What My 10,000 Tenants Reveal About The Economy (youtube.com) (Ken McElroy)
‘This is the time to take care of your tennants and keep occupancies high. Do not try to maximize rent or maximize the market. Rents are passing people’s wages, and they're getting squeezed. ... Evictions, and juts for a few dollars here and there.
Turnover costs of. Painting, cleaning, marketing, staff to rerent, leasing commissions.
Many renters don't look at their current renters as customers, and are always looking at new ones. Chasing new business instead of taking care of current business. You should engage on a regular basis, and find out what residents need and when, how long does it take to service the renters. Customer protection. Service team (distinct from renter team). Tenants need certainty. Rather than a month or two free or something, renters want lower rent. Lease on properties are on a different kind of loan and have a different budget than you have when you're stabilized. They wanna know what their rent is going to be.
1m new apartments hitting the market this year. Those started a couple years ago, before interest rates went up. But after that it costed 8 or 10% more to build so many builders held off. There will be a dip in availability which means more renters after the current coming-on supply is passed.
Late fee forgiveness and support from the renter is built into the contract of professional landlords. It's based on the lease agreement and number of times.
The main driver of housing is people. Supply of people create demand.
18-25 is the demographic. When people graduate high school they rent an apartment. You start to buy homes at 30 and average is 35. But migration might be different demographic.
Even if properties are poorly run, if business is easy (lots of customers) there will be profits anyway.
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A bank takes money from mainstreet and invests it for you (wallstreet).
GenZ, are they bad with money? Or are the things just so expensive that they don't bother trying to buy a house and instead buy other things? (Boomers had 40 or 60% more buying power or something.)
ClassA property is just a lot less management, which is kind of a cupon.
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Half of all gold demand is for jewelry. There's no bitcoin jewelry.
Stable source of demand for gold (central banks too).
Bitcoin has 1/4 the yearly investment as gold.
Bitcoin as a diversifyer.
Detractors used to say, But you can't use it to buy a coffee. Now, people don't talk about that much. Since the advent of the ETFs. It's an investment.
So they're (currently) different assets.
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When owning Bitcoin, you're mostly owning ‘crypto demand’ not monetary policy or conventional risk, which two things affect Bitcoin price much less except in bit events or trends.