Covid-19 Market Update #5

The pic is sage medical advice. I think I got it from CNN. Looks like I am immune to COVID-19.

Today’s email music selection – Hall and Oats – Out Of Touch – Listen while you read this lovely soliloquy:

I modified the lyrics as needed to suit the needs of the capital markets….. The market is so “out of touch.”

Shake it up is all that we know
Using the bodies Capital up as we go
I’m waking up to fantasy

As predicted yesterday, the fed began the process of an international coordinated rate cut. This morning Bank of Canada introduced 50-bps rate cut and is willing to cut more.

The shades all around aren’t the colors we used to see
Broken ice Markets still melts in the sun
And times that are broken can often be one again
We’re soul alone
And soul really matters to me
Take a look around

“What’s now broken is the certainty that central bank interventions will lift risk assets and the real-world economy.” Fed intervention would almost certainly lift the markets, as it has in the past, but not yesterday. Something’s not right in the market.

Reaching out for something liquidity to hold
Looking for a love Cash where when the climate market is cold
Manic moves and drowsy dreams
Or living in the middle between the two extremes
Smoking guns rates hot to the touch
Would cool down if we The Fed didn’t use them so much, yeah
We’re soul alone
And soul really matters to me

Repo market is again oversubscribed by more than 50%. In my previous emails, back in Q3, I mentioned something wasn’t right and banks were running out of cash in the wee hours of the night. I spoke briefly about this issue at last month’s Commercial Real Estate Wholesale group. I believe my entire talk is archived in their Facebook group.

So what does all this mean for a New or Seasoned Real Estate Investor?

Investors are looking for yield. There is virtually nothing out there. Ya’ll see the 10Yr close at less than 1% yesterday? Wonder who predicted that yesterday?

Money is getting cheap – insanely cheap – expect record low cost of capital – mortgages. Money is on sale – get as much as you can.

Private lenders, individuals, family offices and institutions, are going to adjust their rates.

Expect to see LOTS MORE competition over the next six months in single family. Wall-street is desperate for yields and cash flowing single family rentals look better everyday.

If you think real estate is expensive now, just wait – JB

Now the question is where do you put your money? We put ours in real estate.

If you want to actively invest in real estate – Join our Mastermind. Membership costs $7,500 for the first year.

If you want to passively invest in real estate – Join our fund, The American Recovery Fund. The Fund pays 9% return and 10% equity when a property is sold.

SO… is what are we doing during Lockdown 2020.

Lots of real estate training; most of it free. We are going to be hosting a ton of free webinars and “lives” throughout the quarantine.

There are a few ways to enjoy our content:

Join the – Mr Texas Real Estate Facebook group

Join our email list

Register for one of our online workshops

Subscribe – to the Texas Real Estate Radio Network YouTube channel

See you online!

Jason Bible
Mr Texas Real Estate