Epic Real Estate Investing - Is The Housing Market Going To Crash In 2022 | 1193

Episode Date: April 12, 2022

Are you worried about what is going to happen in the housing market this year? Surely, something is going to happen as interest rates and inflation are on the move. Stay tuned as Matt shares his housing market predictions for 2022! But before that, Matt shares another pearl of wisdom. More specifically, you will learn what is the best real estate lead generation company for you!  Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. What is the best real estate lead generation company? Well, that's a question that real estate investors usually ask when they're short on time or know-how to generate their own leads. And if that's you, I get it. You've got better things to do, right? And likely things that pay you a lot more for your time. So when it comes to the engine that runs your business, the lead generation, I say hire the best. And I'm going to let you in on the best bang for your buck when it comes to motivation.

SEPERLER LEED Generation companies. You're ready? Let's go. Welcome to the all-new, Epic Real Estate Investing Show. The longest running real estate investing podcast on the interwebs. Your source for housing market updates, creative investing strategies, and everything else you need to retire early. Some audio may be pulled from our weekly videos and may require visual support.

To get the full premium experience, check out Epic Real Estate's YouTube channel, EpicR-E-I.TV. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to rei-aise.com. Here's Matt. Lead generation is a crucial aspect of every real estate investor's business. Fortunately, there are many real estate lead generation companies out there that can help simplify this process. Save you tons of time and money, and quite honestly, do it better than you.

So since choosing a real estate lead generation company can be tough, I want to share with you the companies that I and my private RIA students are having the most success with. And by the way, if you're still looking to get that first deal under your belt, I put together a free training just for you to help you get that first deal done. And then how you can earn $5,000 a month flipping contracts and flipping properties working as little as one hour a day. And you can access it at matsfreetraining.com. All right. So company number one, real estate investor.com.

They know that the vast majority of real estate investors are just, scratching the surface of their growth potential. Realestateinvestor.com is on a mission to be a resource that lights that fire of growth. Nothing gets them more excited than seeing investors in their community experience massive growth by leveraging the resources that they provide. They're obsessed with the industry and truly believe that their success is merely a reflection of yours. The company was founded in 2005 when real estate investor Gary Boomerstein noticed the opportunity

to leverage people, processes, and technology to gain a leg up in a lot of a changing and competitive marketplace for his own business. Soon, he realized what he built should be shared with other like-minded investors. His tools, teams, and training quickly became the go-to resources for successful investors around the nation. While Gary was growing his brand, Robert Seifer, new technology was a tool to build his own real estate investing business. He eventually built a software enabling him to track, nurture, and close more deals, most of it happening automatically. In other words, he created a virtual staff member costing just a few dollars a day. While Gary and Robert did well on their own, they knew partnering together

would give other real estate investors everything that they could possibly need to be successful. Now, real estateinvestor.com is a single solution to build a better, more successful investing business. They're done for you platform is a full spectrum solution for every aspect of your business, from marketing to fulfillment, to inbound lead management, to researching comparables, to making outbound calls, to following up so you can negotiate contracts. Allow them. you to do what you do best, close transactions and cash checks. Realestateinvestor.com understands real estate investing. Transaction management, marketing, hiring, training, and logistics takes a village. Luckily, they've got a bustling team of laser-focused talent ready to step

up to the plate and give your business the tender love and care it needs to grow. They're done for you team has handled literally millions of granular actions necessary to scale profitable real estate investing. The tools, systems, and solutions are all right at your fingertips. If you'd like to get some more information to see if they are a good fit for you, go to real estate investor.com forward slash epic. And if you like what you see, scroll to the bottom of the page and click start today. Company number two, go for clothes. And they empower real estate investors to focus on sales and closing deals by providing

a specialized team and marketing platform at an affordable rate. They search and find qualified leads so you can remain competitive regardless of the market landscape. They do the marketing. you focus on closing the deals. Their marketing secret sauce, it's a mix of art, science, and psychology to attract, engage, and convert leads for you. Their diverse marketing team is the force and expertise that creates the strategy for your market and executes and oversees the marketing tactics. Josh Miller, founder and CEO, left his secure engineering position to pursue

full-time real estate investing so he could spend more time with his family. And Josh happens to be a former private RIA's client of mine who closed more than 100,000. deals in his first year of us working together. And he then essentially retired from real estate and used the passive income from the 85 rental properties that he held on to to kick off the launch of his lead generation service, making available his marketing secrets to other real estate investors. So here's how it works if you decide to dive in deeper and explore the possibilities of working with Josh and his team at Go4 for Close. Step one, strategy and planning. One of their RIA marketing experts will meet with you one-on-one to discuss your unique needs, goals, and budget.

to develop a customized marketing strategy plan based on your market area. And then the plan will include the most effective marketing channels for that market to generate leads. They'll also integrate everything with your currently generation tools, including your driving for dollar software to enable you to reach a higher volume of leads and achieve the highest return on investment. Now, step two, firing up your lead generation. So depending on the results of your strategy and planning session, they're going to launch your campaign consisting of anything and everything to outreach marketing with

done for you list building to skip tracing to list stacking and or lead scoring or inbound marketing with digital pay-per-click ads or a combination of all of the above. Mastering multiple channels can be difficult for most, but with gopher clothes, you don't have to learn or manage any of them. Their dedicated team will do it all for you. Plus, their data specialists will find the best list and skip trace them, and their team of cold callers will contact the leads to get them moving. In just a few short years, they've generated more than one million leads for their clients. If you've ever tackled the marketing yourself,

you know how difficult this would be to do just to generate seller leads. But motivated seller leads, that's an entirely different level of difficulty and quite the accomplishment. And they've got it mastered. All right. Step three, immediate follow-up and lead qualification. Because following up quickly and staying top of mind are critical. They do that part for you too.

Your leads will be placed in targeted campaigns with text messaging, ringless voicemails, emails and direct mail. And their virtual assistance are inside sales associates, ready to pre-qualify your leads for you so you don't waste a bunch of time with the tire kickers. You see, most sellers are not ready to sell the first time that you talk to them. Everyone knows that you should be following up with your cold leads, but so few do. The go for close automated follow-up campaigns will keep them engaged. So when they are ready, they'll send them to you. All of this is done for you so you can focus on your highest paying activity as a real estate investor,

negotiating contracts and closing deals. If you'd like to get some more information to see if GoFer Close is a good fit for you, go to closers.com. And if you like what you see, request a consultation. And if you want to move forward, use the code Epic to receive an 85% discount off their onboarding fee. And I'll put that information down below in the description for you too. Now, there are other options out there when it comes to real estate lead generation companies. But these are the two that I've worked with and continue to work with,

because I really just haven't found a reason to look anywhere else. So regardless of who you choose to work with, or if you decide to generate leads on your own, understand that your leads will only be as good as your lead conversion. And that's what we specialize in here at Epic. And if you'd like to explore the possibility of working together one-on-one like I did with Josh and become a master of converting leads and finding deals just like Josh, go to R-EI-Aase.com. Answer a few questions, and then just pick a time for us to hop on the phone and we'll

brainstorm some ideas about getting you to the next level of your real estate investing. Please stand by. We've got overhead to pay. We'll be right back. Boarding for Flight 246 to Toronto is delayed 50 minutes. What? Sounds like Ojo time. Play Ojo? Great idea.

Feel the fun with all the latest slots in live casino games and with no wagering requirements. What you win is yours to keep groovy. Hey, I won! Boarding will begin when passenger fisher is done celebrating. 19 plus Ontario only. Please play responsibly concerned by your gambling or that if someone close you, call 1-8665-3-1-2-6-0 or visit Comex Ontario.ca. Remember that person that gave up on their real estate investing dreams? Neither do I. Let's keep going.

Back to the show. Is the housing market going to crash? in 2022. I mean, it's all in everyone's mind. I mean, interest rates are on the move. Inflation's on the move. Something's got to happen, right? But what? Well, I'm going to answer that question for you right now. Inflation is expected to continue. Mortgage rates are expected to increase. Could these be what finally shifts the real estate market into a downward direction? Maybe even a crash? How will these things impact the housing market? Now, as you may know, home prices rose by nearly 20% in 2021. An astonishing rate of growth that,

was faster and more intense than even the run-up to the housing crash of 2008. And that one sunk the entire global economy. In recent times, you can find volumes written about the lumber shortage, the supply chain disruption, the remote work office exodus, and the record low mortgage rates that turned the 2021 housing market into one giant bidding war. But will it finally all come crashing down in 2022? If the pessimist inside you wants to believe that 2022 will bring an implosion to rival anything the Great Recession doled out, you won't have to look far to find a doom and gloom

housing market analysis that confirms your worst suspicions. They're everywhere. The reality, however, it will probably be much less dramatic. Now, there are forces in play that could ease prices down, but gently. And they are two conflicting storylines that are teaming up to make a sudden crash unlikely in 2022. The first is rising mortgage rates. You know, COVID-19 brought historically low interest rates that made it cheaper to borrow money than it had ever been before. Buyers across the country knew that such a chance would likely never come again, and they all race to lock in their loans. Those record low rates, however, have already started to inch up and continue to climb. In fact, the Fed is essentially guaranteed that they will. With the cheap money

incentive drying up, demand, and therefore prices should plummet, bringing to fruition the crash that so many fire and brimstone pundits have predicted for two. Well, first, and to be clear, interest rates do not directly correlate with home prices, nor vice versa. However, low rates do tend to stoke homebuyer demand, and it's the higher demand that leads to higher sales prices. While rates and home prices have not completely mirrored each other over the past five years, home values did start their meteoric rise when interest rates cratered in 2020. A similar inverse pattern could unfold this year with mortgage rates expected to experience a number of hikes by the

Having said that, the lack of inventory could still support housing prices. I personally don't anticipate interest rates to impact housing prices much, if at all. In fact, due to demand in the market right now and the pent-up demand sitting on the sidelines since the beginning of the pandemic, prices will likely increase, but just probably not at the exponential rate that they did last year. If the housing prices were to crash, it would have more to do with a lack of demand, of which at the moment, the only thing that I can see that could impact that are the more The second thing, the supply. You see, there's not enough supply for the existing demand to cause a

crash. Although home builder confidence is at an adequate level to steadily add new homes to the market, homes aren't being built anywhere near a pace that would flood the market with excess supply. When supply demand come into line with one another, we will see a normalization of the market. But based on the latest numbers from the National Association of Realtors, we're about 10 years a way of supply catching up to demand. At best, in the short term, as buyers look to find a property before higher rates impact them, we will likely see home prices firmly push higher. So, where does affordability go from here? I mean, how can people afford these homes if the prices are going to continue to rise? Well, as interest rates rise, as you likely know, affordability tends to decline

because house hunters have less buying power. That's pretty much common knowledge. Higher rates can equate to higher prices, albeit indirectly. But there is something that's not so commonly known about interest rates and their impact on home prices. Now, when most people don't realize about housing prices is affordability is relative and goes beyond just listing prices and mortgage rates. Affordability is continually a comparison of renting versus buying. Further, buying real estate comes with an additional advantage of a fixed rate mortgage, of which will quickly come to be your best wealth-building friend in the face of higher inflation. You see, as inflation is going to impact the appreciation of your property, it also impacts wages and salaries. And when you have a fixed

payment and your salary increases, that house becomes more and more affordable as time goes on. And then there are the tax advantages of owning real estate, as it's the last real tax shelter available for the average person. And overall, owning real estate continues to be the best savings vehicle and wealth creator for the average person, too. And two, 2019, homeowners in the United States had a median net worth of $255,000, while renters had a net worth of just $6,300. That's a difference of 40 times between the two. That alone is justification to foam-o your way into buying real estate regardless of price. But it's understandable that you want a good deal, too.

You know, many people are waiting for a crash. And I don't blame them. With such rapid and sustained price increases throughout 2021, people are wondering and actually anticipating another bursting housing bubble on the horizon. I mean, there's got to be, right? I mean, prices have been rising for way too long now at almost double the length of the typical housing cycle, because we all know what goes up must come down. Isn't that what people think? I get it. But parallels drawn to the 2008 mortgage crisis aren't accurate since underwriting standards tightened significantly since then. You know, in the last 15 years or so,

banks have written the best books of business filled with A-grade paper. It's the best book of business that they've ever written. Homeowners aren't going to suddenly just start defaulting due to grossly adjusting mortgages. That environment, it doesn't exist today. The pace of home price growth will likely slow this year, but any kind of market crash scenario seems very unlikely and shouldn't be counted on. Because of this, acting as soon as possible in your home buying or refinancing journey probably is the best way to spend less money. With the Fed's projected rate hikes, the window for buying that next investment property or dream home, it can close quickly, especially when it comes to the middle and lower end of the socioeconomic paradigm.

It's there, we will see the biggest impact and inverse reaction to increasing interest rates and home prices. It will have little to no impact on those within the higher end of the market. But let's say I'm off here and interest rates rise more than expected and homes get built faster than expected. We're still unlikely to see a crash due to strong wage inflation. First-time home buyers or buyers looking to upgrade would likely be eager to, and very quickly to step into the market should prices start to drop, which would save the market from any sort of crash. If saving money on your next purchase, if that's on your mind, it's likely to make more sense to take action now rather than wait. You'll want to buy while rates are low, rather

than deliberating over that uncertainty in home prices. Given that the market is being driven by true supply and demand, as opposed to the artificial demand caused by easy credit pre-2007, I do not see the market price of homes decreasing anytime. So if anything, they will continue to increase with maybe some minor corrections and some isolated markets. 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, blessings, and success to you. I'm Matt Terrio.

Living the dream. Yeah, yeah, we got the cash flow. You didn't know, home boy, we got the cash flow. Okay, only 10 more presents to wrap. You're almost at the finish line. But first, there, the last one. Enjoy a Coca-Cola for a part. that refreshes.

This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.