Epic Real Estate Investing - Is it a Good Time to Buy Real Estate? | Episode 124

Episode Date: October 13, 2014

Today Matt is answering the second most common question that the Epic staff receives: Is it a good time to buy?  Spoiler Alert: It is ALWAYS a good time to buy!   This episode will teach you why real estate investing the right way is one of the safest, most dependable, predictable, and manageable investments you can possibly make.  You’ll learn how to invest the right way so that you need not worry about “down markets,” inflation, or even economic collapse.  Enjoy! ------- The free course is getting a facelift and the new version will be released soon!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most?   E ducation P roperties I ncome C oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. Welcome to another episode of Epic Real Estate Investing. I hope you had a fantastic weekend. If this is your first time listening to the show, so glad that you're here. If this is not your first time, welcome back. This is the place where I teach people how to escape the rat race by.

investing in real estate. And if I were to do this all over again, I'd do it exactly the same way. I do it exactly the same way whether I had money and credit to work with or not. Because while I was getting started, I discovered 12 different strategies of investing in real estate with little snow money. And in hindsight, being forced to get started that way, I believe that made me a better investor. And I want to make you a better investor as well. And so what I did is I put the first two strategies, the two of which I believe are the easiest and the fastest strategies to a paycheck, I put them into a free course just for you. And you can access that free course at free real estate investing course.com. Now, I've been talking about this for quite a while that I've

revamping the whole course, that I recreated the whole course. I redid every single lesson. I updated everything with the latest practices that we use here at Cashflow Savvy and Epic Real estate and I just kind of, you know, I made that course probably three and a half years ago, four years ago, three and a half probably. I'm a better investor now. And I've learned a lot of things along the way. And I wanted to share all of those things with you. And it's important for me that you get started in real estate and you get to a paycheck

as fast as possible. So I just, I cut out even more fluff. And I got more to the point with just, just what you need to know. to make some money and I put that in the course and that's now available for you. So here's the thing. I was trying to make this so that if you'd already opted into the free course like over the last three years, you wouldn't have to do that again. But we did something differently.

I had my IT guys go to work on it and they came up with a better way. And I like this way better actually also. So you do have to re-opt-in if you want to access the free course. It's all updated. It's right there at free real estate investing course.com. It's actually hosted inside of the Epic Pro Academy. We just thought it would be more efficient if we kept everything all in one place. And it seems to be working out very well.

So sorry for the extra step. If you've already been around for a while and have you gone through the free course, go back to free real estate investing course.com and opt in and you get access to the whole brand new course entirely for free. No strings attached. It's 100% whole and complete. I would love for you to become a full member of the academy. I will extend that invitation to become a member inside of that free course. But your participation as a paid member inside of the academy is not even remotely required for you to get every single thing you need out of this course to start making some money. Okay. So that's

That's my gift to you. If you're super excited and you're listening via your smartphone right now and you can't wait to get back to your computer to access it, just go ahead and text free course to 55678 and you'll get it right there on your phone. Free course to 55678. I actually haven't tried to view it on the phone yet, but you can certainly get your access over the phone, okay? And that's the two easiest and fastest strategies to a paycheck.

in real estate. All righty. So next week, that's Friday, October 17th. Next week, Grub and Grow Rich hits Atlanta, Georgia. And you can get the details for that event. Grub and Grow Rich.com, you're all invited, whether you live in Atlanta or not. I know that we've sold several tickets since just over those last probably 10 days or so. So I'm looking forward to meeting all of you. We're going to talk real estate. We're going to drink beer. We're going to eat wings. However, that's going to be kind of limited for me. I'm still going to be there and partake. I'll still be just as fun without the beer. But I'm in training for a contest, this physique contest, and just something kind of part of

my midlife crisis that I'm attacking. So, you know, some people go out and they buy sports cars and I'm working to get a six-pack abs. Okay. So that's a little mile or a little goal I've set for myself. That's actually on November 1st in Las Vegas. And you're more than welcome to come to that as well. Okay.

So let's see. Let's stay. here. Grub and Grow Rich.com. Everyone in attendance there will actually receive also a copy of my new book, Epic Freedom. And if you can't make it to the event, the book is available on Amazon.com. And I priced it very inexpensively, by the way. I think with shipping and everything all included, it's like less than $10. And so that's at Amazon.

dot, or Amazon, da, Amazon.com. The book is called Epic Freedom, the two easiest and fastest strategies to a page. check in real estate. You can get it in writing. And it's got an awesome little cover. And so yeah, that's something else I've been working on and that's available now. But everyone in attendance at Grub and Grow Rich, you're going to get a copy of that for free. Now, oh, if you want to party with us in Vegas, just a little quick detour, body doover event.com. We've got a penthouse at the Palm's Hotel. And from what I hear, we've got a jacuzzi with a view of entire the Vegas strip inside of the room. I think it's like 3,500 square feet.

I've got limited space there. That's going to be all you can eat, all you can drink, come hang out, and watch me embarrass myself. Hopefully not on the stage. My whole goal there is just to blend in. If nobody even notices that I'm up there, then I have totally succeeded, and that's what I'm going for. But after the fact, I'm going to end this deprivation of all of my favorite stuff for at least just one day and going to have a party that night. after the show. And if you'd like to come, you are invited. Bodydoover event.com. But then the next day, I'm getting right back on track because there is no way I'm putting this weight back on. I worked way

too hard to get here. Okay. So let's get on to some real estate. Last episode, very well received. I thought it might be, but I didn't realize how much or how well it received was going to be. You know, last, I brought up the two most commonly asked questions that we receive here at the office when our clients and our prospective clients they call. And that's a cross. And that's a section of, you know, Epic Pro Academy members, cashful savvy clients, and we're starting to receive more calls about the new fund that I've put together of what should be open for funding November 1st also. So God willing, with his blessing, it'll be open November 1st. And I just, I cannot believe the amount of paperwork that has to be created for this, but I do see a light at the

end of the tunnel, only about three months late, but, but we are almost there nonetheless. And I will have an episode on that to explain to you exactly what that was and how that works. Anyway, the question that I addressed on last episode was, I've got a deal under contract. Now what? That's what we get a lot. Hey, I got this. I did everything you told me to do. I moved at the speed of instruction.

I went out and found the deal before I found the money. So I got it under contract. Now, what do I do? So I covered that in great detail, step by step in the last episode. So if you missed that, that was episode 123. Can you believe in 123? Wow. And I covered that in such detail.

I actually ran out of time to answer the second most commonly. question that we get here in the office. And so I'll do that today. And that question is, is this a good time to buy? Two, like, totally different types of questions. I've got this contract now. And then the second question that we get all the time, is this a good time to buy? How's the market?

That's another question I get all the time. So I could just say, yes, and stop recording right now and this episode will be over. And I answer the question, yes, this is a good time to buy. It's always a good time to buy. Always. I can't think of an exception. But we'll get into that, all right? You know, that question right there, is this a good time to buy?

To me, it's almost like asking, is this a good time to make money? I mean, what a ridiculous question that is, right? I mean, unless you've got all the money that you need, then, I guess you don't really care if it's a good time to make money or not. You know, but are you really thinking like, I'm not sure if this is a good time for me to make money right now or not. You know, like I said, if you got all the money, then sure. No need to jump in, but you can't if you want, but no need. But if you don't have all the money that you need, if you don't have all the success that you want, then yes, it's a good time to make money, isn't it?

It's always a good time. So, silly question. And it's one that has an obvious answer. So that's how I feel when people ask me, is this a good time to buy? Or when they ask me, how's the market? Specifically, is this a good time to buy? It's like, is this a good time to make money? I was like, I don't know.

Do you need money right now? Then yeah, I guess there's a time to make money. If you don't need the money, it's not time to make money. But those are like the same question to me. So I want to take a moment here to point out two things specifically. The first thing is that question right there, is this a good time to buy? that's a direct reflection of what you think real estate investing is. And even more specifically, it points to where your mindset's at.

It points to a pile of money mindset. It points to the accumulation mindset. An old-fashioned view of wealth creation, an antiquated view, one that doesn't work anymore. A view of making a lot of money to eventually create a pile so high that someday, quote unquote, you'll be able to retire or you'll be able to at least work because you want to rather than having to. You know, the questions, is this a good time to buy or how's the market? They're really indicative of thinking real estate investing is all about flipping properties. That's where those questions really come from because, you know, that market comes and goes.

Well, it doesn't really come and go, but the market's propensity for generating flipping opportunities that ebbs and flows. I mean, it never really completely disappears. Just the opportunities ebb and flow. They grow and decrease and grow and decrease. They come and go that way. That's what I meant by when they come and go. So if your only interest is making piles of money, then the questions, is this a good time to buy or how's the market?

Well, then those might be good questions if that's your interest. Those might be good questions for then. But then again, maybe not. Not only do these questions imply an old-fashioned mindset, but they imply a gambling mindset. A gambling mindset also. As the questions are suggesting the person that's asking that question is trying to time the market. They're asking, is this a good time to buy?

Because they want to know, is it a good time? They're trying to time it. And none of us have a crystal ball, none of us. And to ask that question hoping someone else does have a crystal ball, that's a terrible investing strategy. It's a gambling strategy. It is gambling. It's speculation.

It's guessing. It's hoping. Not good strategies to plan your future around. Listen, there's nothing wrong with flipping houses. We do that here. Okay? Just understand that it's not investing. It's trading.

It's a way to make some money. But there is a lot of speculation involved. And your windows of opportunity will constantly be opening and shutting, if that's your focus. So with those windows opening and shutting, your trading activity, quote-unquote, will ebb and flow, which means your results will ebb and flow,

which means your income will ebb and flow. Again, nothing wrong with making piles of money. Just know that you'll always be working. You'll never be able to take your foot off the gas. You're always just only as good as your last deal. I mean, you close one deal and then you got to go find another. You close that one, then you got to go find another. You close one, you got to go find another.

And around and around you go, and you never get to stop. But again, if you enjoy it, then knock yourself out. There's nothing wrong with it. Just not what I have in mind for my future. I mean, I have in my mind, taking my foot off the gas eventually and spending as much time, if not more, playing in life as I do working in life. And I want to spend my time, those large amounts of time, playing in my life while I'm still young enough to play.

So rather than focusing on creating piles of money, my focus and my recommendation for those that want the same for their future as I do mine is to focus on creating streams of money. And if that's your mindset, you can easily answer the questions, is this a good time to buy or how's the market? You can answer those questions yourself if that's your mindset. If your mindset is focused on creating streams of money, those are very easy questions to answer. Yes, this is a good time to buy. It's always a good time to buy.

The market is great. It's fantastic. It's always great. It's always wonderful. Now, if you have a pile of money mindset, those two questions, they aren't so easy to answer. If you have a streams of money mindset, those two questions are extremely easy to answer. So let's look at the time. this way. And this is the second point that I want to make about these questions. Let's just,

for a second, let's just forget real estate all together. And let's just talk about simple economics. Let's talk about supply and demand. Okay. When supply is up, prices go down. When supply is down, prices go up. Right? Not always, though, right? It depends, doesn't it? You still need the other part of the equation. You need the demand part. This concept is supply and demand. So indeed, when supply is down, that contributes to prices going up. When supply is up, that contributes to prices going down. But you still need the other part to know where it, if they indeed are going up or down. So regardless of where the supply may be, you still need to know where the demand is to determine if prices will go up or down. That's just basic economics. Doesn't matter what the product is.

It doesn't matter what the service is. That's how it works. Now, now that we've established that, let's jump back into real estate. We'll jump back into that conversation. What's the supply, quote unquote, in real estate? Now, I've said for years, and essentially it is, it's land, because we're not just talking about residential real estate when we speak of it in that way. So land, right, of which would be a really good thing, as we've got what we've got. We're not making any more land.

So essentially you could say supply is fixed. But really the supply, it's housing. Okay, in the context of this conversation of this show, it's housing. I mean, there's still, you know, vacant land of where new housing can be built. So the ply isn't fixed, right, necessarily. I mean, there's a lot of land out there. However, it does have a limit, doesn't it? Yes.

So for our supply and demand equation, That's good news. That's good news for real estate. Okay. Now, the demand part, what part of real estate represents demand? The people that want the housing, right? The people. The people is what creates or what represents demand.

People need things in order to survive. This is good. The operative word being need. Okay. Once, that can represent a solid demand as well. and that's where most other investment options lie in the want category. But whenever you can, when it's time to make an investment, one that you want to be comfortable with long term,

I'd recommend choosing to invest in what people need over what they want. Although, I mean, Apple did very well because a lot of people wanted an iPhone. They didn't need the iPhone, but they wanted an iPhone. And if you got in at the right time, then absolutely you made a killing. I'm talking about a secure investment over a long period. That would be very predictable and, I guess, quote unquote, secures as secure as can be. You want to invest in the need. And people need things, don't they?

They need food. They need water. They need clean air. They need shelter. Shelter being the subject of this podcast, specifically housing, right? So the demand is there. The demand for housing is there because people need housing. And there's lots of people out there.

but how are we how are we doing on the balance of those two like the housing and the people well the amount of houses versus the amount of people how we can get into the real nitty gritty and do this analysis by location and that could take forever because i can't cover every single market every state every city so let's speak about just very generally and then i'm trusting that you're smart enough to know about location um and And so generally speaking, when it comes to demand, each major generation is bigger than the previous, right? Did you know that? I mean, the millennials are bigger than the baby boomers, and the baby boomers are the biggest portion or were, were the biggest portion of our population.

And we see how they, when they move through society, how they impact different parts of the economy. You know, when they were teenagers, that's when Levi Strauss was really booming because those teenagers bought lots of jeans. And when they, you know, graduated high school and college and started families, then that's when we had the advent or the invention of the minivan because they needed something to cart their families around and a lot of them. So that's how they impacted different parts of the economy. So they've impacted housing as well because there's a lot of baby boomers and they've. We need a lot of shelter. And then so whatever, then the millennials that are behind the baby boomers are even bigger. I think the peak was in 1990, but it was a bigger population in a shorter period of time even.

So it's like a bigger spike. And so they're here and they need housing. And then whatever generation is behind the millennials, I'm not totally sure, but this is what I do know. There were more babies born in 2007 than ever. before than ever before more than the baby boomers peak so the annual birth rate it goes up and down however it's been on a steady incline since 1960 it's going right on up okay and what i'm trying to say or get to here is the demand is here that's what i'm trying to convey the demand is here the demand for housing for more housing is already walking the earth and they

will all need housing. They're not going to want it. They're going to need it. And that demand, they need it right now. And that demand is going to be greater in the future. It's built in. They're already here. And you know what?

That big portion of the population that's walking on earth, the kids that were born in 2007, they're seven years old now. In 11, 12, 13, 14, 15 years, they're going to start having kids. Right? And that demand is going to continue to grow. It's going to grow and grow. grow. And if you listen to this past Financial Freedom Fridays episode, the social trend amongst the younger generation is growing, or their preference is growing for renting over purchasing

their primary residences. So that would say, hey, investors, they want to rent properties, and that's what their preference is. So who are they going to rent it from? You, me, who? You get to decide. I'm going to rent them as much as I possibly can. So, Anyway, the questions, is this a good time to buy or how's the market, are very easy to answer when, one, you have a streams of income mindset. And two, you understand the basic principle of supply and demand. The answer is yes. It's a good time to buy. It's always a good time to buy.

Now, if you're focused on the speculation of the real estate market, if you're focused on trading, buying and selling and doing that quickly, whether, you know, it's, it will fix and flipping like that, and you're trying to buy as low as possible, and hopefully it's going to appreciate while you're still holding on to it so you can sell. And even if you don't do it quickly, if you're trying to time the market so you can buy now and in three years cash out at a huge profit, if that's your intention or if that's your idea of investing, then, you know, those aren't so easy questions to answer. But if your mind is in the right place, if it's in a residual income place, if it's in

And you understand the basic principle of supply and demand? The answer is yes. It's a good time to buy. It's always a good time to buy. Now, those are the two points I really wanted to cover. I wanted to focus on with those two questions. But now, how you buy is really key, though. Okay?

Yes, it's a good time to buy. It's always a good time to buy. But how do you buy? That's key. So if you're buying with the hopes of appreciation, I can't promise you a good outcome. I don't know the answer. I don't have that crystal ball.

I would love to have one. If you know where I can get one, please let me know. Or if you know somebody who has one, I'd love to talk to them. But as far as I know, nobody has it. However, if you buy for cash flow, if you buy for a residual income, if you buy for the purpose of creating a stream of income for yourself, You get the best of both worlds. You get the cash flow part and you get the pile of money part.

You get the cash flow that the property generates. And you just sit around and wait for the existing dynamics of supply and demand to work in your favor. It's already here. It's going to. It might be in six months or it works in your favor. It might be in six years. It might be in 60 years. I don't know when it's going to work.

in your favor. But who really cares? If you're cash flowing while you do sit around and wait for it to happen, who cares? You're getting paid by it every single month. There's not another investment out there that has all the pieces in place in the way investment-grade residential income real estate does. There's just not. I mean, if you know of one, please let me know.

I mean, I'm always looking to diversify. I know there are people out there's much smart. than I am, especially when it comes to the world of finances. If there's something else out there that's as predictable, dependable, and manageable, that's important because that's another big aspect of real estate, and we won't get into that right now, but and manageable, if there's something out there predictable, dependable, and manageable as residential income real estate, please send me an email. Give me a call. Let me know. I've been extending this invitation to people for years.

Give me, let me know. And not yet has someone had an alternative. And to be straight, I'm actually not even looking for an alternative. I'd be looking for something in addition to. I'm cool with real estate. It's worked very well for me. It's worked very well for those people that have trusted me with that advice. So I'm not looking for something an alternative.

I'm looking for something in addition because, you know, if there's something else out there, might as well. You know, maybe you can hedge it a little bit. And you know what? I've spoken in an inconsiderable amount of absolutes here. Like this, like real estate, you can't lose. I really do believe that. But anything can happen.

And what I want to say there is if something does happen where real estate doesn't prove to be profitable in the future for you, if you purchased it right for the purpose of creating an income, I want you to know we've got much bigger fish. to fry. I think that if it comes to that where it turned out not to be a good investment, you're going to have things that you're dealing with that are way up much higher on the priority list than the real estate that you owned. That's my thoughts. So we can't control any of that. So let's just go ahead and, and you know, speaking of that, because like if you look at Russia, for example, you know, there's a person that I was able to speak with that came from.

from Russia that was there during the collapse of Russia. And, you know, if something were to happen here in the United States where, you know, we hear about the possible collapse of the dollar, a possible collapse of the government, or restructuring of the government, or the restructuring of the currency system, whatever it may be, you know, that could cause certain amount of chaos. But that person from Russia that kind of went through that experience, they said the only people that came out on top there, the only people, like almost everybody lost. certainly the people in power, you know, they were in a position to where they were able to

save themselves. But the normal people, the people, the people like you and me, the everyday people, the citizens, the people that came out on top were the people that owned businesses and the people that owned real estate. So even in the greatest tragedy or travesty or just catastrophe that you could think of here within the United States or your country, any country, because this is how it worked in Russia, so I imagine it would work in any country this way, is the only people that are really going to make out

are the people that control the needs. Are you controlling the food? Do you control the shelter? Do you control the water? Do you control the clean air? Because in the event of tragedy, those needs don't go away. You know, the want for your iPhone

probably isn't going to be as important as the want for your iPhone right now. But you're going to need to eat. You're going to need. you're going to need water and you're going to need a roof over your head. So again, I just kind of bring it all back and just reconvinced myself every time I have this conversation. Real estate, baby, real estate. And, you know, you can make great money in flipping houses, but take the money that you make

from flipping houses and create a residual income through real estate with that money. Okay? So yes, it's a good time to buy. It's always a good time to buy. It's always going to be a good time to buy. I can say that confidently enough to where that's what I'm doing. So if you got some insider tips or something, you know something, I don't know. I would love to hear about it.

But I've been extending that invitation for a very long time and nothing. I just hear crickets. Jip, chip, chip, chip, chip, chip, just crickets. So there are no bad real estate investments. That's what I'm going to leave this with. There are no bad real estate investments, just uneducated real estate investors. That's it for today. I'll see you in a few days for third degree Thursday.

I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.