The Eviction Moratorium Crisis

What’s up guys? Welcome back to another video. I am Justin Colby. And in this video, once again, we are going to be talking about the eviction crisis, because Nevada just announced that they are going to extend the eviction moratorium until the end of March. How is this gonna affect our economy? Stay tuned.

What’s up guys, welcome back to a video we do all things business, real estate and entrepreneurship. And I got to keep talking about this, what I think will be the big looming crisis in the immediate future, which is going to be this eviction crisis. we’ve all talked about, heard about seen about thought about what’s gonna happen to the real estate economy when all these moratoriums are up. Well, some of these moratoriums are ending here at the end of the year. And as a matter of fact, Governor sisolak I believe that’s how you say his name out of Nevada, actually just extended the the renters eviction moratorium to the end of March. I gotta tell you, I have a couple thoughts on this. But I don’t know if there is a right decision or a wrong decision here. So the renters moratorium was set to cancel or expire, I should say at the end of this year, which means landlords would finally be able to evict non paying tenants. And life would go on as usual. In that sense, however, Governor sisolak, I believe it is pronounced is actually extending that moratorium until the end of March. The link for the article that tells you all about the details of this is right below in the comment section below. But diving into this article, I was just blown away because as much as I actually think this is gonna hurt the landlords, which obviously it will I actually diving deeper into the article and in reading some of the stats, I actually don’t know if this was a wrong choice, either. And I know that sounds weird, because it’s listening to my videos. And quite honestly, if you just go rewatch the last video I put out yesterday, it was all about this eviction crisis. And so on the heels of me putting that video out yesterday, today, outcomes, I guess you would call it legislation from the governor of Nevada saying that he is going to put a further moratorium on renter evictions. Let’s dive in here and really understand why he did that. And what’s happening to a city like Las Vegas, the number one thing you got to realize is that city is heavily based around tourism, right? So between all of the the restaurants, obviously the casinos, the clubs, all of the other things to do the live shows, a lot of those individuals are no longer in work and they don’t see a foreseeable future when it can get back to normal. Now I don’t live in Las Vegas. And I know some things are open, some aren’t. So if you are in Las Vegas, I’d love to hear kind of what’s going on there. But reports from the article I did a deep dive into which is called the Nevada independent talks about how they are doing up to 25% occupancy in those type of restaurant slash casino slash live event type of spaces. Now that really doesn’t pay the bills, but they have to do something, which means staffing is way down. People aren’t really getting paid. There’s not a big industry out in Las Vegas as a moment in time besides obviously, this huge entertainment sector and tourism sector of Las Vegas. And so a lot of people are actually out of jobs. Now this moratorium really has helped those people who may be living paycheck to paycheck and now not even having a paycheck, not getting evicted. But I will tell you that the state’s moratorium ended in it actually opened up a pretty big eviction case load because the state’s moratorium ended a couple weeks ago which only led the city of disease city of disease control moratorium, you know, loopholes of evictions, and non evictions. And the cases of evictions for renters went up to like 6000 cases, of which 3000 of those actually were granted and 3000 individuals or families were essentially put out on the street. Now the governor has been begging the government for more money to subsidize this in the fear that he has and why he is done. This is roughly 400,000 people in Las Vegas alone are up for that eviction. These are individuals who are past due on rents and actually would qualify to be evicted per the normal laws of real estate. And if that happens that it is a massive trickle down effect that I don’t believe Las Vegas, and obviously the governor doesn’t believe Las Vegas could actually come back from, in his speech he gave the governor talks about how he’s going to push to help with economic assistance for all these landlords who essentially sounds like roughly 400,000 of them
are actually not getting paid. Now, I don’t know if that’s gonna work. I don’t know a whole lot about all these bills that are getting passed and what the government is going to step in and do. But I can tell you, there has to be a trickle down effect to all of this. And like I said, the business side of me says there’s no way that this can last because now you have landlords not paying their mortgage, the banks not paying, getting paid, and then it will lead into the federal government. The reality is, I don’t know if the governor governor, I had a better choice that he could make, except to try to buy himself in the city of Las Vegas some time to try to continue to figure this out. Las Vegas is at an all time high for cases as well as hospitalizations for COVID as of this video, and so he is trying to get as much time to get the vaccine implemented in hopes that will help open things up, people will feel safer, and the economy can start to ramp itself up. Again, it is wishful slash hopeful thinking. But like I’m saying, I’m not sure he has a better choice. Because if you put 400,000 people out on the street, when it’s beyond difficult to find a place to rent, it’s beyond difficult to find a place to buy. And essentially they don’t have jobs. That’s why they’re not paying their rent. Again, I just I don’t know, that’s the end of this year, Las Vegas actually is borderline at 14% unemployment, they are either the first or second highest unemployment rate in the nation. And this is in large part because all the restaurants, casinos, etc. are at 25% capacity, which means everyone’s essentially losing their job because they don’t need the employees to keep up with only 25% capacity, the blackjack dealers, the valet Parkers, slash drivers, the cooks, the bartenders, the servers, I mean, this is really catastrophic for the city. And as I’ve mentioned, as someone who really focuses on business and entrepreneurship as well as real estate, the trickle down effect seems to be inevitable that at some point, the banks are going to have to create this massive program to be able to help out the landlords and have some sort of restructuring of the loans. I talked a lot about this on my last video. So go watch my last video. In fact, if you’re liking this smash that like button, it really helps the YouTube Gods highlight this video and hit the subscribe button for me. And go watch this video. As I talked a little bit wider about the subject, it seems inevitable that the banks are gonna have to do something to restructure these landlords who essentially aren’t in the wrong here, but their tenants aren’t paying. So now what are they supposed to do pay for a mortgage that their tenants aren’t helping with? It’s just an ugly scenario, because then at that point, obviously the banks have to go through foreclosure, what happens there? Does the government bailout the banks? Again, all this stuff is gonna play out but it just is so ironic. I shot a video about this literally yesterday, I’m now getting this report, the Nevada independent that the governor is actually extending this crisis, or I’m sorry, the moratorium on the renter’s crisis. I don’t know what the right answer was. I part of me says dude, if people aren’t paying their rent the landlord needs to evict them. Yes, I understand that. But when your city is an all time high for cases your city is at an all time high for hospitalizations for COVID. And you’re gonna put 400,000 people on the street, it just goes to seem like he can’t win for losing right? You’re gonna basically cause everyone to be around each other and continue this spiking of cases on top of the financial disarray that is going to cause because essentially, they don’t have anywhere else to go live and rent. They don’t have enough money to go buy what’s the right answer? And quite honestly, I don’t know. I’d love to hear your comments below here. If you do, like study or invest in real estate, go to the science of flipping calm. I have a whole bunch of free materials there. But again, smash this like button really helped me out and make sure you subscribe, and I will see you guys on the next video. Peace next video.

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