Epic Real Estate Investing - How To Get Rich In The 2024 Housing Market Reversal (7 steps) | 1306

Episode Date: June 13, 2024

Discover the secrets to harnessing the 2024 real estate market reversal for unprecedented wealth creation in this captivating episode. With expert insights and actionable strategies, you'll delve into seven indispensable steps designed to propel your financial journey to new heights. From deciphering market trends to pinpointing lucrative investment opportunities, this guide leaves no stone unturned. Learn how to strategically select the most promising markets, monitor crucial indicators like permits and starts, and expertly assess risk to make informed decisions that yield substantial returns. But that's not all – delve into advanced tactics like capitalizing on oversupply, leveraging cash flow to maximize profits, and forging invaluable connections with lenders and asset managers. Real-life examples and practical tips enrich your learning experience, empowering you to identify high-demand areas and interpret key data indicators with confidence. Whether you're a seasoned investor or just dipping your toes into the real estate market, this episode equips you with the knowledge and tools needed to thrive in the face of market fluctuations. Don't miss out on this opportunity to secure your financial future – hit play and unlock the door to unparalleled success today! P.S. Whenever you're ready to go deeper and further with your real estate investing, looking into my partner program to help you get your first deal might be the move... take the first step here for free 👉 https://epicearnwhileyoulearn.com/ Sponsor: Baselane - Banking Built for Real Estate Investors Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. By the end of this, you will know how to get rich from the two. for a thousand-twenty-four real estate housing market reversal. And the good news is it ain't rocket science. For example, in 2010 after the crash, Jason, a virtual CEO client of mine, bought four rental properties just like this one right here in Las Vegas for approximately $130,000 each. And today, their total value is $1.5 million. And he owns him free and clear, and they rent for $2,400. that small move after a big market reversal code for crash has him set for life, living passively off of what would amount to almost double the national median income.

So if you'd like to do the same, I'll walk you through an intelligent process to make it happen while virtually eliminating your risk. All right, step one of seven, analyze market trends. It's crucial to keep an eye on where the market is heading in the next 36 months. And that's easier to do than it may sound. You know, people try to make it sound all hard, but it's not. It's as easy as just following the people, because real estate doesn't work without them. You know, if there are people where you're investing, it will work.

And the more people there are, the better real estate works. So follow them by just studying demographics and the migration patterns. And the easiest way to do that is just to check in with motor transport companies, you know, like U-Haul and a rider, and see where their clients are dropping off their rented vehicles. and you can find this data on their growth index page. And this is where you'll find as good a clue you can find as to which markets are growing in population and which ones aren't. All you got to do is just look for the one-way traveling that people are doing,

meaning if they ain't going back from where they came, they're staying, and that leads us to step two, choosing the right markets that they're traveling to. And you can identify these markets by identifying this high demand and high supply, because temporary oversupply creates buying opportunities, while undersupply drives rent growth and property appreciation. So your job is to look for markets where new units are being added, creating temporary market disruptions. And I did a little work for you in advance.

Per Constructioncoverage.com, the stats right now with the most new houses being built are primarily in the south, such as Texas, Florida, North Carolina, and then a couple of exceptions would be Utah and Ida. Now, we can take these five markets and narrow them down further by what you found on the U-Haul page, where U-Haul is reporting the greatest number of vehicle drop-offs, the greatest influx and population. So currently, the top three states where these planets are aligning are Florida, Texas, and North Carolina. Those three markets currently present some of the best buying opportunities in the country.

And six months or so, though, check again, as this data might change. but right now, that's what the data says. But definitely check again around Christmas time, especially after the election, because the market could shift. But right now, all indicators are pointing to those markets as the best buys in the country. By the way, as I'm recording this,

you'll find a number of other videos on YouTube talking about the Florida and Texas markets are crashing. Well, that's the very buying opportunity that I'm talking about. I mean, you want to wait for prices to go up and then buy? I always find it so silly how people run from markets where prices are on the down swing and then dive in after prices are bounced back up. Anyway, step number three, monitor permits and starts. You see, you want to track these so you know where new housing or supply is being added.

These are two important metrics used to measure the health and activity of the housing market. And here's the difference. Permits or building permits are authorizations granted by local government agencies to construct new buildings or renovate existing ones. You see, before any construction can begin, builders got to get these permits. They got to get permission to build. So these permits, they ensure that their building projects comply with local zoning laws, building codes, safety regulations, and other bureaucratic stuff like that. So the number of building permits

issued is a future indicator that reflects the intention to build new homes. And this is important because an increase in building permits suggests that builders are confident about the market. But from an investor standpoint, it's a predictor of, hey, more. more houses are on the way. Now, Starts, or Housing Starts, however, refer to the actual beginning of construction where physical ground is being broken. You know, there's workers on site, shovels are in the ground, hammers start swinging. These buildings are past the planning stage, so it's a much more direct measure of current construction activity than the permits are. Both permits and starts are crucial for understanding different phases of the housing market.

Permits provide a glimpse into future construction trends, while starts show the present level of building activity. So generally, high permits and starts indicate incoming supply which will cause prices to stagnate or even drop, especially if unmatched by demand. And that tells an investor it's a good idea to wait until the incoming supply softens prices before buying more. Declines in permits and starts suggest future undersupply in the coming years, which can be an optimal time to purchase as the under supply should cause prices to rise. Pretty simple, right? So regions showing both high population growth and high supply are ripe for investments before prices escalate. And that's how you come up with Florida, Texas, and North Carolina right now.

And you can already see in these markets. Inventories rising, days on the market that's growing and sellers are cutting prices. More in these markets than most parts of the country. YouTubers are using Florida's crashing market as clickbait. But according to the migration patterns and incoming supply, this softening of these markets is temporary. At some point in the near future the next two to three years, that supply will be consumed by the growing population and prices will rise rapidly, and you want to be in position to ride that wave. Although permits and starts are not a perfect system for predicting the future of housing, they are about as close to a crystal ball as you're going to find in real estate, nor any asset class for that matter. And that brings us

to step number four, risk assessment. Because real estate, it's risky, right? Eh, not really. People are risky. But real estate, as long as you cover a few key bases, it's pretty tough to lose holding real estate in your portfolio. For example, if you notice high levels of construction activity, permits and starts, but starts specifically without corresponding demand, you can almost guarantee you're going to see increased volatility in that market. You probably want to stay away from there. So as much as you can use this data to predict where to buy or where to wait, investors should also routinely use this data to assess the risk associated with entering or expanding within a market at any given time, meaning use this data to predict where not to buy two.

Now, where the big opportunities can be found? Well, I'm going to let you in on that right after you subscribe and like this video. Appreciate it. So the big opportunities can be found in step five. You want to capitalize on oversupply. This is when you want to go into acquisition mode. And this typically occurs a few years after high permits and starts in the area. And you can easily pull up these charts with a few Google searches to see where permits,

and starts were high two to three years ago. You want to take action in these areas by buying cash flowing properties at lower prices. This way you can benefit from future rent increases and appreciation when the supply diminishes. Because if you did your homework on demand, that supply will diminish. But I can't stress this part enough. Step six, you've got to buy for cash flow, not just capital gains. Although we're analyzing different markets for future growth through capital gains,

there's no guarantee as to when those gains are going to have. happen. You know, through permits and starts, you can typically estimate fairly accurately, but like I said, it's not a foolproof system. So it's vital that your property's cash flow while you wait. This will ensure that you can cover the expenses and debt on your properties, which gives you stability during market fluctuations. You should always have a plan B. In the end of this scenario, cash flow, that's your plan B, because sometimes plan A does it happen or happen when you want it to. But it will. You just want to make sure that your properties are paying you more than they're costing you while you wait.

And lastly, step seven, network. With lenders and asset managers. You want to make some new friends here, if you don't know any already. Because during a crash, these new buddies of yours will be managing distressed assets, and they can be your source for the best deals. So make some friends, and do that now. You know, with real estate being such a people business, your relationships are critical to your success,

which is logical to most people, but most of the people. but most aspiring investors, they wait to build those relationships until after they need them. Relationships, especially good ones, take time to build. So get started now. And your worst case scenario, hey, you've got some new friends to invite over to the house during Super Bowl, or play golf with, or crush happy hours together. And you can never get enough of all that stuff. And if there were a step eight, that would be it.

Start building those relationships now. I've learned all of these lessons the way you don't want to from the school of hard knocks. if I can help you avoid that school. I want to do that. All right. Take care. Stop spending countless hours on busy work and focus on growing your real estate business and maximizing your return. Baseline is a comprehensive property management platform that caters to the needs of landlords and real estate investors by offering a suite of financial tools designed to simplify the management of rental properties. The platform provides features like dedicated banking services, automated bookkeeping, rent collection, and insightful analytics to help landlords

manage their properties more efficiently. With Baseline, users can streamline their rental property finances, automate various administrators tasks, and gain valuable insight to make informed decisions about their investment. Head over to baselaine.com slash mat and sign up today for a free chance to win a $500 Amazon gift card. Sign up for free. No Monday. please. That's baselaine.com slash Matt. Baselan.com slash Matt. That's B-A-S-E-L-A-N-E.com slash M-A-T-T. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to

mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, peace, blessings, and success to you, I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us, we got to cash low. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.