July 2020 – Monthly Market Update with DA Braddahs


Unknown Speaker 0:06
Stay tuned.

Unknown Speaker 0:08
We just do local guys with so much to say

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Unknown Speaker 0:21
everyone, thanks for tuning into our another edition of The Real Estate brothers. My name is Dina wetter and we have my co host Lane Kawaoka here for Episode 29 our July 2020 edition so we got some fun stuff to talk about today. Mixed Bag you’re gonna talk some wahoo real estate statistics have a another scam of the month this this time and it’s not zoom. also wanted to talk about leveraging property managers and interest rates. Talking about some trends again.

Unknown Speaker 1:02
So I am giving away a little easter egg. So this month it is the COVID-19 response folder. So a bunch of downloadable goodies for the SBA loan docs, sample landlord repayment agreements. So for those of you who are landlords, trying to make deals with your tenants to give them the same as heads and beds, at least they’re paying, there’s some sample agreements there. We are not lawyers, or CPAs accountants and anything that we provide you guys is just for your own information or entertainment. You guys can get access to that by texting the word simple 23146651767 or shoot me an email Lane at simple passive cash flow and I’ll send that to you. And I am rolling out a new group where we are taking new investors looking to pick up their first rental property, a remote rental, buying them on the mainland, and we’re going to be doing bi weekly conference calls and you get access to our Rolodex of property managers. jers brokers, turnkey providers, oh, what else? insurance guys, lenders you name it, we got it. We’re gonna try to do everything we can to provide you the guidance so you guys don’t mess it up. And you get started

Unknown Speaker 2:14
everything that we were looking for when we started, huh?

Unknown Speaker 2:17
Yeah, no. And if you guys are able to wake up at 630 in the morning on August 1, we are doing a money myths and how to buy a remote rental workshop. So maybe you don’t need people around you to hold your hand like the incubator group is. By the way, you can get more information about the incubator group by shooting me an email to or going to simple passive cash flow comm slash incubator, but maybe you just need to chime in on this six hour webinar we’re going to be doing you guys can check this out at Rei aloha slash meetings, and there’ll be a link to how you can get access to this webinar. And then we’re going to be doing a happy hour, two in the evening for those who attend.

Unknown Speaker 3:05
And that one’s in person. Right, just to clarify.

Unknown Speaker 3:07
Right. So the workshop, we wanted it to be at home, because we know some people are not able to leave the house yet. My self included because I left to go to the mainland and I’m stuck at home for a couple weeks. But those you know, a lot of this real estate investing is on relationships, so it’s hard to replace that. So for those who are adventurous enough to come out safe, safely wear a mask and go and have some cocktails and beers. We’re going to be doing that in the evening on August 1.

Unknown Speaker 3:42
So looking forward to that definitely. So if you guys don’t know me already, my name is Dean Witter. I’m a full time realtor. I like to pitch that you know, with my 19 years of accounting and finance experience, now turned into us my suit requires for for real estate investing and for to help out my clients some look forward to helping people provide what I call actionable intelligence so that you guys can make informed decisions. So enjoy this podcasts are this is a blog yes we are

Unknown Speaker 4:18
we are podcasting these days so if you guys want to mow the lawn wash the car for laundry you guys can check this out on iTunes Google Play, I put them on all

Unknown Speaker 4:29
of those. Watch it at your time. So I enjoy this appreciate your lane as always so should we just jump into it? I don’t know about you lane, but um, Hamilton is on my mind. I saw it not on Broadway but I saw it in Boston two years ago. And on July 3, Disney plus released the the movie version. that patient from from the place so it was, I’ve been watching, I watched it twice already and actually had been pondering to show my son. And I actually ended up showing my son my nine year old son and he saw it today. But anyway, I just want to start off talking, pitching that, because I think it’s such a great play and musical. I wish everyone could be able to watch it. So if you have Disney plus, check it out. But anyway, that was just my

Unknown Speaker 5:26
so my my buddy invested in this Hamilton play. Oh, really? Yeah. So it’s on episode 146. So my podcasts, Matt. Oh, I remember. Okay. Okay. Yeah, so he, this is the deal that he went in.

Unknown Speaker 5:38
Also, because that was one it’s either hit or miss, right? It’s Yeah,

Unknown Speaker 5:41
it’s either you like most of the time like 90% of the time 95% of time, you’re gonna use all your money. But ah, you never he didn’t want to tell me how much he made on this. And but I’m guessing it was like 1020 x what he put in, is still saying,

Unknown Speaker 5:57
Yeah, or that’s that’s pretty cool. So it’s fun. I got to listen to that it

Unknown Speaker 6:02
Yeah, it’s he says cool. I mean, like he was kind of talking about a little bit, but like, you get to go to the you get like special seats. Oh, and I think he got to go on stage or something like that. I don’t know. Oh, wow. But maybe one day right when you have 50 grand to just throw around on, on things. I mean, you’re into this right? You like this stuff? So yes,

Unknown Speaker 6:24
yes, I’m very much into it. I never thought about even with your episode, I didn’t ever thought of investing in it. So

Unknown Speaker 6:33
I just interviewed a guy who does like wine. Like you can buy actual real wine and they store it in their their vaults. And then also, I think it’s called mythix magic, but you can buy all kinds of like, memorabilia, like comic books, Thor’s hammer, that kind of stuff. So collect or like, yeah, like the black Lotus card and the magic lot of magic cards. Oh, wow. So you got to figure out what you like to do and Then invest in that right.

Unknown Speaker 7:02
Maybe I’ll go for the 1986 Michael Jordan rookie. mint condition card. Oh, that’s

Unknown Speaker 7:07
awesome. Is it blowing up another? Another guy? No. He’s been selling all that stuff lately because of the last dance.

Unknown Speaker 7:15
Oh, yeah, yes, penguin. But uh,

Unknown Speaker 7:18
yeah. So back to the base exploring stuff, right that actually. All right, well, you make your first few millions before you start screwing around with things like that.

Unknown Speaker 7:27
Yeah, so talking about wahoo statistics for real estate. They just looking at this picture. It seems to come in a little grim, but keep in mind so this is June statistics on Oahu. And it’s compared to June of prior year. Yeah. So we have single family median prices went down about 3.8% to 770,000. Close sales went down about 7.6% at 300 to close sales and median Our market went up two days at 20 days for the median days on market. On the condo side though, same similar story, we have this small decrease 2.5% at 421,500 kind of big decrease in close sales 212 and big bump up in median days on market of 40 days. So, this again keep in mind that this is comparing this year to prior year. So, one thing to keep in mind is of course, that the COVID issue right so, when we do compare me to June right so June to the prior month, may we this story is a little bit more, I guess positive or happy so then if you click the next one we the hundred Board of realtors talks about month over month so it sounds a little bit better. So overall, total sales month over month sales has actually increased. Yeah. So it went down 23% compared to prior year, but if you compare June 20, June this year to prior month, it actually sales actually increased 22.3%. Right. So breaking it down single family homes went down 7.6, as we mentioned in the previous slide, but it increased almost 22% from prior month. And similarly, condo sales, down 34% from prior year but up 20, almost 23 per cent from me. So overall, I guess the statement is that, you know, it’s a good sign and it’s showing the strengthening of the state as things are hopefully reopening. I don’t know, I think less. I heard that they’re talking about postponing the reopening again yeah for for travel and getting rid of the quarantine so that lien can get out and go above But I think you’d be grandfathered in. You still got to reserve your 14, right?

Unknown Speaker 10:04
Yeah, we got to do multiple 14 day sentences.

Unknown Speaker 10:11
So yeah, I mean, it’s kind of positives twisted things when you’re comparing month to month. Yeah. When comparing June to me. So it sounds really positive. However, when you go, I don’t want to spin it all positive, right. So we look at COVID cases in Hawaii. And today, we had 36 new cases. And we’re seeing things bump up as similar to what the main is doing. Right. So one of the negative things is Dr. Miscavige is saying is, you know, last week and you know, a couple months ago, we were seeing really small, almost single digit increases every day. So it seemed like we had a handle on things. And it was good because you know, when you have those small cluster clusters that are isolated, you can skip trace those and have things under control. But it yesterday’s news he had stated, you know, it’s no longer just in isolated clusters. So that’s maybe something to consider in terms of, on the flip side of the positivity from the border routers are telling us yeah, I’m gonna kind of jump around. So I also mentioned, you know, the last few months, we were talking about the zoom scams and the issues with zoom. So, this month, I wanted to talk about the scam of the month, which is there’s actually a COVID-19 relief payout, phishing emails that are going out. So please be aware. What this is these emails are saying is to click on the dropbox link and to input your information so that you can get paid out your COVID-19 relief grant payments, so be wary because so Sometimes these Dropbox links will pass through the, the security of your of the company’s website security features. So always be careful. Yeah, so never click on a download if you’re an expecting it. Be careful of unexpected deadlines because the scammers like to present a sense of urgency for you, and that’s gonna make you on a do something out of impulse. Right? And also, you know, if you get an email from someone you think that you know, you know, doesn’t hurt to call them or do a follow up email, or text. You know, just another authentication to make sure that it’s legitimate. So, something to consider.

Unknown Speaker 12:45
Yeah, one of the biggest ways is like just kind of look at they should address you by their your name, instead of like, hey, Dean. Most of the scams would be like, Hello like something user or something like that or anything. One

Unknown Speaker 13:00
I’ve got this for and one.

Unknown Speaker 13:01
Yeah, you never know. I mean they could have her name too. But you can you can kind of see him like where the originating reply that’s another way you can kind of check to

Unknown Speaker 13:13
that’s true yeah and and I always look at the like you said look at the address email I just said it’s coming from thing just today I got one from like information from corporate from my brokerage at Keller Williams but I wasn’t sure so I forwarded it to my team leader and administrative assistant to see, you know, try to confirm if this was a legitimate email because it was asking for some information about coaching. So yeah, just be wary that these phishing schemes and scams come up in all different types and they’re just trying to you know, take advantage of you any way that you can. So sad to say, but you have to always have your, your fishy cap on you know,

Unknown Speaker 13:57
just because you use incognito mode doesn’t mean you can’t get

Unknown Speaker 14:01
Yes, yes.

Unknown Speaker 14:03
So next I wanted to talk about

Unknown Speaker 14:06
just a little reminders and tips about properties and property managers. So this is for our investors in there. And these two tips and reminders are based on two incidents that happened to me. So, my first tip is to ensure that everyone has your property managers contact information, if you’re using a property manager, I had a call from a client who had asked me, you know, all my, their resident manager had contacted them about an issue with a tenant. So I asked him, do you have a property manager? And he said, Oh, yes, as well, you know, have it routed to through the property manager because that’s what you’re paying them for. And you know, that’s what they have insurance for. You should have insurance also. But, you know, that’s what they’re there for, and they’re trained to handle these issues. In this situation, the Client used to live there. So the resident manager had an existing relationship with the owner. So that’s why they reached out that way, which is fine. But, you know, can cause additional stress when an owner gets a property manager so that they would wouldn’t have to be would have to deal with these kind of things. So just remember, leverage, offer your property managers and make sure that in doing so that everyone knows that you have a property manager and has their contact information. The second tip I wanted to bring up is to, you know, right now, with the current situation, there’s tenants that may not be able to pay rent, maybe due to loss of job or, you know, not collecting unemployment or whatever it may be. So, think of your property managers as assets from the standpoint of, you know, they can send tenants resources, you know, give them websites to agencies or other sources of funding that they could tap into to pay rent. I know my property manager Have one of my property managers has has already offered that up to tenants up front. Even you know prior to this, well, I guess when COVID first hit the, they’re taking a proactive approach. Another one of my property managers helped me reach out to the section eight office, because of my tenants were having a difficult time making payments. So apparently, we’re going to get section eight is actually going to be able to help all it’s just a matter of some administrative paperwork. So try to deliver a job, offer your managers and have them help you help your tenants. Yeah. So think of that kind of stuff. And you know, you know, this is kind of stuff you want to do prior to doing things like forbearance on your, your, your loans, if you have loans and you’re not getting any rent payments. I would try to get this first because these are kind of things that are more of the low hanging fruit and won’t affect potentially if you’re trying to get Future loans are refinancing

Unknown Speaker 17:02
Yeah, and it’s kind of frustrating because sometimes tenants could be like little kids you know there’s free money out there for them in terms of Section A health we’re just getting like extra stimulus or unemployment they don’t know what website to go they won’t do it.

Unknown Speaker 17:18
Yeah, that’s why Yeah, to your point if your property managers can can point them in their the right direction.

Unknown Speaker 17:27
You got to direct them right. I mean, property manager employees, they always do the very minimum and, and I don’t blame them and this is a property management job is the worst job ever.

Unknown Speaker 17:39
It’s I don’t want to I don’t want to do that.

Unknown Speaker 17:43
I leverage out That’s right. You’re in the local stuff.

Unknown Speaker 17:47
So that’s well my my tips for the also wanted to tap into interest rates. I know we’ve been talking about bills are we constantly talk about interest rates, but you know, last few months, you were talking about how The Fed rate cuts wasn’t, wasn’t translating to reduction in the 30 year amortized rates. But I’m happy to see that it’s actually starting to now go down. So if you look at the slide, the one with a circle around it, we see the big hiccup where in March and April, rates were actually kind of going up for the 30 year fixed rate. So and as we discussed, a lot of it was because of supply and demand, we had

Unknown Speaker 18:32
a lot of refinancing and purchases that were

Unknown Speaker 18:37
causing the retail banks to be you know, flooded with with all of this work. So the natural reaction is for them to just bump up the rates to slow down demand. But now we’re actually seeing it going down and it’s still forecasted to go potentially even further down. I had one client today lock in at two and a half percent with a with negative points, so again, this is a VA client. Yeah, and I think we had maybe 10% down. I took another screenshot off of a local bank here today and they’re touting for the 30 year fixed 2.625 for their 30 I think there are some points for that one but um, yeah, really good rates. So it’s it’s good time to for buyers, you know, buying power is greater and even if you’re trying to refinance, maybe it’s time to look at that. But I have another slide to talk about that. What is what is next effort? Got what I’m talking about? Oh,

Unknown Speaker 19:37

Unknown Speaker 19:38
Yeah. So talking about refinancing. I wrote a blog this past week about all about refinancing and it was perfect timing because of you know, the rates going low. So you know, if you’re interested, tune into my go to real estate, avoid calm and I have a blog section and there’s I just have a new About how does refinancing a mortgage mortgage work and this coming blog I’m going to do this on Monday is going to talk about Should I refinance today or not? So it’s going to help you decide if it’s the right time to finance for you and your situation. Yeah. So yeah,

Unknown Speaker 20:18
tune in if you if you can. So if you guys want to learn more about investing on the mainland check out my podcast full passive cash flow and joining me and Dean at our local group Rei aloha calm you can find us on meetup and Facebook group. First teaching point since you know I love house flippers because they pay my share of taxes. I barely pay any taxes the buy and hold investor because I’m able to get all of these ways to kind of drive my income down to almost nothing. Well, when you’re a wholesaler fixer flipper, that’s all active income. You’re getting pounded on taxes there when you’re trying to make income if it’s different, right, whether it’s passive loss, passive gains or active income, maintain. So kind of getting into some COVID News. This is a article I’ve been tracking the New York Times, they kind of have a rolling scoresheet of what’s happening in terms of vaccines. And I think though I haven’t checked this for the past month, but we actually have one approve there on the right side. Oh.

Unknown Speaker 21:32
Did you hear about that?

Unknown Speaker 21:34
No, I did. Is that the that’s not the one that was for malaria, right.

Unknown Speaker 21:39
No, no, I don’t think that’s a vaccine. I think that’s like a treatment, right? Correct. Correct. Yeah, well, go check out the New York Times Coronavirus vaccine tracker and read it for yourself. Right? I mean, you got to curate, curate your own news these days. You don’t want to believe this is actually a pretty big thing for those investors. They’re picking up their own rental properties. They are kind of throwing out the debt to income ratio requirement from qualifying marketing standard before it was what 50% is what you needed to qualify, but it looks like that might be going away. So you guys can check out, will it for yourself, you know, the lender may not have. This is like Fannie Mae, Freddie Mac government, the government back loans rules, your lender might be a little bit more conservative than what the government standards are. In that case, I think it’s time to find a new lender. I’m sure Dean knows lots of them. I’ve got a few of them that I use that are licensed in every state on the mainland, but I don’t have too many here. But if you need one locally, talk to Dean if you need one on the mainland, I can give you a referral.

Unknown Speaker 22:50
So that means they’re read. So that’s making it better, or loosening the standards, the standards,

Unknown Speaker 22:55
right but that’s always been happening, right like you’ve seen things Like, I think what, three, four years ago, they got rid of the whole before for cash reserve requirement. You couldn’t use your retirement account, then you could use it at 50%. Then you could use it as 100%. What your retirement accounts so this has been happening for like the beginning of time. And

Unknown Speaker 23:19
worry, I’m sorry. Go ahead.

Unknown Speaker 23:21
most investors, they get all excited, right? Oh my god, the world’s coming the end they’re gonna give people who have no money and no credit these loans like that’s not the case. Mm hmm.

Unknown Speaker 23:30
I like the one where they loosened it where you could have 1010 Fannie Freddie loans instead of four.

Unknown Speaker 23:37
Oh, that wasn’t? Yeah.

Unknown Speaker 23:39
Yeah. Five years ago.

Unknown Speaker 23:40
Yeah, that was a big one. Yeah, that was really big. But that’s an example of one where it doesn’t really, I mean, who are the people getting more than like two Fannie Mae mortgages like, point 01 percent? Yeah, right. I know you get really excited but that’s not the average person. Yeah. The scary thing is when your average person that were car drivers getting all these loans right and they don’t, they can’t qualify for it.

Unknown Speaker 24:09
So they said with the.com crash rate is when the stock market was going up so crazy and and and when you’re getting stock tips from your taxi driver then then you know, you’re in trouble,

Unknown Speaker 24:24
right? Like in the movie The Big Short, right? You know, like the strippers are buying all these houses with no documented income. That’s true. So here’s a little bit of a rumor here. We’ve had a few stimulus plans go through in case you haven’t noticed but stimulus number fours on the way through got approved by the house. It’s just called the moving forward act. They get really creative with way they call these things. Back idle, moving forward act now. 2300 pages in length, if you want to read at all. estimated the cost $1.5 trillion. And what this is infrastructure, spending on air rail highways, bridges, transit systems, alternative fuel autumnal appeals, broadband, all types of energy, schools, housing, water, a whole bunch of things, who knows what it’s really going to be. But let’s face it, we, you know, in the year 2020, the Republicans control the Senate, and something like this will likely not go through it in its current state. But I think my takeaways here and I kind of highlighted in bold is like, you see, I’m looking at the energy production credit that’s going to be extended through 2026. Now that this is not for sure. But you can see where they’re kind of folk putting focus on and I think the with the solar panel cells is running out right this year, next year, but maybe that’s becoming bad. And they’re slowly decreasing anything. Yeah, yeah. Yeah, and for a lot of my credit investors are looking for ways to not pay any taxes. And they’re using things like land conservation easements, bonus depreciation do costs eggs, and oil and gas investments. Now the oil and gas investments are sucking. I think everybody knows that. And the land conservation easements are under incredible scrutiny these days by you know, especially for those ones going over a five to one ratio. So I’m kind of calling it now I feel like some kind of solar credit or energy credits is going to be the next thing for people to for high net worth. Credit investors to kind of go after. Okay, so you heard it here first. Yeah, I mean, you you tell me you’re around when they had like the what was the technology spending, research and development and nonsense like

Unknown Speaker 26:57
that one.

Unknown Speaker 26:58
I don’t want to go into that again. I was actually in public accounting at the time. Yeah,

Unknown Speaker 27:02
well, you Well, let’s frame it like this. You knew a guy who knew a guy who did this

Unknown Speaker 27:09
Yes, I did. And at one time I want to get into his like, I see currently selling off selling the tax credits off to as pretty interesting concept. Yeah, like you said it was the r&d tax credits and I think rolled up in there was even the some, like production for movies and film, I think, and all kinds of stuff. Yeah.

Unknown Speaker 27:32
Yeah. The world’s not fair. Man. You gotta learn the rules of the game. Yeah. Nice. Yep.

Unknown Speaker 27:37
The IRS isn’t gonna give you your your tax ID or you’re going to find it.

Unknown Speaker 27:42
Yeah. So CBR e, a commercial real estate brokerage, had a few takeaways over this past month. turnover is which is defined as a percentage of total rented units not renewed each year. fell from 47% in 2009 to 42% in April. And this is kind of obvious, right? Because people are stuck in their houses. They didn’t. They weren’t. They’re suffering in place. They weren’t searching around for the next place to move, which is what turnover is. Turnover usually rises in each spring. But obviously the climb this year because of COVID. That’s what that is. You might be interested in this Dean, this is my, in fact, a lot of homebuyers or Home Builders or people read is renovating their houses. So john burns came up with this design changes for life changes. So here are six ways that houses are potentially changing due to COVID. And I want to preface this by saying that these are just some ideas, in my opinion. I’m gonna be careful how I say this. I think in the next year or two, I don’t think that this pandemic thing There’s going to be sort of an afterthought, because here’s why I think it like, if you if you would have took a snapshot of America about a year ago today, everybody was concerned with these, like, at work shootings or the school shootings. And they were talking about designing real estate with curved hallways and stuff like that, because, you know, it’s it’s hard to like for a shooter to active shooter to, you know, wreck havoc with curved hallways. And now in the state, nobody cares about that stuff, right? Like us as humans, we forget about this stuff so easily.

Unknown Speaker 29:35
Because the next big thing is going to come off, right?

Unknown Speaker 29:37
Yeah, yeah. But since we’re in the middle of a pandemic, first one here is work from home. We’re all working from home so flexible spaces that cannot accommodate the home officer in nooks and stuff like that. Changes in kitchen design, so fewer people are going to want the great big open rooms that can With the kitchen with more wanting the kitchen to run return to having some separation to hide the smells mess of noise. I disagree with this one. I still like the open kitchen concept, which is just like me right here, right? Like this is open, open concept. Right my back right?

Unknown Speaker 30:19
Agreed because I mean, especially if space is an issue because I mean what you’re giving up in in closing it off I think it’s way makes more sense to have it open and for that feeling of space. Yeah, the spatial awareness.

Unknown Speaker 30:37
I definitely think don’t think we’re going to go back to the kitchen designs where your, your kitchen is in is in a sort of a hallway. And I’m sorry if your house has that. Little obviously don’t want that typically, these days. Garage configuration so many families will now be able to have fewer cars per person opening up the garage to multiple configurations.

Unknown Speaker 31:08
So let’s see to use it as a mixed use rather than just for parking your vehicle.

Unknown Speaker 31:13
Yeah, well I mean a lot of people in nervous cities they just don’t have cars.

Unknown Speaker 31:18
Oh, well, even a lot of people in the suburbs nowadays I see whether it be multifamily gender multi generational housing or the Convert the garage or at least half the garage into either storage or like living area like they have a TV and a couch in half. Or maybe the whole thing they might even carpet it in there already. Semi living in it, you know, and they parked the car in the in the garage or out on the street.

Unknown Speaker 31:43
We did things a little bit differently here in Hawaii. Right. JOHN burns didn’t take into account the whole market, right? Yeah. Who does? Yeah. So next thing was Front Entry to public entry will still need great street appeal for secure packets drop off since mean, Amazon is like delivering stuff all over the place. And then mudroom will migrate from cooler climates to provide a buffer between the outside and inside. We don’t have money rooms here in Hawaii not because I think it’s in the south. We have a lot. Pool management centers like to put all the Wi Fi and all like the tech stuff from say the laundry room is the best place for that.

Unknown Speaker 32:28
scenario the cameras,

Unknown Speaker 32:29
yeah. And then the bedroom options so for space efficiency, the guest bedroom, bedroom and the home office will likely be the same space for families. For other families. They prefer a small bedroom for sleeping only with the square footage devoted to other spaces like the living room. So others will want a larger bedroom that will accommodate even more uses, including on TV watching that yeah, this has been happening for what like the last

Unknown Speaker 32:54
2030 years. Yeah, that makes sense. I mean, this is multifunctional ring

Unknown Speaker 32:58
right? Smaller bedrooms to do larger living, entertaining rooms. Alright, so a little bit of data here. So on the left side here, the cities with the biggest percent increase in one bedroom rents top to bottom, Cleveland, Ohio, Indianapolis, Columbus, Ohio, Rochester, New York, Chattanooga, Tennessee, Cincinnati, Philadelphia, St. Louis. They rose almost double digits. Not saying that those are great places to rent, but that’s what the data is saying. And of course, as an investor, you need to not only look at the MSA like a Cleveland, Ohio, but you need to look at the sub markets in that in that market. So for example, Kakaako is just one sub market in Honolulu. Just like how Irving is one sub market of a couple dozen few dozen in Dallas MSA the 17 most expensive us rental markets are listed here with San Francisco, New York, Boston, San Jose, Oakland, being The top. So the biggest takeaway here is and I’ve been hearing this from several people in the Bay Area that people are rents are dropping like crazy in San Francisco. So the data here supports it. It’s going down 11.8%. But you see a little bit of spike with the Oakland crowd where it kind of jumps up there and I have another story coming up on that. But yes, San Francisco, San Jose and they’re dropping heavy I think as part partially to do with it was already expensive to begin with. And I think COVID kept everybody in close quarters and people are getting like apartment fever and they want to get out of that type of stuff. Honolulu, there are a number 12 the 12 most expensive us rental market where the average is 1670 a month. Didn’t really move too much. Um, but it is off the high of 2100 Back in March of 2015, here’s that article I was mentioning how things are getting people are trying to get out of the high price areas. So, Procter and Gamble gamble moved their headquarters from Oakland, or to Oakland from San Francisco. Um, I think that people who are doing the opposite or the Golden State Warriors, but they’re not going very many places these days. So here is the U haul report this so u part report is something that guys like me and Dean geek out on because it is kind of showing a boots on the ground snapshot on where Class B and C renters are moving from and to where they’re where their origin destinations are. And, you know, there’s a lot of data out there but the U haul report is one of those blue collar type of sources where, you know, if your u haul got moving, you know your imagine when you’re kind of moving with your buddies. You’re buying them pizza and beer to help people. You know, these are like the average folks out there. Where’s the more your white collar corporate worker is getting banned line away. And there’s another van line report out there. But the exit points are Northern and Southern California, the LA area and the San Francisco area. They are leaving there and they are also leaving from the northeast, the heavy populated cities. And I think that’s Chicago up there. Nobody wants to be in Chicago these days, you know, get out of Chicago for sure. And they’re going to a lot of Texas, a lot of Florida southeast and then Seattle important. I mean, that’s Vegas, right down there in Nevada. So yeah, I think you’re traveling people are moving out since the U haul report. Better sell those properties game. So some more data. I mean, we’re not going to kind of go over all of this, but you guys can check this out on the YouTube channel if you want to drill down into this stuff, but let’s highlight number 12 there are hormonal hormonal Little one bedroom averaging 1670 and then a two bedrooms are averaging 2100 of course no speaker if it’s a condo, single family home Why ny Kakaako it’s just an average just kind of see if I can find you your your Las Vegas Nevada do they shut down of Las Vegas down again?

Unknown Speaker 37:26
Oh again Ah I don’t know the only

Unknown Speaker 37:28
open last week great. Yeah. To me I didn’t think they could I try not to watch news.

Unknown Speaker 37:34
Oh, it’s kind of hard to rule craps behind a plexiglass thing or digital don’t even there.

Unknown Speaker 37:39
days. Yeah, there is to number 56 there Las Vegas one bedroom $1,000 to grow rooms. 400.

Unknown Speaker 37:48
I know I wanted to bring up back here that when you’re talking about the john burns slide talking about you know, people revamping how they’re thinking of their home design kind of stuff. sort of related to that and to tenants is that just yesterday I got a request from one of my tenants who requested some repairs, one for a stove burner and other ones for carpet. Yeah. And I was thinking, you know, you get a feel for people to from the standpoint of, you know, how we said people are resting in place and are stuck in their home. So, you know, you get cabin fever and because you’re spending more time there you you noticed the things that are wrong or the imperfections, right, so and it was cool, because, you know, I had that tenant was there for three years and had really not requested anything previously. So I said, Okay, let’s go to the property manager. Yeah, just just let’s go fix it, you know, reasonably but let’s let’s fix it. They seem like reasonable requests. And, you know, on one hand, you could have been like, No, you one burner is broken. You can use another burner. You know what the carpet was there to make money, right?

Unknown Speaker 39:03

Unknown Speaker 39:05
But that’s not how I roll. Right? And I’m just thinking to myself, okay, this is a two bedroom walk up. And, and you know that that,

Unknown Speaker 39:14
you know, where is this locally?

Unknown Speaker 39:16
Actually this one is in Vegas. And that’s what also picked me to what what cued me to bring up that again too is because it is in Vegas, too. So I said, Yeah, let’s let’s go ahead and do that. You know, it’s like, it’s not all about making one. Yeah, yeah, you want everybody happy? And like I said, long term tenant they haven’t requested for much So yeah, let’s do

Unknown Speaker 39:39
Yeah, yeah, I mean, it’s nice. It’s easy when you got the money to do that.

Unknown Speaker 39:46
No, I mean, you gotta take the good the bad to it. And like I said, I looked meet your, you know, we it’s a long term tenant that hadn’t requested from what so it didn’t seem like one of those needy tenants said, you know, keep on hounding you, oh, this needs to be fixed that needs to be fixed. So

Unknown Speaker 40:05
yeah, you feel for them to do the same thing.

Unknown Speaker 40:08
Yeah. Right. But like, that’s why a lot of my when I had like single family home rentals, I wouldn’t have garbage disposals, they wouldn’t have dishwashers.

Unknown Speaker 40:18
So, in that’s so that this the garbage disposal and is that kind of a tricky thing, because some plumbers say the garbage disposal is a good idea, although it’s one more electrical machine to break. Some say, you know, in combos, they’re good, because when you turn them on, I mean, regardless, if you don’t have them, then you want to tend to use the strainer, but they’re not always going to use a strainer, right? But one thing that the garbage disposal does is when you turn it on, it creates a vacuum and it’s it’s, it’s shoving everything down. So it helps keep the pipeline clear is one

Unknown Speaker 41:00
Someone said

Unknown Speaker 41:01
yes, one thing good about garbage disposal to consider. Because same thing that you learned is like I’ve, I’ve, I’ve had them go and I’ve just removed them. But I’ve also, you know, in doing so the plumbers a, you may want to think twice because this, this offers some kind of does offer benefit for the plumbing system. Yeah,

Unknown Speaker 41:20
yeah, I know for like Class C and A B class B, if there was a dishwasher in there, we’d probably not fix it.

Unknown Speaker 41:31
Leave it in there, as on fix

Unknown Speaker 41:34
and have them use it as

Unknown Speaker 41:35
a discharge.

Unknown Speaker 41:37
Yeah, got it. Yeah. Just Just wreck. Yeah. And then, you know, going back to your earlier point, right, that’s your property manager. That’s their job to be the bad guy. Yep.

Unknown Speaker 41:47
And so yeah, and

Unknown Speaker 41:49
exactly, you don’t don’t fret over it. You know, you make your decision. You set up your, your systems and you make your call and you just let them knowing that, like you said, don’t, don’t stress about I know a lot of newbie a newbie investors, you know, kind of fret over these decisions or you know, it causes stress But yeah, I think as time goes by, you know, they’ll learn and hopefully not stressed out about it. If you continue to just sell it then maybe your service is not for you. Or maybe that’s when you go into things like syndication right where you It’s totally hands off and there’s nothing you don’t need to make any decisions. Yeah, the evolution of investing as you call it name. Yeah.

Unknown Speaker 42:36
So here’s kind of a joke here. I mean, it’s real stories, but 24 Hour Fitness is chapter 11 bankruptcy. Hmm. And then apparently people there’s less demand on supplements so GNC decided to also close to 100 stores. Wow. But I think 24 Hour Fitness guys were on the brink anyway. Yeah. Yeah, but the whole home fitness thing is kind of coming up. We were talking about the peloton bike, I got that. The Echelon mirror and the bike and then Lou lemon just bought mirror. Oh, I Oh, that’s a big thing coming. So if you guys want more of this real estate brought us at, check us out on YouTube and find us at our Rei aloha calm. Again here is our legal notice and disclaimer. But we are reaching the end of the hour and I will see you guys next week or next month. Yep. See guys, and hopefully we’ll see you guys on August 1.

Unknown Speaker 43:41
I’m looking forward to that for sure.

Unknown Speaker 43:42
Yeah, it’ll be the best party you had this whole summer. Yeah. Because party of the summer. Yeah. Yeah. real light, right.

Unknown Speaker 43:57
Free real estate investing group.

Unknown Speaker 43:59
Check out RE aloha.com just two

Unknown Speaker 44:12
local guys with so much to say. So listen to the real estate brothers today.

Transcribed by https://otter.ai

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