The Real Estate Numbers Don’t Lie
The Real Estate Numbers Don’t Lie
Summary
➡ The speaker discusses various issues including the rise in foreclosures, the high cost of living as evidenced by fast food prices in the UK, the claim by market insiders that interest rates will drop in 2024, the unlikelihood of this claim given current high rates, the negative impact of car theft and expensive Disneyland prices. The speaker also comments on the potential issue of giving loans to illegal immigrants, and promotes a collagen product available at Healthwithdan.com.
➡ Various companies are laying off employees and implementing cost-cutting measures as a survival strategy amidst challenging times. Major banks are grappling with charge-offs and loan defaults. Institutions like Charles Schwab are witnessing a shift as investors seek safer investment vehicles. At the same time, incidents of theft are increasing, while one notable prediction indicates that food prices are set to rise by at least 10% in the coming months due to inflation.
Transcript
Hey, it’s Dan. Welcome back. This is I, allegedly walking in Newport on the east side of the island. And just a beautiful day. Got a good one for you today because we’re going to cover the fact that the numbers don’t lie. You can ignore them all you want. Your neighbors and your friends can tell you how great they’re doing. But there are big, big problems out there. Please don’t forget to like the video subscribe to the channel.
Today we have a sponsor age of smallty collagen. And you guys should be on our email list because an email just went out. If you take a picture of this right here, you can join the email list. Almost 1000 people did that last week. So that’s very cool. But let’s cover it right now. 2023 looks like it’s going to be the slowest year for real estate transactions since, say it with me, 2008.
So you’re going to see less homes change hands than you did in 16 years. And you can sit there and say, oh, there’s no inventory. Nobody can afford it. It’s a myriad of things, guys, but what it is is a huge problem because one thing that you’re seeing is that the higher end houses are starting to go to foreclosure more often. Think about this. In 2021, there were over 6 million houses for sale.
Okay? Things shot up so much since 2021 that you don’t have the affordability. People are not changing houses. Also, I read a great article today about how, hey, you’re getting old and it’s time to downsize. Why would someone do that? Why would someone get rid of the big house, sell it to get a bigger payment, bigger taxes, and less space. Oh, I want to take care of less.
Well, no, it’s kind of defeating the purpose. You’re going to spend a lot more money to get a lot less property. So that’s what we’re seeing right now is a real, real problem with this. And the thing about this is that when we had the debacle in 2008, people forget about a few things. We also had unemployment rise to 8%, which was probably the last time we had a real number that they talked to us about was in 2008.
Now they lie to us and tell us it’s under 3% and everything’s great. Oh, no, it’s 4. 3 now. Whatever. None of this is real that they’re telling us. So what we’re seeing is that so many people are having problems right now. Loan origination, loan refinance is absolutely at a standstill right now. Now, friend of mine who is in the foreclosure business, Doug, he and I are going to get together tonight for dinner because here’s the thing that he’s getting hit up with, more and more people are reaching out to him.
And you know, you’ve got to get ready, Doug, because we have an increase in foreclosure activity. And if you read the story below, the foreclosure numbers are going up faster than ever right now. Since 2019, you’re seeing a rise in foreclosures. People cannot afford the payments that they’ve gotten. There is a huge amount of people right now that are completely upside down for the purchase that they made since 2020, okay? I mean, it’s terrible.
Some of these people bought houses, put very little down, and they’re upside down. FHA just did something also last week that people applauded in the real estate business, but it’s absolutely insanity. And that is, you can go to a multi unit, you can go buy a Duplex, fourplex, things like that, and only put 5% down now, okay? Because they want these loans. I don’t know where you’re going to do that.
I don’t know where you’re not going to do it in some beach community where a fourplex is going to run you $4 million. But hey, buy something that’s depreciating. Buy something that’s going to be completely upside down when it’s all said and done. There is a rise in foreclosures. There is a rise in the fact that houses are sitting on the market longer. Yes, there are some markets.
Every time I talk about this, there are people that say, oh, you don’t understand. House down the street from me went for over ask. House across the street from me went for over ask. This week person was hitting the crackpipe and sniffing glue at the same time just to get the double effect of paying $100,000 over asking price. I think that they’re idiots for that, okay? I don’t think that there’s nothing in my area that’s worth the money that people are paying right now.
Nothing. Plus, the rents on that street basically go from $3200 to $3,400 a month. How do you know that? Dent? Because I ask everybody. Because I’m dan. Hi. How’s it going? Let’s talk. Okay, so for someone to go out and have a $7,000 a month house payment where rents in the neighborhood are 32 to 3400, they’re insane. Absolutely insane. Doesn’t pencil out the math, doesn’t work. Now, you get some companies that are doing well.
Ferrari ferrari sitting down saying that they’re doing fantastic. Now, for those of you that don’t know, know. It’s not like you sit there and go, hey, I drove three of them, Dan. That’s not what I’m getting at. The company did things. Enzo Ferrari was the owner of the company. He did something that was very different. This guy went out and he would create a new car. When he did, like, the F 50 and all these different cars, he would create an OD number of a car.
He would make it so that there would be a perceived demand for this and make it one less than the people will want. And he would make it so that you would always have a demand for the car. So instead of making 350 cars, he’d make 349 cars. Ferrari just announced that they’re not getting away from gasoline engines. They have a bunch of new cars coming out, and they’re going to be high end cars.
And yes, they’re going to be $400,000 and above. But that’s what their thinking is that we’re going to deal with an elite group of people that want to buy the product. So the rich are going to be just fine, guys. Okay, but then you go, wait a second, what about RollsRoyce? RollsRoyce just announced that they’re getting rid of 2400 people. Well, it’s because of efficiency. We want to cut back and we want less people to work here so we can become more efficient.
Okay, see, again, we talked about this months ago. You’re going to hear lies being told to us that people are going to have layoff. People are going to merge. People are going to shut branches down. People are going to shut stores down, offices down, things like that. Under this guise of saving money and being more efficient, being a better company. No, they cannot afford this. Rolls Royce cannot afford this right now.
Now think about this. Rolls Royce rolled the dice and said that they’re going to go to electric motors only. Okay, good luck with that. Good luck with that. I’m telling you, nothing in this world is like the rich people that are I’m talking not wealthy like this neighborhood. I’m talking about rich people. Imagine them running out of power and having to charge the RollsRoyce in the middle of the street.
Oh, man, imagine that. We have seen so many problems with Tesla lately. Other satellites falling from the sky and things like that. But we’ve also seen things with Tesla where the car stops literally 15ft away from the charging station and they can’t push it. You can’t put it in neutral and get the car going. Now there was some guy who was saying, hey, listen, I use some AA batteries.
And I jimmy rigged it so that we could get the car to where we could roll it 20ft by the charging station. Whatever. Guys, that is the chaos that you’re going to put yourself through with one of these electric vehicles. My favorite story, Dave sent me this one. I’ll start with him. Dave sent me this story about how people went out and got themselves an electric car. But then they get in a little minor fender bender and hey, insurance, listen, we’re not going to cover all this.
You got to cover the difference. And they’re thinking, okay, it’s going to be gosh, I scraped the bottom. It’s going to be 1000, $3,000. No, it’s 20,000 US for the new battery. And again, remember when Elon Musk came out and talked about batteries and how it’s going to be? Don’t worry, you’re going to be able to replace a battery. It’ll be five grand at the most to replace a battery.
No, it’s not. Plus, remember, you’re going to see these cars get thrown in the junk heap at one point. So there’s that. Now, the other numbers that don’t lie is LinkedIn, okay? LinkedIn is the professional association that connects people, okay? I hate it lately, even though I’ve got, what, 24,000 connections on LinkedIn, I hate it because now it’s Facebook. People show their meals, and people show pictures of their kids and stuff.
It was a professional group. Now, it was fantastic. In the past, I have used it to promote my events. I’ve used it to connect with people. I’ve used it to reach out to doctors and people to speak at my events and things like that. But, man, has it lost its luster right now. But they’re getting rid of another 632 people for a total this year in 2023 of 1400 people, okay? So share your thoughts on this stuff, guys.
Share your thoughts. Just a beautiful morning out here, and foreclosures right now are on the rise. My friend Doug right now, Dan, I got to have dinner with you. I got to have a strategy on hiring all these people. The banks want us to have all these people. Why is that? Why do they want more people to post houses? Why do they want to know that he’s going to efficiently be able to post multiple foreclosures in a day above and beyond what he does right now, even though he’s busy and even though he’s got the staff right now to meet the demand and everything’s perfect.
And Doug is the only guy in the world I know that likes doing that, and I’ve been with them on Know many, many times to watch him post houses. But they’re getting busier. Why is that? They’re just making it up. Hey, no, we want you to hire more people for the thrill of it, okay? The problem is, the industry is going to see a huge upswing. You’re going to see huge, huge problems when it comes to foreclosures right now, and the affordability of real estate is going to be a problem.
Now, flash forward to a Market Insider article today. Say, hey, listen, we’re going to see some great news because you’re going to see in the first quarter of 2024, you’re going to see interest rates drop. What glue are they sniffing, guys? Who are they talking to? And again, I think that there’s not a lot of news that’s done with research right now. It’s just done with let me tell you how it’s going to be.
And the problem that you have right now is that these people talking about lower interest rates is insanity. There is going to be no lower interest rates right now. Interest rates are going to stay sky high for at least through the end of, like Bob Kudler said, 2025. And for people to sit there and say, hey, at the end of 2024, we could see 6. 1% maybe. But think about this.
The average person that goes out and buys a $400,000 house from where interest rates were okay? Payment was $2,100 a month. Now the payment is $3,600 a month for that same house. Give me $1,500 more a month, guys. Give me $1,500 more a month. How do you afford that? How does the average family afford that? Speaking of that, let me something I would normally cover at the end, but I’m going to do it now.
Stephen from the UK sent me a great story about the unaffordability of going out to dinners and having fast food in the UK. Fish. And know, I consider that fast food. I don’t consider that fine dining at all. Okay? Now, Tom Kitridge is a celebrity chef. This guy’s a little heavier than Gordon Ramsay, but, man, he’s a well known chef in the UK. His fish and chips are almost 40 pounds.
Okay? $50, guys, to have fish and chips. So that’s not a takeout, guys. It’s not a simple meal that’s high end. But if I’m going to go sit in a restaurant, it’s not going to be for fish and chips. So let me know what you think about this, guys, right now, because I think it’s absolutely insane that prices are the way they are. That we’re getting less, we’re getting charged more.
Let me know what you guys think about all this. Let’s talk about our sponsor, ageless Multicolagen. You know, as we get older and your skin gets a little creepy, everybody says, oh, that’s just part of old age, and there’s really nothing you can do about it. There is something you can do about it. You can take collagen. And the best thing to take is ageless multicolagen from BioTrust.
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What’s the link again? Healthwithdan. com. Order it today, guys. It’s made a huge difference for me. I’ve taken it for four months now. Try it today. Get yourself some collagen. Crime is completely out of control, and you’ll love this. We’ve talked about mail theft lately. Check theft, check washing, everything. Think about this. Car theft for the year 2023 is up almost 9%. 9%. Oh, that’s just the bad areas.
No. In the United States, guys. Now you got some areas that it’s up 25%, okay? So you can go and pick a good city like Oakland, San Francisco, great cities like that. Carjackings are up 8. 1% and that is just strong armed robberies where they come up to you and they take what you’ve got from the car. Now protect yourself guys. Leave nothing valuable. I saw a story on the news the other night that just broke my heart, where a couple was traveling to see their son and they went to San Francisco and went to Alcatraz and had their laptop stolen, everything stolen from the parking lot, windows broken.
They get out of there and the cops found their cell phone and their luggage, thank God, okay? And reached out to the people and got them that and said, listen, your laptop and your iPad, they’re never going to get that back. It’ll be sent to Vietnam or some other place like that. But that’s awful. Now, funny part of this was I told you guys that know, bought my car, a son bought my son a car and shipped it to him.
And he’s in the Boston area right now. And it’s funny because the car has California license plates on it. And he says, dad, when I drive downtown, I get people flipping me off. I get people that roll their window down and lean out the car and say, Go home. And I said, this is kind of know that they get that worked up for it. He’s like, I’m not lit.
I’m just going to school here, man. So people lose it. People don’t want people from California, okay? So it’s funny. Remember, Governor Newsom is going to be your next president. Remember that? And everybody loves him. No, they don’t remember that. They do not. Disneyland is facing such backlash right now, not because of things they’ve done politically, but because of the prices. People are just fed up with how expensive it is.
Believe it or not, guys from somebody that lives here in Southern California used to be able to get like based on your zip code and being close to Disneyland, you used to be able to get a discount to take your kids there more often. And they had know, park hopper where you can go to California Adventure in Disneyland and back and forth and save all this money. Nah, not anymore.
People are just talking about how bad the lines are, how expensive the food is, how completely unreasonable everything is. It’s completely out of control and people are fed up with it. So the amusement park experience is nuts. Now we talked about lending earlier. I love these stories about how we’re going to see the mortgage. Companies are saying, hey, we’re going to see a demand for mortgages next year.
No, you’re not. You’re not going to see anything go up. They’re talking about mortgages going up 19% as far as the number of applications. That’s insane. There is no such thing. That’s not going to happen at all. It’s just not going to happen. Now here’s something that’s insane is the Biden administration does not want anybody right now that is an illegal immigrant to be turned down for a loan.
We want you to give these people loans. How insane is know you can’t qualify for a loan. You’ve got to give every piece of documentation in the world to get a loan for your business or a credit card or anything. But they want these people that walked across to be able to get loans. Okay? Is that insane? Read the story, guys. The story is below on this. That is nuts, guys.
That’s where we’re at right now. That’s the insanity of this whole thing right now. So the numbers don’t lie that we have right now in business. Everything right now points to a downturn. These companies that are laying people off are not doing it because they’re doing well. You can believe the lie of efficiency. But when I talk to all these companies right now and management that are telling me how they’re cutting back and curbing things to cut costs and save money, it is all based on survival.
Let me know what you think about this, because that’s what’s real right now. Let me know. The best part is the dinosaurs up here year round. One thing that I absolutely love is getting inside information with people that were in meetings. And there’s a great article below about what Jamie Dimon said late last week in a hotel room with other people, how they have to move cautiously. And we heard one of the quotes publicly about how it’s one of the most dangerous times, but what he was saying is that we need to move cautiously with lending with individuals, and this is a really bad time right now.
Okay, well, thanks. Okay, but remember, guys, everything’s great. Not to worry. But what the big banks, especially the big four banks, are grappling with right now is charge offs, people that cannot afford to make their consumer loan payments and are being written off. And this is at an all time high right now. You’ve got it moving higher than it’s ever been, and they’ve lost almost $6 billion already with these.
So it’s fascinating because it’s going in the wrong direction right now. Charles Schwab steps forward and said that their net income has dropped tremendously and that they are seeing a huge run on people taking money out of Charles Schwab and putting into other investment vehicles away from Charles Schwab. Wow. Okay. Well, that’s troubling right now. What are they getting into? T bills? What are they taking their money out of? But profit dropped substantially with that, and people want to get themselves into safer money, which we’ve all talked about and needed to look at.
But these banks right now, even though they’re charging more money and they’re saying that they’re making more money, they’re having real problems right now with bad loans and with people not paying. But listen, we should give loans to people that are not citizens and we should just lend money to everybody right now. That should get you furious is what that should do. But we’ll see. Okay, let me know what you think.
So far it I’m going to finish this video with these last few stories and these come directly from you guys. First things first, Shelly. Shelly sent me two shirts, said she couldn’t decide on which one to get me, so she got me two. Here’s the dark blue. If you’re viewing enjoyment, I take these to the tailor and they get all fitted. It’s all nice. So thank you Shelly, very much.
Next thing is from Judy. Judy had a mailbox installed at her house, big post put into the ground. Then her son calls and says, hey, what’s going on with the mail? She’s like, what do you mean? She goes, your box is gone. No, we just put that in. They had stolen the entire locked mailbox out of the ground and took it. Now here’s the worst part, okay? They reinstalled a new one within two weeks.
Stolen again, guys. Stolen again. So it’s crazy, guys. You’re seeing theft like we’ve never seen in our lifetimes and people stealing not only your mail, but the entire mailbox. So good luck, Judy. Hope you get a new mailbox. Final story was a woman that said, don’t use my name. She works for one of the large consumer food companies is all I can tell you. But she said get ready because the wholesale prices and food prices in general for everybody are going to go up a minimum of 10% in the coming months.
10%. So you’re going to pay more for food in every category, restaurants, fast food at home, stores, everything. It’s going up 10% right now, guys. Who has the money for this? Who can afford this? None of us. Okay, so inflation is a tax. Inflation is a killer. Inflation is doing more harm than it ever has to so many people. And again, thank you guys. You want to send me something? Hello@iallegedly.
com. Join the email list. Be part of that. I am so grateful to each and every one of you guys that reach out to me and send me this stuff. But man, oh man, it’s getting out of control and we’ve got to protect each other. We’re going to work on doing some consumer saving stuff. I’ve got a bunch of big plans for this in the coming months and we’re going to announce this hopefully in the next 30 days.
We’ll have something cool for you guys. Onward and upward, guys. I will see you guys very soon. Again, reach out anytime. .
