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I looked at few trailers. This one is in good shape, not far from me. https://www.facebook.com/marketplac...ghtspeed_banner&referralCode=messenger_bannerThe second-order-effect of this is, non-professionals basically CANNOT AFFORD TO LIVE in these areas.
Bozeman, Missoula, Kalispell, Whitefish.
I'd seen this years ago, on a small scale - in Aspen, Colorado, 1990. Servers and ski-resort operators couldn't afford to live within driving distance. Aspen is remote - no interstates or major highways going in or out. Obviously the developers, and now the high-worth part-time residents, want it that way.
It's less wonderful for restaurant owners, who cannot afford to pay waiters and cooks wages that enable apartment-rental, and cannot even provide lodging. Land was and is so damn expensive.
Now it's the WHOLE WESTERN PART OF MONTANA. Even unappealing little towns, far from the glitter of tourism. I knew Libby, Montana, from 25 years ago, working for a contractor to the Burlington Northern railroad (now BNSF) and I knew prices were cheap there. And the inbreeding, common. That kind of village.
But, even there, prices have increased fivefold.
Unfortunately, sophisticated RE investors often only understand one area to make money, more RE.... So their answer to every question always comes back to buy this RE then hold, flip that hold to another RE hold, rinse repeat. Have a number of 1031 exchange clients, they will do anything to avoid taxes, including eating huge monthly costs to avoid it..I am not a salesman. I would be the worlds worst salesman. So I don't really get what in the hell people are thinking. I required a structural inspection, because ya know they had treated for termites and the LR floor was not quite a bouncy house. The realtor felt like neither the buyer or seller should have to pay. They got some yahoo contractor to add one 4x4 and concrete block. Lol. I'm sure the deal could have fallen apart over $200.
What really gets me are the sophisticated RE investors. Many of them with channels like the above. They see the collapse coming BUT everyone just thinks its going to be like the last (in this case 2008). I don't think that happens now. Real Estate is going to be an awful investment, probably for a generation (~20 years). When everyone thinks you are an idiot for buying a home then its time to move.
1031 exchange
I've watched his channel, time to time. He's not wrong but he brings little to the discussion, and he plods and hammers obvious points.Ever since 2022, the number of active real estate agents has been consistently dropping, and since the National Association of Realtors knows this, they are now hiding the data so we are not fully aware of how many agents are in the business. But it's more important to look at why are they running out of money. It's because the housing market is so unaffordable that transaction volume is lowest that we have seen since the start of the pandemic.
Dang cj, tell us how you really feel...We're just at an end-phase of a bubble economy.
And real-estate agents, who are just people paid for their schmooze- and yakking-abilities, are the front-line footsoldiers. I have little concern for them...it takes little to get into that field and they're easily shaken out, too. Meantime, they made a few $20k commissions...hey, savor it, Karen.
Dang cj, tell us how you really feel...
Can you imagine even for an instant what it is like working in and around todays customer base in any sort of retail environment? Seriously, look in the mirror and picture having maybe 500 to 1000 of those mugs to work with...! My database had 6000 names at its peak, my team lead had 22,000. Managing and assisting RE transactions is a 7 day, 80hr/week pain in the butt job, loads of driving, negotiating, problem solving and far too much hand holding and counseling. Yes, there was a load of part timers, who were not very good but sometimes scored a check. They are on the path to extinction as brokers pass costs back to agents, forcing non producers out of the field.
When I started they said it took 243 contacts to make a sale, 243 different people you had to have a conversation with for the cash register to ring. Average sales were under 250k at that point, so at 3% for the side commission was 7500 before splits and office charges. My net as a nubie was under 50% but let's say I did get that so 3750 divided by 243 equals a whopping 15 bucks per contact, showing, listing presentation. The average agent, across all the mls's closes 6.3 deals a year(2021 data, they no longer reveal results), so that got them a whopping 24k for a year but you had to make 1500 contacts or roughly 4 per day to get that...
So where do you draw the line? You have little concern as it takes little to get into RE, what about bagging groceries do you have little concern for those folks? People who work in gas stations? Night watchman? School bus drivers? House cleaners? Construction workers? Sign people on road crews? Day care workers?
So dear cj, just what is legitimate employment from your perspective...... and don't ever call me a Karen again!
So where do you draw the line? You have little concern as it takes little to get into RE, what about bagging groceries do you have little concern for those folks? People who work in gas stations? Night watchman? School bus drivers? House cleaners? Construction workers? Sign people on road crews? Day care workers?
So dear cj, just what is legitimate employment from your perspective...... and don't ever call me a Karen again!
cj,Goes without saying, I'm generalizing.
I'm glad you have a going business. I'm glad you take pride in it. But know this: From what casual observations the public has, those esteemed qualities are not readily seen.
skin in the game
Not news, just something I came across. Reminds me of the "Sears houses."
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