Most People Miss This Point Regarding The Coming Housing Crash and Mortgage Crisis | The Economic Ninja

Economic ninja here. Hope you’re doing well. I want to talk about the one point that most people miss when regarding this coming housing crisis that we’re actually already in and the mortgage crisis that is about to hit us, and that is the sheer amount of homes that are hitting the market right now. Most people miss the fact that homes flooding the market because they look at what’s directly in front of them.

I’m going to give you an example. One of my bookkeepers. We used to always go back and forth in one of my businesses in the past because I was the one selling the jobs in construction. I knew what jobs were coming in. I knew how busy we were or how slow we were. And there would be days that I was stressed out because sales were not coming in.

I had to come up with creative ways of finding new business. And she would tell me, don’t worry, we’re doing great. We’re absolutely destroying it. We’re crushing it. And I would tell her, you document when we get paid, you see the expenses and you see the money coming in. That money coming in is based off of jobs that we did months ago. I’m looking at the now. Now I will tell you that I am not a very fancy person.

I’ve been a real estate agent. I’ve owned a brokerage. I’ve owned a property management company. I’ve done all kinds of things. Construction, all kinds of businesses I’ve been a part in. Right? I had some great partners. I had some not so great partners. And the one thing I can tell you is that it’s very important to look at the now, when it comes to real estate, real estate is based off of a handful of factors.

And I’m not real fancy. I was never that real estate agent that showed up in the suit. I didn’t have a g wagon. I showed up in my pickup where the paint was falling off. But, you know, honestly, I owned it. And I owned multiple pieces of real estate as well. And the fancy guys always got the attention. Everybody thought they knew everything. They were all dead wrong in the last crash because I was around that time, too, doing it before them.

What most people fail, and I’m going to go over this news story that explains it perfectly, is that when a home permit is pulled, then the ground is broke, then the road is built, the electricity put in the foundation laid, the framing, the drywall, the electrical, the plumbing, all throughout that process, that home is already on the market. In my mind, I just look at how many homes in an area are under that phase of construction.

And I got a good idea of when all of those homes are going to flood the market. Well, guess where we are now. I’ve been saying there’s a housing crash happening and it started a couple of years ago. I know it sounds crazy because most people, all they see, all they care about is the price of the home. That’s called a blow off top based on very few homes selling.

That’s a crash. When velocity turns down, I don’t care where you are in your real estate life, you need to understand this. When the velocity of home transactions turns downward and goes down, that is a negative for the housing market. Any type of financial market to be healthy needs liquidity. There are a ton of paper millionaires in our country right now thinking they are so rich. Well, guess what? We had a ton of paper millionaires looking at their 401 ks in 1999 or the year 2000 wiped out for them.

Has it come back? Yes. How did they feel? How many bankruptcies came out because of that? Then we have a ton of paper millionaires. 20 04 20 05 20 06 in real estate boom, wiped out. I was a paper millionaire. I sold, I liquidated. And towards the end, in 2006, mid 2006, it was very hard to liquidate. Why? Because of something that’s happening right now. An amazing phenomenon that only happens every about ten years in real estate.

And that is the velocity of transactions turned down because the Fed turned up the heat when it comes to interest rates. But it’s way worse this time. You have high interest rates, you have high taxes, you have high insurance. If you can even get insurance at all. We are actually in an insurance company crisis right now. In our nation, most people do not know about that, but yet all people think about is price.

It’s all that matters when the government puts out their numbers. And look, real estate went up 1. 1%. They are referring to pretty much the lowest priced homes in the nation. If you go around the country right now and you look at the million, 1. 2 million plus property sizes, the homes they are dropping in price, they put them on the market. Oh, crap. No one’s coming to buy my house.

I got to drop it. 100 grand, then another 100 grand, and at a certain point somebody picks it up. But again, the home prices are only going up, if anything, on the lowest tier, the lowest prices. And guess what? The government’s working on bills right now. That if you’re a first time home buyer, we’ll give you a $15,000 tax credit. That means housing sales are in the dumps.

Oh, hey, don’t worry. The government’s going to force the banks. If you got bad credit, you’re going to not even be fined. But the people with good credit, you’re going to have to pay the brunt of that tons of stimulus. Right. Happening right now. People need to see the big picture. This is the greatest opportunity of your life. I will be proven right. The truth is homes, and I’ve been around a little while looking at homes.

They’re coming down in price. That’s the reason why toll brothers is offering a $50,000 upgrade incentive and they’ll buy down your rate because they can’t sell homes. Yet most people are so influenced by the mainstream media and by government numbers. How many of you right now say I agree in the comments? If you agree that the government is fudging the numbers, which is actually lying. Any numbers. Any freaking numbers.

It’s absolutely insane. Do you remember, I don’t remember the name of the person in the news media that said, we are the ones that are to control the narrative. Some chick and some guy, some liberals and some talk show. And they wanted to control the narrative. Well. They were just dumb enough to say it out loud on camera. They want to control the narrative. Well, the government and the media are controlling the narrative when it comes to home sales, home prices.

Check this story out. Out of Newsweek. Oh, and here I got to share. Let’s do a full culmination of the ninja channel over the last four years. After the last four years, I spoke about crypto in the beginning and crypto had a rise and I calmed down on the crypto talk and I moved back into gold and silver. People got into gold and silver. It is on a rise.

Right then I started talking about the coming commercial mortgage backed securities crisis. And then it happened. Everything I’m talking about I talk about before it happens. But it’s not because I’ve got a crystal ball. It’s not because I’m brilliant. It’s because like in the beginning of this video that I explained the evolution of a home where a permit is pulled, then the foundation, and you go through the process.

I know that home is going to hit the market, but most people don’t see that home until it hits the market. They don’t look at the source. So before I looked at crypto, because I looked at it, adoption rates and laws are being made and people up high that were freaked out by it. Then I saw them behind the scenes buying it gold and silver. I noticed other countries acquiring gold, telling their people to acquire gold.

Okay, I could see the pattern. You need to be able to recognize these patterns as they’re forming, as they’re actually happening. But before the main street sees it, that’s why the assets you’ve been picking up, bitcoin, gold and silver, they’re going up now. You need to start getting ready to take profits, looking to diversify that money and save that money into multiple banks, because there is a banking crisis that’s going to shock you coming in the future.

But then you take that banking shock, that crisis, when they’re not giving out mortgages and when interest rates are much higher than they are now. I know that sounds crazy, but they will be. And that’s when you attack. That’s when you buy the real estate, when everybody else is freaking out. Yet today, most people think, well, Blackrock’s just buying up all these homes, so they’re going to always buy homes.

No, that’s totally wrong. Let me remind you that Blackrock handed back the keys to their Manhattan headquarters back to the bank. What does that tell you? Even Blackrock can’t manage its own headquarters. Everybody seems to think all these mega companies are just, they’re too big to fail. They’re never going to fail. Are you kidding me? Have you heard of Enron? I believe Enron was the largest company on earth before they collapsed.

Things come and things go. Even Amazon came out and said, Jeff Bezos said a little while ago, about six months ago, he’s. I see a day where Amazon doesn’t even exist. People were shocked. You see wealthy people that have made their money through years of hardworking experience understand something that most people do not. And people need to get their minds wrapped around this fact that nothing is certain in life.

The only thing that is certain actually is hard work, dedication and putting your heart into something. And it will pay off. Only a moron says that, quote, a broken clock is right twice. This whole world is full of people that fake it until they make it, but they really don’t make it. People that are cocky, and then the masses follow the cocky ones and then they all are wrong.

They all are slaughtered. It’s always the small people, the meek people that are going the opposite direction, that win, and they win big. Because why? If you go back in history and look financially, most of them won during an economic calamity. Because the ratio of winners to losers are small, which means there’s a lot more money to be gained. This story about real estate right here out of Newsweek, entitled housing Market, sees flood of new homes is the perfect video for today because I believe a lot of people are going to wake up to this.

Check this out. Completed new home construction soared in February, the Commerce Department said on Tuesday, ahead of what tends to be a busy season for the housing market in the spring. Get ready for the moment in this story, the only nugget you need to hear. Okay, check this out. I’m going to point it out to you because you’re going to see a lot of these stories because homes have been picking up, right? Thank you so much, crypto Samurai, for the super chat.

Privately owned housing completion skyrocketed by nearly 20% last month compared to January and were up about 10% from a year ago to more than 1. 7 million for single family properties. They were up by 20% for the month to more than a million homes. Now I’m going to say something in this live stream that honestly, when it goes to video, most people have missed because they have already clicked off.

Okay, but this is the biggest nugget. It’s going to blow your mind and it’s a psychology scenario and I’m going to tell you why. Housing prices are going to crash. Housing starts also rebounded from the doldrums of the winter, jumping by close to 11% to 1. 5 million. Single family properties in this space also jumped up nearly 12% to 1. 1 million units for February. The warming weather has helped turbocharge the rebound, economists say, especially in the south and Midwest.

Who hires these economists? Every year there’s a rebound because of the spring record temperatures. I’m not even going to read that crap. Here we go. The multifamily segment properties with at least five units also saw a rebound. Completions in this area of the market jumped to 644,000. Get ready for it. In what was the highest recorded figure in half a century. Now this is the nugget that you need to take away from this and many people will miss it.

And I could have put this in the beginning of the video. I could have done a teaser. I don’t give a crap. I’m not that fancy, huh? Multifamily units, which are properties with at least five units or more, saw the biggest recorded jump in half a century. Okay, this is what’s going to happen. And you can mark my words or bet against me, save this video. Timestamp this.

This is what people care about. The price of an asset, the current price of an asset, or what the alternative would be. That’s all people care about. It’s psychology. Money psychology. You’re never going to learn this anywhere on, else on YouTube, especially when it comes to the housing market. And this is how I know you’re going to have a housing crash. If you look, and I teach this in my courses and I’ve talked about it on the channel before for free.

When you look at the amount of homes that were built in 2008, everybody talks about that up to 2008, tons of homes. And then they fell off a cliff. Less homes are made. But as it fell off a cliff, construction still happened. Homes were built in America. Land broke open, land was broken the earth and turned into a home, right. Foundation was laid and they barely picked up.

Nowhere near what we saw in 2008. That’s what all these real estate agents or all these YouTubers sit there and go, look, there’s no houses. We’re in a crisis. They’re idiots. I’m just being blunt right here because they want to go for the drama. Now if you go look at multifamily starts since 2010, it is on a terror. It makes a run up of single family homes in 2008 looks like child’s play.

Well, this is why it’s important, because most people when they want a house, they go, yeah, but there’s less homes. Who cares? Ninja. I don’t want to buy an apartment complex. Well settled your horses. Because this is what happens. Most human beings only care about what’s going on here and now and what that is because most people live paycheck to paycheck. All they care about is how much their housing is costing them.

And in the downturn of 2008, do you know how many people said, there is no way I’m going to buy a house. It’s cheaper to rent. And not only that, because as home prices get expensive, they get into rentals. Right now what are you seeing? Nationwide rents are dropping. There are move in deals on rentals because all this product is hitting online, especially in big metropolitan areas. It’s a big deal.

And they are all in crisis mode because of the commercial mortgage backed securities set up right now, the collapse right now because they’re all having to refi at higher rates. So they are in crisis mode. So they are dropping rents. They’re just trying to get people in so they can go to a bank and try and get this figured out. Well, now think about this. Home prices on the top tier are already falling in price across the country.

I don’t care where you are medium price, if you want to go chew the fat on that, you’re not thinking the big picture here. You don’t think big enough. There are so many apartments available, rents are going to collapse in price, which is going to also bring down the value of those properties, those five units and up properties. And then everyone’s going to be laughing at the homeowners.

The renters will be laughing at the homeowners. You’re going to see news stories about it, how renters made out as homebuyers are stuck in homes with super high prices. They’re going to demonize the homeowner and they’re going to hit the market like you wouldn’t believe. See, that’s the key right there. Not everybody. Just because you may want a house doesn’t mean everybody else wants a house. A lot of people, all they care about is their monthly paycheck compared to their monthly bills.

And most of them are completely over leveraged. We know that to be true based on credit card debt numbers that are coming out, delinquency rates that are rising, auto loan numbers. We know all of this to be true. But that’s the whole point. How many of you can see the big picture? Type ten if you see the big picture and you understand what I’m talking about. Type eleven if you don’t understand.

And maybe I’ve got to look back through these comments and check it out and see where people are missing it. Because there are a lot of real estate companies, there are a lot of social media people that sit there and they dress all fancy and they got their badge on their thing, and it’s just a big commercial for their brokerage, which I don’t blame them, but they miss the point.

And the point is so simple. That’s why they don’t want to even interview the ninja, because they’re scared to death what’s going to come out. Because this is me just rolling live. When asked the proper questions. Watch out. It’s not because I’m someone special, it’s because I’ve been there and done that. And not a lot of people actually have the proof of it and the truth. Shoot. Just the other day, some guy got on and left a comment.

I had to pin it and says, I need verifiable proof that you were a fireman. I’m like, you don’t need proof of crap. I don’t need to do anything. But see, that’s the thing. I don’t need to prove anything. I’m just going to tell you what’s coming and you’re going to see that it’s true. You’re going to see that it’s happening. And my point being is, Neil, we’ll get to that.

We’ll do an interview. That’d be awesome. My point being is that who are you going to believe? And it’s not a belief. It’s just going and checking my words. Go look at the housing starts. It’s a big deal. Here, check this out. This is from Bill. Thanks, Bill, for the super chat in Frisco. Plano, McKinley, Allen. There’s new apartment builds everywhere. Lennar is Lucas, Trinity Falls. Prosper have new builds sitting there and cannot sell.

He’s absolutely correct. I’ve been visiting a lot in the Nevada area of these toll brothers homes and these developments, and they’re desperate. I did a video where they said, we’ll give you a discount for paying cash. We’ll give you a discount if you finance. We’ll give you a discount if you just buy. And we’ll give you 50,000 in free upgrades. They’re hurting. And the meek person, the one that sits back and has the money and is waiting, you’re going to make so much more money.

Do you know how many people sit there and go, I listened to you last year and I lost money. Not buying a house. Mike, go buy a house. Don’t be a dork. If you look at that ten grand, that house went up and 15 grand and you think that’s life changing, cool, go buy a house. I didn’t say to anyone, not buy a house. Go watch what happens.

Watch what happens on the flip side when I start buying them. And it’s going to be an exciting time because I ain’t going to sit back and buy one or two. This is way too big of an opportunity. I don’t know. My students are sitting there chomping at the bit and they’re fired up. And the more they learn, the more they see. See, that’s the thing. Most people can’t see past their own current situation to sit back and look at what’s going on with the nation and the nations that are shunning America to sit back and go, oh, crap.

This is a big opportunity. Yeah. I drove an old 2003. It wasn’t old truck paint falling off up until just a couple of years ago when it was just, okay, she’s done. It’s going to cost way more to replace. It’s going to cost more to fix her than replace her. And I did that saving up in preparing. While all my friends were spending money, I was buying bitcoin and buying gold and buying silver and paying off debt.

And now I sit back and I could buy other things. I still ain’t doing that when the time to strike is going to be sincerely, one of the saddest times in our country’s economic history. But I just want to see a bunch of people stoked because a depression is named a depression, because there’s depression, mental depression. I don’t want that this time. I want it to be a big shopping spree for everyone.

And to anyone that’s going to leave one of those dumb comments, well, I must be lucky for you, I have no money. It’s your perception. Get out of your own mind. Start talking positive. And I’ve seen people that sit there with the Starbucks coffee in their hand and go, I don’t have any money to buy silver. I’m like, you’re a dork. Go buy a buck coffee and take the other four and go buy a silver dime or two silver dimes.

Everyone makes excuses. Is that’s all it is. Stop blaming other people for your problems. Start looking inside, start getting positive and watch what happens to your life. You’ll absolutely be amazing. That’s all I got. The economic ninja is out. .

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