Real Estate Research
The other day I was watching a very interesting news report on what is called or what they were calling a echo bubble from the first housing bubble.
If you look back in history at all the previous bubbles, the tulip bubble, the South Sea bubble, the Mississippi bubble, all of them have echo bubbles. The echo bubble is almost always very small compared to the original bubble.
The reason this is kind of strange now as the housing Eco bubble is bigger than the original bubble which doesn’t make any sense if you understand the financial mechanics of the original bubble.
Pretend Frame Of Mind
I decided to go driving around to look at houses not because I was trying to solve the mystery of the echo bubble just because I thought it would be a fun thing to do to pretend that I was going to buy a house.
As I was driving around I remembered that part from the millionaire next door where they said if you want to invest in real estate the best thing to do would be to find the cheapest house that exists in the best neighborhood.
I drove to the best neighborhood and I started to look around at all the houses and I noticed that there was a lot of houses that had for sale signs and there was a large number of them there’s only six and this one neighborhood.
I decided to play along in my imaginary frame of pretending to buy house and so I started knocking on doors. I wanted to talk to people I wanted to ask people about why so many houses were for sale in this neighborhood. I wanted to find out why so many people wanted to leave this neighborhood.
I thought maybe there is some kind of impending disaster and people were leaving before this disaster hit. Maybe there was some kind of a gigantic sinkhole under the neighborhood. Maybe there is a nearby volcano that was about to erupt. Maybe they had just discovered an earthquake fault.
So far I kept knocking on trying to think of all the reasons why people were fleeing this neighborhood but nobody was answering the doors. Finally I was just about to leave and go home and this one old woman answered the door just as I was walking away.
She asked what I was doing I explained to her that I was looking for a house in the neighborhood but I was curious as to why so many houses were for sale so she invited me in.
Talk And Talk And Never Buy
If you’ve ever sold anything in home or if you ever done any door-to-door sales you know that elderly people are kind of a mixed bag. If you sell stuff and you get rejected all the time it’s always nice to talk to an older person because older people are usually very friendly because are very lonely in their very eager to have a conversation.
In fact they are so eager they want to have a conversation with a complete stranger. The flip side though is that were usually elderly people even though there for me to talk to their not rejecting you but they almost never have any money so they never really buys something.
That’s kind of the mixed bag of an elderly person. That’s who this person reminded me of. She was very friendly as I walked into her house I realized that she was very wealthy. I noticed that there was a lot of money in this house and I asked her what she did or what she used to do and she noticed that I noticed that there is a lot of money in the house.
Sex Cult Leader
She looked at me and she just blatantly said when I was younger I ran a sex cult. I thought that can’t be true she’s gotta have some kind of business that she sold. Maybe she inherited some money and maybe she so lonely she just watching all these movies on TV and she starting to blur realities between what’s on TV.
When you start to watch TV and you start to forget about reality. You start to mix TV and reality. You start to forget the boundary between reality and TV. You start to think in terms of fantasies. So I just decided to play along with her and she said when she was younger she ran a sex cult.
It was a escort service and she only employed very young very intelligent very articulate very gorgeous very sophisticated young women. She would train these women in black magic brainwashing. When wealthy customers would hire an escort for dinner these young escorts would use their black magic brainwashing and turn these established wealthy older gentleman in the criminals.
The way it would work was they would come in thinking they’re going to hire an escort, taking her to have dinner with an escort. Going there have a good time with an escort. But the escort would use her black magic brainwashing hypnosis and turn them into criminals. After that night they would be criminals.
They would start to rob banks. They would start to rob liquor stores. They would continue to do that until they either were killed or got sent to prison. After every crime they would send their money to this the sex cult leader this old woman I was talking to.
I thought this is a pretty cool story. The whole time she was telling me this I was trying to remember any kind of TV show or movie that had this kind of theme. I was certain that she just got this from a movie and she kinda forgot it was a movie and start imagine that this is happening in real life.
She knew that I didn’t believe her because she got up, she stood up and she went to get these binders. She had a whole library filled with these binders and in each binder she had a detailed record of all of her clients.
In the first page of each client’s record was a newspaper clipping of either them getting killed or them getting convicted of a crime and getting sent to prison. After this first page in their record she had all the detailed accounts of all the money they sent.
Too Much Detail To Be Fake
I looked through a few of these. They were extremely detailed. I thought there’s no way she could make all the stuff up. I started to believe her. I started to realize that this woman actually did create some kind of sex cult. This woman actually did figure out a way to hire young gorgeous articulate and intelligent sophisticated escorts and use those escorts to convince men to become a criminal.
I excused myself and as I was driving home I realized I never figured out why there are so many houses for sale in the neighborhood. I was still kind of curious about the mystery of the echo bubble.
I did some more research and it turns out that it’s not really an echo bubble. It’s a completely different real estate bubble. The first real estate bubble that popped back in 2008 was because a lot of people were borrowing money and buying houses. These were real consumers regular consumers regular people buying houses.
Blame The Chinese
Most of the people buying houses now are big companies and foreign investors that live in countries that have capital controls. If you’re a millionaire or a billionaire and you live in a foreign country that has capital controls they won’t allow you to transfer your money out of the country so you have to kind of launder your money by buying real estate in America.
That’s the reason why all of the real estate prices are jacking out through the roof right now. Because they are being purchased by Chinese investors and by these big huge corporations that are buying gigantic swaths of real estate and turning them into rentals.
Another interesting thing I found out as there’s a lot more houses for sale than you could notice by driving around. One thing the banks learned is that when somebody forecloses on a house if everyone in the neighborhood knows that house has been foreclosed on that will destroy their property value in that entire neighborhood.
Fake Houses No People
What these banks do is when they have all these houses they can’t sell they still send a landscaping crew out to the house once a week to keep it looking fresh and as if somebody was living there. If you drive through any neighborhood chances are probably 20 or 30% of the houses in that neighborhood have been foreclosed on.
Nothing Is As It Seems
There’s a lot of shenanigans going on beneath the surface that nobody really understands.
Mind Persuasion has plenty of books and courses to teach you how to speak hypnotically and persuasively.