Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right, leave now. Under President Trump, America's laws,
Speaker 1: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security. So
Speaker 2: all right, let's talk about this.
Speaker 3: There is a housing shortage in America, right, So what
Speaker 3: does that mean for the average person and how does
Speaker 3: that affect the real estate market over the next five years?
Speaker 4: Well, that means that, you know, it's like anything else
Speaker 4: supplying demand. The supply is low, the demand is high,
Speaker 4: So that's why rents go up.
Speaker 2: So so why is there a housing shortage? Though?
Speaker 4: Man, there's been so much politicization of housing in real estate,
Speaker 4: and it's difficult to build. Like you look at some
Speaker 4: of the markets where's most pronounced New York, California. There's
Speaker 4: this thing called Nimby. You have heard of Nimby. Not
Speaker 4: in my backyard. People say, yeah, we need affordable housma,
Speaker 4: don't build them, don't build them on my street, right,
Speaker 4: And so what that does is it disturbs the real
Speaker 4: estate market for that particular city and we just buy
Speaker 4: and large have not built enough moderate and middle income
Speaker 4: or affordable housing. So you know, millionaires don't have any problem.
Speaker 4: They could buy whatever they want to buy right or
Speaker 4: live wherever they want to live. We're talking about the
Speaker 4: rank and file public workers, you know, teachers, ambulance drivers,
Speaker 4: sanitation sanitation workers, the rank and file public who have
Speaker 4: good jobs, they work hard. But there's been such an
Speaker 4: escalation in the cost of rents because of the supply
Speaker 4: and demand disruption that these rents are off the table.
Speaker 4: I mean, if four million units of housing hit the
Speaker 4: market tomorrow, all rents would drop, but it takes years
Speaker 4: and years to build it. That's why you know, we
Speaker 4: have this condition because it's hard to just increase the
Speaker 4: supply quickly. You have to have an alignment of politics
Speaker 4: of market forces like real estate excuse mean, like interest rates.
Speaker 4: You know, interest rates are out of control right now,
Speaker 4: so it makes it very hard to build. Sometimes you
Speaker 4: have construction costs going off the rails, like everyone heard
Speaker 4: about you know, what was going on with supply chain disruptions.
Speaker 2: You know last year.
Speaker 4: So you have all these things that can throw that
Speaker 4: equation off and make it hard to produce housing. So
Speaker 4: you know, right now it's come to a critical point,
Speaker 4: and you know, particularly elected officials have to get off
Speaker 4: of the rubric where they want to you know, almost
Speaker 4: politicize housing, make all real estate developers evil, all real
Speaker 4: estate is bad.
Speaker 2: We have a lot of that narrative coming out.
Speaker 4: Of certain communities in certain cities, but it doesn't help
Speaker 4: to do anything because people still cannot find good housing
Speaker 4: and the only way to get it is to build it. Right,
Speaker 4: we have to ubzone. A lot of communities don't want
Speaker 4: to go through rezonings and up zone, they say all that,
Speaker 4: we don't want that high building here. Well, okay, that's
Speaker 4: your opinion, but we have people sleeping in shelters, right,
Speaker 4: we have people who really need housing. And I firmly
Speaker 4: believe that housing security from most families is financial security,
Speaker 4: because if people have a roof over the head, there's
Speaker 4: more money they have to dedicate to healthcare, the education,
Speaker 4: the other well being of the family, taking care of
Speaker 4: the elderly, everything else the families have to deal with.
Speaker 4: But if sixty seventy percent of your income is used
Speaker 4: to pay rent, cuts out a lot of options what
Speaker 4: you could do otherwise.
Speaker 5: When you talk about up zone, and I was immediately
Speaker 5: thinking a city I used to work in the newer show.
Speaker 5: We're seeing a lot of towers go up there, and
Speaker 5: I'm wondering, when when you're building units and you're adding
Speaker 5: that to the portfolio, what's the allocation that has to
Speaker 5: be affordable housing? And obviously your expertise in the field,
Speaker 5: are you seeing people just meaning the minimum or people
Speaker 5: exceeding the amount? If there is a certain allocation you
Speaker 5: have to have.
Speaker 4: Well, first of all, let me say this the.
Speaker 2: Earners, what's up.
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Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christine nom United States Secretary
Speaker 1: of Homeland Security. Under President Trump, attempted illegal border crossings
Speaker 1: are at the lowest levels ever recorded, and over one
Speaker 1: hundred thousand illegal aliens have been arrested. If you are
Speaker 1: here illegally, your next you will be fine nearly one
Speaker 1: thousand dollars a day. Imprisoned and deported, you will never return.
Speaker 1: But if you register using our CBP home app and
Speaker 1: leave now, you could be allowed to return legally. Do
Speaker 1: what's right, leave now. Under President Trump, America's laws, border
Speaker 1: and families will be protected.
Speaker 4: Sponsored by the United States Department of Homeland Security, Eric
Speaker 4: new Roshell in that administration has done it absolutely correctly.
Speaker 4: They have embraced real estate development, and they've used market
Speaker 4: forces and capitalist forces and real estate developers to help
Speaker 4: bring that city into the modern era and the wave
Speaker 4: of development that there is impressive, right. But in other
Speaker 4: areas it's not so easy because you have a lot
Speaker 4: of different opinions, a lot of you know, just fights
Speaker 4: over what should be built, could be built. We don't
Speaker 4: want that tower here, I think. To answer your second question, generally,
Speaker 4: depending different municipalities had different requirements about how much affordable
Speaker 4: housing should be built, and usually what happens is it's
Speaker 4: tied to some type of tax abatement or some type
Speaker 4: of government funding that will be provided to the project
Speaker 4: to build it. We had a scenario recently in Harlem.
Speaker 2: Right, we're very active. We do a lot. And a city.
Speaker 4: Council person turned down a developer on one hundred and
Speaker 4: forty fifth Street who bought land and only was required
Speaker 4: to do twenty percent affordable housing, but he wanted to
Speaker 4: ubzone the project and do nine hundred units. He went
Speaker 4: as far as fifty percent affordable housing. She still voted
Speaker 4: it down. Well, wow, politics, So you think about that's
Speaker 4: the wrong move, right, I mean, that's four hundred and
Speaker 4: fifth the families who are not going to have clean, decent,
Speaker 4: energy efficient affordable housing for themselves. Right, it's a it's
Speaker 4: an absolute loss. But we see too much of that
Speaker 4: these days. So let me ask you this, well, two questions.
Speaker 4: How do real estate developers get paid?
Speaker 2: Last answer, well, so what I mean by that? You get
Speaker 2: paid like twice? Though?
Speaker 4: Right, Well, no real estate developers take all the risks,
Speaker 4: So what we do? What do you mean twice?
Speaker 2: So you get all?
Speaker 3: Right, Well you can explain it better than me, obviously,
Speaker 3: but from my understanding, you you get a part of
Speaker 3: the development fee, yes, right, and then you have if
Speaker 3: you have equity in it, then you can get that
Speaker 3: as some level of conversation as well.
Speaker 4: Right, So the equity, the equity that you would invest
Speaker 4: would just be returned to you.
Speaker 2: Right.
Speaker 4: The equity is so when you do a project. Let's say,
Speaker 4: you know, when you buy a house, right, you know,
Speaker 4: you go to the bank and the bank says, okay, uh,
Speaker 4: you know I want to buy this house. I'll say okay,
Speaker 4: mister Livingston. You know you have to put down twenty percent.
Speaker 4: That's your equity. Same thing when you do a development deal.
Speaker 4: The bank is going to give you one hundred percent
Speaker 4: of the deal. You have to bring some equity. Usually,
Speaker 4: depending on how large the project is, you get into
Speaker 4: a scenario where the equity is coming from a third
Speaker 4: party investor, a limited partner, which is usually a real
Speaker 4: estate private equity fund. It could be an insurance company
Speaker 4: or some just an investor that has a lot of
Speaker 4: capital and they have to invest it because they need
Speaker 4: to generate returns on their capital to pay pensioneers or
Speaker 4: to pay out insurance claims. Whatever it is. So the
Speaker 4: equity gets returned. But to answer your question specifically, a
Speaker 4: real estate developer will get fees, right, So you get
Speaker 4: a developer fee. You could get distributions based off of
Speaker 4: refinancing the project because let's say you know, like.
Speaker 2: You have a project, you do it.
Speaker 4: After ten years or whatever, rents go up, you have
Speaker 4: one level of debt you've been paying down that you
Speaker 4: could refinance, put a new mortgage on, take some capital out.
Speaker 4: But more regularly, what happens is once you put the
Speaker 4: building into service, every month is cash flow. Remember NI,
Speaker 4: you have your NI, you pay your debt. What remains
Speaker 4: is cash flow that can be distributed to partners.
Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: were here illegally, your net next you will be fine
Speaker 1: nearly one thousand dollars a day, imprisoned and deported you
Speaker 1: will never return. But if you register using our CBP
Speaker 1: home app and leave now, you could be allowed to
Speaker 1: return legally. Do what's right. Leave now. Under President Trump
Speaker 1: America's laws, border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security,