Reaction & Commentary
This Bank bailout into Europe so what’s going on here well a couple of moving pieces because it’s been like a crazy uh two pots of coffee kind of a weekend to follow what’s happening in the banking sector normally the banks shut down on Friday night at five o’clock right
They’re done no no all weekend they’ve been scrambling across Europe to figure out what they’re going to do with Credit Suisse now it looks like the Swiss National Bank is going to jump in and offer about a hundred billion dollars of liquidity and while it’s going to be
Sold off for about two billion dollars so all these people losing their deposits inside of the Credit Suisse unbelievable disaster um hitting Europe Silicon Valley Bank in the United States now we’re learning is going to be broken up and sold off into multiple pieces we don’t still know how
That’s all going to come together and the treasury secretary Janet Yellen admitting that hey you know your small local bank like will the FDIC step in and protect those little guys you know the little Community Banks and your and your credit unions and she says no no
And that’s not going to happen she said I would have to sign off on it and the FDIC board would also have to sign off on it that’s just not going to happen yeah so what does that tell you yeah the big boys will bail those out and we’ll
Consolidate them the federal government Will Take Over Control of them through the FDIC but all those small little banks no no we’ve been trying to get rid of them for a long time we want to consolidate power we want to move to a central bank digital currency we want to
Move away from cash and the US dollar we want to move to a digital Dollar in the United States this is incredibly troubling as the continued decline of the US dollar is happening right in front of our faces right now um and it’s really a tale of two
Different things right now bailouts and bail in so in the United States we’re happy to throw into these Banks billions of fake printed money that the Federal Reserve is literally creating out of thin air we don’t have it we’ve never had it it doesn’t actually exist the federal government
Just prints fake money even and just you know sends it wherever we need to the bailout now in 2023 is larger then in 20 in 2008 okay just and adjusted for inflation the current bailout of Silicon Valley Bank and Signature Bank is larger than the 2008 banking collapse and the mortgage collapse
Think about that for a second but they don’t even want to call it a bailout they’re lying to you about it and in Europe all of those depositors at Credit Suisse you know they’re going to get a fraction of what they’ve deposited about a quarter 0.25 which is better than zero
Percent so they’re you know they’re going to use the money that’s in those Banks to bail in and save the banks we are facing a banking disaster right now so I sure hope that you’ve got money put into real assets real tangible things again like real estate gold silver
Precious metals you know crypto if you’re into that right but real tangible things right now that are a hedge against this craziness because I’m telling you the disaster continues to unfold so let’s talk about housing for a second and then we’re going to get to some of your questions here some of your
Questions which I will attempt to answer you can leave us some voicemail questions by going to our website at morrisinvest.com so on the housing front we’re now getting an assessment of how bad things were in 2008 that bubble that was really never fully allowed to pop and the federal government the Federal
Reserve stepped in bought all of these mortgage-backed Securities they added those crappy crappy things to their balance sheets right in many ways pushing up and sort of artificially inflating the housing market in a lot of bubble areas Vegas San Francisco a lot of the coastal cities and so forth not
The areas that I invest in but largely and really inflated those prices in a lot of those areas and of course kept artificially low the interest rate so interest rates really really low and then on top of all of that you had the pent-up demand so the pent-up demand for
Housing now the silver lining in all of this and housing right now is that the demand is off the charts we need houses like you wouldn’t believe if that wasn’t the case we could be in for a housing disaster so you have them you know you have the federal government
Stepping in and really artificially creating this bubble that could be bursting if we didn’t have the demand so as that demand continues and it’s running away from us right now we just need housing in a way that we’ve we’ve never seen before that has really kept
Us from any kind of bubble explosion any any problems in a lot of these different markets because the demand is still there if you take out the amount of mortgages that the Federal Reserve bought put on their balance sheet if you take that out because they drove up home
Prices about 41 if you take that out if you would have removed the mortgage-backed security purchases actually home prices would have declined so the FED has artificially propped up housing in a lot of different areas across the country that’s why you need to be really smart and study your
Demographics before you invest make sure you understand like what’s driving the appreciation in a market what’s driving the you know the demand for housing in a particular town where I like to invest you know are there a lot of jobs coming in well there you need housing is crime low
Um you know are we seeing an influx of new highways being built uh home you know the demand for homes because the schools expanding et cetera like all of these demographic data pieces I want to be studying and making sure that I’m being smart about where I’m investing
Because you’re seeing again the effects of the Federal Reserve monkeying and a lot of this data and a lot of and a lot of these a lot of these different sectors from housing to the banking sector um to pensions the list is pretty much endless right now the amount of fake
Money that’s being kept and flooded into the US economy so buyer beware now we’re going to see the craziness of Credit Suisse unfolding this week so my head is spinning guys let me be honest with you there’s a lot of craziness this weekend um and it’s hard to keep on top of it
Literally as I get data points coming in about Credit Suisse five minutes later it’s changing and the same thing is true about Silicon Valley Bank in the United States so please make sure you’re being uh safe and and smart about your investing right now and doing your homework before you
Do anything right now all right let’s get into some of your questions today and see what if we can answer some of your real estate or tax related questions here on the show our first question comes to us from John Clayton what is your level of concern
About investing across the board if we continue to have this hyperinflation and the dollar gets uh more more worthless by the day and in respect to uh the government maybe going to the central bank digital currency which is uh I think some something that they’re going to use as a
Fail-Safe when the currency gets to the point to where it’s it’s uh basically worthless well thanks John I mean look I don’t want to have my family’s future tied to the US dollar right I don’t want to have my money tied to Central Bank digital currency US dollars so personally I want
To we were just having a conversation with uh my mother-in-law um like my kids were asking her she’s here visiting and they were asking her like Grandma are you retired because we were talking about retirement and they said you know what is retirement I’m like well when
You no longer need to work you don’t want to work anymore you’ve worked enough and you’ve you know made smart Investments and moves so you don’t need to work anymore and so my mother-in-law said you know I now I have real estate Investments and I have cash flow for my
Real estate Investments and that’s how I that’s how I live and she works on that you know she checks in and deals with her Investments but she doesn’t work day to day anymore she used to work every day in a title company she doesn’t anymore she retired and so because she
Has those tangible assets she has that cash flow that she’s able to use and to you know as the yes it’s US dollars right so the cash flow is US Dollars then she’s buying gold and she’s buying precious metal with that cash flow and really setting herself up securely so
How do I feel about it look you know I I want to make sure that I’ve got tangible assets right I want to make sure that I’m owning real things like real estate gold silver things that have sustained for thousands of years I’m a student of History John and all I can
Tell you is that for 5 000 years real estate gold and silver have have been have survived at all so why would I bet against that if I want to protect my family right now which I’m doing I’m buying gold I’m buying real estate I’m buying silver
Those are the three things that I own and I have a little bit of Bitcoin um but for me where I’m taking and converting my US dollars is into those things into those items so I will always feel good about it again the track record is pretty darn good right through failed
Governments Wars famines floods you name it real estate gold and silver have sustained okay and yes precious art you could throw in Precious artwork into that mix I’m just not a professional I’m just not an artwork guy you know like I appreciate it but I don’t know the first
Thing about buying precious art you know I’m not going out and buying picassos at this point um now there are companies that that allow you to buy fractional ownership of things like that but again that’s not my bag necessarily okay so what I what I bet on are the things that have worked
In the past um and I think right now as Peter Schiff has been pointing out about gold prices up two percent again they continue to go up the appreciation is great but I’m buying these things because it’s a hedge against inflation and it’s a hedge against this you know flooding of the
Market of like fake currency right now where you you know gold silver and real estate it’s not fake it’s real you can’t fake it you know um and you can’t print more houses they can try but they can’t do it so that’s how I feel about it John I I you know
Unless someone proves me wrong with real estate and gold and silver then you know show me that show me that I’m wrong with that or show me that history is wrong and then I’ll make a change but that’s the way I’m going with it right now John all right next question
Hey Clayton Marcus here I am a new Fix and Flip investor that currently closed on my first property back in November uh rehab will hopefully be completed by mid-February uh the absolute last Aida uh payback card money loans April 15th to put a little context before I asked
My question I’m all in about 200k but with the best case ARB 245. my question to you is if I am not able to close on the loan and sell the property in time to pay back the hard money what options do I have I am working with minimum cash Reserve
As I leverage a lot of debt to bring this bills to the table and I don’t so I don’t think the dscr work or even the cash out refis it just doesn’t seem like you know obviously enough meat on the bone with that arv so any help is possible I’m not quite in
Panic mode but it’s quickly approaching uh thanks for everything I appreciate everything you do thank you hey Marcus and you have uh you have bigger cojones than I do because I I was you know never been a fixer flip guy because again these are the things that happen in the
Market so you know we see right you you have back in November when you get the project under contract you’re ready to rock and roll on it right and then what happens in suddenly happens in the beginning of March you have this crazy banking crisis right and everything kind
Of shifts on you and those are the things you really can’t predict right when you’re in a Fix and Flip model so I know you probably called in a few weeks ago I hope everything is okay right now with this banking situation um my first suggestion again I’m not a
Financial advisor but what I would do is if I felt like oh my God I’m not going to be able to sell this home but there’s no reason I mean if the numbers makes it there’s no reason you shouldn’t be able to sell this home first of all right April is the best
Time to sell a home April Market because the school year is starting to wrap up people are wanting to figure out where they’re going to move they want to move over the summer they want to start a new school year they don’t want to move in September so
April is the number one April and May two best times to sell a home so if you can’t sell it now your number then something’s definitely wrong in the economy obviously we’re seeing interest rates tricking up to you know six seven percent so that can really hinder your
Ability to get to get moving on this but um look at the end of the day I would go back what I would do is if you have a hard money lender go and talk to them and maybe renegotiate with them a little bit say look I need I might need you
Know some more time here and talk to them about extending the life of your loan for a little bit longer given the market situation or figure out some sort of a condition where you could maybe even you know rent out the property or there’s always a way to make something
Happen in real estate okay there’s never like if someone just gives you like a no for an answer there’s always a way to renegotiate something okay maybe even finding another lender who’s willing to absorb that loan and maybe even tack on an extra percentage point on top of it
To give you another six months of breathing room there’s always always a way what I love about real estate investing I’ve done thousands of deals there’s so many creative ways to massage these things and and to help you out so do not take no for an answer in this
Situation you should be able to figure something out um I would really just make sure that I have a I would have you know really good real estate agent okay find the best real estate agent that’s going to get this house sold it’s new construction or you’ve you’ve totally renovated this
House hopefully it’s in a great area you’ve done your homework on it on the after repair value um you know I it looks like you’re probably going for a first time home buyer so the first time home buyer situation is going to be difficult because first time home buyers now are being priced
Out because of these interest rates so you’re probably going to be in competition with a lot of baby boomers who are going to want this property um you know maybe baby boomers who were waiting on finding a right house to move out of a city area or move into a
Different area that’s what happened during the pandemic a lot of baby boomers were they were sitting on cash and first time home buyers didn’t have the cash so Baby Boomers were able to make these big purchases and move move in on them and again first time home buyer Millennials are being squeezed out
Again because of interest rates so let’s see here over the next few weeks what happens with these interest rates and this banking crisis that we’re in right now because if the FED looks like they’re not going to increase rates this weight this week we’ll we’ll know on
Wednesday what their plan is here if they’re going to raise it another 25 basis points then that could be really bad but I think what Wall Street is really hoping is they’re not going to raise interest rates at all perhaps maybe even for the rest of the
Year now which would be great news for you Marcus so again find an aggressive real estate agent find the best okay the one that’s on the park benches and all like find the best I mean even if you have to lower it a little bit you don’t
Want to be sitting on this Capital you don’t want to be sitting on this even if you have to lower your price a little bit to get out of this deal then just talk it up to um you know you made less profit than you wanted but it’s it’s a learning
Experience and uh maybe finding a little bit more meat on the bone or moving up into like maybe the higher higher priced value home next time so you’re not playing around in that first time home buyer Market which can be a little tricky because now you’re at the mercy
Of these interest rates so anyway I hope that helps I would definitely find out about if I could renegotiate part of this loan with the person you went you got it from in the first place find an aggressive real estate agent who’s really going to market the heck out of this property
And find out you know where you’re going to be where The Sweet Spot is on these interest rates to try to get to lure in some of these first-time home buyers for um you know that’s the thing it’s like I’m just praying praying praying right now that these first-time home buyers
Can swoop in and buy your property because uh those that’s that’s your Market you know that’s that price point is going to be the first time home buyer Market also could you buy it and convert it into a rental property this is another situation to think about Marcus is you
Know this is what I would do also that seems to me if the numbers make sense could you rent it out could you rent it out for a while and cover this mortgage payment to get this thing back on your on your right side here if you’re unable to negotiate a longer term
Um you know a mortgage on the property my mind’s racing with all sorts of ideas but hopefully there’s a few to get kind of get you started in this that’s the thing with real estate there’s so many different options and strategies with this all right our next question
Hi Clayton uh just very quick question I am new on investment and what platform would you recommend to use to buy stocks from and I have to say massive massive appreciation to you and to your wife Natalie for the job you do for awakening in people and to telling
Just truth and truth and the truth only thank you thank you thank you well thank you I really appreciate that um I think you know as far as stocks go I have I use an account in the United States called E-Trade I’ve been using them for years
Um I don’t know if they’re the best or not but the reason I use them is because they’re an actual brokerage and if I want to trade some smaller Junior producers some smaller gold producers and things like that I can do that with an E-Trade with a company like Robinhood
What they’ll do is they when you make a trade they will sell your information right they will sell your information to brokers who will then basically front run your trade so that’s how Robinhood makes their money they if they’re if you’re going to buy a couple thousand shares of a company
Well they will sell that information a few milliseconds before your trade is complete they’ll sell it to market makers and those other individuals can decide what they’re going to do by either buying lower or you know and and so they’re able to use that data to their advantage that’s how Robin Hood
Makes their money right um so I’m not a fan of that I prefer to use one of the larger brokerages because I like to buy some of these smaller Junior producers that’s my personal preference and you can’t do that on a Robin Hood in one of those big you know
One of those those apps basically um and so uh you know again I use E-Trade personally that’s what I use and I I don’t own a lot of stocks at all I own I own very sort of strategic portfolio of of people that are Commodities companies that you know are
Pulling oil out of the ground natural gas out of the ground gold silver Precious Minerals those are the companies that I invest in you know I don’t own like Coca-Cola and things like that so and again I use E-Trade is what I use but I should come back to the point
That my main Investments are real estate and precious metals so I just hope I want to drive that point home to you that yes I have a small portion of our portfolio and some of these you know Commodities based companies but not not not a huge portion of my portfolio so
Thank you so much for that question thanks for your kindness thanks for leaving any voicemail questions you want to on our website if you go to morrisinvest.com click on the microphone icon on the right hand side of your screen that’s where you can leave us a voicemail question and if you’re ready
To book a call with our team we are a full service rental real estate company where we’ll help you get started investing in real estate we build new construction properties from the ground up with our team and uh you know you don’t have to do anything you can be our
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That go to our website morrisinvest.com click on the book A call button and book call with our team right now until next time everyone go out there become a real estate investor I believe it’s the number one way to protect and preserve your wealth we’ll see you next time
