Professional Development: The Fall of Commerical Real Estate - podcast episode cover

Professional Development: The Fall of Commerical Real Estate

Mar 25, 202310 min
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Episode description

In this Professional Development we discuss the money supply percentage now and from the past, the future of commercial real estate and office space effected by covid.


#earnyourleisure #realestate #commercialrealestate #covid19



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Transcript

Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.

Speaker 2

Trump's leadership.

Speaker 1

I'm Christy nom the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported.

Speaker 2

You will never return.

Speaker 1

But if you register using our CBP home app and leave now, you could be allowed to return legally.

Speaker 2

Do what's right. Leave now.

Speaker 1

Under President Trump, America's laws, border and families will be protected.

Speaker 3

Sponsored by the United States Department of Homeland Security.

Speaker 4

What is the indicator that warns us of a possible depression?

Speaker 5

Gotta look at the money supply. So when I was in my research on this, this is scared. So in eighteen seventy, the money supply was negative too, which led to the unemployment and fourteen percent. A nineteen twenty one it was negative two percent, which led to the employment being eleven percent the Great Depression, the money supply was negative twelve unemployment was twenty five percent negative, and the money supply in twenty twenty three we are currently at negative two percent.

Speaker 3

What is the money supply?

Speaker 5

How much money is actively floating in the market. So in twenty twenty they have a bunch of it that they put in that were acting like Floyd at Girl Collection. We're just throwing money around and everyone you get a car, you get a car, you get some money. Now the supply is actually negative. So outside of the inverted yield curve, the two and ten, this is the one that predicts a depression. Am I going to go on record and say they we're going to go into the depression.

Speaker 3

No?

Speaker 5

But Dave scared the hell out of me on stage when they talked about the commercial.

Speaker 3

Level very common.

Speaker 5

He said like silvigating and this issue with SVB this is small. I was like, wait, what, So if he's been in the institutional space and then a buffet indicator is turning over the inverted yield curve keeps signaling recession, but Biden and yelling and won't announced it yet. There's a reason why things can be a hell of a lot worse, so please be careful.

Speaker 4

Well, the commercial real estate thing is a few people have been talking about that for a while, and even in China. Remember years ago they had built the whole city where nobody's ghost town. And these are things where housing. People are always gonna need housing. But you see malls. I live in the area where there's a mall and they're closing that. I think they're building an apartment building

there because people aren't shopping the same. Right, when you look at office space, nobody's working in office anymore, right, So this is something that all signs lead to the commercial bubble, right, And there's only so much apartment buildings that you can build out a certain point that becomes unsustainable. Also, so the real estate market is definitely interesting, and ye shot the day he gave some great insight on that. But I think that when people are looking to invest

in real estate, it's important to understand what's essential. So housing is essential, right, You can't really go wrong with housing, because.

Speaker 6

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Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.

Speaker 2

Trump's leadership.

Speaker 1

I'm Christy Nohm, the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand and illegal aliens have been arrested. If you were here illegally, your next you will be fine nearly one thousand dollars a day.

Speaker 2

Imprisoned and deported, you will never return.

Speaker 1

But if you register using our CBP home app and leave now, you could be allowed to return legally.

Speaker 2

Do what's right. Leave now.

Speaker 1

Under President Trump America's laws, border and families will be protected.

Speaker 3

Sponsored by the United States Department of Homeland Security.

Speaker 4

People always gonna need to live somewhere, unless you're just doing it the wrong way. You're buying a luxury apartment building in Omaha, Nebraska, that might not be something that's really suit out to Omaha shots But all these other commercial projects you just gotta see a lot. Some commercial makes sense, but some commercial it might not make sense. It might make sense today, but it might not make

sense ten years from now. Where housing is always Housing today is still gonna make sense housing ten yearsrom now. But like you said, the office space, who knows, Corona three point seven might come out right, and then there's nobody ever going to be working in offices ever. Again, that's that can happen. So it's just like.

Speaker 6

Or people decide that they are going back to work and now it makes sense.

Speaker 4

It's risky the housing residential real estate. In my opinion, residential real estate is And that's why he said a lot of these big banks and institutions started buying single family homes Blackstone black You know, I just feel like residential real estate is a little bit more risky than commercial real estate. Residential is more risky. Commercial is more risky. Absolutely, And because like I said, you see it. You said, the mall that we grew up going to going right.

Speaker 6

If you think about the workspace people, what happens to the space, They have to in a sense get converted. But they're going to get converted at a rate that makes sense to the person who's actually going to purpose purchase it. And that's one of the things he said. It was like, Yo, that's a bar. He was like, yo, when it's distress. That's how they invest. A lot of these commercial real estate companies right at a serpent, they're

not gonna get anything. They're not getting their leases, they're not getting their rents, or they're gonna they're gonna have to force to get it at or sell it at a price, or least at a price that makes sense for the pent who's actually gonna acquire it, and so it's gonna be a great opportunity for somebody. Or if they don't do that, then somebody's gonna come in and just say, all right, well we're gonna make this residential anyway.

Speaker 5

Yeah, because when I go into the gallery and now gallery is dead.

Speaker 4

Man.

Speaker 5

It used to be thousands of kids at the little skating rink. Now I go dry over there, a by center, bundon a little foot locker down there.

Speaker 3

Like.

Speaker 5

The thing that we have to realize too is when you keep borrowing and putting more debt on a consumer base, you destroy your bias market for everything. Yeah, so if you don't take care of the people now, it's gonna affect your business later.

Speaker 4

My graduates from my school being forced back drop bag drop might drop back drop drop.

Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas. Man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.

Speaker 2

Trump's leadership. I'm Christy nom the.

Speaker 1

United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported.

Speaker 2

You will never return.

Speaker 1

But if you register using our CBP home app and leave now, you could be allowed to return legally.

Speaker 2

Do what's right, leave now.

Speaker 1

Under President Trump, America's laws, border and family will be protected.

Speaker 3

Sponsored by the United States Department of Homeland Security,

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