I'm now officially convinced that I'm in hell.
Maybe the extreme heat in California has something to do with it.
Or the California fires, choking us out with smoke everywhere.
Or the political firestorms.
Or the protests all around the country.
Or ALL of the above.
But I'm in hell now. Officially. And this is the first time in my adult life that I'm convinced of this fact.
Bad news for ALL of you. It's about to GET WORST...and fast!
Because we're slipping into a 2008-like foreclosure and short sale stage.
And most people don't even know it yet.
Take my neighborhood, for example. I live in an upscale neighborhood in northern LA county. Yet 20% of my block has up and left in the past 30 days. Right on their heels were brand new families willing to pay ABOVE market value for these already over-priced homes. (2007, anyone?)
But, strangely, at the very same time, our market is already slipping into mass foreclosures and short sales, mostly in more modest neighborhoods.
So, I've been asking myself a couple of questions:
1) Who are the "ballers" snatching these homes up in my neighborhood within days of them hitting the market, gladly paying well above market value in multi-offer bidding wars?
2) Why hasn't the market "cracked" yet due to all the damage of the Covid-19 shut-down for too long for too many businesses?
If you read the story about Yelp's report, you'd know by now that somewhere between 40% and 50% of the restaurants that were on the app are now listed as PERMANENTLY CLOSED!
This means that there are A LOT of restaurant owners, managers, bartenders, food servers, and other staffers permanently OUT of a job in that industry. And that is NO SMALL INDUSTRY. (By the way, if you want to get a foothold in the restaurant business, open YOUR restaurant by summer 2021. It'll be a great time to get into that business if that's something you've always wanted to do. They'll be virtually no competition and you'll get a super deal on restaurant equipment, a restaurant space, and you'll have tons of experienced staffers to pick from! And if getting a liquor license is just as hard in your state as it is in California, you'll be able to pick one of those up without any resistance at all.)
What does all this mean?
It means that the people who are making money ARE DOING BETTER THAN EVER to the point where they are freely (without a single care in the world) over-paying on already over-priced properties. These are your "upper middle-class" or "upper-class" folks.
Meanwhile, your middle-class to lower-middle-class folks are struggling. And that's where they'll stay for MANY, MANY years (unless they do something proactive about it)!
Why is this?
Because it's at the lower end of the spectrum where you'll find your average labor workers, particularly those hit in the restaurant and other industries (like nail salons, hair salons, etc.)
And, here's another alarming fact: MOST of those businesses that shut down during Covid-19 (some that are STILL shut down) will NEVER recover and will NEVER re-open.
Meanwhile, your Average Joe Blow Lunch Pail doesn't yet see the alarm because he/she is still receiving some government assistance benefits, not being smart enough to realize that the government (state or federal) does NOT have a bottomless bank account. (Nobody does!) And they are stupid enough to still be thinking that everything will be okay.
Except what happens when (1) the money runs out, and (2) you try to go back to your employer and he/she is either (a) permanently OUT of business, or (b) tells you to pound sand because you were too lazy to come back to work when they asked you to due to your lame excuses with "Covid-19"? After all, your employer has already replaced you and you probably don't even know it yet!
There are troubling times ahead.
I explain the next big Foreclosure Tsunami and WHY this is not just a theory...but it's a FACT. And this tsunami will being to take a strong foothold in October.
CLICK HERE to watch my video RIGHT NOW!
You only have a couple of choices. Not many at all. But one of those choices is NOT sitting on your ass doing nothing.
CLICK HERE NOW to watch this video.
See you at the top!
P.S. The Investor Tank event is coming up in Detroit on October 2nd, 3rd, and 4th. I still have a couple of Pitch Tickets left. This is when you can pitch your real estate deal OR your business opportunity/venture to investors LIVE on the morning of Sunday, October 4th. To find out how you can snag one of these last Pitch Tickets, CLICK HERE. Even though I'll be live-streaming this event, you can't meet my investors through a computer screen. And this will be the LAST real estate event I'll EVER be doing. So, in this last event, I'll be introducing you to my investors. This will be the ONLY time you'll ever get to meet them. So, take it or leave it! CLICK HERE now!