All Forum Posts by: Kevin Lefeuvre

 Retail banks, as mentioned, those directly dealing with consumers who are no longer depositing and keep taking cash to their last penny.

 What does it say exactly? Do you have a link to share? Thanks.

 Honestly, other than agents who rely heavily on interest rates, interest rates should not be the driving factor for investors (unless we are talking 2% changes or so). When you have long terms leverage, a decent appreciation and a decent cap rate on a property, paying half a percent more or less won't impact your long terms strategy.

Wise decision. You are not alone. We're going to read this often..."General unrest are making us pause..."

Banks manage cash: inbound and outbound and "play" with that cash while they have it. Right?

What is happening now and is going to accelerate is that the inbound cash is drying. Cash out by traders is not in anymore. Small businesses are not sending cash to their banks. Employees are depositing less cash. Airlines, Hotels and many others have stopped depositing cash.

Now let's check the outbound. We are still using cash , sometimes even more (yeah those extra toilet papers were purchased with cash too. lol). Lines at Costco need more cash. Check yourself : In the past couple weeks how much did you deposit and how much did you spend?

On the other hand, with the stocks being cheap, banks had started buying their own stocks. (aka share buybacks). But under pressure from the Federal Reserve, they agreed to stop doing that because they realize they'll soon have a problem. 

https://www.cnn.com/2020/03/16/investing/bank-stock-buybacks-coronavirus/index.html

Just a reminder: FDIC cap is $250k per bank per depositor

All these shutdowns and confinements leading to less income and more expenses, aren't they put more pressure on cash? Is anyone else worried about that? Thoughts?

I know what you are talking about even though I have only one STR left which is bleeding like yours. Got 2 more cancellations just today. I converted the others, last one on Feb 1st. I have never felt luckier. That one is near Disney Land Anaheim had great summer/holidays/corporate income, but I was tired of the management living in LA myself. After running numbers LTR seemed a better choice than STR with a management company. So I get it rented LTR and it looks like I could not be luckier.

 Yes. And next is one of the big banks sinking down. Cash  has evaporated. Banks inbound cash has stopped net. Outbound has increased (like for buying paper toilet and the likes. Humor, with a basis of truth).

 The whole nation is in state of emergency whether we like/approve it or not. That house price won't go up any time soon. Unless you need the house now, economically it's not the time to buy. 

 No. Check the market and see how many vacant properties are available for rent and what's the rent amount. Then decide. I suspect you may have to decrease rent by 5 to 10% to keep them in. But again, I don't know your market, but you should always be checking market at the renewal time.

 Funny! If they lost "all of their money", you sure you are still interested in them?

Just kidding. Since we hear this all the time, I just wanted to remind that the redirection of investment from the stock market to RE is not done with those who are in it now. That will take more time to happen, if it happens. 

Investors in RE and stock market are NOT the same crowd. Warren Buffets DOES NOT invest in RE/MFs... never! (at best he does commercial RE). Grant Cardone DOES NOT invest in stocks. Different crowd.
That said history has shown some influence where RE investments grow 3 to 6 months after a stock market crash.

I personally think this is not just going to be a stock market crash, it's going to be an ECONOMY CRASH all together. When was last time we had a one mile human line at Costco?