April 9, 2020: Our economy is a sinking ship and The Fed is trying desperately to plug all the holes. Holes are appearing daily, no HOURLY. I’m going to go over just a few of the many clues we’ve seen in the news that shows where the ship is leaking.

West Michigan Market Update

As of April 8th 2020, we as a company have seen a 10% decrease in rents collected across all properties managed compared to pre-COVID months. A New York Times article dated 4/8/2020 reported 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’.

This will most certainly be a developing story as we head into the next several months.

The Holes

  • Residential Mortgage Servicer request Bailouts
  • Commercial Real Estate looks bleak
  • Unemployment – 16+ million and growing
  • Follow the $$
  • $500bn City, State and municipal Bailouts

Take Aways:

  1. Holes keep appearing and things are just starting
  2. Even if they (the Fed) can try to plug them with new money, there will be many unintended consequences.
  3. Residential Real Estate is seeking bailouts.
  4. Commercial Real Estate has a dismal present outlook.
  5. Unemployment is rising.
  6. Investment firms are ready to deploy capital when prices tank.
  7. Cities and States need $$.
  8. Stockpile your own cash reserve and be ready to act when opportunity presents itself

In Conclusion

This post is meant to bring to light the issues that are being created. This isn’t going to be fixed overnight. It’s important to stay vigilant. Pay close attention to the FACTS and you will find these clues yourself. Last week, I talked about TRUTH and LIES about the Financial Crisis. This week should help you find more of the TRUTHS.

Sources:

How to Sign up to Receive these Updates in your Inbox:

About the author

Justin Bajema, CPM® is the Founder & President of Access Investment Group, LLC and Access Property Management Group, LLC. He holds the coveted CPM® designation from the Institute of Real Estate Management (IREM).His love for everything Real Estate and business began with one book sent to him while he was returning back from the war in Iraq in 2003, "Rich Dad Poor Dad" by Robert Kiyosaki.Justin is a proud U.S. Marine combat veteran who served 2 tours in Iraq as an infantryman. He received the Purple Heart from Commander in Chief President George Bush for his wounds received in action while fighting in Iraq.He has successfully put together numerous real estate investment holdings from single-family homes to multi-million dollar apartment community deals.