I had a dream last night which gave me an idea that was very much in the spirit of the times. It’s no secret that the world we live in is the most unfair, inequitable, selfish, and greedy in generations. So, why not capitalize on it? So here’s my idea. Obviously, I couldn’t do anything like this for multiple reasons, not the least of which is morals. But if I was of that exploitive bent, I think this might actually work.
What’s hot right now? Renting. Why? Because no one can afford a house, even though rent is pretty much a house payment anyway, but for lots of other reasons, people can’t get a house. So, being a landlord is good. What’s even better is having high-end apartments, because even if people can’t afford to have a house, they still don’t want to have to live in, ugh, an apartment building. Temporarily displaced millionaires and all.
My design is a high-story building. Not like 30 stories high, just a moderate 10-12. It has a multi-level parking garage enough to house 2.5 cars per unit. 2 cars per unit, some overflow guest parking, and renters can pay for additional spaces. On the top floor of the building is a gym with inspiring views, and a restaurant serving breakfast, lunch, and dinner. Obviously, there is a resort-style pool and small dog park. Library, meeting/conference/party rooms, you know. All the stuff. So we’ve established this is a luxury apartment complex that’s essentially like living at a vacation resort. The rent doesn’t have to be outrageous, just in line with the amenities. The gatekeeping and exclusivity comes from a different source – the deposit.
To have a lease in this complex, you have to make a deposit of $20,000. Jaw-dropping, yes. Believable in this day and age, yes as well. Only the first one to do this will seem weird, then when it works, it will become normal. It’s happened over and over. Who would have thought people would be buying $1,500 phones?
Now obviously, this is a deposit, so you’ll get it back when you leave. I don’t know a lot about the rental industry, but I assume a rental company holds a percentage of the deposits they take in and uses the rest for working capital. It would be unlikely that there would be a mass outflow of tenants that would result in a "run on the bank", so to say. But that sort of working methodology just doesn’t sit right with me. That money is never yours and it’s a one-time boost, unlike the recurring inflow of rent payments. So in my business, the deposits are always 100% off-limits for business use.
So what do you do with that money? 120 units each with a $20k deposit is almost $2.5 million dollars. Well, you invest it! You put it in some safe income-bearing investment and the additional income from that investment is used to operate the business. Investing 2.4M with a 4% return will provide almost $100k a year, without compounding. Let’s consider what rent could be for such a high-end apartment. $1,500/mo? That would be $180k/mo in rental income, then an extra $8k/mo in investment income. That’s like having an extra 5 units paying rent.
And you know, the $20k deposit is still perfectly on point with the times. It keeps the "undesirables" out. So you’d have to have impeccable credit as well as a large hoard of cash to get into this building. And the exploitation of the tenants, even beyond what’s normal for rentals, is that the business gets to use the tenant’s capital for their own use. Shit, they could even sell it as a benefit to their renters, saying, "your deposit will be held securely so when you are ready to graduate to homeownership from renting, you’ll have a great source for your house’s down payment." Obviously ignoring the fact that the deposit is locked in a zero-interest account, while the apartment business is collecting the interest.
That just modern life in these dystopian times.
Where It’s Going
On: https://akcaggiano.com/2020/11/10/cruel-to-be-kind/
Usually, I use the Commentary category for news stories, but when I was writing a comment on this blog post, I decided I had more to say about the situation and making my own post might be more appropriate.
To summarize: After having been verbally, emotionally, and physically abused by the former president and his followers, we’re now asked to simply forgive and forget. The answer to both of those requests is "no." Anyone that didn’t see a problem with what has been done over the last years has a serious problem. Anyone that says the alternative would have be worse, or says that the president-elect is going to make it worse has a serious problem.
If we are not actually living in the "end times", which I’m not going to completely dismiss, a lot of people act as if there is nothing left to lose. For example, a see a lot of posts about gender or sexuality rights. And because "liberals" are coming into power, we’re all going to be homosexual now. Hyperbolic and hysterical, yes, but here’s the point. For some people, this is so important, that they would vote the incumbent back in solely because of that. There are other similar reasons people have for the same action. I’ll admit, there may be a case I would do something like that, but for a different cause.
The difference with me, and I would assume other rational people, is there is a level of risk/reward assessment. To get what you want, how much do you have to give up? And for these irrational people, it seems they would give up everyone’s everything for their one thing. And they would suffer for it as well, despite the win – a Pyrrhic victory. There’s no consideration to postpone that fight for 4 years and try again in better circumstances. It’s tunnel vision. Anyone who voted JoJo or Kayne, this is the one time to not be supporting 3rd party. This one is too important. But thank you anyway for pulling those votes.
Now, the point I really wanted to make in response to the post is: we’re nowhere near out of the woods on this.
There is a book from which I read an excerpt, and now there’s so many similar books there’s no way for me to find out which it was so I can link it, that discussed how Germany became Nazi Germany. I distilled the information from that into a single statement to commit to memory, "Hitler comes later."
The point of that warning is that in Germany, there was a pre-Nazi leader who sparked the nationalistic views of the people. He didn’t get very far, but the future Nazi party took note of how dedicated and passionate those supporters were. The party then turned it up to 11 and viola, Hitler.
So while there may currently seem to be a glimmer of hope that civility can return, this is the time to be even more vigilant (and god, I hate that word). I am certain the fanaticism has not gone unnoticed and can and will be exploited.
If I had to hazard a guess, it will be Jr. He’s young, charismatic, and carries the family name. He’s got a partner from the media that has been successfully grooming him for presentation. So far I haven’t heard of him speaking his own ideas, only parroting his father’s, but watch out if the tone changes and he starts instigating things himself.
We have 4 years to prepare for this. Do not forgive and do not forget.