144,000 Evictions The Economic Crisis Nobody Sees Coming

0:00 Let's get right to it.

0:02 What do you want to talk about first? 144 evictions in Atlanta?

0:07 144,000 evictions in Atlanta? Yeah. This is scary.

0:13 I'm not going to say this reminds me of 2007, but it's adjacent. The cities that I looked at in 07, 08 were Atlanta, Las Vegas, Miami, to see how the economy was doing. Part of a few people in Atlanta, I'm like, how's the economy? They're like, it's kind of dry. I'm not going to lie. And even in Miami, I was having some conversations about how things have been flowing over the last two years. And I'm starting to get slightly concerned about the economy. And I think Atlanta is a canary in a coal mine that we have to keep our eyes on.

0:48 But when you saw this number come out, what was your first thought?

0:52 The first thought. So and MG had a good video. He kind of gave a little bit more context to it. The first thought was I just didn't think that it was right. Because they were saying like 500,000 people live in Atlanta and like 144,000 eviction.

1:07 It's like 20% of the population.

1:10 So I just didn't actually think that that was an accurate number. But when MG broke it down and made a little bit more sense, where he was like, you can file for eviction for the same person four times, five times. So the real number is But it's still a high number. But instead of like 25%, it might be like 12%, right? Or 10% because it's like you have a tenant. Like I said, you can actually... Three eviction filings can happen for one person. But on paper, that looks like it's just three filings. So it looks like most people would say, oh, that's three different people.

1:53 But regardless of anything... He also brought up good points as far as what is, this says a few things. As landlord, your goal is not to evict anybody.

2:06 For sure. Because it's not helpful. It's not beneficial. You lose money.

2:10 It's not like you don't want to evict somebody as a landlord. That's your last resort. So you have to select people better as a landlord, right? This goes into the selection process. This also goes into the rents that you're charging. the risk that you're charging might be potentially too high.

2:28 Yes.

2:29 And that needs, and it potentially may be needs to be adjusted.

2:32 When you see a weekend in the economy, as far as people losing their jobs, the money, money is not, may not be flowing as, and, and this is happening nationwide, but obviously this problem, it's, it's more glaring in Atlanta.

2:49 Yes. I think it speaks to the economy. No, we've been saying this for a while.

2:54 Yeah.

2:55 At least a year and a half.

2:57 It's definitely spooky hours out here.

3:01 Like I said, I hate to keep saying the same thing over and over again, but you can't get a job right now. It's hard to get a job. College graduates are struggling for employment. Rent is up. It's almost impossible for the average person to buy a home because home prices have gone up so much. when you look at inflation, we was just in LA seeing $ 8 gas, $ 8 a gallon for gas. Um, artificial intelligence has only taken a small amount of jobs. And so this is just starting.

3:37 Yeah.

3:37 Imagine when it really goes at scale, how many people are going to be losing their job from artificial intelligence, low level labor, but high level, high labor as well, high level labor as well. So I think it speaks more to what's to come. This is a, um, a early indicator of, of economic hardship. And when you have record level debt, it doesn't seem like there's a, there's a quick solution out of this.

4:09 Yeah. And there's no governance on how to even work out of it. We'll talk about some of the crazy stuff Trump has said later.

4:19 Um, But it says.

4:21 One in four renters in Fulton, DeKalb, Cobb, Clayton, and Gwinnett counties receiving an eviction filing during the last 12 months. Even if, let's say, they double filed or triple filed, the renters still relate. And then also the rise of the cost, like you said, of rent is too exorbitant.

4:40 There are almost no normal rent levels anymore.

4:42 Even for some places here in Houston, like someplace at $ 2, 500, $ 3, 000 a month when Houston used to be an affordable place to live. So when you have that GDP, we have a private credit risk crisis on our hands. Oracle's default swaps are through the roof because of the value of the company. It's a lot of stuff going on, and I don't hear anyone giving any solutions on how to fix it, and government isn't trying to fix it because they're just trying to get through the midterms. They know if they get the midterms, they don't need to fix anything. And that's the scary part. And I was telling Stock Club, we're going to see what the real effects are of this around May to June of next year.

5:25 When everyone keeps asking, like, when is the crash going to happen?

5:28 The stock market may not feel it, but the economy overall. Late spring, early summer, I think we'll see what the real deal is. So stack your coins. Listen, they just left L.A. I'm going to L.A. I'm sure they're going somewhere next week. When you see us getting back in touch, I told my mom yesterday, hey, it's election season for me too. Got to go talk to the California delegates tomorrow.

5:53 It is time for you to put your foot on the gas. If you're not, you're seeing the greatest entrepreneurs on earth doing more. And I've been belaboring this point. Even Trump is working at a pace he's never worked at before. Elon, did the super intelligence counsel All of them are working at a higher clip.

6:16 And I keep saying it.

6:17 Jensen is looking more presidential than ever and making sure those relationships are intact to keep his company solvent. When everyone keeps telling me, well, NVIDIA is the new Bear Stearns.

6:30 I'm like, how?

6:32 He's literally flying around the world. Like, back to your billionaires don't sleep point. He's traveling around the world with China and Trump and Singapore and to make sure.

6:43 That his deals are in place. Three years ago, he wouldn't have to do that.

6:48 These are the concessions you're going to have to make when the economy is looming.

6:54 Yeah, 100%. You're right.

6:57 Yeah.

6:58 So, yeah.

6:59 So, prayers first and foremost to anybody that's getting evicted. But for sure, the city of Atlanta, it seems like there's a lot of evictions that's happening. Like I said, nobody wins in that situation. It's not like landlords. That's what people need to understand as well. Are there some bad landlords out there that try to take advantage of their tenants?

7:16 Yes. But a lot of landlords are not bad people.

7:20 They don't get enjoyment for evicting people, but they also have a responsibility for their family as well. And if you have a tenant that's not paying, well, you're paying, right? Like you're paying the mortgage. So I know landlords don't really get sympathy a lot.

7:36 No.

7:37 But it's like, you know, when a landlord puts yourself in their situation, They purchased a building, they purchased a home, they purchased a multifamily home, right? And their way of actually keeping things afloat is actually providing housing for somebody else. Now, if somebody is living in said house and just stops paying rent, well, they're getting all the benefits of living in a house. They get in the heat, they get in the gas, they get in the water, they get in showers, and you're paying for that. They're not paying for it because they stopped. Now I get it. They like, look, I can't pay. I understand completely. But at a certain point in time, that's not the person's responsibility. It's not,

8:24 it's not, it's not the landlord's responsibility. So I just want people to understand that too, because it's not like, I don't think people have sympathy for landlords and a lot of landlords have gone under.

8:35 File bankruptcy. For sure.

8:37 And as we talked about with Ish, there's a lot of risk. There's a lot of risk that comes with being a landlord, right? So, and that's why people do Section 8 housing, guaranteed from the government. But also, what's new, and I think we might got to do an episode on this for our new leisure, is the sober living facilities.

8:52 I've been hearing about the sober living thing. They said that they're making a lot of money on that sober living side, but... Yeah, and that medical side, shout to Ty. Ty and drug treatment facilities, Yeah, that's what I'm saying. Yeah, that's the sober living. It's like a rehab center. The rehab center, they were saying like you could rent those out and it's almost another Section 8, but it's even better because the tenants, they're short-term tenants. They stay for like three months, two months at a time. And insurance companies actually pay.

9:21 Cover it and it's a premium on it.

9:23 Yep, for sure. And so it's a guaranteed bill as well.

9:28 So I met a few people, even in L.A., that was telling me how much money they was making from sober living facilities. And they said, like, that's the real thing that's bringing in a lot of money right now. But if you're a landlord, you want to kind of mitigate risk as much as possible. So, like I said, look to see what tenants you're renting to.

9:52 Yes. Yes.

9:53 If you buy a hospital, try to, you know, because those jobs are stable. Look at the jobs that's actually stable, right?

9:58 Yes.

9:59 Nursing.

10:00 Nurses, anesthesiologists, doctors. Yes.

10:03 Stuff like that.

10:05 Military. Yeah. At certain levels, yep. School. Yes.

10:09 Colleges.

10:11 For the time being. Like, you know, if you got off-campus housing, the colleges. Don't put yourself in a situation where you're going to have to evict somebody.

10:26 Yeah.

10:29 I know even for Ish, because he's talked about this publicly, he had a few tenants that owed him four or five months and he didn't put them out.

10:37 That's like, that's tough.

10:39 Because you're still having to carry the mortgage and all the expenses and then his thought was like, okay, if I put them out, it's going to be on their record and then I know they're not going to be able to go anywhere else and then show a year's worth of statements to be able to cover it. Like, I don't think enough landlords get enough credit for the grace they show when they don't immediately file. And then you're taking those costs.

11:05 So be careful. But the economy is tight.

11:10 And as a tenant, you got to be responsible.

11:15 Never, never.

11:16 Yeah, don't be in your stories popping bottles talking about, I can't cover, because some of them do that.

11:21 Yeah, and don't put yourself in a situation that you know you can't afford. That happens as well. Sometimes people, they'll falsify documents. They'll get somebody to write them a letter saying that they make this amount of money. Like, a lot of times, you put yourself in a situation where you just one paycheck away and things fall apart.

11:36 From disaster. Yeah, that's a bad thing. Like I said, even the roommate thing, right? That's becoming big. Like, Look, sometimes we're in a difficult economy. Sometimes you got to make difficult decisions. Hey, instead of moving in here, I'm going to move down. I'm going to move in this one bedroom apartment instead of two bedroom. Or I'm going to have a roommate. I'm going to live with a roommate.

11:56 It's uncomfortable, though.

11:58 It's better than being evicted.