So when’s the housing bubble bursting?

havelcok

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ver the past four years, Gajavelli built his real-estate empire using funds from dozens of small investors who wanted a chance to earn a landlord’s riches without any of the work. He pitched double-your-money returns in ebullient, can-do talks at investor conferences and on YouTube videos.


He described buying buildings with plans to upgrade units, raise rents and sell for a profit after as little as three years. The idea that everybody needs a place to live was the bedrock of Gajavelli’s pitch. “I never worry about [the] economy now,” Gajavelli told investors in a webinar presentation last year for his company, Applesway Investment Group. “Even if [the] economy goes down, still I make money.”

Gajavelli’s investors were, in fact, highly vulnerable to interest-rate increases over the past year that crushed the business model they and thousands of others in similar deals across the U.S. had hoped would make them wealthy. For them and a host of small investors —who were expecting a share of rents and a piece of the profit in an eventual sale—it is looking like a looming investment-property disaster.


In April, Gajavelli’s company lost more than 3,000 apartments at four rental complexes taken in foreclosure, one of the biggest commercial real-estate blowups since the financial crisis. Investors lost millions. Gajavelli didn’t respond to requests for comment.
 

Helico-pterFunk

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jagu

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I represented an Indian guy like this in the largest real estate transaction that I ever handled. It was about $40m of syndication , but he’s still existing though. He was just an abusive client, so I fired him after 2 years.
 
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Helico-pterFunk

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blackbull1970

The Black Bastard
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State Farm will no longer offer home insurance to new customers in California amid growing wildfire concerns

"Historic increases in construction costs" and "rapidly growing catastrophe exposure" were among the reasons behind the policy changes, the company said.

By Minyvonne Burke
May 27, 2023, 3:19 PM EDT


State Farm will no longer offer home insurance to new customers in California, citing "historic" construction cost increases and "rapidly growing catastrophe exposure."

Beginning Saturday, State Farm General Insurance Company will stop accepting new applications including all business and personal lines property and casualty insurance, the company said in a news release.

The changes do not affect personal auto insurance.

The company said "historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market" were the reasons behind the policy change.

Their announcement comes after a bout of wildfires in the state last year. There were 7,490 fires sparked in the state in 2022, a drop of 256 from the five-year average of 7,746, according to a Dec. 1, 2022 article by CalMatters.

State Farm said in its statement that it recognizes government officials and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts.

"We take seriously our responsibility to manage risk," the company said. "We pledge to work constructively with the CDI and policymakers to help build market capacity in California. However, it’s necessary to take these actions now to improve the company’s financial strength."

"We will continue to evaluate our approach based on changing market conditions," State Farm said.

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Politic Negro

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Top five cities with the most expensive Airbnb rentals​

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#3. Austin, Texas​

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#4. Las Vegas, Nevada​

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#5. Honolulu, Hawaii​

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  • Listings Per 100,000: 940
 

blackbull1970

The Black Bastard
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MILE-LONG RV ENCAMPMENT IN MARIN CO. SYMBOLIZES GROWING HOUSING CRISIS IN BAY AREA

By Liz Kreutz
Thursday, June 1, 2023 5:14AM PT


NOVATO, Calif. (KGO) -- Driving through Novato, it's hard to miss: nestled between Highway 101 and a wildlife sanctuary is Binford Road.

There, the long line of trailers and motorhomes seems to go on and on and on, stretching for about a mile. Located just miles away from some of the wealthiest zip codes in the country, the growing RV encampment has come to symbolize the haves and the have-nots in the seemingly affluent Marin County.

"What we're seeing here at Binford Road is really a larger issue that we're seeing all across the state," said Eric Lucan, Marin County District 5 supervisor. "Which is the housing crisis we have, the unhoused homeless crisis we're experiencing."

Alysia Mackey, who has been unhoused for three years, is one of the newest residents at Binford Road.

"I was trying to just hold my head above water," Mackey said, standing outside her motorhome on Wednesday. "I was in Sonoma County, and I was trying to utilize the resources, and I kept getting the runaround."

So a month ago, she decided to move south to Novato, where she had heard more resources were being offered.

"The people who are out here are people like you and I," she said. "Either they've gotten dealt a bad hand, lost their job during the pandemic, there's something that brings us out here."

"We're not bad people," she added. "We've just made bad choices, maybe."

According to Supervisor Lucan, there are roughly 130 vehicles currently lining Binford Road, and nearly 90 people who live there. Many of those residents said it was the pandemic that was the tipping point.

"A number of clients are living here in RVs mostly due to pressures from the pandemic," said Gary Naja-Riese, director of Marin County's Department of Homelessness and Whole Person Care. "They've experienced job loss, unexpected medical expenses or crisis, and really have become homeless due to those combined pressures, and have come here to try to find services and support."

Gordy Shafer has lived on Binford Road for six years and has watched it change. He said he was just one of just five or six RVs when he first got there.

"It started with a couple and then all of a sudden it was on," Shafer said. "Everyone started coming."

Video taken by ABC7 News at Binford Road three years ago in 2020, showed a handful of RVs spaced out along the road. Now, it's bumper to bumper. There are also now county-sanctioned resources available to residents, including weekly trash pickup, porta potties, and hand washing stations.

"On a weekly basis, folks are out here multiple days during the week engaging with residents, really hearing about their needs, listening to their stories, talking about what support specifically they might need to get back into housing," Naja-Riese said.

Marin County's Ritter Center is also supporting the site by providing mobile medical care and food deliveries from their food pantry.

"Folks who are here are our family members, our brothers and sisters, our aunts and uncles, our kids. These are our neighbors," Naja-Riese said. "The majority of folks who are unhoused in Marin, over 78%, lived in Marin before being homeless, so the folks who are here are our neighbors, so we need to do everything possible to help these folks into a pathway back to housing."

Shafer said residents at Binford Road are increasingly having to deal with locals who oppose the encampment.

"They started getting aggressive," Shafer said. "One guy, his kids slashed a bunch of tires up and down the street."

Supervisor Lucan said the county is no longer allowing the camp to grow in size, but it will not force current residents out.

"I know this is a complicated issue and there's a lot of different opinions about how to handle a situation like this," Lucan said. "But simply moving the situation someplace else, that's not a solution. I'm interested in solutions."

The goal, he said, is to get all these residents into permanent housing. Naja-Riese said they recently helped two residents make that transition and are also hopeful they'll receive an additional $1.5 million from the state to fund more resources and case workers.

It's something Mackey and Shafer hope for, too. When asked about their goals for one year from now, both had similar answers.

"To be in my own place. To be in my own place, and to have a job," Mackey said.

"I want to be out of here. I'd like to be out of here," Shafer replied.

 
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