TROUBLING TREND | RENTING - The Future of Real Estate!??? | Jared Jones with Joshue Merizalde
Hey, everybody. Jared Jones just wants to cover some of the real estate topics of the day today. I've got with me, my partner in crime. Hopefully not too much crime. We stay on this side of the bars, host swimmers all day. What's up to Joshue. How are you today?
What's up everybody. It's good to be with. Yeah. Excited to talk about the market
Post way. Actually, you had your most, uh, you actually, you had your first seven-figure sale, right. And the last six months or so.
Yeah. Yeah. It was pretty fun. I think it was 1.1 million paid cash. And I know parts of the country, that's like a, it's an entry home, but in Florida, it's well into the luxury market. So post sway was representing someone in the Multimin and the, actually, I should say the seven-figure range was that, was it far removed from, uh, from a regular priced home?
I mean, in Windermere, it was in when rear, so whenever we were pretty small, it's a luxury, it's a lot of water, low inventory, high demand. So it presents a sale though. It was way different than $500,000 where the client's like, no, they're like a handful
It's actually not super friendly. Yeah, it was nicer coming from Texas. Very humble, humble family, really, really nice people. It was great. Yeah.
Well, it's good to have you on man. So let's cover a few topics that I wanted to get with, uh, with you on. So, so there's a, there's a few items to discuss. I would tell you that the headline of today seems that, more resources and more energy are going into rental markets right now. There's a lot of buzzes, in the, uh, residential market because technology companies are making big plays. They're purchasing, uh, companies that real estate brokerages would never purchase. And we'll start the news with, a major, I think one of the top real estate online brands, which is a company called redfin. And, this company is out of Washington. They bought a company called rent path for $608 million. And rent path is like a rental search, site. They, they basically index results.
So you can go on the consumer side, rent.com is one of their companies. I think apartment guide.com is another one where you can actually go online and, and you can shop, for rentals. And so interestingly enough, they paid $608 million a resident did to expand, uh, their brand. And so I think this basically speaks to the fact that there's a lot of, gridlock in the marketplace in the actual brokerage side, when you're talking about buyers and sellers, transacting business together. And one of the interesting things is there, what this tells us is that in the world of those that know that are in business for the future of the residential real estate, that there's a huge place for investment real estate. There are huge plays in the rental market growth. And, and that's kind of what it looks like to me. I don't know. What did you think about that host way?
Yeah, it's a, it's a big market, you know, and it's there right now. You've got all these offshoots, areas that you can market a home. You know, you've got Zillow, but you've got Craigslist and Facebook marketplace, you just got all these different apartments.com is a big one too. So it's, it's smart. You know, one in three, uh, households are rented in the United States, so it's a big market for them. It's not just real estate it's. The rental market is pretty big in the United States.
It is interesting. It is interesting. And I, I think that, unfortunately, that many buyers, if they're watching this are probably just saying that it's so difficult to get in. You know, the competition is fierce in the marketplace right now, which is unbelievable. I was even reading that places like New York, which New York City has been in terrible shape since COVID, you know, urban areas have been having what's called a flee urban flee flight, or they, they flap their arms and they leave the city as fast as they can. And so, in that case, even New York City has turned around and they had record sales in January over 20, uh, 2020. So, but, but one of the things that we're seeing, we were scanning the news and host way. It seems like there's a lot of discussions. When you look at the winners and losers, and in focusing in on the fact that there's so much talk about investing and, uh, rental property ownership and the ability for renters to get properties, um, it seems like, the news is, is really lined up between private, rental opportunity and public rental options.
And it seems like there's actually a lot of, you know, chips coming to play. And so, you know, what, what do you think about, you know, what do you think about what's going on in the marketplace for the mom and pop, you know, a guy likes you, you're trying to get into the market and buy the rental property yourself. What are the concerns or what are they, you know, what, what are the things that you're focused on, with what's going on in the US economy right now?
Yeah, I mean, I mean, for me, I guess, uh, I mean is a big one, you know, I mean, you got, you got this kind of liberal city liberal, not just cities, but States that makes it really hard to evict somebody. I mean, 60, 90 days, or if they don't pay, you have to give them all this time and you have to take them and score. And, I mean, it's a big deal. You're kicking somebody out of their home, but, you know, from the investment side that it kinda hurts your business. When you have one, two rentals, it's not like you're, you know, you're, you're really stacking up a ton of money every month. And you know, you're providing a service, you're providing a place to live. You want that return. And you just, I mean, you know, uh, investors are kind of getting nervous that some of this kind of liberal thinking where the landlord is, the bad guy, instead of, uh, somebody who's actually giving somebody a home to live in for a price they're willing to pay, you know, the laws may make it harder to for landlords, even small ones like, like me, to be able to afford to have a renter in there, if that makes sense.
Yeah. And so time did, uh, an article today that I looked at that said millions of tenants are behind on rent and small landlords are struggling. So to your point, I think, I mean, I think there are probably people that are shortsighted that look at one of the two people as villains, right? There are some people that look and say, man, this, this tenant could be making the rent and they're not making the rent. And there, they're the bad guy. And then, and then you have people that look at the landlord and they're like, well, you know, the tenant can't afford to pay the landlord. So the landlord should figure out how to pay their own mortgage, even though the money's not coming in. And so, I the I don't know. I think when, you know, taking a look at this article, it's really glaring that the struggles are on upon everybody, especially in the private side of the market.
Look at this as millions of tenants are behind on rent, small landlords are struggling, eviction, more terms expiring soon inside the next crisis. And in Seattle, this art, this article was written by Abby bacillus. And, Time magazine said that this talks about this lady who, uh, her mom got a cancer diagnosis. Her dad had undergone major surgery. She was laid off from a biotech startup, and then she has a mortgage on her home, but also she owns a bungalow in a Seattle neighborhood that was an investment property. And the only way, so now that the tenant has fallen behind, and she can't evict the tenant because of the moratoriums there in Seattle, which exists all over the country. And so the monthly rent is backing up and by Thanksgiving, he owed, more than $20,000 in lease payments to the landlord and the state of national eviction, moratoriums prevented a lot from kicking the renter out, amid the pandemic.
Yet she couldn't float the tenant. She just couldn't. She's like I can't after months of anxiety, she was going to use a loophole in the loophole to force the personnel. The only way that you can actually get the person out of the property is to move back into it. You actually have to move back to your investment property. And then, apparently with this situation, the person, I guess, decided not to kick the tenant out. And the story was about how that took place. And you've got a lot of these really sad stories where, you know, we've decided that we're really going to shatter our economy. We've picked the, to basically take a wrecking ball to it. And, and we've levied up personal, health and, and we've created certain silos of essential workers and there's been businesses and supply chains that are absolutely getting decimated.
There's, you know, I, I recently read that in New York, 90% of restaurants cannot make the rent payments. And so here in these private situations, you have private mortgage people, private, private owners that have their own mortgages, and tenants aren't paying the bill. And what is really intriguing to me is that I don't feel like we've seen these houses hit the market yet. So, in Florida, I think we actually really insulate ourselves more than most States, from putting too many regulations in place that really made our, you know, that were basically dams of prevention from the actual market playing itself out. So I feel like we're in a different position probably than most places, but, I don't know, man, it's just really sad to see what's going to happen. And it says the eviction moratoriums are expiring soon. And many of these States in March, I don't know. What are your thoughts? Do you think that we're going to be sending them the eviction notices or where they stay? What are your thoughts on all that?
Yeah. And it's, it's a, it's so complex. Cause you know, you feel for both, I mean, a lot of these properties, I mean, they're, they're still under alone, so you know, it, doesn't just, uh, it's not just money, that's profit, you know, you're paying out, but, you know, these people still have a mortgage to keep up themselves and it's stuff it's tough on both parties. I mean, I, I dunno, I think, I think the moratoriums need to, and just personally I think the lockdowns need to be lifted. I think I think people getting back to work and not having, you know, it, I don't think the pandemic's causing it. I think bad regulation is causing it. I think that's the real, the real disease in our, in our culture right now, to be honest, you know, businesses need to open, people need to be able to work for a living and, uh, we can't just keep printing out money and giving it away. You can't do that. So
Any of this is about giving things away. I think it's about letting people work. Yeah. I mean, if you don't let them work, there is a lot of money it's really going ahead.
Yeah. It is the stimulus, you know, it's like we're printing money. I mean, what is like a $600, $1,200 payment look for somebody who's been not able to work since March last year, you know, it's like you give me six, it's almost like it's almost an insult, you know, to somebody who, who wants to get back to their work, but can't whether the restaurant business or, you know, for airports are hit hard.
Yeah. So, so, so check this out. So more about that, the Jacobin, which I believe is probably a blog or a mainstream paper out of, California is now talking about social housing. So we're still in the same sector of providing options for people who need to rent property, but they have this layout of this idea of cover art for California housing corporation, the case for a public sector developer. And they write that slowly but surely the idea of social housing, which is a public housing model, most commonly associated with the socialist government of red Vienna is moving from being a leftist dream to concrete policy agenda, and a number of us States. And they talk about how there was a bill introduced this month in California, which would lay the foundation for publicly developed and owned housing for people of all incomes, which is social housing.
Okay. And if it passes, it will mark a monumental shift in the state's housing system. And this comes at a time when the housing market dominated by the private sector, for-profit interest has failed Californians more than 2 million California households reported little to no confidence or ability to cover the rent suggest 10 million American households are behind, which is so funny. Like the article says that because there's no way that people can make their rent because they can't afford to live there that the private sector has failed them. Right. So, so that's so comical because you, you have the cost you have because you have expenses created that are then levied on the owner. Okay. So for instance, in California, they have stringent zoning rules, which caused them to be able to build nowhere. Like you have a shortage of housing. So then you have inflation, you have a population that exceeds the number of places that people can actually live in driving prices through the roof.
So then your mortgage is really high, which means your rent's going to be high to cover a mortgage of that amount. And then property taxes, follow suit, you have super high taxation. And then they say to the private guy, well, the private guy can't afford to operate in this highly inflated environment and provide, the, you know, the utopian rental fees that we need for where the occupant that lives in California needs his payment to be. So then you can, I can actually create it from the government. So Presto, you can have government come in and you can insulate government from all the market forces that actually increase the price of all this stuff, and then say, well, now we have we've, we've got it covered. Okay. This is the really sad part is what happens is you create massive socialist policies that create chaos in the economy.
And then the correction is you weed out and basically remove the private economy from existence in that area. And from a particular state, obviously many other States. I'm sure I can guess the other States that this is coming because it's the same craziness that created it. And, and then, you know, you have socialized housing. And so the, and that's scary, man. Like people don't really want the government to manage their housing. It's the whole concept of the DMV. If anybody wants to experience what their government control housing is like is to spend the afternoon, getting your license renewed, right. That is the same situation you do not want. That government is not efficient. You know, socialism is an installation of the private market and the private market has its advantages because it actually promotes things that are beneficial and things that are not, they don't have an economy behind them get weeded out and they are passed over. I don't know. What do you think about it,
Yeah, it's, it's, it's pretty funny. Uh, but I, I just, uh, I have a friend who works at the VA and, uh, uh, you know, it's the same thing. Its people want to socialize, uh, everything, you know, socialized healthcare is big in the news pop in the topic. But, uh, I jokingly said that the VA has probably killed more people than it's saved, uh, because the VA is, is notoriously bad. Because it's run, it's run by the government, right. I mean, and, and, you know, it's funny, but like when somebody breaks something, when somebody needs major surgery and they're on base and meet the need of actual, like professional medical care, they get sent to a local hospital in town. So that's kind of like a good kind of microcosm of what, you know, socialism versus capitalism is, is that if you want, if you want something done, right, you need competition. You need to have the ability to go somewhere else, take your business, take your money somewhere else. And you need to have these companies compete with each other. If you have socialized, I mean, socialized living, I mean, where are you going to go when that fails? Where are you going to go? You know,
If the government doesn't like you like, like what happens if you're just, I mean, that's the common thing right now is that the governments get to decide who's essential. You get blessed to work because the government said, so, I mean, that's the danger. And I think that what we're having to happen right now as a fallout effect of the pandemic and how it was governed over is that we picked winners and losers, which is, this is the way government ruins economies. And what's happening is you're having, you know, this is the Cumberland, this is the combined blend of government with a capitalist and a socialist approach at the same time is that private government or private economy can't survive with a blanket of social policy and socialized, you know, adaptation on top of it. You stifle it out and then you go, Oh, the remedy is all socialistic.
And so essentially that's, that's the trail, that's the plan we're seeing. And it's, you know, it's just, it's kind of sketchy, man, when that's the leading thought and Biden, I mean, it doesn't mean that it does not surprise me at all. I'm not being partisan or political here, but in the Biden plan, Biden brought up in his plan, a ton, a ton of government intervention in the rental sector fact, I'll share something that I saw that came out of Hillsborough County. You know, recently, uh, maybe in the last week that one of the County commissioners in the Tampa area, which is where Hillsborough County is basically said that there's this new problem that landlords are discriminating against tenants who pay with vouchers. Okay. So County leaders in Hillsborough said that there's discrimination from landlords, from section eight recipients, which I don't know about you.
I've had a lot of people that I've talked to that rent a section eight, and they're like section eight, guaranteed money. Like I'm taking sectioning all day because that is the most reliable form of payment. And so this says the County leaders are now working to pass a quote renter's bill of rights, which is exactly what the Biden plan had from the federal level. Cliburn was he's out of California. I'm sorry, not California Carolina Cliburn wrote a lot of the aspects of the Biden policy. This is the green new deal is up in the housing. Cliburn was very much involved, which is going to prohibit landlords from policing financial resources, which think about this. If landlords can't pick who they want to rent based on financial capacity, you know, to me, this just tells us that, that the government thinks that a lot more people are going to need socialized money to have a place to live.
So the government is going to be heavily involved in the ability for renters to even have homes. That to me is what the play is here. It's like, you know, we have to watch out to make sure that everybody can take vouchers because we can't have any competition with us. Like we cannot have a private market competing with us because we're going to put a whole lot of people in a position where they need to rent and they're going to need government and money to make it happen. And I mean, that's, that's the way the Biden plan looked. What's interesting is this is straight out of the playbook of the Biden plan, this whole idea of renter, bill of rights, and all that. And it's coming from the commissioner level in a city in Florida. That's pretty crazy, well times are changing and everybody, and, we'd love to hear the conversation continued on in the comments below.
What do you think is the private market coming to a disastrous end? I definitely think it's the headwinds because I believe that we have people in charge that are not really a confident of the public or the private options. I think they want more public options. And so, that's the news of the day. I mean, I wish we were talking more from headlines of, of buying and selling homes, but that's, it's, it's eviction central is renters and, and that's where the Playmakers are right now. So, I have a feeling host way that, home ownership's gotta, it's gonna, it's gonna get anemic. I mean, I think it could see some change.
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