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. Trump's leadership. 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. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.
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Sponsored by the United States Department of Homeland Security. So all right, let's talk about this.
There is a housing shortage in America, right, So what does that mean for the average person and how does that affect the real estate market over the next five years?
Well, that means that, you know, it's like anything else supplying demand. The supply is low, the demand is high, So that's why rents go up.
So so why is there a housing shortage? Though?
Man, there's been so much politicization of housing in real estate, and it's difficult to build. Like you look at some of the markets where's most pronounced New York, California. There's this thing called Nimby. You have heard of Nimby. Not
in my backyard. People say, yeah, we need affordable housma, don't build them, don't build them on my street, right, And so what that does is it disturbs the real estate market for that particular city and we just buy and large have not built enough moderate and middle income or affordable housing. So you know, millionaires don't have any problem. They could buy whatever they want to buy right or
live wherever they want to live. We're talking about the rank and file public workers, you know, teachers, ambulance drivers, sanitation sanitation workers, the rank and file public who have good jobs, they work hard. But there's been such an escalation in the cost of rents because of the supply and demand disruption that these rents are off the table. I mean, if four million units of housing hit the market tomorrow, all rents would drop, but it takes years
and years to build it. That's why you know, we have this condition because it's hard to just increase the supply quickly. You have to have an alignment of politics of market forces like real estate excuse mean, like interest rates. You know, interest rates are out of control right now, so it makes it very hard to build. Sometimes you have construction costs going off the rails, like everyone heard about you know, what was going on with supply chain disruptions.
You know last year.
So you have all these things that can throw that equation off and make it hard to produce housing. So you know, right now it's come to a critical point, and you know, particularly elected officials have to get off of the rubric where they want to you know, almost politicize housing, make all real estate developers evil, all real estate is bad.
We have a lot of that narrative coming out.
Of certain communities in certain cities, but it doesn't help to do anything because people still cannot find good housing and the only way to get it is to build it. Right, we have to ubzone. A lot of communities don't want to go through rezonings and up zone, they say all that, we don't want that high building here. Well, okay, that's your opinion, but we have people sleeping in shelters, right,
we have people who really need housing. And I firmly believe that housing security from most families is financial security, because if people have a roof over the head, there's more money they have to dedicate to healthcare, the education, the other well being of the family, taking care of the elderly, everything else the families have to deal with. But if sixty seventy percent of your income is used to pay rent, cuts out a lot of options what you could do otherwise.
When you talk about up zone, and I was immediately thinking a city I used to work in the newer show. We're seeing a lot of towers go up there, and I'm wondering, when when you're building units and you're adding that to the portfolio, what's the allocation that has to be affordable housing? And obviously your expertise in the field, are you seeing people just meaning the minimum or people exceeding the amount? If there is a certain allocation you have to have.
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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. Trump's leadership. I'm Christine nom 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 fine nearly one thousand dollars a day. Imprisoned and deported, you will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally. Do
what's right, leave now. Under President Trump, America's laws, border and families will be protected.
Sponsored by the United States Department of Homeland Security, Eric new Roshell in that administration has done it absolutely correctly. They have embraced real estate development, and they've used market forces and capitalist forces and real estate developers to help bring that city into the modern era and the wave of development that there is impressive, right. But in other areas it's not so easy because you have a lot of different opinions, a lot of you know, just fights
over what should be built, could be built. We don't want that tower here, I think. To answer your second question, generally, depending different municipalities had different requirements about how much affordable housing should be built, and usually what happens is it's tied to some type of tax abatement or some type of government funding that will be provided to the project to build it. We had a scenario recently in Harlem.
Right, we're very active. We do a lot. And a city.
Council person turned down a developer on one hundred and forty fifth Street who bought land and only was required to do twenty percent affordable housing, but he wanted to ubzone the project and do nine hundred units. He went as far as fifty percent affordable housing. She still voted it down. Well, wow, politics, So you think about that's the wrong move, right, I mean, that's four hundred and fifth the families who are not going to have clean, decent,
energy efficient affordable housing for themselves. Right, it's a it's an absolute loss. But we see too much of that these days. So let me ask you this, well, two questions. How do real estate developers get paid?
Last answer, well, so what I mean by that? You get paid like twice? Though?
Right, Well, no real estate developers take all the risks, So what we do? What do you mean twice?
So you get all?
Right, Well you can explain it better than me, obviously, but from my understanding, you you get a part of the development fee, yes, right, and then you have if you have equity in it, then you can get that as some level of conversation as well.
Right, So the equity, the equity that you would invest would just be returned to you.
Right.
The equity is so when you do a project. Let's say, you know, when you buy a house, right, you know, you go to the bank and the bank says, okay, uh, you know I want to buy this house. I'll say okay, mister Livingston. You know you have to put down twenty percent. That's your equity. Same thing when you do a development deal. The bank is going to give you one hundred percent
of the deal. You have to bring some equity. Usually, depending on how large the project is, you get into a scenario where the equity is coming from a third party investor, a limited partner, which is usually a real estate private equity fund. It could be an insurance company or some just an investor that has a lot of capital and they have to invest it because they need to generate returns on their capital to pay pensioneers or to pay out insurance claims. Whatever it is. So the
equity gets returned. But to answer your question specifically, a real estate developer will get fees, right, So you get a developer fee. You could get distributions based off of refinancing the project because let's say you know, like.
You have a project, you do it.
After ten years or whatever, rents go up, you have one level of debt you've been paying down that you could refinance, put a new mortgage on, take some capital out. But more regularly, what happens is once you put the building into service, every month is cash flow. Remember NI, you have your NI, you pay your debt. What remains is cash flow that can be distributed to partners.
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. Trump's leadership. 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 were here illegally, your net next you will be fine nearly one thousand dollars a day, imprisoned and deported you will never return. But if you register using our CBP home app and leave now, you could be allowed to
return legally. Do what's right. Leave now. Under President Trump America's laws, border and families will be protected.
Sponsored by the United States Department of Homeland Security,