and shenanigans where they’re charging you.

Oh, listen, let me see what you guys got here. You got a sofa there. That’s 300. You got this, you got that. And it’s just more and more and more expensive to have these people load this stuff. Well, I’ve had three people send me three different stories about this that I thought I had to cover it, so much so that here’s what people are doing to fix that.

They’re taking all their junk and they’re going and renting a storage unit, okay? Using a prepaid debit card, visa card, whatever. And they go rent it for one month. Hey, what’s the special for a ten by 2010 foot by 20 foot unit? Oh, I can get you the first mandate for $29. Great. Okay. Then these people go and rent the storage unit with no intention of ever paying for it, okay? And then they go out and they leave the stuff and don’t make payments on it.

And guess what? Then they have an auction. They foreclose in the unit, sell all the junk. Okay? Is that crazy or is it ingenious? Okay, but sure, don’t spend fifteen hundred dollars to have stuff hauled away. Don’t have to rent those big trash bins. Those big trash bins. Now, those used to be a few hundred dollars. Now a friend of mine said he had one that was $3,800 to put it in front of his house.

Well, that beats that, you know what I mean? So these people just go out and pay for one month on the storage unit and watch the stuff get sold. Now, one sicko wrote me and said, I like to do this with people’s junk. Then I go back to the auction and watch them sell the junk. Okay, sicko. Okay, psycho. Okay. Yeah, just share your thoughts on that stuff.

Only in Elon land, he could announce that sales are down, deliveries are down, but hey, we’re going to have a bunch of new cars and the stock price goes up and everybody’s all giddy about Tesla again this week. Is that crazy? Only Elon gas prices here in California, in some areas are well above $7 a gallon. So we’re going to see more and more of that. You’re going to see $10 a gallon gas before you know it.

San Francisco used to be the crown jewel of real estate here in southern California. In California. And, you know, yeah, you got areas like this. I mean, it’s funny, the rich people are going to spend money to fix their houses. This is Ocean way. And what you’ve got, you got houses that are 22, $25 million out here. Crazy stuff. Okay, but what are you gonna do? Seriously, not every can afford this.

These people are absolutely ripping this thing down to the studs and building this because their backyard is this. Okay, but again, I, when I was a kid, I thought, God, this be the greatest street in the world to live on until you come out here on a Saturday and everybody’s out here because it’s not, you know, your backyard, it’s not private. There’s nothing about that that’s good. So San Francisco real estate is crashing because of fecal matter in the street and everything bad.

So once again, guys, I saw a report yesterday where they say if San Francisco started to get cleaned up today, it would take ten years to make San Francisco, quote, normal again. So let me know what you think about that. Have you ever had an airline flight cancelled? We all have delayed, whatever. Well, the Biden administration wants to have a new rule. Forget your travel insurance. Doesn’t matter if there’s an issue, we get, you know, we get a refund.

You have to be offered an immediate flight, a voucher or you get a refund. We’ll see if that sticks. And again, I have such a problem with the airlines because of COVID and how they were given $65 billion to fix their businesses and just line their pockets. So let me know what you think about that. Isn’t this stunning? Just beautiful, guys, I love coming up here. Absolutely beautiful.

So share your thoughts on this stuff so far. Let me know what you think about this. You know, how can people budget? How can they afford anything? You know, one thing I tell companies and I tell my friends and I tell family members is you need to know exactly what it costs you a month to survive. And what do you do if something happens? What do you do if the car breaks down? Okay, what do you do if the car won’t start? What do you do if you need auto repairs? Oh, I don’t know.

Okay. So many people are like that right now, guys. You’ve got to get yourself ready for whatever could happen in a negative way and prepare yourself for that because it’s going to happen. Happens to all of us, guys. So let me know what you think about this stuff. We’re going to file this one under. You can’t make this up. The city of Los Angeles Police Department downtown division has not had working phones since March 28.

They did a power test on the phone system and blew out the phone system. So for non emergency phone calls, the police, the detectives, administrators, chief of police, nobody has a working phone inside the 400 million dollar facility. Is that embarrassing or what? Okay, this, this is the type of thing, you know, we hear about all these cyber attacks and all these different problems with things getting shut down.

But imagine doing this to yourself. And again, read the story below. But this is crazy. You can’t make it up. So you wonder why crime, it is rampant. You wonder why it’s getting out of control. The city of Los Angeles is a perfect example of how it has just gotten so bad. So bad. Let me know. Just a quick video this morning. First things first to end this, central banks, 98% of them say that they’re going to roll out a central bank, digital dollar, digital currency between now and 2030.

I’m telling you guys, you can sit there and say everything’s digital now. Dan. No, this is going to completely eliminate your freedom, to say the least, when it comes to purchasing and it comes to everything. Correct me if I’m wrong, okay? Because why do you like to travel so much? Why do you like to go to Las Vegas so much? Sure do buy a lot of cows, Henry.

You know what I mean? It’s like nobody’s business what you buy certain things for. And there is a trade. I like auto guys. I use this a lot for car guys because car guys like to go to the auto swap meets and negotiate in cash. And I watch these guys do it. I’m not a car guy, but I’ve just seen them sit there and go, you know, this part’s $800.

Okay? I got 300 on me. I can’t do that. And you can’t do. Well, hang on. Let me get my debit card out and I’ll pass. Okay, so there’s that. I love this one. The ex CEO of finance, he’s going to do three years in jail. This is the guy that said that Sam Friedman was a scam. Chae Ping Xiao said that Sam Bankman free was a liar and a fraud.

Okay? Takes one to know one, buddy. Three years in prison for money laundering. Okay, money laundering. Final, final story. You guys say I never have good news. A young man was in Hartford, Connecticut with his mom and decided to climb into the claw machine. You’ve seen that. You put the dollar in and you lose and don’t get the stuffed animal. He says, forget that. He climbed into the machine.

Okay? Only problem is once he got in the machine, he got stuck. So they had to call the fire department to get him out for him to get the stuffed animal. Okay? So ingenious. Nobody was hurt. He wasn’t hurt. Read the story below. But I love it, you know, good for you. So please don’t forget to hit the like button. Please don’t forget to subscribe to the channel.

I am telling you, if you have builders around you and they start to look shaky, stuff’s not getting done. Things are delayed, delayed, delayed. Oh, we’re having a permit issue. They didn’t inspect it correctly. Don’t believe that stuff. Okay. Email me@hellogedly. com. But I’m telling you, you’re going to see these builders go out of business at a record pace right now. Get ready. I’ll see you guys soon.

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