Epic Real Estate Investing - NEW Real Estate Market Update - COVID-19 | 1067

Episode Date: July 2, 2020

Pending home sales stage the historic rebound in May yet experts warn home foreclosures will surge as unemployment subsidy ends. So, which is it? Do we sit and wait or do we just go all the way in? In today’s episode, Matt Theriault analyzes the current market situation so you can choose the next right step in your REI. Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This just in. Pending home sales staged a historic rebound in May, meaning the worst may have already come for the real estate market. Then on the other hand, you've got this. Experts warn home foreclosures will surge as unemployment subsidy ends. So which is it? You know, depending on where you're tuned in these days, it's really tough to separate the stories from the facts, especially when your business decisions depend on such information. Do we sit and wait or do we just go all in? Well, I'm going to break it down for you right now, so you you can make the best decision for you. This is Terrio Media.

Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit rei-aise.com. Here's Matt.

Hi, my name is Matt Terrio. I am CEO of Epic Real Estate, where I show people how to invest in real estate with an emphasis on retiring early. And over the last few months, I've been shouting from the rooftops how this could be the most opportune time to get into real estate in the last decade, especially if retiring early is on your list of things to do. When we first went into COVID-19 quarantine, it seemed everybody was getting out of real estate, of which in my book is the best time to get into it.

But now that the nation has relaxed a bit on the stay-at-home orders, for now, people have seemingly rushed back in as Market Watch reports that pending home sales staged a historic rebound in May, suggesting that the worst may have already come for the real estate market. I mean, did we blink and just miss our opportunity? I don't think so. I actually doubt that that window ever really opened. And here's what I mean.

At the beginning of the COVID-19 crisis, I had a few deals, which I call panic deals. They just kind of fell into my lap. Sellers freaked out and just bailed on their properties. So I picked them up quickly. As easy as these deals were, it appeared to be a sign that this was going to be a very busy time. I was kind of licking my chops a little bit. I was starting to analyze and redefine my minimum deal standards to make sure I didn't bite off more than I could chew.

I mean, big things are coming. right? That's what I thought. But once those deals closed and then given the large number of sellers that I spoke with afterwards in the last few months, as well as comparing notes with my fellow investors and gathering feedback from my students, deals are still getting done, but nobody has experienced that surge of discount real estate deals we were expecting. In fact, this week's market report suggests there won't be a surge of these types of deals at all. Or does it? There's a really important distinction here that could change your current thoughts and subsequent actions and how you process mainstream media's

real estate headlines from this point forward first let me disclose this I'm no economic expert but that's why I enjoy this simple business of investing in real estate because you don't necessarily need to be one to do well here's what you need to know there are two types of sellers in the market those that want to sell and those that need to sell they represent the difference between on-market and off market or retail and wholesale real estate. When you see a CNN headline like the housing market is showing signs of a comeback, they're exclusively referencing on-market retail data from the 95% of people in the market that want to sell. We're not looking for those people. Mainstream media like

that for a real estate investor is grossly incomplete, if not entirely misleading. What we need is information from the 5% of property owners that sell off market, those that need to sell. sell. CNN or Fox even won't be reporting this data because they don't know about it nor do they even know where to look. So where do you find it? Where do you look for it? Well, it's pretty easy. It's hidden in plain sight. And here's what I mean. You and I are looking for the wholesale off-market deals from sellers that need to sell. And these sellers need to sell because they're dealing with some sort of life problem that's bigger and more important than fixing up their house, calling a realtor, and then waiting for the perfect buyer to come along.

So, they opt for quick and easy sales through real estate investors. Many people think what could possibly be bigger and more important than getting full retail price for their home? Sadly, things like death, disease, divorce, drugs, job loss. And tragically, these types of life events happen to people every day. Regardless of the market, regardless of socio demographics or financial status or the asset class. It's the cycle of life. and nobody is immune, of which creates an off-market environment for fast, discounted real estate

transactions. As long as life is happening, regardless of mainstream media's headlines, real estate investors here at Epic will always know how to access a relative low price to buy at and a relative high price to sell at. The lesson here is while John and Betty Homebuyer are paying attention to Wall Street for their buying signals, you'll want to pay attention to life for yours. Now, these unfortunate life events are currently all on the rise amid COVID-19. All of them. And then some. I mean, divorce, suicide, bankruptcy, addiction, loan defaults, unemployment, they are all on the rise. Of which history has shown, these events stimulate shifts in real estate markets. These looming dire circumstances will force property owners to turn to their properties for fast financial

relief. And a traditional sale through a realtor just won't cut it. So this growing number of distressed property owner problems will call for creative solutions. And knowing that, having been here before, I've armed my private clients with these creative financing cheat sheets. If you'd like copies, you can grab them for free at epicbreakthrough.com. We have no control over the cause of these problems, but we do have control over the actions we take in response. When it's all said and done, we'll recognize three types of people, Those who made it happen, those who watched it happen, and those who wonder what happens.