Why I'm Buying Real Estate While Everyone Else Is Waiting

Interest rate is above 7%. All the different buyers and investors, they're all scared and they're sitting on the sidelines. This is when I go out there and look for great opportunities. If you're an investor or buyer and you're waiting for the rates to drop, it could be your biggest mistake. Right now, this is the opportunity where I'm out there looking for property. And of course, you got to be smart. You got to know how to run the number. But this is where I made all my money in the past, and this is where I'm about to make more money again. So what's happening in this This is what I call a buyer's market. Now, I've gone through a buyer's market and a seller's market many, many times since I started in 1989, 1990. This doesn't scare me because I know how to navigate through a seller's market, and I also know how to navigate through a buyer's market. So what is a buyer's market? A buyer's market right now is basically when you have 10 sellers and there's only one buyer. I mean, For this 10 seller, one of them, in order to sell to this one buyer, it has to be the best location. It has to be the best looking house in remodel. It has to be priced the best. It has to be the best of everything to stand out. And it might even be the lowest price. And a lot of times it might be all close in price, but you know, the location, the remodel, the staging, the photographer, Right? This little thing that really make it stand out to cause this buyer to buy about one out of 10. Now, if you are a buyer, this is a great time to buy because real estate is at a discount. If you are a seller, this is where you are going to get a haircut because we are in what they call a recession. And basically seller right now, whoever's selling right now, if you have to sell, you're not going to get top dollar. But if you are a buyer, a regular buyer or an investor buyer, this is a great time to buy because again, real estate is at a discount. Okay. In this buyer's market, you have fewer buyers out there competing against you. Okay. You see what in the seller's market, there was one seller and 10 buyers. So there's multiple buyers out there bidding on this property. So in a buyer's market, you don't have, you know, 10 of the buyers bidding on the same house. And when in that market, the seller's market, buyers have to basically go look at a house. If they're lucky to even get there, because it might be sold by then, they have to basically look at it with 10 other buyers. Some buyer had more money and they would say, you know what? I'm going to pay all cash, no bank financing. Well, you might not have even a chance. Some buyers are more experienced. They could buy the property, no inspection, no contingency, no financing contingency, right? They could waive all contingency, buy it basically, you know, all cash, no contingency. And if they got money, they might want to pay 50, 75, 100, 150, 200 grand over asking price just to get the house because they got more money and they got more experience. That's a seller's market, but in a buyer's market right now, you ain't got that many buyers because majority of them are sitting on the sideline. So right now, as a buyer, you get to go out and look at the property. You get to look at the property and you get to make an offer and have inspection, have feasibility. You get to negotiate the price. You get to negotiate the timeline, the closing. You get to think it over. You get to do all this when you couldn't do that before. This is why I love buying in this market because the seller, they need the buyer more than ever today. And since I have plenty of options to choose from, I'm not gonna jump in and just buy anything. I wanna make sure I got the best property, the best deal, and I get to negotiate it my term. Otherwise, I'm walking and I'm gonna go buy another property. This is what's happening in this market right now. If you're a seller, you're going to get a haircut. But if you're a buyer, you get to buy real estate at a discount. And this is a great time to buy. That's why for me, I just got $3 million with a line of credit on some of my rental property. Available right now, and I'm going in for another three more million. I want to have $6 million right now to go out there and buy and have leverage right now because this is when most buyers are sitting on the sideline and they're scared to make a move, waiting for the interest rate to come down, which is the bad move because you're never going to be able to time that market at the bottom. So for me, I already know what I know, and this is why I'm willing to, if that's a good deal right now, I'm willing to buy it when it actually makes a lot of sense to me, I'm willing to buy it. Here's why waiting for the race to drop will be a huge mistake. Now, again, I've been through this cycle over four or five times. If you wait for the market to drop, let's just say right here, the market's dropping. Let's say this right here is 7% or 7.5%, whatever you want to call it. And you wait for it to drop, drop, drop, drop. Well, how would you know when the bottom is? And by the time the bottom hit, you don't even know. It's coming back up. And if you end up buying somewhere around here again, here's the difference. Here, rates are high, there's nobody out here. There's less competition, less buyer compete against you. With less buyer, less competition. With less competition, you can negotiate better. You're going to get a good deal. Okay, everybody's waiting for the rate to drop. And what's so crazy is most buyer investors, they're all followers. They all listen to the media and they all follow because they haven't been around like me since 1989. By the time it comes around the other side, here, they might buy in at the same spot. But here, they have more buyers come back in the market because the rates have dropped. Let's just say rates here is at six and a half percent. But now you have more buyers competing against each other. More buyers, right? More competition. More competition, that means prices start to go up. So yeah, you might get a cheaper interest rate when you get it at the other end. But for you to think you can time the bottom, ain't gonna happen, okay? So even by the time you buy and it come back the other side, rates might be lower, but you're gonna have more buyer. You're gonna have no inspection time. You got more competition. And bottom line is, you're gonna be back into some kind of a bidding war again. This is why I don't mind buying down here. Even if I buy and it still go down a little bit more, come back the other way, it's okay. Because I'm gonna work here. Sure, I get a basically. a good price where i'm okay with it i can live with it by the time this thing go back up i already bought my property up here i ain't gonna buy much unless it's a good deal and by the time the intro gets to six and a half and six percent or even lower since i got a good price already I'm just going to also add the refi to this. Now I got a good price, plus I got good terms. You see, folks, this, if you buy here, when the market go up, you can't renegotiate the price. You got good interest rate. You can't renegotiate. I got good rate. I got good price, but I can renegotiate the interest rate because I can, what you call it? So I have the best of both worlds here. You might have the interest rate, but you also now are paying more for that property when you can actually save. In buying now. That's what I'm buying. This is my strategy. And again, remember, I've been around since 1989. I've seen the market up and down many, many, many times. And it's a pattern, just so you know. Okay? It might not be exactly 100%. But there's a lot of similarity to happen when basically the rates are high, okay? Everybody starts to go off onto the sideline, right? And all of a sudden, when the rates are lower, everybody come back on the sideline. And this is what I've noticed. So for me, when the rates are high like this, I'm buying, right? Because I know the bottom is pretty much near or how it is. And even if it's going to be another, again, six months to 12 months, it makes no difference because I'm in it 10, 20, 30 years. I'm in the rental game. You think 10, 20 years from now, I look back, if I got a property for $700,000 and it went down to, let's say, it went down to $650,000, you think $50,000 is going to make a big difference 10, 20 years from now? No. When you are buying a seller's market, you're going to easily pay $50,000 and more and nobody cares about it just because they got low interest rate. Why am I buying right now? Now, I already mentioned a couple of reasons why, but I think the biggest reason why I'm buying now, see, I buy property where I can add value, meaning like a property that's distressed, and I can buy a property where I can add more units to the property, right? Or build new construction. And the challenge Challenge what happened in the last, I don't know. 12 months, prices have been high on these properties and they've been lots of people out there, lots of investor, mostly what I call inexperienced investor, unseasoned investor, are buying property and they're driving the price up. And for the smart people like us, we are getting beat by what I call unseasoned investor. And what's funny is these unseasoned investor now, are stuck with these property where, you know, their property is not a great of a deal anymore. And they're trying to off-sell it right now. Okay. And so I didn't buy a lot, about a few, you know, in the last 12 months because of, you know, I call them stupid investors, just basically driving the price up. Today, most of those unseasoned stupid investors are sitting on the sideline. Which give me less competition to bid against them. And now there's more inventory coming. So I get to choose. And since there's more inventory coming. And there's less buyers out there. Seller right now are more basically motivated. Serious. This is a serious one. And a little bit on the desperate side. Hey, I need a buyer to buy my property. For the first time in at least 6 to 12 months. I see fixer-up property with big lot on the MLS not selling within a week. And I see these properties sitting on the market longer. And I see price reduction on property where they were getting an offer full price or more six months to a year ago on these type of property. And that's to show you the smart people wasn't making an offer. It was the dumb people making the offer back in the days. The smart people now are going, that ain't good enough yet. And they're waiting for the owners to drop the price. So right now there's more inventory. And those inventory, if it's priced wrong, it's in the market longer because there's less buyer and less investor. And so since there's more inventory, I right now get to go out there and choose, and I get to pick and choose which one I want to buy. And since it's been on the market longer, the seller now is more motivated to sell the property at the price that will cause the sale. The other thing why I love this market is because the media is doing all the storytelling for me as a buyer. The media is saying the market is crashing. It's recession, right? People are losing deals, right? You know, the foreclosure, right? A market is bad. Market is bad. For a seller, the market is not great because they got to take a haircut. For the buyer, we're saying in media, thanks for letting everybody know, because less than a year ago, when you walk into a seller's house, the seller's like, don't you know what I got? Don't you know what I got? I got this house sitting on this property. You can do a lot to this property. You can add more units to the back. Listen, I dictated the price. If you don't like it, take a hike, buddy, and someone else will buy it. Today is reversed. Today, sellers who need a sale is going to take what they can get their hand on. And so now with more inventory, the media is telling sellers, your property ain't worth yesterday's price. So get real with yourself if you want to sell it. So now we, me, with money, I come in, there's less competition, there's more inventory, solid mindsets already know that they can't get yesterday's price, and they got to be realistic now. And this is why people with money, to understand how to evaluate, to understand how to make money out of these deals, this is where we get the opportunity. So this is why I'm buying now again, less buyer, less competition, more inventory. Media has already done the work for me. I go in and it's time for me to negotiate hard. My price, my term with inspection, with feasibility. And the seller says, thank you for buying my property. This is why it's a great time to buy. And this is what I'm buying. Look, here's the bottom line. You still have to understand your market. I have to understand how to evaluate a deal. Because finding a deal is one thing. But learning how to know, is this a good deal or not? What extra strategy should I use? Should I buy it, fix it, and flip it? Should I buy and build new construction and sell it? Or should I buy it and keep it as a rental? These are all things you got to know in order to know if you're getting a good deal or a bad deal. So you still have to know how to evaluate, know the bigger picture, what the exit strategy is. Otherwise, you're going to make these mistakes. Real estate investing isn't hard. It's simple. You just need to have someone teach you how to know everything you know how from finding a deal. How to evaluate a deal to know if it's a good deal or a bad deal, how to fund the deal, and then know what type of extra strategy to use. Keep or flip. If you don't know all that and you want to invest, I don't recommend you invest unless you have someone that's going to teach you how to do all that. Otherwise, you can lose hundreds and hundreds of thousands. But if you've got a mentor or coach that can teach you how to do this, you can make hundreds and hundreds of thousands and millions. If you've been thinking about investing in real estate, and you don't have a mentor coach, let me help you. I own a company called Springboard to Wealth. I'm happy to help. I help a lot of people across America. If you check out the link in the description, go book an appointment, talk to my team, and they can talk to you about how you can be part of my Springboard community and how we can help you also. Buy now, refinance later. So here's what I would do. This is what I'm doing. When I'm buying property today and where the rates are at, What I do, you guys, okay, is one, I buy a property right now, okay, and I got to make sure I buy a property correct, right? I got to make sure I get a good deal, okay? I got to be, you know, it has to be in the right location. It has to be a property where I can add value to it and make equity. I got to be a property where I can add more units on it to make more equity, okay? And it helps create more rental income to help basically cash flow the property. So number one, I got to get a good deal in this market, okay? Two, instead of doing a 30-year fix, what I'm doing now, I'm doing a five-year, okay, interest only. This right here helped me keep my mortgage payment low as I ride the market out and tail the market. Later on, when the rates come down, right, then I will refi the property. I got a good deal, temporarily I do a five-year interest only, okay, and then I refi the property later. By doing this, I get a good deal, I can make a cash flow, or I can break even on it, which I'm fine with, and then I refinance later. So the thing is, here's what I noticed, been in this game for a long time. When the market go up, up, up, up, up, up, up, right, everything's getting expensive, right, then what happened is that we hit a ceiling, A recession hit, okay, and. Basically, you know, during this time when that's growing up, interest rate was low, right? And it get a little higher, a little higher as we get close to the ceiling. They got to keep raising the interest rate so it'd slow the market down, slow the market down, slow the market down. And then we hit, kaboom. And then what happened is that it started to turn. It needs to slow this market down, okay? And at a turn, it got to get to a point where it basically, you know, gets stabilized, okay? And when it gets stabilized, then the government will then need to get the market going again because everything is in the shithole, right? And everybody's suffering enough now. So then what happened is that they need to get the market going. And you know what they do to get the market going? They always get the real estate market going first. The real estate market is like the engine, you know what I mean, part of the train, right? The front end and everything, all the cargo gets hooked up to it. What they do is they know if the real estate market, if we can get the real estate market to thrive and get going, then if this is a train and all the stuff that's connected to it, right? they know if the real estate market do well then all the other cargo to go behind it people can now basically refi their house get some equity right they can go out there and buy furniture for their property they can go do vacation they can buy cars they can start you know doing other things to get the market right when the market is is good they can start spending some money again and how they make money is they get the real estate market to go when the real estate market go everything else But how do they get the real estate market to go? They have to lower the interest rate. Why do you think when we went through COVID and we had such a hard time, right? And the market was literally like dead. What did they do? They dropped interest rate down to like 3% to 4%. Why? Because they need to get the market going. And that's the only way they're going to get the market going. They drop the rate super low and get the market going. What happened? We came out of COVID and we're going, and we've been going since then. And then we hit the ceiling. Now they got to get inflation back in order. They get it stabilized. When they get it stabilized, that's where the bottom of the market is. We don't know. It could be, you know, the next six months, the next 12 months, you know, it could be 18 months, but when they get stabilized and they're going to see rates slowly start to drop, but as they go down, they're going to slowly drop. But when they hit the bottom, we need to get up. They're going to drop the rate And they're going to get this thing going. For me, I'm not trying to time the bottom of the market. If I get a good deal, I know the bottom is very near. If I get a good deal now and I can do a five-year interest only, right, fix, I'll refinance the market whenever this comes around. It could be, you know, a year later, two years later, two and a half years later, but I got good deal and I stabilized during the time and then I refinance later, I get the best of both worlds. And this is why I noticed they got to do this. And then when they need to get this market going again, they get the real estate market going and how they do that is they drop the rate. If I was starting over today and I was buying in this market, what would I do? One, if I'm a homeowner, just a homeowner, I want to buy a house to live in. If you have to shop for a house to live in for yourself, if you see a good deal, if you see a good deal and you really like it and the property could be something that you might not see again. If you buy something that you see often, you can wait until you find a property that's a good deal. But even if you find something that you see often, but it's been higher in price, or again, you can negotiate that property, or you find a property that's unique, that you've been looking for. If you like it, buy it. Maybe you have to put a little more money down, right? So that you can compensate for the interest rate. But you can refinance it later. Because to try to find the type of property you want and the price you want when the rates are low, when everybody's competing against, you might not even get the deal because you might get outbid, okay? If you're an investor, you gotta ask yourself what type of property you want. If you want property that are, you know, fixer-upper, bird deal, Property where you can add ADU, multi-family property. Right now, the big multi-family property, it's a great time to buy those right now. There's a ton of them out there, right, that is hurting. Then you got to ask yourself, you got to get real clear on where you want to buy, what do you want to buy, okay? And then you got to run the number. You got to look the property, you got to run the number. What's the price that you need to buy this at to make it work for you at today's interest rate? If it makes sense. You buy it. If it don't make sense, go find another property that makes sense. This is what I'm doing right now. I'm looking at single family with ADU play and small multifamily property. And when I look at it, I run the number. If the number for me is this number and it's lower than the asking price, I'll throw an offer out to the owner and see where they take it. If they don't, I'll move on. But I will tell you, there is more owner out there looking to sell their property and they are wanting to sell it, right? They're willing to negotiate right now. So if I was starting over as an investor, I got to get super clear on my buy box. Where do I want, what do I want to buy? And you better know your number, know the ARV in the area, know the rent in the area, run the performer. And if it's a good deal, then it makes sense, right? And here's the most important, if you're an investor, If you are a long-term play, not a fix and flip, if you're a long-term play, focus on the long picture. Because 10, 20 years from now, what's an extra 50,000? It's pennies in the big picture. I'm looking at 10, 20 year out. If I find a good deal where I can develop it and keep it for long term, if I were to sell it, I'm going to 10, 30, want it to be a better property, but I'm looking for a long-term play. So focus on the long-term. If you're a long-term investor, focus on the long-term versus just now only, now only, which is interest rate. I also want to mention, If you're an investor that's looking to buy a deal right now, and you need someone to help you finance these BRRRR deal, new construction deal, we have a company called Springboard Funding. We fund to everybody, students and non-students. We can help you with DSCR loan. We can help you buy a fixer-upper. We can fund the money for the property. We'll fund the money for the rehab. And if you're going to be ready, we can fund the new construction ADU. Depending on the project, we can actually fund up to 100% of the construction costs. Okay? So if you're out there buying deal and doing deal and you need a second opinion on what the rates can be, what we can offer you, check out the link in the description. Come check us out. We'll be happy to help you also. I want to end with this. Don't be a follower and start being a leader. Pretty much the bulk of the market, the buyers are followers. There's so many buyers, from regular buyers to investor buyers that sit on the sideline because they're all followers. They follow each other. And who do they follow? They follow the media. They follow the news. They don't follow the smart investors. The smart investor are doing the opposite. But most of the non-seasoned investor, they follow each other. They follow the pack, which is why so many sit on the sideline. I'm going to say to you. This buyer's market is a great opportunity to buy. And as the rates slowly come down, it's going to slowly turn into a seller's market. And you know when that seller market comes, it's going to come fast. And all of a sudden, you got multiple offers back on the table. So this buyer's market, the window is slowly shrinking as the rates come down. And when they disappear, based on history, What I've seen, when it is a seller market, it has a good run for like seven plus years. And so the meaning, if you buy it in a seller's market, you're going to be buying in a market where there's multiple offer for the next seven plus year when it comes around again. Do you want to buy a property where there's no competition, pay less than asking price? Or do you want to buy in a market where there's a lot of competition, pay more than asking price? You tell me. Okay. This window for buyer's market will eventually go away soon. And when that goes away, if you didn't buy, I promise you, you're going to regret it big time because you might not see it again for a while again. This is why real estate investing is all about knowing how to buy and when to buy. This is why I'm making this video to educate you what I'm doing. You don't have to follow what I'm doing. I've just seen it now, done this since 1989, 1990. So that's what I'm doing. You can follow me. Great. You don't have to. You can follow the pack. But the pack is where all the broke people are at. The people who do the opposite are all the wealthy people. And you don't see them because only 1% of them are the ones who are making all the big money. I heard this the other day and I thought it was so true. I heard that a lot of the wealthy people have been killing it in the stock market game. They're taking some of their money out of the stock market. And guess where they parking it at in real estate. Why? Because real estate is at a discount. So if you want to invest in real estate and you've been on the fence and you're not sure where to start or when to start, hope this video educates you on when to start, where to start, what to buy. But if you don't know what you're doing, let me and my team help you so you don't lose money. This opportunity is only again here for a short period of time and it's gone. So you want to Do it now. If you don't know what you're doing and you need support and help, someone to hold your hand, step by step, we can help you. Remember, real estate investing isn't hard, it's simple. You just don't know what you don't know. You just need someone to actually help you, hold your hand, and teach you, and guide you until you do it right, and if that's what you need, me and my team, happy to help. Okay? Check out the description below. If this video has been helpful for you guys, give me a thumbs up. If you like this, share this with your friends for me so they can actually hear this so we can create, right, less follower on the sideline and more following people who are doing well so they can make money now versus waiting. Subscribe to the channel if you haven't subscribed yet. We want to get to a million subscribers, okay? Do me a favor. Do that for me, okay? But until then, I hope you guys enjoyed this. Any comment you want to put in the comment, put it below. All right? Anything other topic you want me to make, put it below also. Until then, I'll see you guys in the next video. Peace.