All Forum Posts by: Danny Ferrari

Forgive me if this has been posted before. A search didn't find anything. As you probably know, the Democrats in the House passed the Hereos Act, A part of this bill calls for a Federal Ban on evictions of any residential property for non payment of rent. This is extended for 12 month after the pandemic is over. No recourse for landlords. I rely on my properties (which are paid for) for my living expenses. Also in there is a provision stating the back rent will be forgivable. If the Senate passes this bill, I may be without income for a loooong time. Does anyone know any more about this?

I'm politically agnostic. In my view: everyone is contributing to the deterioratin of the USD and feeding the monster that is the Federal Reserve.

With that being said, I don't see such an act (based on your description) passing during Trump's presidency.

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Originally posted by @Trevor Aydelott:

I personally think your home can definitely be an ASSET

That's a Belief. I personally think I should earn $1M a year (belief), but that doesn't make it true.

Unless your house is PRODUCING income at this very moment: it's not an investment/asset. This is a Fact.

Example: You have a 3br SFH and you rent out 2 of the bedrooms while living in the 3rd = ASSET

2 Votes

Originally posted by @Shane Ussery:

@Danny Ferrari that’s exactly right. Hell back in 2008 and for some time the” housing market sucked “is what you would read. Ok what did I know? People always need a place to rent(landlord) if prices are going down that means buy. That’s investing 101 for me. Thank God these simple ideals make sense to me. Do the opposite my Friend and you’ll more than likely be ok.

Kissing girls and K.I.S.S. ain't going anywhere anytime soon. God bless America!

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Originally posted by @Tony Blasioli:

Originally posted by @Shane Ussery:

As a building contractor/developer, I was at the spearhead of the 2008 crash which began in 2007. I remember vividly the day it started. I had several million dollars in spec construction underway. I was behind the wheel in my truck when the announcement came over the radio in a news blurb that the Fed was raising the prime a quarter point to throw icewater on a red hot market. I thought, 'Oh, no, this could be very bad.' It was! We had been selling houses left and right with 20 to 30 couples touring our houses every weekend. The weekend after that announcement we saw just a few couples. Ultimately, we were unloading houses previously valued at over $700K for $380K. It was a blood bath. So, there may be some differences between 2008 and 2020, but from where I sit, it feels the same!

Thank you for sharing. The lessons learned through experience (vs. wisdom) are embedded in our nervous system. That's for sure

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I want to add that I don't believe the OP is attempting to say: "This is 2008". Obviously not. People say history tends to repeat. I don't know that I agree with that but it does seem to an AWFULLY similar pattern throughout time. Indicators we look at now will vary because the market today is different. Big DUH factor. But, there are many things pointing to hard times ahead. I'm glad this was posted.

1 Vote

Originally posted by @Aaron K.:

@Thor Sveinbjoernsson as my statistics teacher said almost every day

correlation does not equal causation

The last recession was driven by the housing sector, and subprime mortgages. This time around with all the forbearance being offered it seems unlikely things will take a nose dive even equal to that of 2008.

You're absolutely right, sir. Valid point. And one that the average citizen doesn't understand especially while being bombarded with "studies" via MSM. However, your valid point doesn't invalidate his. There are a variety of factors in position, many moving pieces, that are priming RE to undergo a correction.

Some info worth noting:
https://www.youtube.com/watch?v=JZ7PPWF_A0A&feature=youtu.be

Also:
https://www.curbed.com/2020/5/21/21264167/coronavirus-housing-market-prices

Hope this provides value!

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Originally posted by @Rob Webb:

Originally posted by @Shane Ussery:

@Rob Webb actually tried telling my mother in law sell her place take money and run she has tons of equity. This way she could down size but she comes from lean pocket frame of mind so she’ll be holding when this thing comes crashing down

I spoke with a gentleman yesterday that said he would like to sell he said where is he going to go? Even the smaller homes are still expensive. I think it can be done but even if they weather it out, if they can, that would still be good because they will be leveraged with the equity and still have a place to stay. But if there is a risk of losing the home, don't lose that equity.. Sell! Thanks for your input!

My parents are looking to relocate from Miami to central-ish Florida. Even though the markets they're looking at are cheaper than Miami, they are still somewhat pricey considering the size of these cities is significantly smaller (>50%). I simply told her: "Ma, it's a seller's market right now". We're long overdue for a correction--not just with stocks but RE as well." Maybe they can rent something in the meantime until the true impact is felt. 1-2 years of waiting will be worth the rate considering the level of correction that needs to take place to bring the market down to fair value--not to mention undervalued (i.e. for a discounted buying opportunity).

Then again, wth do i know? :)

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I'm no data scientist. Let's just start with that. I tend to overwhelm myself with information during times like this for a brief period. Then, I somewhat taper off from the information consumption...

However, throughout this time, the information has been processing, and sometimes our subconscious puts things together for us--helping us connect the dots--if we just let our minds rest a bit.

this information essentially confirms my "gut feeling".

when the MSM tells us to panic: that's when we should be at our calmest. when they tell us everything is good to go: that's when we should be wary and prepare. I have been saying a multitude of reports saying "Everything is great in the real estate" (paraphrase). There have been some reports warning against the long-term effects of the current situation and some pointing out certain indicators that may have been lagging or in the red. at any rate, the mainstream message has largely been: "There's nothing to see here. Move along"

Seems like there's a lot more to see than we're being shown. Thank you for this info!

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All Forum Posts by: Danny Ferrari

Danny Ferrari has started 3 posts and replied 12 times.

Post: Mortgage Lender Charging For Credit Check

Post: Mortgage Lender Charging For Credit Check

Post: Hereos Act will hurt landlords in a bad way

Post: Robert Kiyosaki The Lazy way to invest in real estate.

Post: You have 6 months to liquidate your assets

Post: You have 6 months to liquidate your assets

Post: You have 6 months to liquidate your assets

Post: You have 6 months to liquidate your assets

Post: You have 6 months to liquidate your assets

Post: You have 6 months to liquidate your assets