Ken McElroy Gives Real Estate Update

I’m checking out one of RichDad.com’s recent videos where Ken McElroy gives an update on what he believes is happening in Real Estate. Ken owns and manages hundreds of apartment complexes in the US.

• Brokers are now really ‘broke’.
• There are very few transactions because there is very little credit as a result of low employment.
• They have around 20,000 people living in Ken’s properties and they run criminal checks on all of them. A lot of ‘good people’ lost their jobs and are moving in with roommates, family members or parents.
• People are downsizing a lot, high end renters are moving down into their ‘C’ apartments.
• Some people in Colorado are moving into tents.
• In Honolulu a lot of people are buying vans, park on the beach and sleep in the van.
• In the US, mortgage rates are still adjusting upward and more people will continue to lose their homes and move into rental apartments.
• Ken is still making lots of investments, it’s just tougher to get financing, everyone is limited to creditors like Fanny Mae and Freddy.
• Rental cash flow is slightly down but their company is actually growing and they just bought another company because now is the best time to find buying opportunities.