We like classic rock (which you’ll find out if you come on our Annual Investor Summit and Sea). If you’re familiar with George Thorogood’s iconic song (the title of this post), you may remember his conflict with his landlady:
I come home one Friday,
Had to tell the landlady I’d-a lost my job
She said that don’t confront me,
Long as I get my money next Friday
Now next Friday come I didn’t get the rent,
And out the door I went
What’s our pint? Oops. That’s point.
When people don’t have jobs, they don’t pay the rent. And that’s tough on the landlady (or landlord, as the case may be).
Today, Reuters reported that US employers shed another 263,000 jobs in September alone. Think about that. That’s 40,000 more than if you laid off each and every man, woman and child in the city of Green Bay, Wisconsin just last month. According to Reuters, the Labor Department says this is the 21st consecutive month of job losses and the US now has the highest unemployment rate since June 1983.
In case you didn’t figure it out, that’s the BAD news.
However, there is actually GOOD news. But it isn’t in the report. It’s in this blog (aren’t you glad you’re reading it?).
By necessity, these are macro reports. That means its the big, broad, general, overarching, not market specific picture. Unless you are buying properties in every city and sub-market across the US, it really doesn’t mean THAT much to you.
What it does mean is that there are lots of people looking for jobs. Will people move for a job? They will.
You’re mission (if you choose to accept it) is to figure out WHERE the jobs are or are being created, and then go there to acquire properties in anticipation of the job seekers migrating to find work. Hint: Last year, Texas created 70% of all the new jobs created in the US. (Source: Rick Perry, Governor of Texas)
Are we telling you to buy properties in Texas? No. There are lots of factors to consider, not the least of which is your personal investment strategy. But the principle of seeing the opportunity that’s buried in the headlines is something every real estate entrepreneur needs to be mindful of. When something bad is happening, people will gravitate towards a solution. Either create a solution or find someone or someplace that has and put yourself in the flow. When you do, good things usually happen.