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144,000 Evictions The Economic Crisis Nobody Sees Coming · Earn Your Leisure

• 0:00
  Speaker 1: Let's get right to it.
• 0:02
  Speaker 2: What do you want to talk about first? 144 evictions
• 0:05
  Speaker 2: in Atlanta?
• 0:07
  Speaker 1: 144,000 evictions in Atlanta? Yeah. This is scary.
• 0:13
  Speaker 3: I'm not going to say this reminds me of 2007,
• 0:16
  Speaker 3: but it's adjacent. The cities that I looked at in 07,
• 0:20
  Speaker 3: 08 were Atlanta, Las Vegas, Miami, to see how the
• 0:25
  Speaker 3: economy was doing. Part of a few people in Atlanta,
• 0:29
  Speaker 3: I'm like, how's the economy? They're like, it's kind of dry.
• 0:31
  Speaker 3: I'm not going to lie. And even in Miami, I
• 0:35
  Speaker 3: was having some conversations about how things have been flowing
• 0:37
  Speaker 3: over the last two years. And I'm starting to get
• 0:40
  Speaker 3: slightly concerned about the economy. And I think Atlanta is
• 0:44
  Speaker 3: a canary in a coal mine that we have to
• 0:47
  Speaker 3: keep our eyes on.
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  Speaker 1: But when you saw this number come out, what was
• 0:50
  Speaker 1: your first thought?
• 0:52
  Speaker 2: The first thought. So and MG had a good video.
• 0:58
  Speaker 2: He kind of gave a little bit more context to it.
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  Speaker 2: The first thought was I just didn't think that it
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  Speaker 2: was right. Because they were saying like 500,000 people live
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  Speaker 2: in Atlanta and like 144,000 eviction.
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  Speaker 4: It's like 20% of the population.
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  Speaker 2: So I just didn't actually think that that was an
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  Speaker 2: accurate number. But when MG broke it down and made
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  Speaker 2: a little bit more sense, where he was like, you
• 1:20
  Speaker 2: can file for eviction for the same person four times,
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  Speaker 2: five times. So the real number is But it's still
• 1:28
  Speaker 2: a high number. But instead of like 25%, it might
• 1:31
  Speaker 2: be like 12%, right? Or 10% because it's like you
• 1:35
  Speaker 2: have a tenant. Like I said, you can actually... Three
• 1:41
  Speaker 2: eviction filings can happen for one person. But on paper,
• 1:46
  Speaker 2: that looks like it's just three filings. So it looks
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  Speaker 2: like most people would say, oh, that's three different people.
• 1:53
  Speaker 2: But regardless of anything... He also brought up good points
• 1:57
  Speaker 2: as far as what is, this says a few things.
• 2:03
  Speaker 2: As landlord, your goal is not to evict anybody.
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  Speaker 4: For sure. Because it's not helpful. It's not beneficial. You
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  Speaker 4: lose money.
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  Speaker 2: It's not like you don't want to evict somebody as
• 2:13
  Speaker 2: a landlord. That's your last resort. So you have to
• 2:16
  Speaker 2: select people better as a landlord, right? This goes into
• 2:21
  Speaker 2: the selection process. This also goes into the rents that
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  Speaker 2: you're charging. the risk that you're charging might be potentially
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  Speaker 2: too high.
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  Speaker 1: Yes.
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  Speaker 4: And that needs, and it potentially may be needs to
• 2:32
  Speaker 4: be adjusted.
• 2:32
  Speaker 2: When you see a weekend in the economy, as far
• 2:35
  Speaker 2: as people losing their jobs, the money, money is not,
• 2:38
  Speaker 2: may not be flowing as, and, and this is happening nationwide,
• 2:43
  Speaker 2: but obviously this problem, it's, it's more glaring in Atlanta.
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  Speaker 4: Yes. I think it speaks to the economy. No, we've
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  Speaker 4: been saying this for a while.
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  Speaker 3: Yeah.
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  Speaker 1: At least a year and a half.
• 2:57
  Speaker 4: It's definitely spooky hours out here.
• 3:01
  Speaker 2: Like I said, I hate to keep saying the same
• 3:03
  Speaker 2: thing over and over again, but you can't get a
• 3:08
  Speaker 2: job right now. It's hard to get a job. College
• 3:12
  Speaker 2: graduates are struggling for employment. Rent is up. It's almost
• 3:19
  Speaker 2: impossible for the average person to buy a home because
• 3:21
  Speaker 2: home prices have gone up so much. when you look
• 3:24
  Speaker 2: at inflation, we was just in LA seeing $ 8 gas,
• 3:27
  Speaker 2: $ 8 a gallon for gas. Um, artificial intelligence has only
• 3:33
  Speaker 2: taken a small amount of jobs. And so this is
• 3:36
  Speaker 2: just starting.
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  Speaker 3: Yeah.
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  Speaker 2: Imagine when it really goes at scale, how many people
• 3:40
  Speaker 2: are going to be losing their job from artificial intelligence,
• 3:43
  Speaker 2: low level labor, but high level, high labor as well,
• 3:45
  Speaker 2: high level labor as well. So I think it speaks
• 3:50
  Speaker 2: more to what's to come. This is a, um, a
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  Speaker 2: early indicator of, of economic hardship. And when you have
• 4:03
  Speaker 2: record level debt, it doesn't seem like there's a, there's
• 4:08
  Speaker 2: a quick solution out of this.
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  Speaker 3: Yeah. And there's no governance on how to even work
• 4:15
  Speaker 3: out of it. We'll talk about some of the crazy
• 4:17
  Speaker 3: stuff Trump has said later.
• 4:19
  Speaker 1: Um, But it says.
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  Speaker 3: One in four renters in Fulton, DeKalb, Cobb, Clayton, and
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  Speaker 3: Gwinnett counties receiving an eviction filing during the last 12 months.
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  Speaker 3: Even if, let's say, they double filed or triple filed,
• 4:33
  Speaker 3: the renters still relate. And then also the rise of
• 4:36
  Speaker 3: the cost, like you said, of rent is too exorbitant.
• 4:40
  Speaker 1: There are almost no normal rent levels anymore.
• 4:42
  Speaker 3: Even for some places here in Houston, like someplace at $ 2, 500,
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  Speaker 3: $ 3, 000 a month when Houston used to be an affordable
• 4:51
  Speaker 3: place to live. So when you have that GDP, we
• 4:55
  Speaker 3: have a private credit risk crisis on our hands. Oracle's
• 5:01
  Speaker 3: default swaps are through the roof because of the value
• 5:03
  Speaker 3: of the company. It's a lot of stuff going on,
• 5:06
  Speaker 3: and I don't hear anyone giving any solutions on how
• 5:09
  Speaker 3: to fix it, and government isn't trying to fix it
• 5:11
  Speaker 3: because they're just trying to get through the midterms. They
• 5:14
  Speaker 3: know if they get the midterms, they don't need to
• 5:16
  Speaker 3: fix anything. And that's the scary part. And I was
• 5:19
  Speaker 3: telling Stock Club, we're going to see what the real
• 5:21
  Speaker 3: effects are of this around May to June of next year.
• 5:25
  Speaker 1: When everyone keeps asking, like, when is the crash going
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  Speaker 1: to happen?
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  Speaker 3: The stock market may not feel it, but the economy overall.
• 5:33
  Speaker 3: Late spring, early summer, I think we'll see what the
• 5:36
  Speaker 3: real deal is. So stack your coins. Listen, they just
• 5:40
  Speaker 3: left L.A. I'm going to L.A. I'm sure they're going
• 5:42
  Speaker 3: somewhere next week. When you see us getting back in touch,
• 5:46
  Speaker 3: I told my mom yesterday, hey, it's election season for
• 5:48
  Speaker 3: me too. Got to go talk to the California delegates tomorrow.
• 5:53
  Speaker 3: It is time for you to put your foot on
• 5:55
  Speaker 3: the gas. If you're not, you're seeing the greatest entrepreneurs
• 6:00
  Speaker 3: on earth doing more. And I've been belaboring this point.
• 6:04
  Speaker 3: Even Trump is working at a pace he's never worked
• 6:07
  Speaker 3: at before. Elon, did the super intelligence counsel All of
• 6:13
  Speaker 3: them are working at a higher clip.
• 6:16
  Speaker 1: And I keep saying it.
• 6:17
  Speaker 3: Jensen is looking more presidential than ever and making sure
• 6:21
  Speaker 3: those relationships are intact to keep his company solvent. When
• 6:25
  Speaker 3: everyone keeps telling me, well, NVIDIA is the new Bear Stearns.
• 6:30
  Speaker 1: I'm like, how?
• 6:32
  Speaker 3: He's literally flying around the world. Like, back to your
• 6:35
  Speaker 3: billionaires don't sleep point. He's traveling around the world with
• 6:39
  Speaker 3: China and Trump and Singapore and to make sure.
• 6:43
  Speaker 1: That his deals are in place. Three years ago, he
• 6:46
  Speaker 1: wouldn't have to do that.
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  Speaker 3: These are the concessions you're going to have to make
• 6:51
  Speaker 3: when the economy is looming.
• 6:54
  Speaker 4: Yeah, 100%. You're right.
• 6:57
  Speaker 3: Yeah.
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  Speaker 4: So, yeah.
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  Speaker 2: So, prayers first and foremost to anybody that's getting evicted.
• 7:03
  Speaker 2: But for sure, the city of Atlanta, it seems like
• 7:05
  Speaker 2: there's a lot of evictions that's happening. Like I said,
• 7:07
  Speaker 2: nobody wins in that situation. It's not like landlords. That's
• 7:10
  Speaker 2: what people need to understand as well. Are there some
• 7:13
  Speaker 2: bad landlords out there that try to take advantage of
• 7:15
  Speaker 2: their tenants?
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  Speaker 4: Yes. But a lot of landlords are not bad people.
• 7:20
  Speaker 2: They don't get enjoyment for evicting people, but they also
• 7:24
  Speaker 2: have a responsibility for their family as well. And if
• 7:26
  Speaker 2: you have a tenant that's not paying, well, you're paying, right?
• 7:30
  Speaker 2: Like you're paying the mortgage. So I know landlords don't
• 7:35
  Speaker 2: really get sympathy a lot.
• 7:36
  Speaker 1: No.
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  Speaker 2: But it's like, you know, when a landlord puts yourself
• 7:40
  Speaker 2: in their situation, They purchased a building, they purchased a home,
• 7:44
  Speaker 2: they purchased a multifamily home, right? And their way of
• 7:50
  Speaker 2: actually keeping things afloat is actually providing housing for somebody else. Now,
• 7:55
  Speaker 2: if somebody is living in said house and just stops
• 7:59
  Speaker 2: paying rent, well, they're getting all the benefits of living
• 8:02
  Speaker 2: in a house. They get in the heat, they get
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  Speaker 2: in the gas, they get in the water, they get
• 8:05
  Speaker 2: in showers, and you're paying for that. They're not paying
• 8:11
  Speaker 2: for it because they stopped. Now I get it. They like, look,
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  Speaker 2: I can't pay. I understand completely. But at a certain
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  Speaker 2: point in time, that's not the person's responsibility. It's not,
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  Speaker 2: it's not, it's not the landlord's responsibility. So I just
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  Speaker 2: want people to understand that too, because it's not like,
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  Speaker 2: I don't think people have sympathy for landlords and a
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  Speaker 2: lot of landlords have gone under.
• 8:35
  Speaker 4: File bankruptcy. For sure.
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  Speaker 2: And as we talked about with Ish, there's a lot
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  Speaker 2: of risk. There's a lot of risk that comes with
• 8:39
  Speaker 2: being a landlord, right? So, and that's why people do
• 8:43
  Speaker 2: Section 8 housing, guaranteed from the government. But also, what's new,
• 8:48
  Speaker 2: and I think we might got to do an episode
• 8:49
  Speaker 2: on this for our new leisure, is the sober living facilities.
• 8:52
  Speaker 2: I've been hearing about the sober living thing. They said
• 8:54
  Speaker 2: that they're making a lot of money on that sober
• 8:56
  Speaker 2: living side, but... Yeah, and that medical side, shout to Ty.
• 9:01
  Speaker 2: Ty and drug treatment facilities, Yeah, that's what I'm saying. Yeah,
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  Speaker 2: that's the sober living. It's like a rehab center. The
• 9:08
  Speaker 2: rehab center, they were saying like you could rent those
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  Speaker 2: out and it's almost another Section 8, but it's even
• 9:14
  Speaker 2: better because the tenants, they're short-term tenants. They stay for
• 9:17
  Speaker 2: like three months, two months at a time. And insurance
• 9:20
  Speaker 2: companies actually pay.
• 9:21
  Speaker 1: Cover it and it's a premium on it.
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  Speaker 4: Yep, for sure. And so it's a guaranteed bill as well.
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  Speaker 2: So I met a few people, even in L.A., that
• 9:31
  Speaker 2: was telling me how much money they was making from
• 9:33
  Speaker 2: sober living facilities. And they said, like, that's the real
• 9:38
  Speaker 2: thing that's bringing in a lot of money right now.
• 9:40
  Speaker 2: But if you're a landlord, you want to kind of
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  Speaker 2: mitigate risk as much as possible. So, like I said,
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  Speaker 2: look to see what tenants you're renting to.
• 9:52
  Speaker 1: Yes. Yes.
• 9:53
  Speaker 2: If you buy a hospital, try to, you know, because
• 9:55
  Speaker 2: those jobs are stable. Look at the jobs that's actually stable, right?
• 9:58
  Speaker 1: Yes.
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  Speaker 4: Nursing.
• 10:00
  Speaker 1: Nurses, anesthesiologists, doctors. Yes.
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  Speaker 4: Stuff like that.
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  Speaker 1: Military. Yeah. At certain levels, yep. School. Yes.
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  Speaker 4: Colleges.
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  Speaker 2: For the time being. Like, you know, if you got
• 10:13
  Speaker 2: off-campus housing, the colleges.
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  Speaker 2: Don't put yourself in a situation where you're going to
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  Speaker 2: have to evict somebody.
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  Speaker 4: Yeah.
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  Speaker 3: I know even for Ish, because he's talked about this publicly,
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  Speaker 3: he had a few tenants that owed him four or
• 10:34
  Speaker 3: five months and he didn't put them out.
• 10:37
  Speaker 1: That's like, that's tough.
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  Speaker 3: Because you're still having to carry the mortgage and all
• 10:41
  Speaker 3: the expenses and then his thought was like, okay, if
• 10:45
  Speaker 3: I put them out, it's going to be on their
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  Speaker 3: record and then I know they're not going to be
• 10:51
  Speaker 3: able to go anywhere else and then show a year's
• 10:54
  Speaker 3: worth of statements to be able to cover it. Like,
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  Speaker 3: I don't think enough landlords get enough credit for the
• 11:00
  Speaker 3: grace they show when they don't immediately file. And then
• 11:03
  Speaker 3: you're taking those costs.
• 11:05
  Speaker 1: So be careful. But the economy is tight.
• 11:10
  Speaker 2: And as a tenant, you got to be responsible.
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  Speaker 4: Never, never.
• 11:16
  Speaker 3: Yeah, don't be in your stories popping bottles talking about,
• 11:19
  Speaker 3: I can't cover, because some of them do that.
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  Speaker 2: Yeah, and don't put yourself in a situation that you
• 11:23
  Speaker 2: know you can't afford. That happens as well. Sometimes people,
• 11:26
  Speaker 2: they'll falsify documents. They'll get somebody to write them a
• 11:29
  Speaker 2: letter saying that they make this amount of money. Like,
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  Speaker 2: a lot of times, you put yourself in a situation
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  Speaker 2: where you just one paycheck away and things fall apart.
• 11:36
  Speaker 2: From disaster. Yeah, that's a bad thing. Like I said,
• 11:39
  Speaker 2: even the roommate thing, right? That's becoming big. Like, Look,
• 11:42
  Speaker 2: sometimes we're in a difficult economy. Sometimes you got to
• 11:45
  Speaker 2: make difficult decisions. Hey, instead of moving in here, I'm
• 11:47
  Speaker 2: going to move down. I'm going to move in this
• 11:50
  Speaker 2: one bedroom apartment instead of two bedroom. Or I'm going
• 11:52
  Speaker 2: to have a roommate. I'm going to live with a roommate.
• 11:56
  Speaker 1: It's uncomfortable, though.
• 11:58
  Speaker 4: It's better than being evicted.