Epic Real Estate Investing - Record High Defaults on Storage Units – What This Means for the Economy and You! | 1307

Episode Date: June 20, 2024

In this compelling episode, the host dives deep into the current economic landscape, revealing a stark reality often overlooked amidst positive headlines. Despite low unemployment rates and a booming stock market, many Americans are grappling with overwhelming financial burdens. From skyrocketing debt and unattainable housing costs to families resorting to living in storage units, the podcast paints a vivid picture of economic hardship across the nation. Listeners will hear gripping stories of individuals facing financial distress, including defaults on storage units in Las Vegas—an alarming indicator of the economic strain felt on the ground. The episode not only sheds light on these pressing issues but also explores their ripple effects on businesses and the broader economy. Amidst these challenges, hope emerges through innovative solutions discussed on the podcast. From the rise of digital banks and budgeting apps to strategic investments in real estate and the stock market, the episode offers practical insights for navigating these turbulent financial waters. It also underscores the critical importance of financial education and resourcefulness in securing a stable and prosperous future. Tune in to gain a deeper understanding of the economic realities impacting millions today, and discover actionable strategies to thrive in an uncertain financial world. This podcast is essential listening for anyone looking to grasp the true state of our economy and take steps towards financial resilience. P.S. Whenever you're ready to go deeper and further with your real estate investing, looking into my partner program to help you get your first deal might be the move... take the first step here for free 👉 https://epicearnwhileyoulearn.com/ Sponsor: Baselane - Banking Built for Real Estate Investors Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. The economy, it's a bit chaotic these days. You know, many Americas are struggling with rising debt, unaffordable housing, and rapidly increasing costs of living. You know, stories from across the country, they really highlight a troubling friend. People are falling behind on their bills. They're defaulting on loans and facing financial instability left with really desperate decisions.

You know, take this example of a storage facility here in Las Vegas. I've got a buddy here that all is a few. And he says he's seeing more defaults on their units. than he's ever seen. And you got to wonder, is it the, is this just the tip of the iceberg when people start abandoning their possessions?

And the job reports that came out yesterday through, I mean, it went through the roof. The stock market is thriving. Unemployment numbers are low. The GDP is positive. The median price for a house continues to rise. I mean, I know you might be saying, hey, it's down 16% in my market,

but, hey, if it's down 16%, you don't market, it's 16% up somewhere else. That's just kind of how math works. The point here is all economic indicators point to an economy that's doing pretty darn good. And, you know, back to my friend, he runs a pretty tight ship in his storage business, and he's seeing a record number of these defaults for his facilities. And although he doesn't allow this, he is seeing this with his competition. You see, it's against the law to live in storage units in Nevada,

but people are doing it in a big way right now in big numbers, indicating really broad financial distress. And that's a very different picture than what the economy is conveying. And so the impact of these financial struggles is far-reaching. You know, when people are struggling to pay their bills and it doesn't just affect the immediate living conditions, it can have a long, you know, long-lasting impact on the overall lives. Their credit spores is one example because a lower credit score, what that does is it

leads to higher interest rates on loans, and it gives you fewer financing options on every thing from housing to cars to, to, you know, even getting a suitable home to rent. It really dictates even like where you live. This really creates just a vicious cycle of financial hardship. Furthermore, as more people face these challenges, the broader economy feels the strain. Businesses suffer as customers cut back on spending, businesses spend less on advertising, on ordering supplies. They hire fewer people. They cut back on the hours on the people for the people that are working for them. They might fire some. It's just like a game of Domino's. Just one knocks down the next. And I don't know if you've seen this shift.

This shift towards a cashless society and an introduction of punitive measures for cash transactions on penalizing people for using cash, meaning some businesses are just starting to refuse to take it. It happened to me just last night for dinner, effectively forcing customers to use parts, which might incur additional costs and fees and then being charged a fee to convert that cash into digital phone by pre-paid cards. These reverse ATMs, they're popping up everywhere. And as the name suggests, a reverse ATM is a machine into which customers they deposit cash and are given a debit card with the amount that they have deposited onto that card.

And so it's a little scary. However, there is hope. You know, by leveraging innovative financial solutions, embracing government support programs and tapping into lucrative investment opportunities, people can navigate these challenging times and secure a brighter financial future. There is hope. And this spans through the whole spectrum of Americans, regardless of what they earn from the minimum wage employee to six-fitting salaries. Because the number of people, and it's a rapidly growing group that make $100,000 or more a year, and are still living paycheck to paycheck. That's unreal. But

FinTech innovations like digital banks and budgeting apps provide accessible ways to effectively manage finances and avoid consumer debt. And believe it or not, government programs offer crucial support to those in need, helping to alleviate some of the economic pressure. Moreover, strategic investments in real estate and the stock market that can provide significant returns, as we all know, even in an uncertain economy just by incorporating just some minor habit changes. So by staying informed and proactive, our society, we can break free from the cycle of financial hardship and build a stable, prosperous future. The big problem is we just don't teach our kids and our young adults how not to get into financial trouble in the first place. But we don't teach our youth to be resourceful or even think critically.

You know, there was a time where that was required just for survival, but not anymore. And further, our younger generation's biggest asset, they're you, It's wasted because they just don't know any better. But regardless of where you stand at the moment financially, let me run a few ideas by some real financial solutions, some innovative ones too and that can really alleviate some financial strain. You know, number one would be like digital banks, like Chime and N26. They provide features that help users avoid fees that help them save money effortlessly.

Chime, for example, offers no-feet overdraft protection and early access to direct deposits, which can really help users manage their cash flow back. According to a survey that Chime released, 79% of their users report feeling more financially secure since switching to their platform. These features, they can be crucial in helping individuals stay afloat without resorting to high-interest loans or going deeper into debt. I use wealth front. It's an online bank because it's just so easy to set up. of these small automated disbursements to different accounts, like an emergency account, an investment account, a cash account, a tax account, a vacation account.

I started doing this, I don't know, seven, eight years ago after reading the book, profit first, recommended reading, by the way. And the main idea of this book is to pay yourself before you pay your bills, even if you start really small, like with just 20 bucks a week. And it works like this, 20 bucks, each week goes into an emergency account, for example, and then you just kind of start bumping that up gradually as time goes, and then when you automate it,

you start to, you start learning how to get by without it and find that it's really not that difficult. You hardly even notice. But the best part is it's amazing how quickly that little emergency fund becomes something really significant that actually has you prepared for an emergency. So good book, profit first.

And speaking of books, I just released mine last week, escape, crushing conventional wisdom with real estate invest. It's on Amazon for 20 bucks, or you can go to Myescapebook.com to be grabbed for four bucks, plus he get a bunch of bonuses there, including a free course that Robert Kisafi, he asked me to make just for his rich dad's student. You can get that at myescapebook.com. So here's another idea, budgeting apps, like YNAB stands for you need a budget and mint. That's another one. That's a pretty popular one. And these apps, what they do is they help users track their spending. This helps them set financial goals and manage their money more effectively.

A study by YNAB found that their new users save on average of $600 by their second months and more than $6,000 in their first year. So there's this saying, what gets measured gets managed. I think let's Peter Drupier that said it. I think he said it first. The idea, though, behind that quote is that tracking and measuring key performance indicators, they're essential for managing and improving aspects of business or your personal development or even your personal finances.

Another similar quote is, what gets measured gets done, which emphasizes the importance of accountability and tracking progress to achieve your desired outcomes. And such tools like these apps, they really empower users to take control of their finance, reducing the likelihood of falling behind on bills and raccoon up more than it. And consider a real-life scenario like Sarah. She's a single mother struggling to keep up with her bills.

And by switching to a digital bank like Chin, she avoids costly overdraft fees. And with the help of a budgeting app like Mint, she gains a clearer picture of her finance. And this new found control of hers, it allows her to prioritize essential expenses and gradually build a sleep well-at-night account. And even an investment account, providing her with greater financial stability. So you've got a better sister. I mean, by all means, embrace it. and don't listen to me about what I'm saying,

but ignoring the potential of these financial innovations, it means really missing out on unforeseen opportunities that could really ease some financial burdens and improve a person's overall financial health. Now, consider this, the government's, by way of their financial support programs. And this idea that came to me a little different than what I would normally cop with,

but was inspired by my first wife's mom, who was a social worker, and on Sundays, she had always cooked a feast with my favorite day I'd like to go out, I just get my rub on. I remembered her saying multiple times in multiple different ways, how there's no reason for someone to be hapless because the amount of government assistance available is more than enough to help all of those in need.

And it was frustrating to her because most people just didn't want the help. And she'd say how tough it was at her job just to give stuff away to generally help people. People would, they would resist her at all costs and rather just stay where they were in the position that they were in. Anyway, one of those obvious programs is the unemployment that it fits. And, I mean, they've been the lifeline for so many people during down economic times. And there's SNAP, Supplemental Nutrition Assistance Program, TANF,

and then there's SSI, there's DITC, there's Section 8, CSGB, I think. And then there's job training, multiple job training programs. Don't ask me how I remember those. I mean, I guess we talked about it quite a bit, but overlooking the impact of government support programs means really disregarding the vital assistance that they provide to millions of Americans. And so here's another idea. Strategic investing, real estate, obviously my go-to has historically been a very stable and profitable investment. According to the National Council of Real Estate Investment fiduciaries, the real estate has produced and delivered an average annual return

9.85% over the past 25 years of self. And that's investing passively into funds and the rents. But by investing in real estate directly, because of the ability to use leverage, you can multiply your returns by a factor of five, not to mention the steady stream of income that rental properties can provide, offering both the immediate and long-term financial help. And if you don't

think you can afford it, or you need this big giant down payment, Stop listening to the naysayers out there. I get it, though. There's a lot of them out there. It's what they're hard to avoid sometimes. But if you'd like to hear the other side of that argument, because we know there's always two sides to every story. So I created this zero-down kit for my private clients on how cheap-fi investment property

with little to no money there. If you like a copy, I made it really easy. I uploaded it for you over at zero-down kit.com. Another investment, the stock market, despite its volatility, has consistently, delivered strong returns over the long term as well. I'm not against it at all. You do lose out on the ability to leverage and multiply your returns, but still way better than doing nothing. I mean, the S&P 500, a benchmark index for U.S. stocks, has an average annual return of about 10% since its inception. Investing in a diversified portfolio stocks to some degree is a good move for most people.

Another real-life scenario like Jasmine, who decides to invest in a rental property. And in growing neighborhood. And by renting the property out, she is able to generate a nice, steady monthly income that covers the mortgage and covers the expenses, produce a little bit of a cash flow for herself. And then over time, that property's value that increases, providing her with substantial equity. Additionally, Jasmine invests in a diversified portfolio of stocks taking advantage of compound interest to build her wealth. These strategic investments, they enable Jasmine to achieve financial independence and security, regardless of where she started. And just, you know, shifting your mindset from a who will pour me to imagine the possibilities by embracing some calculated strategic

investment opportunities that can turn economic challenges. It's a genuine probabilities for growth, for prosperity. And as the old ancient Chinese proverb does, to know and not do is to not know. And now you know, I'll see you next time. Take care. Stop spending countless hours on busy work and focus on growing your real estate business and maximizing your return. Baselane is a comprehensive property management platform that caters to the needs of landlords and real estate investors by offering a suite of financial tools designed to simplify the management of rental properties. The platform provides features like dedicated banking services, automated bookkeeping, rent collection, and insightful analytics to help landlords manage their

properties more efficiently. With Baselane, users can streamline their rental property finances, automate various administrators' tasks, and gain valuable insight to make informed decisions about their investment. Head over to baselain.com slash mat and sign up today for a free chance to win a $500 Amazon gift card. Sign up for free, no monthly fees. That's baselane.com slash mat. Baselan.com slash mat. That's B-A-S-E-L-A-N-E.com slash M-A-T-T. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too?

There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow.

You didn't know home boy, we got the cash flow. This podcast is a part of the C-suite Radio network. For more top business podcasts, visit c-sweetradio.com.