Dec 1 Financial News: Rents Due, Refi Demand Plummets, ADP 534k, 3 Home Renovations (Huge Delay)

Video Closed Captions: 

here or something straighten this thing

out there we go so good morning everyone

michael zuber one rental at a time it is

december

1st

i only have one question for you

where did 2021 go

11 months done

one month to go

if you’re watching this channel you

likely have an interest in real estate

investing i am curious

what have you done this year if you have

some interest if you are stuck you’re

not sure what you’re doing my suggestion

has always been

get a buy box set up your buy box all of

those things so

again i want to remind you that the

course is going up january 1st

lots of you uh have interests lots of

you have thought about buying it if you

don’t uh if you don’t get it by december

31st the price goes up i don’t want

anybody to be upset last time we had a

price increase last january uh some

folks were

not happy so i’ve been giving you a

heads up for two months now well it will

be two months by the time this is done

so

just so you know link below uh before we

get started we got some people to say

congratulations to we want to say

congratulations to john

thank you for doing the work and getting

your deal and sergio and rohit rojible

hopefully i’m close uh congratulations

for getting your deal both of your cards

will be going out in the mail today

and then uh next up we do have some

christmas gifts going out veronica has

bought the package of an autographed one

rental at a time with the do your work

notebook

she wants these things so fast she wants

them mailed without the wrapping paper

i expect to get the wrapping paper

friday others have bought it and said

hey i want to see that one rental at a

time wrapping paper so

those will hopefully go out saturday is

my goal so i got those out of the way

put that over there now on to the daily

financial news uh first off

because it’s december 1st i think we

just need to say

rent’s due

rents being due it’s different when

you’re a landlord right when you’ve done

the work when you have your asset that

is the income event that starts at the

top of the cash flow statement and it

just it just feels different so again if

you’ve gotten a rental property

congratulations rents are due if you’re

doing the work and your plan is to get a

property you know maybe in december or

in the next year

the first of the month is

often seen as a good day

as we move forward we have um adp report

adp report came out this is a private

payroll report

it came out and showed 534 000 jobs were

created a little bit higher than

estimates estimates were for 506

but frankly down from october

down from october october was 570 so

pretty interesting there

a couple things i did note is the

service sector uh

really kicked in 424 000 jobs created so

pretty impressive uh found some

estimates for friday friday’s the big

number uh friday is uh the over under i

said was 600 uh the estimate is for 573

573 k

if you want to play over under just

leave comments below over under we’ll

have some fun uh unemployment rate is

expected to be 4.5

for most of my adulthood 4.5 was

considered

well actually was better than full

employment

folks the fed is supposed to be stable

prices and full employment

uh jerome powell made the mistake the

same mistakes that were made in the late

60s that caused the 70s he switched the

priority and we are paying the price and

will continue to pay the price for that

a couple of things first and foremost if

if you haven’t seen yesterday i brought

back bob langworthy who is the cpa i go

to to talk real estate i wanted to go to

him because i wanted to make sure we had

a cpa talking about cost segregation

carry forward loss bonus depreciation

bob and i had a great 20 25 minute talk

it was posted yesterday at 6 00 p.m so

if you want to hear a cpa talk about

bonus depreciation cost segregation and

why the little guy

me and you

can now use cost segregation on single

family homes or a duplex in my example

go ahead and watch that video and again

bob langworthy is in the course we talk

about seller financing how to

communicate to the seller how they can

save taxes

all of those things so well worth the

discussion check that video out

toys r us toys r us is opening a store i

don’t know if you guys know this but

toys r us

i believe late 2019 went completely

online

they are now opening a 20 000 square

foot store in new jersey there’s a mall

called the american dream mega mall

it must be big i’ve never been to that

mall must be pretty big but yes 20 000

square foot toys r us will have a

physical presence uh which is pretty

interesting uh jerome powell

i did a video yesterday actually two

on jerome yesterday he is really dr

jekyll and mr hyde at this point my plan

is to talk to anna kelly about that

later because there really is a language

to

um

is really a language to the fed uh so we

are um

going to talk about our experience and

actually i have some greenspan quotes at

the end of this video that i’ve captured

that i think are pretty good so again he

is now saying drop transitory

we brought you that months ago quarters

ago never was transitory

jerome powell part of his job

is marketing

it just is

jerome powell realizes that his voice

carries

and he does not want to freak out the

consumer

if jerome powell nine months ago would

have said sorry everybody inflation’s

gonna be seven eight nine percent going

forward that could have destroyed

the economy so what does jerome powell

do he looks in the camera and says don’t

worry folks it’s transitory

most people don’t know what that means

but they assume it means

a little bit

fed fed presidents

market they’re marketing folks and if

you want to know one of the best go back

to alan greenspan because he would say

all kinds of things that meant nothing

so again we will talk with hopefully

with anna kelly about jerome powell

later today mortgage refi demand

plummets

plummets uh this again is a week on week

number but yes mortgage refi demand fell

15 percent matt the mortgage and guy and

i have been talking about this for

several weeks

weeks rates are up

reasons to refi go down it’s a standard

function

if you are being called by mortgage

brokers be very very leery mortgage

brokers got fat

they added head count because they were

every i think what did we i think this

70 of loans on single-family homes have

been

um

had a had a loan recast in the last two

years something crazy maybe 65

but basically they’re fighting over ever

increasing pool so be very very carefree

careful lots of mortgage brokers are not

the quality

uh of matt the mortgage guy a lot of

them will just fish for fees so be very

very careful

happy and sunny i can grab

i can grab sunny let’s see

come here sunny

i know you want to stay in your bed

so right now i can grab sonny sonny is

our baby he is um

how old are you four months now you’re

whopping three and a half pounds

do you know what you’re doing buddy i

can’t quite grab happy happy is too far

away i think she knows if she gets close

to me i’m going to pick her up i think

that’s why she goes in the corner but

anyways so i’ll try to get happy later

in the day thank you for that

um

what else do we got oh mortgage refi

demand was down 15 be careful however

and again

i told you this was coming

this is so fun to me when i’m right it’s

so fun

applications to purchase

up up up

yes folks

human nature the consumer is a

predictable

it’s predictable when you watch

and you watch and you watch

purchase demand was up five percent

because rates went up

all of these channels talking about

rates going up going to destroy housing

don’t know what the consumer does

when rates tick up mom and dad get off

their butt and they buy a home

they don’t they they know they miss the

bottom and they act with energy in

urgency

if you would go back and study the last

50 years you would see this instead of

being in your mom’s basement and playing

with charts

yes

purchases

interest rates up

purchases

up

put that in your pipe and smoke it

next up we have an analyst from

jefferies this one kind of shocked me

christopher wood

thinks that oil now he’s talking about a

barrel of oil

could see a hundred and fifty

dollars

now to his credit he is saying if the

world economy opens up

he expects oil to essentially double

i read that article

thought about gas at my local gas

station being almost six bucks

yeah six i’m in california so we pay

like two bucks in taxes

but yeah six dollars

almost six dollars

where do where does gas go if oil

doubles can we have gas at ten dollars a

barrel or ten dollars a gallon

that would be kind of kind of nervous

looks like new york city is attacking

wall street once again and wall street

is pushing back there is real

conversations about why would wall

street stay in new york city obviously

the pandemic had a lot of people leave

and open up branches in florida look at

ark kathy wood i believe is

has already opened or at least plans to

open shortly uh there there is talk

about hey if you keep coming after

uh wall street we will simply pick up

and move there is nothing

um nothing there uh that makes them stay

anymore so it is going to be interesting

to see what happens in cities like new

york san francisco that have clearly

taken an angle and again

there was an old analogy uh that we had

um

you know when the when the door is open

like when the when the fence is open you

don’t quote unquote

punish the dog because the dog will just

leave

the door is open folks if you keep

attacking the rich in places like new

york or san francisco they will just

leave they’ll be like i’m out they’ll

pull a kathy wood and go move to florida

so

it is going to be very very interesting

to see and i actually think that wall

street as it is known as it is

constituted will not exist in five years

i believe the folks in new york city

will continue to clamp down it is an

easy attack and they will simply pick up

and go i don’t know who it will be

it’ll probably be goldman might be jp

morgan will be the first to leave and

then once one is gone

they will all move south

uh salesforce salesforce reported uh

kind of mixed bag first off they beep

top and bottom which again remember we

don’t really want to look back we’re

always looking forward they gave they

gave weak guidance for q4

it is going to be interesting to see how

tech holds up over the six next six or

nine months if guidance continues to

disappoint and rates go up that could be

a very big double whammy

so we shall see what’s going on

if you are a flipper or someone that is

looking to do remodeling in your home

be aware that three things are

significant delays

we’ve already talked about windows on

this channel windows and doors could be

8

to 30 weeks

folks i suggest not getting custom

windows get them off the shelf

30 weeks that is more than half a year

adding square footage uh there is a lot

of parts lumber a part of adding square

footage it is delayed normally 10 to 12

weeks

to get everything that is required and

finally kitchen appliances

yes the chip shortages hitting kitchen

appliances as well so again be aware

that if you are a house flipper those

three things could delay and i bring

this up for flippers because you have

carrying costs lots of you have hard or

private money

so be aware that your time horizons will

be delayed and you will be making extra

payments so make sure you’re doing the

math especially if real estate slows

down

make sure you can pay those holding

costs

uh what else do we got fanny and freddie

have come out with new loan limits i

don’t know how i feel about this the

average or the max for low areas used to

be 548 548 000 right a fha loan right

the loan max

now it is 647. that’s a hundred grand or

99 grand

the high dollar amount like san

francisco

used to be 22

9.70

this just feels like more reason for

housing to go up because you can still

now you can get an fha loan at higher

limits man crazy

is now saying

drop transitory we’ve talked about that

but also warning

that he sees at least a risk it is not

his

base case but it is out there as

possible that inflation

could accelerate

next year

yeah

not transitory not falling but

accelerating

pretty pretty uh pretty interesting so

folks if you don’t know we are looking

to help a million people it is now my

life’s mission i’m sure it will take

decades and i am okay doing that at one

rental at a time i’m taking this concept

of 500 and putting it on steroids

in order to do that i know that i need

to produce consistent content which

hopefully i’ve proven over the last

three years i am comfortable with

i have to produce good content

i will continue to produce what i am and

i believe me i’m trying to get better

every day

but third in order to get a million

i need your help each and every person

watching this today i need your help you

need to hit thumbs up you need to leave

comments you need to subscribe

you need to share videos that hit

different i produce four or five videos

a day hopefully one video a day three

four videos a week hits different when

that happens please share it please ask

others to join please tell people about

the daily financial news

i’m ready to do it i’m going to need

your help if you want to get on board

please do again we will do some

marketing i will spend some money

it’s all in the works i have a call at

nine o’clock today to kind of brainstorm

some things so i am now excited about

this goal of a million a month ago i was

like that’s nuts nobody can do that

then it got a little comfortable then i

had that conversation i think it was on

saturday it might have been sunday with

the growth architect

and she kicked me in my butt and i’m

like

all right let’s do it million people

i figure in life you die twice once when

you physically die in second when the

last person says your name one rental at

a time or mike michael zuber will

hopefully be said for 50 to 60 years

after i am long long gone because we are

going to be impacting lives people will

be building portfolios people will be

passing them down

and hopefully every once in a while

somebody says that mike zuber guy was

very helpful so we’re going to give it a

shot

let’s do it together tag me on instagram

tag me on facebook

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consistent you can help me

let’s go bye

Dec 1 Financial News: Rents Due, Refi Demand Plummets, ADP 534k, 3 Home Renovations (Huge Delay)

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