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The Entrepreneurial Web

Friday, August 21, 2020
21
Aug

2020/08/21 - Raise The Rent Or Raise The Roof

[NEW EPISODE] Raise The Rent Or Raise The Roof

Reconnecting with some earlier guests that represent the epitome of entrepreneurship and are also authorities in the housing market.

Sam Himmelstein was one of the very first guests on the show. He a founding partner of Himmelstein, McConnell, Gribben, Donoghue & Joseph LLP and has made a career of supporting tenants rights. The current situation in NYC is right up his alley.

Damon Johnson, President of DJ Realty Solutions, was one of my first guests once quarantine set in and we had to go fully remote. He's a veteran of the Detroit real estate market & Senior Home Ownership Executive at M-1 Realty, and he's going to discuss the "wild" (his words!) housing market.

Tune in for this energetic conversation or watch the Facebook Livestream by clicking here.


Show Notes

Segment 1

“Over 67,000 available houses and apartments for rent in New York…”

 

Jeremiah introduces the first guest of the show, Damon Johnson. Damon informs Jeremiah about the state of the economy in Detroit, Jeremiah doing the same for Brooklyn. The two go back and forth on realty and the slow reopening in their respective cities.

 

Segment 2

The two continue to talk about the state of realty, especially focusing on New York with lowered prices in the face of the pandemic. Damon talks about external factors that affect the real estate industry and how the pandemic shifts those dynamics. Damon drops his social media and contact information for listeners to end the segment.

 

Segment 3

Jeremiah introduces the second guest of the show, Sam Himmelstein. Himmelstein informs listeners about how the pandemic shifted the real estate industry in New York City, sharing his worries of a possible eviction crisis. 

 

Segment 4

They continue to talk about the realty situation and the effects of the pandemic. Sam talks about his position as a lawyer defending down-on-their-luck tenants and the illogical systems that New York realty is currently built under. He talks about a few situations he knows where tenants are treated more fairly through systems that are flexible during the pandemic. He drops his contact information for listeners to end the show.


Transcript

00:00:33.030 --> 00:00:41.970 The Entrepreneurial Web Radio: Okay everybody, top of the afternoon. It's Friday 12 new. You know what time it is. It's time for the entrepreneurial web. I'm your host, Jeremiah, Fox.

00:00:42.240 --> 00:00:52.890 The Entrepreneurial Web Radio: SPECIAL SHOW TODAY. It's kind of a milestone for me. I've been doing the show for nearly a year at this point and I finally felt comfortable to the point where I could bring some guests on that had been on before

00:00:53.430 --> 00:01:04.230 The Entrepreneurial Web Radio: We'll hear from Sam Himmelstein at 1230 he was one of my first guest ever on the show. When we were in studio, but my first guest today is also returning guest Damon Johnson, he's a real estate executive

00:01:04.890 --> 00:01:16.860 The Entrepreneurial Web Radio: Out of Detroit, Michigan. He's also just a social media like icon. The guy's amazing and his interaction with people. He's always been an inspiration for me, always a source of happiness. We'll talk about that in a minute.

00:01:17.490 --> 00:01:26.460 The Entrepreneurial Web Radio: He was one of my first guest. Once we went virtual which was in at the end of at the end of March, we can no longer broadcast in the studio and I was forced to

00:01:27.210 --> 00:01:33.510 The Entrepreneurial Web Radio: Get out of my comfort zone, a little bit and do some zoom calls and some outreach and it turned out to be one of the best things so

00:01:33.750 --> 00:01:43.200 The Entrepreneurial Web Radio: Before we bring him on. I usually do a message of the week. This week I'm going to quote a statistic, because this show is all about housing the housing market.

00:01:43.560 --> 00:02:04.140 The Entrepreneurial Web Radio: And this is kind of profound. I just read again this morning that there are over 67,000 available rentals and apartments and houses in New York City right now, which is kind of unprecedented. With that, we're going to discuss with Damon Johnson Damon. How are you today, sir.

00:02:08.220 --> 00:02:09.210 DJ Realty: Hey, how are you

00:02:09.510 --> 00:02:11.580 The Entrepreneurial Web Radio: Great. Good to see you, my man. How's everything

00:02:12.060 --> 00:02:16.350 DJ Realty: Is everything is going great. I just left from one meeting. I'm on this month.

00:02:16.890 --> 00:02:19.050 The Entrepreneurial Web Radio: And you're going to another one afterwards. I'm assuming

00:02:19.980 --> 00:02:25.680 DJ Realty: No, I want to do. I want to work, actually. And then I think I'm done with meetings for the day. I think

00:02:25.890 --> 00:02:31.680 The Entrepreneurial Web Radio: Yeah, we'll see. I, you're a hustler. I sent something in your future coming soon.

00:02:32.670 --> 00:02:39.060 The Entrepreneurial Web Radio: Yes. How are things going. So in Detroit. These days we haven't spoken into it and about the, the situation in a while.

00:02:39.210 --> 00:02:41.190 DJ Realty: Goodness gracious. I'm

00:02:41.850 --> 00:02:42.780 The Entrepreneurial Web Radio: Very busy.

00:02:42.840 --> 00:02:59.100 DJ Realty: Ever I've ever been, um, it's just been unprecedented, you know, we're really an automotive state GM Ford and Chrysler our headquarters are we're headquartered are all three here. They're all within 15 miles of each other.

00:03:00.150 --> 00:03:03.000 DJ Realty: How we're home to two powerhouse.

00:03:04.110 --> 00:03:13.080 DJ Realty: National mortgage companies. So it's business here has been absolutely great and kind of sad at the same time.

00:03:13.110 --> 00:03:22.920 DJ Realty: Yeah, because a lot of people, you know, of course, aren't working or have to downsize and taking pay cuts so if if like feast and famine at the same time.

00:03:23.580 --> 00:03:33.750 The Entrepreneurial Web Radio: Same here. I'd say the same is true in New York and Sam will elaborate that a little. A little later on the show because he really gets he's on the other side of the spectrum where he's dealing with people.

00:03:34.050 --> 00:03:37.650 The Entrepreneurial Web Radio: You know, he's a he's a tenant lawyer, so he's representing a lot of people who have lost

00:03:37.740 --> 00:03:48.330 The Entrepreneurial Web Radio: Okay income and and you know now, they're not sure if they extended it, but the the initial moratorium on evictions was was due to expire.

00:03:48.660 --> 00:04:00.030 The Entrepreneurial Web Radio: mid August and we're past that they may have granted an extension. He'll think that they did there. I think they've been here to there was definitely talk of it, but it can't last forever. You know,

00:04:01.140 --> 00:04:09.600 The Entrepreneurial Web Radio: Just out of curiosity, how, how does the automotive headquarters affects how seeing in your area.

00:04:10.260 --> 00:04:24.450 DJ Realty: Just because I'm GM Ford and Chrysler their headquarters are all here and the spin off from them for the parts plants. The tech the transportation, the actual

00:04:25.290 --> 00:04:44.220 DJ Realty: Computer it end of it, the tires. The doors, whatever that goes into making the cars a lot of those plants are here, which means a lot of people work there and want to live by where they work. It affects the downtown's because down GM is downtown Detroit.

00:04:44.550 --> 00:05:02.670 DJ Realty: Okay, I'm Chrysler is in Auburn Hills Pontiac and for does in Dearborn and for actually, you know, the city of Dearborn really is off board because they have Henry Ford Hospital, the museum. It's really like a thing.

00:05:02.850 --> 00:05:03.270 For

00:05:04.680 --> 00:05:13.740 DJ Realty: So the way that the automotive companies go here, the way that our economy goes and right now they are back to work.

00:05:14.280 --> 00:05:21.090 DJ Realty: Um, I don't know if they're back like 100% but there everybody that know that works in the offices and the actual plant part

00:05:21.450 --> 00:05:34.740 DJ Realty: Of it, they're all back to work. But cautiously, of course, um, people are still buying cars and our demand is still up for Halloween. We don't have the inventory to to meet the demand right now. I'm not

00:05:34.740 --> 00:05:35.790 The Entrepreneurial Web Radio: At all. Yeah.

00:05:35.880 --> 00:05:36.630 DJ Realty: Not at all.

00:05:37.110 --> 00:05:41.220 The Entrepreneurial Web Radio: It's interesting because where I'm at, in Brooklyn is largely residential

00:05:41.340 --> 00:05:49.770 The Entrepreneurial Web Radio: You know, rather than as a small downtown area, but nothing in comparison to Manhattan Brooklyn is pretty solid and the businesses, most of the businesses are back open, there's

00:05:49.890 --> 00:05:50.580 DJ Realty: Oh, goodness.

00:05:50.640 --> 00:05:56.220 The Entrepreneurial Web Radio: You know, Jim's can't reopen and a few things like that. But for the most part the wheels are kind of turning and a lot of spots.

00:05:56.490 --> 00:06:02.820 The Entrepreneurial Web Radio: And and in Brooklyn. It's very similar where there's there's not enough inventory to meet demand because so many people, especially

00:06:03.060 --> 00:06:15.270 The Entrepreneurial Web Radio: People before who were like oh no I'm not living in Brooklyn. Now they're like Brooklyn look really good right now. You know, you got a little 12 foot backyard. You're like up bidding on it you know all the sudden leaving leaving your Manhattan high rise.

00:06:15.510 --> 00:06:16.110 DJ Realty: Right.

00:06:16.440 --> 00:06:25.860 The Entrepreneurial Web Radio: So that, that's happening here. But then you take Manhattan, and I've heard queens as well are both there's just so many vacancies and a lot of it has to do with

00:06:26.220 --> 00:06:31.530 The Entrepreneurial Web Radio: You know companies that are just not going back there. You know there's there's not so much manufacturing, but a lot of

00:06:31.920 --> 00:06:37.230 The Entrepreneurial Web Radio: You know, advertising and financing and they're just a lot of them have called it, they're working remotely either

00:06:37.560 --> 00:06:45.420 The Entrepreneurial Web Radio: Through the rest of the year, or some have said until there's a vaccine. They're not, you know, they're not going back in and who knows how long that is. So people are

00:06:45.960 --> 00:06:59.190 The Entrepreneurial Web Radio: There. They're kind of scattering about. And I think when would they make a final decision about schools or whatever respond to anything that happens next month. That'll be very telling to because if you also don't have to be present for your kid.

00:06:59.400 --> 00:07:01.200 The Entrepreneurial Web Radio: Right to like see

00:07:01.320 --> 00:07:11.880 DJ Realty: Dr. Oz. We're all virtual here for the main 90% virtual for of elementary, middle and junior high colleges have went

00:07:12.300 --> 00:07:30.720 DJ Realty: I think you're doing half and half. Like, I want to go. You can go so that client for me is still, you know, in place. People are still buying and selling I'm I'm more worried about will not since or work cautious about a if you sell your home. Now I don't have anywhere to put you

00:07:31.380 --> 00:07:33.270 DJ Realty: Oh yeah, the way, are you happy ready to really

00:07:33.270 --> 00:07:35.100 DJ Realty: Be in my buyers now.

00:07:35.460 --> 00:07:48.360 DJ Realty: I have to be above after is no, there are no more deals that day is that that's overweight for a while. Um, we're doing appraisal guarantees here and we're doing I'm

00:07:49.740 --> 00:08:02.070 DJ Realty: Like escalation clause. It's like, Where have you been $200,000 will be at 201 it's like whatever big that you get at the final and best the agents now are saying, Oh, I'll give you more.

00:08:02.310 --> 00:08:12.270 DJ Realty: Right, which is kind of a slippery slope because of their appraisal guarantees you don't know what the homeless gonna praise for and then the bankers and give you that money comes out of your actual pocket. So it's like

00:08:13.080 --> 00:08:26.940 DJ Realty: Be very mindful when you want to do that. So I've been getting by without them. I've only had to do one and we got a bit on that one. Anyway, so we were 20 grand over and we still got our beer. So I was like, well, this month just one weapon, you know, meant to be so.

00:08:27.270 --> 00:08:27.720 The Entrepreneurial Web Radio: Yeah.

00:08:27.990 --> 00:08:29.370 DJ Realty: I mean, I've heard we are happening with

00:08:29.430 --> 00:08:31.350 The Entrepreneurial Web Radio: I've heard of that happening with rentals in Brooklyn.

00:08:32.010 --> 00:08:33.270 DJ Realty: Yeah. Oh, I'm sure.

00:08:33.390 --> 00:08:35.520 The Entrepreneurial Web Radio: Crazy. A lot of people

00:08:35.820 --> 00:08:39.030 The Entrepreneurial Web Radio: A lot of people are entering the market cautiously. It seems like because

00:08:39.300 --> 00:08:48.810 The Entrepreneurial Web Radio: They're not sure what's going to happen. So they're not looking to necessarily buy something else right now and get locked into another place. They don't want to be. They're looking for short term rentals and even, you know, Minister.

00:08:50.100 --> 00:08:56.190 The Entrepreneurial Web Radio: unisys parties are kind of encouraging that as well. Like, considering like some three months, six months leases.

00:08:57.060 --> 00:09:06.150 The Entrepreneurial Web Radio: For vacancies because people are, you know, here it's a lot more transit and I can imagine where you're at, people kind of they they don't move too far, probably

00:09:06.270 --> 00:09:10.320 DJ Realty: Yeah, then I moved to move too far. It's like, maybe you move to another city.

00:09:10.320 --> 00:09:10.650 The Entrepreneurial Web Radio: Yeah.

00:09:10.680 --> 00:09:20.790 DJ Realty: Or another neighborhood, but you are like once you. It's not you, it's not so transit because everything here, you can get two and a half phone you can be Detroit.

00:09:20.850 --> 00:09:22.500 DJ Realty: Yeah burbs and a half our time.

00:09:22.500 --> 00:09:28.350 The Entrepreneurial Web Radio: Right. What are some of the deals that were happening before you mentioned that, and that are not happening now. I mean,

00:09:29.070 --> 00:09:30.270 The Entrepreneurial Web Radio: I'm one and

00:09:30.330 --> 00:09:33.360 The Entrepreneurial Web Radio: On social media mentioned some other stuff like extensions and

00:09:33.810 --> 00:09:34.290 The Entrepreneurial Web Radio: What you

00:09:35.100 --> 00:09:47.820 DJ Realty: Really right now. There are a lot of the deals are taking longer than what they used to take. I used to be at a 15 day I just be able to close with 15 days 10 on some deals on our 3045 days.

00:09:47.820 --> 00:09:59.940 DJ Realty: Really, um, they're wanting to see more of your bank statements, um, they're wanting to, you know, not drag out the process would make sure that you're financially ready

00:10:00.030 --> 00:10:00.540 The Entrepreneurial Web Radio: Right, what

00:10:00.840 --> 00:10:14.970 DJ Realty: For within half to we just assume that once you guys are pre approval, you are good to go. Um, whereas now they're doing a lot more upfront with the deal. Um, I haven't. Knock on wood lost any

00:10:15.240 --> 00:10:29.490 DJ Realty: Deals because of it. I've been blessed to work with, you know, a great group of clients and referrals and social, of course, has been awesome for me. Yeah, um, whereas now I'm more cautious.

00:10:31.110 --> 00:10:40.200 DJ Realty: With going to show like I don't show just to show now I don't like you just can't call me and say, Hey, let's go see 10 houses today. I'm like, no.

00:10:40.560 --> 00:10:48.840 DJ Realty: Let's look at these 10 online first and make sure we narrow this list down because we are going in homes and I'm being cautious, but at the same time.

00:10:49.260 --> 00:11:00.840 DJ Realty: I don't want to just entertaining, because you're bored at home. You want to look up some houses, right, that's not you know being saved for you, me, anyone involved. It's just, I'm being a lot more cautious. Now I'm

00:11:01.980 --> 00:11:03.360 DJ Realty: A lot of people, things are

00:11:03.480 --> 00:11:05.460 The Entrepreneurial Web Radio: better, that's better for the industry to

00:11:05.520 --> 00:11:05.790 DJ Realty: Yeah.

00:11:06.540 --> 00:11:18.600 The Entrepreneurial Web Radio: It's been, it's been it's much more productive for the industry and for everybody. Whether you know like everybody loves to be entertained. But, you know, sometimes that can, it can go too far and it becomes very counterproductive.

00:11:18.960 --> 00:11:27.540 DJ Realty: Yes, just because I'm and I think the people here have gotten the message that there are no deals. Not sure thing any deal is just as

00:11:28.110 --> 00:11:38.070 DJ Realty: Everybody who has the money to buy now because rates are so low, they're buying night. They're refinancing. Now they're renting office space now because you can get the free rent.

00:11:38.580 --> 00:11:46.590 DJ Realty: They're doing free rent on a lot of popular cities here for office space for the rest of the year and you're getting like a discounted rate for the next

00:11:46.620 --> 00:11:50.850 The Entrepreneurial Web Radio: Two or three they want anything leases man number shoe laces.

00:11:51.390 --> 00:11:54.720 DJ Realty: commercial leases. If you want to open up whatever you want to open up now.

00:11:56.400 --> 00:12:08.580 DJ Realty: To get the space in the prime locations. Just because and the rental of our rental market for residential here to me, you might as well buy the house.

00:12:08.640 --> 00:12:15.990 DJ Realty: Right then rent it because you're going through the same process. They want you to have the three months to show three months of income.

00:12:16.590 --> 00:12:33.750 DJ Realty: You only got to show one month or two months of income to get the house. So it's like I always tell my clients get the house. If you have a salad in a couple years. His brother better that you had. It's a sale or rifai because you walk into a bank and say, on a personal loan for 50 grand

00:12:34.050 --> 00:12:39.150 DJ Realty: They're gonna be like by yeah have you refine your home that you all. They're all great.

00:12:39.420 --> 00:12:39.780 The Entrepreneurial Web Radio: Here, right.

00:12:40.110 --> 00:12:47.010 DJ Realty: Here you go. So I tell people if you're in a position to buy great if you're in a position where you want to hold on to your house.

00:12:47.310 --> 00:12:56.490 DJ Realty: And you don't want to sell. Great. So I've been having that conversation with my clients as well. If they're if he always say hold on to it. Let's wait and see what the spring.

00:12:56.730 --> 00:13:00.810 DJ Realty: You know, has in store that's weights after the election after the holidays.

00:13:01.050 --> 00:13:11.490 DJ Realty: Right, whatever you want to do the group of clients. I'm working with now everything is going great so my next group will be my end of the year ended up last quarter group so that group is always

00:13:12.570 --> 00:13:13.830 DJ Realty: Very interesting. It's not as

00:13:14.250 --> 00:13:22.260 DJ Realty: Easy a lot more is usually a lot more serious buyers, so we'll see. But new construction, it's still hot here. What's amazes me

00:13:22.260 --> 00:13:26.490 The Entrepreneurial Web Radio: I was like, saying, Here it build outs are going there just slapping them up. I'm on

00:13:27.060 --> 00:13:27.570 The Entrepreneurial Web Radio: I'm on

00:13:28.200 --> 00:13:29.970 DJ Realty: So moving here.

00:13:30.270 --> 00:13:35.040 DJ Realty: Your candles down being built from my office and we were like, who, who

00:13:35.640 --> 00:13:37.530 The Entrepreneurial Web Radio: You're going to fill in. I know you, you're gonna

00:13:38.100 --> 00:13:39.150 The Entrepreneurial Web Radio: You're gonna be out there.

00:13:39.540 --> 00:13:44.490 DJ Realty: I'm gonna leave I, my goal is to do 30 more deals from from now to the end of the year. So love

00:13:44.490 --> 00:13:45.090 The Entrepreneurial Web Radio: It love

00:13:45.390 --> 00:13:49.200 DJ Realty: Four to five going on now. So if I just work a little harder.

00:13:49.260 --> 00:13:51.330 The Entrepreneurial Web Radio: You gotta tell him finish that building, man. We gotta get

00:13:52.920 --> 00:13:55.200 DJ Realty: The client. I have a buyer for sure.

00:13:55.470 --> 00:14:00.990 The Entrepreneurial Web Radio: That's great. All right, we're gonna take a quick break. We'll be back in just a minute. Okay, hang tight. We'll be back in just a minute, folks.

00:16:09.480 --> 00:16:22.200 The Entrepreneurial Web Radio: Alright everybody, we're back again the entrepreneurial web. I'm your host, Jeremiah, Fox. We're checking in with Damon Johnson, he's a real estate executive in Detroit. He called the market. Earlier this week, wild How wild is it

00:16:23.580 --> 00:16:25.110 DJ Realty: Is like the. Wow.

00:16:25.140 --> 00:16:26.040 Wow. Wow.

00:16:28.110 --> 00:16:31.290 DJ Realty: Wow, this. I've never seen anything like this now.

00:16:31.320 --> 00:16:34.710 The Entrepreneurial Web Radio: Yeah, and you've been you've been at it for about 10 plus years, right.

00:16:34.740 --> 00:16:45.660 DJ Realty: Yeah, and I've never, I don't know, I, there's no predicting is there yeah I'm as busy as I've ever been. And I'm answering questions I've never had to answer before

00:16:45.660 --> 00:16:50.310 The Entrepreneurial Web Radio: Yeah, sure. Same here. For sure. You said something in the last segment about

00:16:50.670 --> 00:16:58.140 The Entrepreneurial Web Radio: The end of the year and and how that's always really interesting and I think it's going to be like the most interesting because we still have to wait and see.

00:16:58.500 --> 00:17:14.130 The Entrepreneurial Web Radio: With with States making decisions about school is about restaurants about indoor activities, the fear of a resurgence and coronavirus what that i mean the the roadmap for human behavior is just like out the window right now, you know,

00:17:15.330 --> 00:17:21.360 The Entrepreneurial Web Radio: Let's just we'll have blinders on. I'm, I'm curious. I'm really curious to see how that plays out.

00:17:21.810 --> 00:17:38.550 The Entrepreneurial Web Radio: For, you know, for more stable markets like like yours, but especially here like isn't going to isn't going to create a further Exodus. Are people going to say, you know, like the the rents are down here. Big time. I think the article that I read that was saying there's 60,000 67,000

00:17:38.940 --> 00:17:50.760 The Entrepreneurial Web Radio: Vacancies right now. The average rent in Manhattan is down to about $3,000 which is like laughable. You know what I'm saying. It's like I was like, to my wife, like we might move to the city, but

00:17:51.840 --> 00:17:54.360 DJ Realty: Look up three grand a month here to get you a palace.

00:17:54.570 --> 00:18:08.160 The Entrepreneurial Web Radio: Right right here. It's like a studio. But, uh, but not now people are, you know, now you're starting to see like you know 12 1200 square foot two bedrooms in the East Village. For three grand, you know, which was what

00:18:08.490 --> 00:18:09.210 The Entrepreneurial Web Radio: Happened before.

00:18:09.540 --> 00:18:22.830 The Entrepreneurial Web Radio: But you know what's going to happen is as soon as everything cools down, it's going to swing back up and even higher than before. And anybody returning. It's going to be a tax is going to be a return tax like that. Oh, hey, like I know your apartment was five grand before but

00:18:22.980 --> 00:18:23.790 DJ Realty: Now it's 10

00:18:24.420 --> 00:18:24.690 And

00:18:26.010 --> 00:18:31.650 The Entrepreneurial Web Radio: Yeah, exactly. And I, man. If I had if I had the bread. I would be scooping up those little condos left and right read

00:18:31.980 --> 00:18:42.390 DJ Realty: What people are doing. I follow a have a few friends who are a realtors in the city in New York. And they're like, amen. People are buying like crazy.

00:18:42.390 --> 00:18:43.230 The Entrepreneurial Web Radio: Yeah, I think.

00:18:43.890 --> 00:18:44.580 DJ Realty: I was like,

00:18:44.880 --> 00:18:47.070 The Entrepreneurial Web Radio: I buy like 10 right now if I could. And just like

00:18:47.100 --> 00:18:54.570 DJ Realty: Why not enough people have to live somewhere and people. People have to eat and people have to live so

00:18:55.200 --> 00:18:56.280 The Entrepreneurial Web Radio: I'm glad you're here.

00:18:58.230 --> 00:18:58.560 The Entrepreneurial Web Radio: Yeah.

00:18:59.550 --> 00:19:05.580 DJ Realty: Here we are. I'm just, I tell my clients, you know, if you can afford to buy an investment home now.

00:19:05.670 --> 00:19:07.440 DJ Realty: Or Mondo, or

00:19:07.590 --> 00:19:17.250 DJ Realty: apartments or rent out. Now it now's the time because people have to live somewhere, you may not get the five grands there a month for I still

00:19:17.340 --> 00:19:21.690 DJ Realty: Yeah, like are so crazy to be here, you may not get that but

00:19:22.830 --> 00:19:30.360 DJ Realty: I mean some some form of income, some form of, you know, passive income is better than your day job, which main

00:19:30.840 --> 00:19:45.990 DJ Realty: Go away. Yeah, like my day job went away for a minute when they shut real estate down. Yeah, thank goodness. I had some hustle income from social media helping people don't really like, oh, this is a real job right now because I'm

00:19:46.770 --> 00:19:48.870 The Entrepreneurial Web Radio: You have me, for I thought was a real job all along.

00:19:50.130 --> 00:19:52.230 DJ Realty: Everybody doesn't like Kelly.

00:19:53.820 --> 00:19:54.420 The Entrepreneurial Web Radio: Kelly.

00:19:55.110 --> 00:20:00.900 DJ Realty: I was like, no, I really do real estate full time social media it's supposed to be part time but

00:20:01.050 --> 00:20:01.470 Right.

00:20:02.610 --> 00:20:03.060 The Entrepreneurial Web Radio: Yeah.

00:20:03.210 --> 00:20:08.820 DJ Realty: Well, we'll see how that goes to market is just, I tell people don't buy anything

00:20:10.200 --> 00:20:12.330 DJ Realty: From depreciate right now. No new car. No.

00:20:12.360 --> 00:20:13.620 DJ Realty: I see people buying cars.

00:20:13.680 --> 00:20:22.260 DJ Realty: And motorcycles and going to Jamaica and I'm not like listen you have $10,000 hold on to it.

00:20:22.440 --> 00:20:23.400 The Entrepreneurial Web Radio: Right, exactly.

00:20:23.430 --> 00:20:27.210 DJ Realty: Maybe your rent money your grocery money or whatever or

00:20:28.830 --> 00:20:36.600 DJ Realty: If you're going to buy the house by house if you're going to read apartment rent the apartment, but nothing that you can lay your head on nothing that's not going

00:20:36.600 --> 00:20:36.870 The Entrepreneurial Web Radio: To

00:20:37.110 --> 00:20:42.960 DJ Realty: You know, sustain you for the winter months to come here. Well there you guys get snow to we get blizzard see here

00:20:42.960 --> 00:20:46.860 The Entrepreneurial Web Radio: Oh, I know I lived in Buffalo, I know what happened. Oh, yeah.

00:20:47.100 --> 00:20:48.480 DJ Realty: Family buffalo. So, yeah.

00:20:48.510 --> 00:20:49.620 DJ Realty: You get the gist of it.

00:20:49.890 --> 00:20:53.040 DJ Realty: No, the end of the year here used to be determined. Used to be.

00:20:53.610 --> 00:21:05.850 DJ Realty: Determined by school we had Labor Day was kind of hurry up and sale or by by labor because people wanted to switch schools or stay there. But now with school being for the most part, virtual

00:21:06.510 --> 00:21:14.310 DJ Realty: Our purchases and have gotten extended here and but now we're worried about because we have such a hot summer.

00:21:14.700 --> 00:21:19.380 DJ Realty: Usually in Michigan. We have a hot summer the winter is usually terrible last night was terrible.

00:21:19.860 --> 00:21:29.370 DJ Realty: So it's like, do we, I'm just gonna go until the blizzards get here. Usually we're not done usually we're done with the buying and selling

00:21:30.150 --> 00:21:42.990 DJ Realty: A after Thanksgiving before Christmas, but this year. I don't know. I'm assuming I'm gonna be busy because kids are at home. It doesn't matter what school disappear. Now because your home so

00:21:43.830 --> 00:21:48.030 The Entrepreneurial Web Radio: I think it's gonna really throw the behaviors for a loop because of that, you know,

00:21:48.060 --> 00:21:48.390 DJ Realty: Yeah.

00:21:48.450 --> 00:21:49.530 The Entrepreneurial Web Radio: You don't. A lot of people

00:21:50.310 --> 00:21:51.120 DJ Realty: Yeah, I'm sorry. Go ahead.

00:21:51.510 --> 00:21:54.930 The Entrepreneurial Web Radio: I just say a lot of people buy in certain areas because of the school's

00:21:55.020 --> 00:21:55.860 DJ Realty: Run it.

00:21:55.890 --> 00:22:02.910 The Entrepreneurial Web Radio: Really doesn't have to go to school. You know, if it's just going to be remote. You have a lot more options that way it's going to affect

00:22:03.300 --> 00:22:11.460 The Entrepreneurial Web Radio: You know what people think about going forward. And who knows why not you know and that's situations for to settle down with schools. I mean, here they can't really make a decision on anything and

00:22:12.390 --> 00:22:14.370 DJ Realty: See, they made our decision here they were

00:22:14.430 --> 00:22:21.030 DJ Realty: For the most part, virtual yeah so and I have that search my my my hoodie came the other day when

00:22:22.320 --> 00:22:23.820 The Entrepreneurial Web Radio: I was asking you notice

00:22:23.970 --> 00:22:26.130 DJ Realty: Of course, you come on now you've

00:22:26.640 --> 00:22:29.100 The Entrepreneurial Web Radio: Got mine. You mentioned it yet. So I was just waiting. No.

00:22:29.130 --> 00:22:36.870 DJ Realty: No, you know, when you first came in. It was so funny when it came I reached out to him. And I was like, I need another one.

00:22:36.900 --> 00:22:37.560 The Entrepreneurial Web Radio: Because

00:22:38.280 --> 00:22:43.020 DJ Realty: I was expecting good quality. I wasn't expecting. Great. Wow. Yeah.

00:22:43.050 --> 00:22:44.310 The Entrepreneurial Web Radio: When I the shirt sure feels

00:22:45.360 --> 00:22:46.170 The Entrepreneurial Web Radio: So good.

00:22:46.740 --> 00:22:50.400 DJ Realty: My own merge that I have on doesn't feel like

00:22:51.810 --> 00:22:55.050 DJ Realty: It was just in the details on that hoodie. I was like,

00:22:55.440 --> 00:22:56.940 The Entrepreneurial Web Radio: I haven't tried the hoodie on yet. I literally

00:22:57.240 --> 00:22:57.540 DJ Realty: Got it.

00:22:57.600 --> 00:22:59.580 The Entrepreneurial Web Radio: This I just pulled this out of the package today.

00:22:59.700 --> 00:23:00.540 DJ Realty: My guess

00:23:01.860 --> 00:23:08.850 DJ Realty: What's today, Friday, mine was Wednesday. Wednesday. It was on my doorstep wins. And I was so amazed just

00:23:09.690 --> 00:23:10.050 The Entrepreneurial Web Radio: Did you have

00:23:10.140 --> 00:23:12.510 The Entrepreneurial Web Radio: Any less. Did you expect any less

00:23:12.570 --> 00:23:23.400 DJ Realty: I don't know what I was expecting. It was just so may for me. I was like, Oh, I'm not, you know, high end with the stuff I need one to wear and one just to look at

00:23:23.430 --> 00:23:27.660 DJ Realty: It right vein or umbrella closet that I just keep

00:23:27.840 --> 00:23:29.430 DJ Realty: Like the stalker that I am

00:23:29.520 --> 00:23:34.200 DJ Realty: Right, I just need one one to look at and one to

00:23:34.290 --> 00:23:35.460 The Entrepreneurial Web Radio: Maybe when I hear ya.

00:23:35.640 --> 00:23:37.950 DJ Realty: I hear ya. I was gonna get I'm aware to work tonight it's gonna

00:23:37.950 --> 00:23:39.540 The Entrepreneurial Web Radio: get dirty and that'll be it, but

00:23:40.410 --> 00:23:53.430 The Entrepreneurial Web Radio: Break. I'll be happy I you know you want to see my my case with man. They're a mess. I bought new as though they're in the box. Still, and I just put them aside because the mind just got wrecked enough. I was a certain point, I was like, you know, if I'm gonna do it. I'm gonna do it in style.

00:23:53.640 --> 00:23:58.740 DJ Realty: I have three of each. And I never worked. The ones that I have fine.

00:23:59.580 --> 00:24:00.060 DJ Realty: Today,

00:24:00.420 --> 00:24:08.970 DJ Realty: The other two are like, Are you some no. Yeah. But yeah, social my finger to miss my video. I have a guy.

00:24:09.600 --> 00:24:10.710 The Entrepreneurial Web Radio: On the obvious.

00:24:12.360 --> 00:24:20.790 DJ Realty: And it's so funny. I'm shots. My old guy, but my new guy the trip audio visual he is

00:24:21.810 --> 00:24:26.640 DJ Realty: I'm like amazed balls. He gets my crazy

00:24:27.000 --> 00:24:27.360 The Entrepreneurial Web Radio: Huh.

00:24:27.540 --> 00:24:39.750 DJ Realty: And he gets it, where he got it quick. Where it's like he pushes me to do different things and to my videos are backed up. Now I have so much stuff.

00:24:39.750 --> 00:24:40.080 DJ Realty: I put

00:24:40.110 --> 00:24:45.630 DJ Realty: Out that it's like, and he catches me off guard. The video was walking downtown Detroit and

00:24:46.110 --> 00:24:48.240 DJ Realty: Video, we were filming something else.

00:24:48.300 --> 00:24:57.540 DJ Realty: Yeah, that wasn't a real video that was me, we were done for the day. That was us going to get tacos for wine went for whiskey Wednesday.

00:24:57.630 --> 00:24:59.220 The Entrepreneurial Web Radio: Whiskey when I see you stepped it up.

00:25:01.050 --> 00:25:07.200 DJ Realty: So that was that was like an outtake that will I don't even know he was filming. I swear word is walking across the street.

00:25:07.950 --> 00:25:16.440 DJ Realty: And people are Damn you didn't know that was going, because that's what he does for a living. He, um, it's just has been

00:25:17.040 --> 00:25:24.540 DJ Realty: It's been mind boggling to me. I just look at it like how are you going to top this I'll shoot him a crazy idea. And he's like, well,

00:25:25.050 --> 00:25:32.010 DJ Realty: What do you what audience. Do you want. Do you see it more face. What do you see your answer. Do you see more on take top. Where do you see it more

00:25:32.910 --> 00:25:43.350 DJ Realty: Like on LinkedIn. Where do you see it and we'll just go from there and will heal tailor it how I want how he sees and I don't even have to go look at anything that he does.

00:25:43.410 --> 00:25:44.130 The Entrepreneurial Web Radio: I just right.

00:25:44.220 --> 00:25:47.550 DJ Realty: When he says it to me. I'm like, boy, I just posted in its

00:25:48.000 --> 00:25:55.470 DJ Realty: Context on there and there we go I yeah I'm in love with could ever be in love with your videographer, he's my direct and

00:25:57.450 --> 00:26:10.080 DJ Realty: I'm people. It is so weird. Like, who is doing your stuff. And I was like, he's such a nerd, it's been it's been like often our veterans house.

00:26:10.560 --> 00:26:23.400 DJ Realty: A couple weeks ago when I did my I did my Twitch show that I didn't know I was doing I was there to film rubber real estate videos. And he was like, oh, let me show you what I've been working on and we were sitting there like

00:26:24.930 --> 00:26:27.060 DJ Realty: How did you do this.

00:26:27.120 --> 00:26:36.990 DJ Realty: Yeah, and it's just has been. Yeah, and you know, social now has taken just every time you think we figured it out. It's like, boy. Here's something else. Yeah.

00:26:37.020 --> 00:26:42.780 DJ Realty: But what's so weird about social lately less and less people are posting I'm posting more

00:26:43.050 --> 00:26:44.640 The Entrepreneurial Web Radio: Exactly. I've noticed that

00:26:45.180 --> 00:26:45.540 DJ Realty: You know,

00:26:46.350 --> 00:26:55.680 The Entrepreneurial Web Radio: I have. I've been like, I'm still grinding the same way I have I'm I've increased my friend was talking to my friend this morning. She's like, how much do you post a day. And I'm like, it's a

00:26:56.400 --> 00:26:57.900 DJ Realty: Gravy with. I love it.

00:26:58.290 --> 00:27:09.060 The Entrepreneurial Web Radio: And but I've noticed people that were like very, you know, inspirational to me early on. I'm like, well, and I gotta check like just not in my feet anymore. And then I'll go

00:27:09.060 --> 00:27:24.090 The Entrepreneurial Web Radio: Yeah. And I'd be like, no, they literally haven't posted and I'll send them a message like hey, hope you're doing well and everything, but man, everybody responds to to situations differently, you know, and I think you and I have both gravitated towards you know sausages, much more

00:27:24.570 --> 00:27:25.470 The Entrepreneurial Web Radio: But we are. We've heard

00:27:25.500 --> 00:27:34.140 The Entrepreneurial Web Radio: We've heard certain messages over the years and we we've gravitated towards it and so like i'm i'm excited by what's happening right now. And I know a lot of people aren't

00:27:34.470 --> 00:27:43.320 The Entrepreneurial Web Radio: You know, I know a lot of people have gotten the short end of the stick. But there's also plenty of people who could take it just, you know, you just roll your sleeves up and that's it. I mean I got no roadmap, either. I just

00:27:43.380 --> 00:27:44.310 DJ Realty: I just, yeah, I'm just

00:27:44.550 --> 00:27:56.010 DJ Realty: I'm figuring if it's the deal to be done it for the effects associated a client who needs my help. I'm thicker do it now, but they can still pay me or I can still help arkansas will help somebody could I give a writer.

00:27:56.430 --> 00:27:57.000 The Entrepreneurial Web Radio: Yeah, and I give

00:27:57.210 --> 00:28:06.030 DJ Realty: Much free it by I get so many questions. A day about social and real estate. I'm like, yes, yes, no, yes, yes. No, no, no. So I feel like

00:28:07.140 --> 00:28:20.520 DJ Realty: I said I my rate is cheap. When I do charge for so so I'm like I don't try to gouge anybody. So yeah, so with you and your restaurant and your ventures and you're working out, and I see it now either Jiu Jitsu studios open back up or

00:28:20.520 --> 00:28:21.330 The Entrepreneurial Web Radio: No.

00:28:21.450 --> 00:28:23.100 The Entrepreneurial Web Radio: No, you have a timeline, man.

00:28:23.220 --> 00:28:31.590 DJ Realty: Nothing. Some of our gyms are open, which is crazy to me. And there's some aren't there, letting the city's dictate and the college dictate

00:28:31.650 --> 00:28:37.710 DJ Realty: Yeah, which gyms are open, but I thought about that. I said, I don't know if he's in the studio.

00:28:38.220 --> 00:28:42.540 The Entrepreneurial Web Radio: Yeah, no, I just am I in the basement of my building we popped up some some ads and

00:28:42.750 --> 00:28:45.810 The Entrepreneurial Web Radio: Okay, well, this will get together. It's been the same people for months now just

00:28:45.870 --> 00:28:58.050 The Entrepreneurial Web Radio: Dying other super small groups, but you know in New York State, they just announced, actually, a group of gym owners sued the governor and he was like, oh, okay. You can open on the 24th, but then Mayor de Blasio here in New York said

00:28:58.140 --> 00:29:00.780 The Entrepreneurial Web Radio: Forget about New York City, like the rest of state, you can

00:29:00.840 --> 00:29:11.850 The Entrepreneurial Web Radio: Dine indoors already limited capacity, not in New York City's at Jim's one open before September, for sure. And it's going to be modified by like martial arts schools and my grappling that's

00:29:12.180 --> 00:29:17.520 The Entrepreneurial Web Radio: Like it's gonna be like Broadway and grappling come together like a group deal, you know,

00:29:18.870 --> 00:29:21.240 The Entrepreneurial Web Radio: We, it's the opposite of social distancing we want

00:29:21.300 --> 00:29:22.350 DJ Realty: The Broadway show.

00:29:22.500 --> 00:29:23.580 DJ Realty: The grappling brought

00:29:24.840 --> 00:29:26.700 The Entrepreneurial Web Radio: Where I'm wrong, working on it. It's

00:29:28.170 --> 00:29:31.740 The Entrepreneurial Web Radio: All right, we're gonna have to hop on them. I have to bring Sam on but thank you so much for coming on.

00:29:31.740 --> 00:29:35.490 DJ Realty: And thank you for having me back my Brooke was like you're going back on.

00:29:36.150 --> 00:29:41.160 The Entrepreneurial Web Radio: Oh yeah, we're gonna do this again. I feel like Joe Rogan now how he brings like his old friends and all gets back on.

00:29:41.700 --> 00:29:42.660 The Entrepreneurial Web Radio: getting somewhere.

00:29:43.650 --> 00:29:45.390 DJ Realty: I must do something right to get

00:29:46.140 --> 00:29:48.720 DJ Realty: A return call I'm so appreciative for having

00:29:48.720 --> 00:29:53.880 DJ Realty: Me on thank you keep doing what you're doing. If you need me to do anything. You know, we always talk so

00:29:54.300 --> 00:29:55.920 The Entrepreneurial Web Radio: Where can people find you let them know

00:29:55.950 --> 00:30:09.960 DJ Realty: I am DJ realty solutions on all social media. I'm emailing Damon Johnson 100 at gmail.com any questions, anything I can help you guys with with social real estate, make sure to reach out to me. I'm always available.

00:30:10.410 --> 00:30:11.520 The Entrepreneurial Web Radio: I brother be well

00:30:11.550 --> 00:30:12.540 DJ Realty: Great, thank you.

00:30:12.810 --> 00:30:18.570 The Entrepreneurial Web Radio: We'll talk soon we'll be back everybody in just a moment. Zoomer back to New York City with Sam Himmelstein. Stay tuned.

00:32:36.180 --> 00:32:48.750 The Entrepreneurial Web Radio: Okay folks, welcome back. If you're just tuning in our first segment, we were talking with Damon Johnson, a real estate executive out of Detroit, Michigan, and the wild market as he sees it. Now we're zooming back here to Brooklyn, New York.

00:32:49.140 --> 00:33:03.210 The Entrepreneurial Web Radio: With one of my first guests ever when we were LIVE IN THE STUDIO Sam Himmelstein he's a founding partner of Himmelstein mitch mcconnell gribbon Donahue and Joseph on maiden lane and lower Manhattan. Welcome back to the show. Sam how you doing,

00:33:03.540 --> 00:33:07.620 Samuel Himmelstein: Thanks, nice to be here. I haven't been to maiden lane since March 16

00:33:07.800 --> 00:33:08.220 Right.

00:33:09.330 --> 00:33:15.030 The Entrepreneurial Web Radio: I wrote into Manhattan once on my bike. May the day after Memorial Day.

00:33:15.390 --> 00:33:17.100 The Entrepreneurial Web Radio: Right, was it was

00:33:17.520 --> 00:33:17.850 Samuel Himmelstein: Yeah.

00:33:18.030 --> 00:33:18.750 The Entrepreneurial Web Radio: It was crazy.

00:33:18.810 --> 00:33:21.450 Samuel Himmelstein: Yeah, I've been in Manhattan. A couple of times, but I haven't been to the

00:33:21.450 --> 00:33:22.650 The Entrepreneurial Web Radio: Opposite office.

00:33:22.710 --> 00:33:24.000 Samuel Himmelstein: Working at home. Yeah.

00:33:24.510 --> 00:33:35.910 The Entrepreneurial Web Radio: So I started the show up. I'm not sure if you were listening or not with a statistic from some news articles earlier this week that said there were over 67,000 vacancies in Manhattan.

00:33:37.080 --> 00:33:52.050 The Entrepreneurial Web Radio: What what's going on. I know when you first came on the show. You were like that you know your your your particular part of the market had like a victory in legislation and you were talking about retiring and you're like, I don't know. We don't have. We're not getting calls

00:33:52.440 --> 00:33:53.040 The Entrepreneurial Web Radio: Yeah okay, Cindy.

00:33:53.490 --> 00:33:58.110 Samuel Himmelstein: Is it. No, no, that that change drastically as of March.

00:33:59.310 --> 00:34:09.390 Samuel Himmelstein: We have never ever had the volume of inquiries from tenants residential and commercial yeah that

00:34:09.420 --> 00:34:10.290 Samuel Himmelstein: We have had

00:34:10.320 --> 00:34:14.100 Samuel Himmelstein: In the last few months. Um, it is it's constant

00:34:15.120 --> 00:34:20.250 Samuel Himmelstein: We offer a free 10 minute consultation to people who have covert issues.

00:34:21.420 --> 00:34:36.240 Samuel Himmelstein: That I think is attracting a certain number of people but and the calls were all some variant of I can't pay my rent, because I just got laid off. I'm in. I'm in Broadway, or I worked at a restaurant or whatever.

00:34:37.290 --> 00:34:47.550 Samuel Himmelstein: Or I'm moving back home to mom and dad, and I'm going to breach the lease. What are my exposures, or a business, you know, telling me that you know

00:34:48.030 --> 00:35:03.240 Samuel Himmelstein: I can't function. I can't pay rent. I don't. I've laid off my employees. I have a personal guarantee on my lease. So if they sue me I could be on the hook and I have been just doling out advice about this stuff.

00:35:04.410 --> 00:35:05.880 Samuel Himmelstein: For months, and

00:35:07.050 --> 00:35:18.060 Samuel Himmelstein: It's it's a crisis that is going to worsen severely in the next few months because the courts which were completely shut for a while.

00:35:19.200 --> 00:35:36.930 Samuel Himmelstein: Except for emergencies are now gradually reopening that includes landlord tenant court and you know the civil court where the commercial cases are heard and the cases are being filed. I'm getting calls from clients who were being sued for non payment of rent.

00:35:38.070 --> 00:35:46.620 Samuel Himmelstein: The courts are doing this sort of hybrid thing, you know, the tenant side of the equation is pushing the courts not to reopen we think

00:35:47.220 --> 00:36:00.780 Samuel Himmelstein: It's the equivalent of black lives matter right which because it it has this this disproportionate negative effect on people of color, poor people. It's going to increase the homeless population, you know,

00:36:01.380 --> 00:36:07.410 Samuel Himmelstein: And the landlord lawyers are saying, well, we want to get back to business and want to get back to evicting

00:36:07.440 --> 00:36:19.800 Samuel Himmelstein: People right so right. Um, and the courts are kind of trying to go tread the middle and so what they've done is, I said, well, we're going to reopen we're going to let people file.

00:36:20.310 --> 00:36:29.520 Samuel Himmelstein: But there's not going to be any evictions until September and or we're not going to process the cases. So for example, I got hired by

00:36:30.060 --> 00:36:47.730 Samuel Himmelstein: A client. Two days ago in a case where normally the papers would say you have to appear in court on X date it was blank and it said you'll be notified by the court when the court date is and that's probably going to be two or three months away.

00:36:48.150 --> 00:36:57.330 Samuel Himmelstein: Yeah, so that's how they're kind of trying to, you know, navigate the middle. But once the, once the machinery really begins to gear up again.

00:36:58.320 --> 00:37:13.020 Samuel Himmelstein: You know, we're good unless unless the courts, except as defenses to these cases some version of economic hardship. We're going to have an eviction crisis, um,

00:37:13.620 --> 00:37:26.370 Samuel Himmelstein: And, you know, traditionally economic hardship if I'm a tenant. I go to court and I say, the judge says, Why haven't you paid the rent. I say, I don't have the money I lost my job.

00:37:27.450 --> 00:37:35.520 Samuel Himmelstein: The judge will say, yeah, when when you're moving right. Which makes sense, right, the landlord isn't responsible for your economic condition.

00:37:36.420 --> 00:37:53.640 Samuel Himmelstein: This is different. This is a government ordered massive shutdown of businesses, which in turn caused massive amounts of unemployment, people were told they could not go to work. People were told they could not run their businesses, right.

00:37:54.780 --> 00:38:02.100 Samuel Himmelstein: How is this not impossibility of performance or frustration of purpose or some other defense.

00:38:02.640 --> 00:38:15.480 Samuel Himmelstein: That the courts have traditionally not employed in these situations. So as a lawyer. I'm, I'm just like chomping at the bit to litigate these issues because we've got we're hopefully going to make new law and hopefully it's going to

00:38:15.480 --> 00:38:15.840 Samuel Himmelstein: Be good.

00:38:15.870 --> 00:38:16.830 Samuel Himmelstein: For tenants.

00:38:16.890 --> 00:38:27.090 The Entrepreneurial Web Radio: So, and you were just that had just gone through it sometime last year right it was when you first when you first came on the show. There was like a really big victory for pretend it's right so

00:38:27.090 --> 00:38:28.290 Samuel Himmelstein: legislatively. Yes.

00:38:28.290 --> 00:38:29.250 The Entrepreneurial Web Radio: Yeah yeah

00:38:29.310 --> 00:38:41.100 Samuel Himmelstein: Yeah, the state legislature and lead june of 2019 pass the housing stability tenant Protection Act, which we've done some research and it's actually the most

00:38:41.640 --> 00:38:53.430 Samuel Himmelstein: Massive revamping of a state's landlord tenant laws in the history of the United States and all for tenants. Everything went for tenants and it. It's really a lesson about

00:38:54.210 --> 00:39:06.900 Samuel Himmelstein: Local organizing and getting progressive state legislators elected, you know, it's not all national in right um but the vacancy rate issue is is is interesting on many levels right so

00:39:07.800 --> 00:39:16.920 Samuel Himmelstein: Even though that's true in Manhattan. From what I read. It's the vacancy rates are pretty steady and the rents are pretty steady in the borough's

00:39:16.950 --> 00:39:18.690 Samuel Himmelstein: Right. Um,

00:39:18.960 --> 00:39:20.970 The Entrepreneurial Web Radio: I heard Queens is kind of high, too, but

00:39:21.240 --> 00:39:30.450 Samuel Himmelstein: Brooklyn and seeing. Okay. Yeah. Yeah. So I mean, look, we all know we've heard these stories, people are leaving New York City in droves, you know,

00:39:32.760 --> 00:39:44.160 Samuel Himmelstein: Because of the because of the pandemic, because there's no work because it's open their eyes to alternative suburban or, you know, rural living scenarios.

00:39:44.610 --> 00:40:02.070 Samuel Himmelstein: All kinds of reasons. Um, what, here's one of the things that's frightening, from our perspective is tenant advocates the existence of the rent stabilization law is dependent upon the city, having a 5% or lower vacancy rate.

00:40:03.240 --> 00:40:04.590 The Entrepreneurial Web Radio: Yeah, it's a 10 right now.

00:40:05.610 --> 00:40:16.170 Samuel Himmelstein: So if, if this continues and there's a city wide vacancy rate of over 5% for a long period of time.

00:40:16.890 --> 00:40:28.590 Samuel Himmelstein: Unless the legislature does something the rent stabilization laws could expire right and that that would mean that eight or 900,000 tenants in New York would lose their

00:40:29.130 --> 00:40:34.140 Samuel Himmelstein: Ability to stay in their apartments and, you know, have very small rent increases so

00:40:34.740 --> 00:40:53.190 Samuel Himmelstein: Um, that that's a fright. That's the theory is that you can't have price controls unless there's some kind of an emergency. Right. Yeah, right. So, otherwise they'd be unconstitutional. So the emergency that's always declared is the existed. The 5% vacancy right so

00:40:54.360 --> 00:40:54.690 Samuel Himmelstein: Yeah.

00:40:55.350 --> 00:40:56.640 Samuel Himmelstein: But it has to be citywide

00:40:56.760 --> 00:41:05.790 The Entrepreneurial Web Radio: So yeah right now. I think it's 10% in Manhattan, but I think, you know, Brooklyn is is solid. I think most of Queens. I think it was more so, like all the high rises, they built along

00:41:06.300 --> 00:41:18.750 The Entrepreneurial Web Radio: The East River, you know, facing the city and people were really like that's not the place we want to live right now. We need yummy law, our space and backyard, did they actually extend the moratorium on fictions in New York, they

00:41:18.780 --> 00:41:21.300 Samuel Himmelstein: Did through September.

00:41:21.420 --> 00:41:22.380 The Entrepreneurial Web Radio: September, right.

00:41:22.470 --> 00:41:23.670 Samuel Himmelstein: Wars, I think.

00:41:24.030 --> 00:41:24.510 The Entrepreneurial Web Radio: That it

00:41:24.900 --> 00:41:33.420 Samuel Himmelstein: Or 20th. I'm not sure the day but sometime in September. They extended the moratorium on evictions for both residential and

00:41:33.420 --> 00:41:39.090 Samuel Himmelstein: Commercial tenants. Right. Um, but that's coming. What is today's august 21 right

00:41:39.090 --> 00:41:39.570 The Entrepreneurial Web Radio: Yeah, it's

00:41:39.660 --> 00:41:40.500 The Entrepreneurial Web Radio: right around the corner.

00:41:41.100 --> 00:41:46.320 Samuel Himmelstein: Right. And again, landlords can file cases now.

00:41:46.350 --> 00:41:47.220 The Entrepreneurial Web Radio: Already, yeah.

00:41:47.250 --> 00:41:54.360 Samuel Himmelstein: Right and and and and, if necessary, get, you know, in some cases maybe get a judgment against the tenant.

00:41:55.740 --> 00:42:16.590 Samuel Himmelstein: But what's what's slowing things down for the landlords also is that the courts are not yet allowing in person appearances for routine cases, the only in person appearances that they're allowing now are continuing trials that had started pre march of 2016 of 2020

00:42:16.890 --> 00:42:17.070 Yeah.

00:42:18.450 --> 00:42:31.020 Samuel Himmelstein: So I've had in the last two weeks eight court appearances. All done. The way I'm doing this with you, Ron. It's kind of nice because I don't have to put on a suit and a tie.

00:42:31.260 --> 00:42:33.090 The Entrepreneurial Web Radio: Can you can you were you're

00:42:33.120 --> 00:42:34.290 Samuel Himmelstein: Mad, sad, or a cat.

00:42:34.350 --> 00:42:43.200 Samuel Himmelstein: I don't worry. No, but I'm digital joke among us is always that the judge, Judge, please don't say All rise.

00:42:44.250 --> 00:42:44.460 Samuel Himmelstein: Cuz

00:42:45.150 --> 00:42:46.200 The Entrepreneurial Web Radio: I mean you got shorts on.

00:42:47.820 --> 00:42:48.570 Nose or not.

00:42:50.490 --> 00:42:51.780 Samuel Himmelstein: sweat pants, George.

00:42:51.810 --> 00:42:52.590 Samuel Himmelstein: Jim should or

00:42:53.160 --> 00:42:57.000 Samuel Himmelstein: You know, it gives a new meaning to submit your briefs to the Court.

00:42:59.850 --> 00:43:01.590 The Entrepreneurial Web Radio: Sam also moonlights as a stand up.

00:43:01.620 --> 00:43:06.150 The Entrepreneurial Web Radio: Comedian and yeah man front man for a rock and roll band.

00:43:08.880 --> 00:43:10.710 The Entrepreneurial Web Radio: That's another sad subject will

00:43:10.710 --> 00:43:11.580 The Entrepreneurial Web Radio: Have to talk about

00:43:12.390 --> 00:43:12.930 Samuel Himmelstein: Music

00:43:13.800 --> 00:43:28.530 The Entrepreneurial Web Radio: I just saw a there was an article I repost it on Facebook yesterday or two days ago and and they're they're attacking businesses statewide. Now the state liquor authority is if you promote a musical event that you're

00:43:28.530 --> 00:43:29.640 Samuel Himmelstein: Establishing that

00:43:29.730 --> 00:43:33.870 The Entrepreneurial Web Radio: If it's incidental if people just show up and there's music there. It's okay.

00:43:33.870 --> 00:43:34.260 Samuel Himmelstein: Yeah, you

00:43:34.290 --> 00:43:38.790 The Entrepreneurial Web Radio: Promote it they can take your liquor license or fine, you have to $10,000. I'm like,

00:43:38.910 --> 00:43:44.220 Samuel Himmelstein: You know, New York. New York's entertainment laws are so antiquated right

00:43:44.280 --> 00:43:44.670 The Entrepreneurial Web Radio: Yeah.

00:43:44.970 --> 00:43:47.250 Samuel Himmelstein: They have this law like no date.

00:43:47.370 --> 00:43:48.870 The Entrepreneurial Web Radio: I don't know if it's a long the hawks

00:43:48.960 --> 00:43:53.910 Samuel Himmelstein: Know dancing right so it's so we always had a play at bars where the

00:43:54.600 --> 00:43:57.270 Samuel Himmelstein: Dance Floor was out of sight of the street, you know,

00:43:57.780 --> 00:44:00.330 Samuel Himmelstein: Yeah. Crazy, right, doesn't make sense.

00:44:01.080 --> 00:44:03.540 The Entrepreneurial Web Radio: It really doesn't. A lot of it doesn't. I mean, I know they're trying to protect

00:44:03.540 --> 00:44:06.750 The Entrepreneurial Web Radio: People, but that I think they could rethink a couple of their, their

00:44:07.410 --> 00:44:09.240 Samuel Himmelstein: Procedures, I think you'd agree. So, yeah.

00:44:09.270 --> 00:44:15.750 The Entrepreneurial Web Radio: All right, we're gonna take one more quick break, we'll come back and we'll, we'll, we'll chat a little bit more about this. Stay tuned. Everybody will be back in just a minute.

00:46:10.020 --> 00:46:17.850 The Entrepreneurial Web Radio: Okay everybody, welcome back. Again, it's Friday afternoon. You're listening to the entrepreneurial web. I'm your host share my thoughts here with my good friend and neighbor.

00:46:18.150 --> 00:46:25.470 The Entrepreneurial Web Radio: Also a tenant lawyer Sam Himmelstein is practices in lower Manhattan, but he's been doing everything even court cases through zoom

00:46:26.820 --> 00:46:27.660 The Entrepreneurial Web Radio: With no rising

00:46:28.470 --> 00:46:33.030 The Entrepreneurial Web Radio: Because you might arise know rising so you, you said something on the last segment about

00:46:34.080 --> 00:46:47.520 The Entrepreneurial Web Radio: An eviction crisis, you've been in practice for a long time, your lifelong New Yorker. Have you seen anything of this level before. I mean, you were, you were here in the 70s and 80s and things were pretty bleak. How can you compare the two situations.

00:46:47.550 --> 00:46:56.610 Samuel Himmelstein: Now there's nothing nothing close to this, the number of people who are unable to pay their rent or have you know

00:46:57.120 --> 00:47:11.700 Samuel Himmelstein: Not moved out of apartments where their leases have expired because they didn't have any place to go enough money to move is. I mean, it's anecdotal. But there's a lot of. I mean, there's a lot of stuff to read about this if you

00:47:11.700 --> 00:47:11.910 The Entrepreneurial Web Radio: Have

00:47:12.210 --> 00:47:23.070 Samuel Himmelstein: If you look online. I always assume that if I'm getting dozens and dozens of calls a day. That's the tip of the iceberg. Right. And I'm hearing it from my colleagues in the tenant community.

00:47:25.530 --> 00:47:29.400 Samuel Himmelstein: It's going to be massive and and and you know there has to be

00:47:30.420 --> 00:47:34.470 Samuel Himmelstein: There has to be a larger governmental response somehow right it

00:47:35.490 --> 00:47:44.640 Samuel Himmelstein: I mean you know it's you hear what's going on on the Upper West Side right we're the liberal Upper West Side is a freaking out about the homeless population. Yeah, because they had to put

00:47:45.330 --> 00:47:57.000 Samuel Himmelstein: People who were in shelters and hotels temporarily. I'm not going to comment on the merits of that debate. But the last thing this city needs right now is a massive increase in the homeless population.

00:47:57.060 --> 00:48:11.130 Samuel Himmelstein: And midst of a pandemic and and a lot of these people are families with children. Right. You know, these aren't you know what you think of his stock, you know,

00:48:11.760 --> 00:48:19.170 Samuel Himmelstein: junkies. And yeah, yeah, yeah. These are families with kids and who were working and paying their rent and, you know,

00:48:19.710 --> 00:48:32.670 Samuel Himmelstein: Through know for their humiliated and embarrassed by what's going on that and and not trying to take advantage of a situation. Right. They just fallen on hard times. So unless the government comes up with something either

00:48:33.510 --> 00:48:47.250 Samuel Himmelstein: I mean that one good thing they did pass a law which which is still in effect, which is that if you can demonstrate covert hardship between March, April, May, June and July.

00:48:48.720 --> 00:48:57.420 Samuel Himmelstein: And you get served with an eviction case for non payment of rent the court can only enter a money JUDGMENT FOR THE RENT, meaning

00:48:58.380 --> 00:49:04.770 Samuel Himmelstein: You won't get evicted as if you don't make that payment normally landlord tenant court is an eviction court.

00:49:05.700 --> 00:49:14.190 Samuel Himmelstein: judgment against you and you don't satisfy it. Not only can the landlord attempt to collect it in the ways. No one normally collects a judgment.

00:49:14.520 --> 00:49:29.250 Samuel Himmelstein: But they can evict you throw you out with a Marshal right um this law made those months. Again, if you can demonstrate covert hardship. The rent is only a monetary judgment. So that's a slight. That's a good start right

00:49:29.610 --> 00:49:31.800 The Entrepreneurial Web Radio: You know, you still are known for the money, but

00:49:31.950 --> 00:49:33.480 Samuel Himmelstein: Still on the hook for the money, but I

00:49:33.480 --> 00:49:34.320 The Entrepreneurial Web Radio: Don't know street yet.

00:49:34.500 --> 00:49:47.160 Samuel Himmelstein: A lot of people in this situation, what we call judgment proof right if you don't have any money in the bank and you don't own any property and you are not working. There's nothing to go after right

00:49:48.060 --> 00:49:55.950 Samuel Himmelstein: Now determines a good for 20 years so maybe down the road. The landlord will be able to collect it. Yeah. One of years.

00:49:56.490 --> 00:50:08.430 Samuel Himmelstein: And the traditional way that people collect judgments, is that they either seize your bank account or they garnish your salary and but they can only take 10% of your salary in any given time.

00:50:09.390 --> 00:50:16.680 Samuel Himmelstein: But at least that put a temporary hold on the evictions but alright so then what about August and September and October and, you know,

00:50:17.250 --> 00:50:25.140 Samuel Himmelstein: People are still out of work. Right. You know, the Broadway shows and the music industry are still completely shot.

00:50:25.440 --> 00:50:26.670 The Entrepreneurial Web Radio: Right. Think about all the

00:50:26.760 --> 00:50:30.300 The Entrepreneurial Web Radio: All the support industries for them to those people will lose and work left and right.

00:50:30.450 --> 00:50:36.870 Samuel Himmelstein: Incredible, right, I mean, there were there were all these tours plan right the stones supposed to store. I mean,

00:50:36.900 --> 00:50:37.770 The Entrepreneurial Web Radio: You would know better.

00:50:38.880 --> 00:50:39.900 The Entrepreneurial Web Radio: Call. Can you ask him.

00:50:41.100 --> 00:50:43.410 Samuel Himmelstein: Where he wouldn't know what would he know they just

00:50:45.300 --> 00:50:47.940 The Entrepreneurial Web Radio: Got famous for its worst JJ French and all this man.

00:50:49.080 --> 00:51:01.170 Samuel Himmelstein: It's a good question. I read his stuff he's he's he's blogging a lot about business stuff. So yeah. Um, so yeah, they were all day like a tour, like the stones must employ hundreds and hundreds of people. Right.

00:51:02.910 --> 00:51:10.920 Samuel Himmelstein: Stuff. Yeah, that the construction, but, um, you know, I have a client that that's and that's that's a Broadway ticket broker.

00:51:13.110 --> 00:51:13.740 The Entrepreneurial Web Radio: We often

00:51:14.820 --> 00:51:16.050 The Entrepreneurial Web Radio: Know business. Yeah.

00:51:16.140 --> 00:51:18.120 Samuel Himmelstein: And you know what's crazy Jeremiah

00:51:19.860 --> 00:51:29.070 Samuel Himmelstein: Just this is it's times like, does that make me really happy. I'm a tenant lawyer or not a landlord lawyer you when you go when you go to the landlords and you say, look,

00:51:30.210 --> 00:51:40.770 Samuel Himmelstein: My clients been a good tenant for 10 years or five years they paid their rent on time. This is not on. They're not doing this deliberately but they have no business. There's no money coming in.

00:51:41.280 --> 00:51:54.450 Samuel Himmelstein: Can we negotiate something, can we negotiate let two or three months go can you, can we renegotiate the lease so that it's 25% less over the course of the lease right

00:51:55.710 --> 00:52:12.660 Samuel Himmelstein: That almost uniform response we get from landlords is Go F yourself. It's a are not negotiating and they are being counseled by their the organizations that represent them not to negotiate.

00:52:13.980 --> 00:52:34.290 Samuel Himmelstein: Theoretically, because they are waiting for some legislation to come down and they're telling them members if you make a deal that's more favorable to to the tenant than the legislation is you're going to be stuck with it. Right. Yeah. Um, but it's not logical, you know, because

00:52:34.350 --> 00:52:34.860 The Entrepreneurial Web Radio: Not at all.

00:52:35.130 --> 00:52:46.500 Samuel Himmelstein: If that tenant leaves the market is is going to be way, way less for that same space than it was. So why wouldn't you keep a tenant that you know

00:52:47.370 --> 00:52:58.470 Samuel Himmelstein: And reduce their rent. Right. And so all they're doing most landlords. There are some exceptions. They're doing what we call deferral agreements where they say

00:52:59.130 --> 00:53:07.860 Samuel Himmelstein: Okay, don't pay three months rent, but we're going to tack it on to next year's read right so it really doesn't answer the question ultimately of

00:53:07.860 --> 00:53:08.340 Samuel Himmelstein: What yeah

00:53:08.820 --> 00:53:11.940 Samuel Himmelstein: What do you do for those months when you had absolutely no business.

00:53:11.970 --> 00:53:15.060 The Entrepreneurial Web Radio: Some of those people might not be back to work even next year.

00:53:15.390 --> 00:53:17.100 The Entrepreneurial Web Radio: Yeah, nobody knows what's gonna happen.

00:53:17.370 --> 00:53:22.110 Samuel Himmelstein: And you know, when I talked to my colleagues in the landlord bar, even they acknowledge that

00:53:23.250 --> 00:53:40.500 Samuel Himmelstein: They don't understand the unwillingness to negotiate in this scenario, it's, it seems to be the perfect situation where everybody could come out with something instead of, you know, forcing it to court and everybody coming out with nothing. So I

00:53:40.530 --> 00:53:42.660 The Entrepreneurial Web Radio: Know, I've heard about it from the commercial

00:53:43.950 --> 00:53:58.530 The Entrepreneurial Web Radio: Sector, not so much from residential where we're at. But, um, yeah. It seems like they're holding on to like a diet mentality that you know it's not servicing them, but they're just so stuck in the in the pattern. The camp right past it.

00:53:59.010 --> 00:53:59.430 The Entrepreneurial Web Radio: On

00:53:59.760 --> 00:54:05.130 The Entrepreneurial Web Radio: Which brings to mind like some of the articles and we're coming out lately. And they're like, you know, New York is dead. I mean,

00:54:06.150 --> 00:54:08.820 The Entrepreneurial Web Radio: As a lifelong New Yorker. How do you feel about right now.

00:54:09.810 --> 00:54:20.040 Samuel Himmelstein: It's scary. But I think it's going to come back it, but I think it's going to be changed inalterably in in ways that we never could have expected.

00:54:20.820 --> 00:54:28.590 Samuel Himmelstein: Um, I think the ways of doing business in New York are going to change permanently. So, for example,

00:54:29.280 --> 00:54:38.550 Samuel Himmelstein: I attended a si le in like may with my ethics council and they, it was about, you know how to transfer over to remote

00:54:39.090 --> 00:54:55.740 Samuel Himmelstein: Practicing and electronic filings and all this stuff and they open the session by saying we all knew these changes were coming and they we expected them over the next 10 to 20 years they're going to be here in the next year or two. Yeah, right.

00:54:55.950 --> 00:54:57.030 The Entrepreneurial Web Radio: Overnight. Yeah.

00:54:57.060 --> 00:55:09.120 Samuel Himmelstein: It's going to happen overnight. I think the commercial real estate market is going to be inalterably affected because everyone now is understanding that they don't need as much office space if any

00:55:09.600 --> 00:55:09.900 The Entrepreneurial Web Radio: Right.

00:55:10.230 --> 00:55:19.410 Samuel Himmelstein: I represent a group of doctors and Soho, um, who switched over to their psychiatrists and they switched over to remote

00:55:19.860 --> 00:55:33.690 Samuel Himmelstein: Sessions when the pandemic hit and their clients are all telling them, we don't want to go back to the other ones. They don't need an office anymore. Yeah. Right. And they had, you know, several thousand square feet and cell phone. So it's going to change.

00:55:33.720 --> 00:55:35.700 The Entrepreneurial Web Radio: A lot of things. Yeah. Now,

00:55:35.730 --> 00:55:51.240 Samuel Himmelstein: You know, on the other hand, there are the handful of I have one landlord I'm representing a group of tenants on 23rd STREET AND HE'S SAYING, WE WILL lower everybody's rent by a proportion that they can demonstrate that their businesses.

00:55:51.240 --> 00:55:52.710 Samuel Himmelstein: Struggle. Yeah, right.

00:55:52.950 --> 00:56:09.420 Samuel Himmelstein: So show me what your receipts were before. A year ago, if you can show me that you're, you know, down 50% will lower your read 50% when you rent goes back when your income goes back up will raise a backup that to me seems like a perfectly logical solution.

00:56:09.630 --> 00:56:16.530 The Entrepreneurial Web Radio: And pre coven there were there releases that operated that way where it was a floating rent based off your revenue because people experienced seasonal

00:56:16.710 --> 00:56:24.630 The Entrepreneurial Web Radio: Adjustments, you know, especially in some of the bigger buildings and I think going forward. There's going to be kind of a pandemic response written into the writers have a lot of

00:56:24.630 --> 00:56:25.590 Samuel Himmelstein: Commercial. Yes.

00:56:25.740 --> 00:56:31.320 The Entrepreneurial Web Radio: It's like nobody is just going to be like, I don't know, we'll, we'll see. We'll see if this happens again, it's gonna be like, Nope. There's going to be in writing.

00:56:31.620 --> 00:56:43.260 The Entrepreneurial Web Radio: How, how, you know, each party will respond and in a way that will be that will support both, you know, and not lean one way or the other. And hopefully, you know, everybody gets out with their shirts we go

00:56:43.320 --> 00:56:45.780 Samuel Himmelstein: We call that a force majeure clause.

00:56:46.110 --> 00:56:47.310 The Entrepreneurial Web Radio: Okay, that's

00:56:47.640 --> 00:56:48.960 The Entrepreneurial Web Radio: Got some research to do

00:56:49.230 --> 00:56:55.620 Samuel Himmelstein: Yeah, and most of them the way they're written specifically exclude this kind of situation.

00:56:55.800 --> 00:56:56.190 The Entrepreneurial Web Radio: Yeah.

00:56:56.400 --> 00:56:57.960 Samuel Himmelstein: Right. Yeah, exactly. Yeah.

00:56:57.990 --> 00:57:01.350 The Entrepreneurial Web Radio: We're gonna have to wrap up. Where can people get in touch with you if they have questions.

00:57:01.380 --> 00:57:02.970 Samuel Himmelstein: Oh, I see. If

00:57:03.120 --> 00:57:10.320 Samuel Himmelstein: If we have a Facebook page and we have a website. If you just Google Himmelstein McConnell will pop up everywhere.

00:57:12.150 --> 00:57:24.690 Samuel Himmelstein: Our offices are open, but most of us are working part time or remotely, but our phones are working and we're fielding calls but the best place is usually at our website or a Facebook page.

00:57:25.230 --> 00:57:26.430 Samuel Himmelstein: Awesome. Well,

00:57:26.820 --> 00:57:29.910 The Entrepreneurial Web Radio: Thank you so much, and wish you the best. Keep up the good work.

00:57:29.910 --> 00:57:30.690 The Entrepreneurial Web Radio: endorphin

00:57:31.050 --> 00:57:33.840 The Entrepreneurial Web Radio: You've always been a great guy, and an inspiration to me. So thank you.

00:57:33.870 --> 00:57:34.140 Samuel Himmelstein: Thank you.

00:57:35.640 --> 00:57:42.510 The Entrepreneurial Web Radio: Thank you. And as this kind of, you know, unravels we'll have you come back on and and do like periodic check ins, because people

00:57:42.510 --> 00:57:42.660 The Entrepreneurial Web Radio: Are

00:57:42.690 --> 00:57:47.640 The Entrepreneurial Web Radio: It's a big people stop me on the street all the time and like what do I do, I don't want to give them all your phone number.

00:57:48.600 --> 00:57:50.160 Samuel Himmelstein: If they were parties. Now, I'd be

00:57:50.160 --> 00:57:51.030 Samuel Himmelstein: Very popular

00:57:51.600 --> 00:57:52.050 Right.

00:57:53.520 --> 00:58:00.000 The Entrepreneurial Web Radio: Alright. Well thanks again. Sam, everybody. Have a great weekend. We'll check in with you next week. You listen to the entrepreneurial web

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