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You CAN NOT Escape The Biggest Real Estate Crash of the Century
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Dec 11, 2024
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your home your nest egg your financial
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future it can all vanish in the blink of
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an eye what's coming will make the 2008
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financial crisis look like a minor
0:12
correction the real estate crash looming
0:14
on the horizon will not only affect the
0:17
wealthy and The Reckless it's coming for
0:19
everyone and the worst part there's
0:22
nowhere to hide even real estate giants
0:25
like Blackstone are offloading
0:28
properties at a loss so how did we end
0:32
up here and most importantly what does
0:35
this mean for you and your financial
0:37
future today we are discussing when this
0:40
crash will happen how severe it will get
0:44
and most importantly what you can do
0:46
about it when is the Real Estate crash
0:49
happening the real estate crash is no
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longer a prediction it is our harrowing
0:55
reality and 2024 is the year when it's
0:59
unfolding according to the business
1:01
standard massive buildings like the Aon
1:03
Center in LA are selling at discounted
1:06
prices a 45% discount to be exact yep a
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building purchased for a staggering
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268.7 million in 2014 was just sold for
1:20
$47.81
1:30
even Blackstone the world's largest
1:33
alternative asset manager has defaulted
1:36
on its
1:37
562 million Bond the reason behind this
1:42
crash two factors Stand Out inflation
1:46
and the pandemic preco investing in
1:49
commercial real estate had always been
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desirable I mean if we think back to the
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2008 recession the most significant
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cause of the downturn was res idential
2:00
real estate and in response investors
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pivoted to what was deemed as safe
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commercial real estate because
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businesses would always need a
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playground for their employees and those
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who didn't buy the property outright
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they would rent ensuring continual
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income for lenders and
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landlords but no one could have
2:24
predicted a global pandemic when the
2:27
pandemic hit commercial real estate took
2:30
a heavy blow with people cooped up in
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their homes and working from home office
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spaces were no longer
2:37
needed in a desperate attempt to manage
2:40
the market lenders offered L sees extend
2:43
and pretend contracts these agreements
2:46
gave more time for mortgages to pay off
2:48
their loan with the hope that post
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pandemic it would be business as usual
2:54
literally but that hasn't happened today
2:57
16% of the companies are are fully
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remote and 22% of Americans will work
3:03
remotely by 2024 compared to only 177%
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before the pandemic The New Normal
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normalized the work from home culture
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and let's not forget about
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inflation companies are buckling under
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the weight of continually Rising
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interest rates making their short-term
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lows incredibly expensive there is no
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immediate light at the end of this
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Tunnel real estate invest
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and Equity Fund manager Grant cordone
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said that this is the biggest real
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estate correction of his lifetime
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suggesting that the 2008 crash was not
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even comparable how severe is the crash
3:44
there will be bank failures this is a
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problem that we will be working on for
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years more these are the comments made
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by Federal Reserve Bank Chief Jerome
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Powell and there have been bank failures
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and we're not only talking about the
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crash of local and Regional Banks we are
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seeing those too but we are talking
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about the collapse of what is regarded
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as the biggest bank failures in American
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history the failure of banks such as
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First Republic Bank and Silicon Valley
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Bank which both had $232 billion and $29
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billion in assets respectively when a
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bank fails we will see more caution in
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the banking system typically from
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smaller Banks you know those ones who
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serve ordinary amerit am an they may
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Implement stricter lending strategies on
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loans mortgages and even credit cards
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accompanied by potentially higher
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interest rates this will significantly
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lower spending power holding rapid
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economic
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expansion here's the thing with the
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continually Rising popularity of work
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from home culture and unrelenting
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interest rates it doesn't make sense for
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mortgages to refinance so commercial
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real estate will continue to fail and
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this isn't just the US problem one of
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China's most prominent developers
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evergrand has been ordered to liquidate
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its $240 billion worth of assets to
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repay its $300 billion total liabilities
5:19
but make no mistake amidst the turmoil
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there's a shift on the horizon what can
5:25
you do major investment firms are
5:28
defaulting banks are are failing and the
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market sentiment sits at extreme fear
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with all these unfolding it backs the
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question should you pursue real estate
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should you even get licensed as an agent
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the answer may surprise you but it is a
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resounding yes bear with me for a moment
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the current market crash is focused on
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Commercial Real Estate while we may be
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seeing price drops in the residential
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Market some metros are also experiencing
5:59
in incredible price increases the
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significant decline is in the commercial
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sector secondly whether a company sells
6:08
a discounted price or an investor buys
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both parties will likely need an agent
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in fact a market crash should increase
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the demand for knowledgeable real estate
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professionals think about it when a
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company is selling at a discounted price
6:25
it needs someone who can protect its
6:27
interest it's already taking a hit on
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value doesn't want to reduce its price
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any further this is why GL brokerage a
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prominent Real Estate Services and
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investment company has been appointed to
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resell blackstone's $38 million debt on
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the Manhattan office tower on the flip
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side investors need skilled negotiators
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to drive the price even lower push it as
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far down as they can and this is where
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you come in to thrive in this new
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landscape real estate agents should
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focus on three key areas number one
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increase your knowledge of commercial
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real estate understand the nuances of
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different property types zoning laws and
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market trends specific to commercial
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spaces as an agent staying informed
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about these developments is crucial by
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keeping your finger on the pulse of the
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market trends and policy changes you'll
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be better positioned to help your
7:28
clients navigate this changing and
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challenging landscape number two improve
7:34
your negotiation skills in this volatile
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Market the ability to broker deals that
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satisfy both parties is more important
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than ever track and review every
7:47
negotiation you have been involved in
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whether as the agent or in a learning
7:52
role and ask yourself what can improve
7:55
from it and find ways to build trust not
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not just with clients but with the
8:02
opposition try to understand where they
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are coming from empathized and always
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show genuine interest let them know you
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are actively listening and above all
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dissolve any Mis understandings this
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will show the countering team that you
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are not just after a sale but you are
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keen on a favorable outcome for all
8:25
parties involved number three Ure sure
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you can provide clients with the best
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value this might mean expanding your
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services leveraging technology or
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forming strategic
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Partnerships understand what the market
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needs and the person providing
8:44
it the real estate market is evolving
8:48
and those who evolve with it will
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succeed it's as simple as that turbulent
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times are ahead no one can deny that
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however
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real estate will continue to be one of
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the best investments and not only for
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investors but also for families meaning
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real estate agents will be needed and if
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there's one thing that the 2008 crash
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taught us is that we are way more
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resilient than what we think position
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yourself as an authority grow your
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network and keep your eyes on the
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horizon we will need to learn how to
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repurpose property and change our
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overall outlook on real estate but one
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thing's for sure as long as men walk the
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earth shelter will be needed are you
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wondering what's next for the American
9:40
economy hit that subscribe button so
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that we can keep you in the loop as the
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market shifts
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