Epic Real Estate Investing - Is This a Good Time to Buy Rentals???? | 1118

Episode Date: January 26, 2021

In today’s episode, Mercedes, The Turnkey girl shares 2 HOT HOUSING MARKET UPDATES that will help you to determine whether you should invest in real estate or not! Moreover, you will learn the 4 POWERFUL COMPONENTS of finding a perfect rental property that creates the PASSIVE INCOME YOU DESIRE! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing Show for Turnkey Tuesdays with your host, Mercedes-Torres. Hello and welcome, welcome to Turnkey Tuesdays brought to you by Epic Real Estate Investing. My name is Mercedes-Torres, your turnkey girls. and I help busy professionals acquire passive income through real estate investing so they don't have

to work so hard and maybe even retire sooner. So I created this show to share tips, advice, and real life, real estate experiences so you too can create passive income in your world. That said, if this is your first time here, glad you made it, make yourself at home. If this is not your first time here, welcome. back. All right, big question. Is this a good time to buy real estate rentals? Well, let's discuss. Let's consider what's currently going on in the market. Number one is demand for housing is the highest it's been in the last 20 years. This is being fueled by the super low interest rates being offered. by banks. Because of low inventory, demand is disproportionately higher. There are people concerned

about a bubble popping, a repeat of, you know, the 2008. Well, that is not going to happen because you only have a bubble if there's an excess of something. And at the moment, there is no excess of properties. We're at a dirt, a need of housing. And this is causing houses to appreciate in 2021. I mean, markets that do not normally appreciate are appreciating like wildfire. Thus, prices of properties are going up. Now, consequently, this is outpricing first-time home buyers. I mean, statistically, there's an age bracket of those first-time home buyers. Generally, it's between the ages of 29 and 34. And it's just not happening. And it's not going to happen despite what the new Biden administration recently proposed. I mean, the Biden administration

is giving a $15,000 tax credit for first-time homebuyers. But, But I'm cautiously pessimistic because this is a credit. This credit comes in the rears. So what does that mean? That means that a first-time home buyer still has to save all of the money and buy their home first. Well, considering that we are in a world where unemployment is at its all-time high, the individual that's buying this home for the first time still has to save.

save. So the Biden incentive coming in the form of a credit on your tax returns and not as a stipend, not as the stipend that you've been getting like the stimulus package, well, that's not really an incentive for somebody that doesn't understand that logic because they haven't experienced it. I mean, they may understand the concept, but it's a lot different when you're being handed $15,000, like on paper or deposited in your bank account. versus seeing a $15,000 credit at the end of the following year on your tax returns. So this incentive does very little to the homebuyer. Thus, the incentive is unlikely to be a grand slam, in my humble opinion.

That said, these groups of first-time homebuyers, they won't be buying properties. They're now forced to rent. So whose house are they going to be renting? Well, if you have a rental, they'll be renting your house. Now, topic number two, let's talk about another hot topic that's been coming to the surface of late. Eviction moratoriums. Now, if you watch the news, every highlight about evictions talks about the eviction moratoriums. And currently, one million Americans are unable to pay their rent.

So scary, right? One million Americans. That is a huge number. Well, statistically, that's only 2% more than normal that can't pay their rent. Only 2%. Seems outrageous, right? But if you look at October 2020 numbers when everyone thought that the virus was being put under control, there was causing a dwindle in cases of COVID. If you look at those cases, those current on rent in 2020 was exactly the same number as those current in rent in October of 2019.

Now, this is public information. Don't take my word for it. Look at the statistics. Meaning, when this COVID situation is contained and it's all over, which I am hopeful and I am certain it's going to happen towards the end of this year. But when that comes to an end, this is a good indicator that everyone will go back to paying rent as they normally did. And we'll still have that same number of Americans not paying rent, which,

which is not too drastically different than what is happening today. So what does this mean? This means that this is an amazing time to buy rental properties. As I always say, God isn't making any more land. And renting is never going out of style. Because pandemic or no pandemic, people are always going to need a roof over their heads. And during these unpredictable times, People are slowing down the buying, forcing the common person, even those who could afford to buy, forcing them to rent.

Because uncertainty makes people just paralyzed. It makes them hold on to what they have. So even if they could afford to buy, they won't. So we asked the magic question, is this a good time to buy rental properties? Heck yes, when something is in demand, you put yourself in an excellent position if you have that something that's being demanded. It's not rocket science. It's simple. So I'm going to share a few components, four major components that will help you shop for that magic rental. Number one, focus on rental markets. Consider markets. where the average American could afford to pay rent but can't necessarily afford to buy.

This will ensure that you will have no shortage of tenants. And remember what I said at the beginning of our podcast. I shared that there is a shortage of properties. So if you can get your hands on a property in a rental market, that is securing your future. Number two, make sure you buy in markets where the purchase price and the rent ratio give you a solid return. I like to see cash flow. That's my favorite word, my favorite term. So if your backyard doesn't have any of these available properties, like if you live in California or New York, Washington, D.C. area, Denver, so many markets across Middle America where you can't cash,

flow in your backyard, go to somebody else's backyard. Depend on a turnkey company that focuses in those areas to help you build your portfolio or align yourself with a virtual team, a virtual wholesaler that will allow you to buy properties in those markets. And keep in mind, it's all about the team on the ground that's going to help you ensure that this acquisition, this rental, is going to perform. form optimally. Number three, buy in family-friendly neighborhoods.

Statistics show that families that tend to rent stay longer in rentals for longer periods of time, giving you the owner a steady return. Finally, if you have not ever purchased a rental, if you haven't taken a dive into that market, because you're a busy professional and you don't have time or you simply don't have the knowledge to tackle your first deal. Do not do it alone. A lot goes into purchasing that right rental. A lot goes into it and there's a lot of room for error. So if you haven't done it, partner with someone that you know and trust that has already done it or depend on a reputable attorney. key company that can guide you through the process that can do the work for you so that you can

benefit from that in-demand commodity. Don't wait, do it. I guarantee you if you wait, two things will likely happen. Number one, life will pass you by and will just leave you behind. And in five to 10 years, you're going to turn around. Hindsight is 2020 and you're going to realize you did nothing. Don't be that person. Because number two, you will regret it. History repeats itself, and you will be left behind because statistically, bubble or no bubble, crash or no crash, your property will likely appreciate over time. Maybe not overnight, but it will over time. and if you're holding on to this very in-demand item of rental property, it will pay you in dividends.

As Warren Buffett says, don't wait to buy real estate, buy real estate and wait. If you are stuck and you want to have a conversation with me or my team, we are here to help you get unstuck. Feel free to go to cashflow savvy.com, download the frustrated investors guide to passive income because in that package, I have a step-by-step guide of how to help you acquire your first rental that will help you get out of the rat race. Or hit the contact us, give us your information. Someone from our office will call you and have a

conversation to help you either jump into your first rental or more importantly, help you build your portfolio, regardless, do something different. And hey, if you found this episode helpful, I would love for you to share our podcast or leave us a five-star review. That truly helps us get the word out, and it helps other create passive income in their world. That's it for today, my friend, my name is Mercedes-Torres. I am partners in crime with Mr. Matt Terrio of Epic Real Estate.

And until next week on our next episode of Turnkey Tuesday, where cash flow is king. Your portfolio has seen better days. But this too shall pass. And the best for you is yet to come. Together, we'll get you there faster. We're cash flow savvy. And we'd like to share some information with you that will show you how you can take control of your financial future.

and accelerate its arrival. Go to cashflowsavvy.com. More building, less waiting. Cashflow savvy.com. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.