So I was talking with my buddy Craig the other day and we were conscious
messaging it back and forth and you know he's one of those guys I talked to very
often and he brought up a very interesting point and now you gotta
realize I already knew what he was referring to but he brought it up to the
point where was much more of an extensive state right and he brought up
the idea of the rent striking and apparently they were the last couple
weeks this word rent strike has been you know
skyrocketing in terms of google searches so I messaged Sam I give Sam a call and
this is around like 11:30 p.m. at night and I'm I came in are you are you okay
to talk you know you are you decent and he goes yeah yeah of course and I asked
him because he's more the marketer between the two of us right between
between him and I he doesn't marketing I do more of the investment and he there's
very more aware of all these Google and YouTube algorithms and things like that
so I said is this true is this true that the term rent strike has spiked over the
last couple weeks all right and sure enough he checks the data it says yes
all right so I decided I thought I'd make a little video talking about rent
strikes what does this mean for tenants and landlords what's the best idea
moving for it and overall just offer a 30,000 foot view because a lot of you
guys don't know this but not only my landlord I'm a renter and I'll granted
that rent check maybe a little bit bigger than the average person in terms
of how much I pay for rent but my wife and I we choose to rent we actually
ended up moving from a four-bedroom house to an apartment complex a three a
three unit apartment unit and you know I personally prefer renting but this is
coming from a place I offer that to you because I'm saying that I am not only a
landlord but I am also a renter as well right and I get it we live in a society
where you know we live in a tip of the iceberg type of social culture where
only the highest of the highs and the lowest of lows get shared on social
media you know you scroll down on Facebook you see the absolute you know
worst tenant or the absolute worst landlord or you know negativity spread
so I think we can all agree that these are the type of things that's being
shared on social media particularly pages like Facebook well there are good
tenants there are bad tenants or good landlords ballons guys I've had both
right so let me offer this to you right and Sam made a phenomenal point on the
rent strike and some tax laws that can come of it he offered a phenomenal point
in matter of fact he made video just yesterday the time of this
recording you know that if people go on rent strike then what's gonna happen is
you're gonna eliminate these small private landlords the mr. mrs. Jones who
are willing who are more than willing to have a conversation with you and they're
gonna be replaced by the McDonald's right the big boys who will absolutely
and I guarantee you cuz I've gone toe-to-toe with these guys that they
will not care what your Excuse or what your reasoning your mom could have been
in the hospital you could have medical they will not care if you have your mr.
and mrs. Jones that are your landlords and they're collecting rent from you
sure they're made there may be times where they're maybe a little strict or a
little you know hard on you for something I don't know but I guarantee
you that situations gonna be a lot better for you as a renter compared to
somebody who is a big corporation their job is literally every single day talk
to people like you and and just not care and not have a care in the world and
their number one thing is just to collect that check from you every single
month regardless of what happens or they're gonna issue something in which
you will be kicked out you will be evicted a sheriff will show up and you
will have to leave the premises so he made a good point so please go watch
that video it's an opportunity for me to brag on my brother a little bit but let
me offer you the big picture let me offer you the 30,000 foot view because I
think now is the time where the experts need to step up and speak and in my
opinion I think now is the time we're only the experts should be allowed to
speak and be heard I don't want to hear an individual who has a degree in
women's studies who's 29 years old who's never owned an investment property give
me a vise on how landlord-tenant on should be working right no disrespect to
the people who have degrees in women's studies but that's just not the way it's
gonna be done if I have a medical issue I'm not gonna go to the kindergartner
teacher I'm gonna go to the surgeon I'm gonna go to the individual who has
expertise in the medical field so let me offer you the big picture right let me
offer you this so let me speak to the landlord first I have something to say
for the landlord and for the renters but let me start with the renters first let
me offer you the big picture let me share with you what's most likely going
to happen so number one let's say you do go through with this rent strike and I
understand that the courts are closed right now and unless an individual or
landlord has and financing they're not able and able
to file but for as well I'm concerned you know if you bought it through owner
financing or you bought it through a bank you haven't bought it through
Fannie Mae or any other government type of financing you're still able to file
for an eviction correct me if I'm wrong but I believe that is the case the fact
of the matter is once this all blows over whether it be one month two months
three months or the rest of the year you're most likely going to be filed in
the Vixen you're gonna be served in the eviction notice you're going to get out
now let me share with you what happens that eviction goes on what's called as
your credit report and that's gonna make it extremely harder for you to rent
anywhere else and not only that but you're damaging your credit so yeah sure
you know you skip out on the rent and but I would argue that's the exact
reason why sometimes the poor stay poor and the rich stay rich because a lot of
times based on my observation and my experience a lot of the individuals who
struggle financially are the ones who do not know how to delay the short-term
gratification so congratulations short term it will
work for you if you decide not to pay rent you go on the so called rent strike
and you don't pay rent for one month two month three or however long this lasts
congratulations you got two three months of free rent but it's gonna damage you
for a very very long time a very long time it's gonna make it very hard for
you to rent anywhere else it's gonna be very hard for you to get a car for you
to buy a home I mean you're really putting yourself in a situation that
that is not good long-term right so that's something at least for you to
think about right if you're gonna make that decision on whether or not you're
gonna go on this rent strike and again guys Sam and I both we rent congrat you
there you go surprised right that your landlords who owned 80 something units
we also rent so at least have that information and here's another thing
right here's another thing that I want to offer you a piece of information
let's say you do go on this rent strike and and the mortgage doesn't get paid
right can we both agree that right now there is nothing at the time of this
recording rights May 1st of the time of me recording this that there is nothing
set in stone there's nothing concrete that is allowing landlords and small bit
whatever to the sole called skip out on the mortgage right if anything they're
talking about furloughing which doesn't help because at the end of the day after
the two-three months you're gonna have to pay that in full and can we both
agree that most landlords do not have that type
capital reserve most landlords are not driving around in Lamborghinis and
Ferraris there are people who literally just live oftentimes right next door
there are individuals who have the same financial situation that you do they
still go to work they still go to 95 jobs matter of fact based on my
experience of traveling the country and teaching aspiring real estate investors
90 percent of people who are landlords still have a 95 they still have a job so
really I don't I don't know who you think the enemy is but there is no enemy
all right so we're on the same page right so can we at least agree that
there's nothing in concrete that's allowing landlords to skip out on their
mortgage just like how there's nothing concrete on renters allowing you to skip
out on the rent so what what happens typically landlords pay their mortgage
the way the banking systems work is that these mortgages gets packaged they get
packaged into what's known as security bonds right bonds or securities whatever
you want to call but they they get packaged together into securities and
these securities get traded right they they're investable vehicles in which
pension funds a lot of pension funds invest their funds and their money their
capital into these packaged securities these packaged bonds well guess who
invests into these pension funds guess whose money are in these pension funds
it's the teachers the essential workers the nurses so for a guy you gotta excuse
me that this is this is the exact reason why I scroll down on Facebook wherever
maybe I'm you know in my office just distracting myself for five minutes
before I get back to work but it scratches my head this is the exact
reason why I'm scrolling down Facebook I'm scratching my head because you know
you got the same person that's going yeah rent strike 2020 and then I scroll
down on their page and they're posting stuff on all we need to thank the
essential workers we need to applaud these are our heroes guys these are
totally contradicting actions by you protesting and pushing for a rent strike
you are directly hurting the essential worker you're directly hurting the
teacher you're hurting the nurse because guess were their hard-earned money their
life savings guess where it's at it's in these pension funds that's anchored by
the mortgages in which your landlord pays which comes from you so for a lot
of people who don't understand the economics and guys
understand we make our pains we make our facts based on what we know right but as
an individual who's a landowner and expert and an expert in the landlord to
tenants right and in the real estate investing space I offer you this as
things to chew on as things for you to think on before you make that post on
Facebook before you start screaming from the rooftops why this would be this and
why this should be that and whatnot and guys again I rephrase 90% of people who
own rental properties are small business owners you're talking about employees
and I think the last time I checked 60 million Americans are employed by small
businesses so not only do you have you know the issues with the pension funds
and in the central workers and their lifelong savings but you also have
issues with small businesses you also have issues with the banking system and
they're already in a liquidity crisis which means the banks don't have enough
actual physical cash in the vault which affects everything by the way that
affects your ability your credit your ability to get a house you have to
refinance whatever it may be it doesn't matter right it affects everything it
affects the grocery stores are you shopping you know every everything in
the economy is attached right it's a circle of life right as they say in the
Lion King so let me now talk to the landlords right I've got a lot of
landlords that I'm seeing right now they're putting out letters they're
putting out things that and they're trying to instill fear into the heart of
their renters all right and for me guys I'm free if you're a renter and you're a
good renter you pay on time you take care of the property and you have a
horrible landlord let me say this I apologize on behalf of all the landlords
all right I apologize because there are landlords who are just scums of the
earth right that that is true right that is not it's not as much as you think
right it's it's I would say it's probably about five to ten percent of
people that are genuinely slumlords they do not care they're not in the people
business they just care about the money all right let me assure you that that I
I along with most and a high majority of landlords are not like that I you know
and I'm full disclosure I I do own a course on teaching people how to be good
landlords how to be better landlords we're in a people business we have to
treat people like human beings I understand well let me speak to the
language for those of you guys that are putting out letters trying to instill
fear into these renters that's not a long term strategy right I said it
before the one of the ass but of being poor is that you you don't you
delay you know you don't delay the short-term gratification well guess what
I've always been told that poor is a mentality and if you're a landlord you
can still be poor you can still have a lot of money in your bank account still
be poor right so for a lot of you guys are their landlords and you're putting
out these letters you're forcing the renters to pay rent and you're not being
sensitive to the situation you're in now you're not at least willing to
communicate your you you to are setting yourself up for failure so again guys
these things to think about here my overall thoughts here are my overall
thoughts on on what's going on we have to remember that this is nobody's fault
right the whole virus the pandemic right everything that's happening economically
it's not the landlord's fault it's not the tenants fault right there is no
reason to point the finger at each other all right if anything it should it
should be the opposite this is an opportunity where we have to build a
bridge and I highly encourage you to go on Spotify go on iTunes and listen to
the first deal experience hosted by yours truly with my guest Michael Conrad
Michael Conrad real estate attorney and a landlord for 25 years breaks down the
best interest of the for the tenants for that slant for everyone Ryan he and he
details the whole 30,000 foot view picture I highly encourage you checking
out our why we gotta have communication we've got to be building bridges around
these times and what I highly encourage for if anything if we have to push
something if we have to put the finger somewhere and we have to scream and yell
off something right if we have to do something right let's at least push for
mortgages to be paid on the back end I don't like the whole idea of for lowing
because again most landlords do not have the financial capability to pay three
months worth of mortgages all at once that's a lot and even for a guy like me
I've got I've got plenty I've got 80 something units right nice I sold off
half my portfolio in 2019 because there's a high market but I think they I
have a lot of units the mortgage payment is not cheap guys it is not cheap right
coming from being vulnerable you're being fully transparent right it is a
very high mortgage payment all right now am I prepared to have a cash or recs I
want to be prepared at all cost but guess what
a lot of landlords are not in that position so instead of furloughing why
not add it on the back end the banks still make their money they just get
their money a little bit a little bit later it's delayed but the returns still
the pension funds are not bothered these their money is still protected their
life-savings still protected let me know what you guys think in the comments