Epic Real Estate Investing - The 3 Numbers That Prove the Economy’s Lying to You | 1489

Episode Date: May 21, 2025

In this episode, we examine the alarming signals pointing to an economic downturn despite the Fed's reassurances. Burgeoning bankruptcies, plummeting consumer confidence, and a sharp decline in home sales underscore the urgency of taking action. The narrative is illustrated through Natalie's failure to act quickly on a great off-market real estate deal, emphasizing the need for speed and decisiveness. The episode introduces the 'Quick and Dirty Deal Decider' tool to streamline real estate investment decisions swiftly. Listeners are advised to swiftly secure income-producing properties to mitigate economic uncertainties and capitalize on current market dynamics. BUT BEFORE THAT, hear the news about 30-year mortgage future! Quick n' Dirty Deal Decider: https://chatgpt.com/g/g-68192fc883ec8191b4182b9c12650e8b-epic-quick-n-dirty-deal-decider 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. I'm about to shred this 30-year mortgage contract, and the reason why, it might just blow your mind because what the banks are quietly pushing next makes this look generous. I'll show you what it is, and then show you how people are escaping it completely using a strategy that feels like it should be illegal. It's not. And by the end of this, you'll know exactly how to use it, and I'll even give you a cheat sheet so you can pull it off yourself. All right, let's dive in. The average American can no longer afford a traditional 30-year. mortgage. Wages have not kept up. Mortgage rates are still elevated and home prices have doubled

in many markets since just 2020. So what are banks doing? Every single thing that they can to make it easier for you to borrow their money because they only make money when you use theirs. So introducing the 40-year mortgage. What a doing there didn't do it with good debt? What country that's got outlating GDP that didn't do it with good debt? With this good debt and there's bad debt. Bad debt financing jewelry, financing your vacation, amazing your car rental, finance your shoes, right? You know, even I love cars.

I love cars. But financing, even automobiles, that's going to depreciate over time. This asset actually might appreciate it. So good debt is top signs of it might actually go up in value. And, you know, you said it, I was going to say, you said already. There was no magic of a 30-year mortgage.

You was designed around a vulnerability after the Great Depression. People lived in 60 years of age, 59, the B.A. So the 30-year mortgage is, you know, just under half of that. Now people are living in 80 years plus a 40-year mortgage. No, look, all the loans used to be three to five years count. Now they're what? Four to eight years? And people live like, okay, that's normal because of afford to know the issues.

We're taking something that might be an appreciable asset, giving you hopefully a deferral, I mean, it's subsidized rank if you're a first-time homebuyer in what I'm proposing, and giving you the civil rights issue of this generation of financial literacy, so you know what you're doing. giving you a shot and over time, even riding out what might be a recession during that 40 years, right? Because over time, real estate always rebounds. If you look in the long-order history, it's never gone down in the history of America. He says it lowers payments by 7%.

It aligns with longer life expectancy. It gets more renters into ownership. And it boosts the economy by turning people into tax-paying homeowners. And he's not alone. The FHA, VA, Fannie Mae, and Freddie Mac have all updated their loan modifications. programs to allow 40-year terms, mostly to avoid foreclosure. And new lenders like Carrington Mortgage and Triangle Credit Union are offering 40-year loans to first-time buyers.

The goal? Lower payments. Expand access. On paper, it sounds reasonable. But wait, the 40-year mortgage is not a scam, but it's not a solution either. It's a debt extension disguised as affordability. You pay less per month, sure, but across four decades, you'll pay $10. tens or hundreds of thousands more in total interest. In that lower payment, it helps you qualify

for an overpriced home, but it also helps the seller keep the price inflated. So instead of solving the problem, it kind of props it up. And let's be honest, it doesn't build more homes. It doesn't lower land costs. It doesn't fix inventory. It's a Band-Aid. But then for many, it could be a stepping stone. But it does confirm one thing. Even the banks are being forced to get created in today's housing market, and that should tell you everything. Because when the institutions that built the system start bending the rules to survive, it means the old playbook. It's breaking. So what do you do? You learn the new one, because whether you're buying your first home or your first investment property, you can't wait for the market to get easier. You don't have the time.

You've got to get smarter. Here, let's walk through some other alternatives, some emerging and overlooked creative financing opportunities in real estate, not theory, not trends, just real-world tools people are using right now to get deals done without begging a bank. If you use these non-traditional strategies for buying property without relying solely on standard bank loans or large cash-down payments, they don't make any money. Now, I don't think any of us are going to be shedding a tier for banks, but in a housing market like this, high rates, high prices, low inventory, creative finance isn't just clever. It's essential. So who's using these strategies right now? Well, investors certainly are. Investors are scaling up despite the 7 to 8% rates for them. Buyers shut out by traditional loans and

sellers stuck with properties that they can't move. So what's being used? Well, assumable loans. Subject two, this is where you step into someone else's low rate mortgage and then wrap around mortgages. This is where the seller wraps the original loan with the new one and then you just pay them directly. Then there's land trusts. You keep the deal off the radar. You add a privacy shield to it. Then there's the contract for deed. This is seller financing where you control now and then you just get the deed later. And then innovation agreements. This is where you partner with sellers.

You sell at retail and then you keep the spread. And then assumable marketplaces like Rome and Assume List where you can get sub 4% gold mines there. Then 0% business credit. Use tools like loophole lending.com to fund the gaps, to do the repairs, to market for properties, to make the down payments. These aren't gimmicks. They're practical moves. And they're working right now. I learned most of this stuff the hard way back before the market crashed, and I thought I'd missed the boat.

Turns out, I just didn't know where the back door was. But once I got my first subject two deal, it changed everything. That house now cash flows every month, and I never filled out a loan app to get it. My credit score was never checked. Real estate, you see, it's still the final frontier where the average person can build wealth. And if the banks are getting creative, so should you. And let's talk about why most people never do. You see, most people just don't know how or are even aware that they can.

I mean, where are you going to learn how? Not in real estate agent school. Brokers, they don't want the liability. Banks aren't going to teach it because they'd make less money if they did. Subject two deals, wrap around loans, seller financing, that all bypasses the bank. If you don't need a loan officer, you don't need a massive down payment, sometimes you don't need one at all. And most of the time, you don't even need credit.

Even some investors just ignore it because it sounds complicated. And hey, it is a little weird until you learn the rules. But once you do, you can make offers that nobody else can. You can get into deals that most people think are impossible. And you can build wealth on terms that actually work for you, not the bank. So yeah, they don't teach it, but we do. So reach out if you want some help. Either way, though, here's what you need to pull it all together.

First thing, you have to learn the structures, like subject two, raps, novation, seller finance. These are tools that you can learn in a weekend, but use for a lifetime. Two, you got to find the right sellers. Equity rich or distressed, off market, untapped. Three, you got to pair it with flexible capital. Tools like loophole lending.com help fill the gaps. Four, you got to stack your wins. Use one deal to fund the next.

Build cash flow, and then exit the rat race. and you don't need 40 years of bank payments to own property. You need 40 minutes of strategy and the courage to act. You know, if this opened your eyes a little bit and you want help, putting it all into play, download the free creative real estate financing cheat sheets. It breaks down the structures, the scripts, and seller motivations behind the deals we just walked through. So you can take your next step with confidence. I mean, you can sit on the sidelines and watch the market change again,

or you can pivot. get creative and finally take control. The door is wide open right now. Let's go. Hope is not a financial strategy. Let's get back to work. If you feel like something's off with the economy, you're right. The Fed's pretending it's stable, but three numbers just dropped that prove it's not shaky.

It's collapsing under the surface. Bankruptcies are surging. Consumer confidence just hit a post-pandemic low. and home sales tanked harder than they have since 2002. The Fed says everything's fine, but these numbers, they say otherwise. And they aren't abstract. They're personal. They're happening in real time.

And they're the first dominoes. The first one, 529,080 bankruptcies. That's how many Americans hit financial rock bottom in the past year. And that number is climbing fast. Personal bankruptcies rose 13%. Business bankruptcies jumped 14.7%. That surge wipes out the unusually low numbers we saw during the pandemic, back when stimulus checks and loan forbearance were keeping people temporarily afloat.

According to the administrative office of the U.S. courts, this rise reflects, quote, the financial realities many Americans and businesses are now facing. Translation, people are drowning, while the Fed is still selling sunshine. Second number, 52.3, the Consumer Confidence Index. That's the lowest level since the pandemic, according to the, the University of Michigan. But here's where it gets nasty, the expectations component, the part that measures how people feel about their future, that plummeted to 54.4. That's the lowest it's been since

2011 and well below what historically signals a recession. And consumer confidence isn't just a number. It's the heartbeat of spending. You see, when people lose faith in their financial future, they stop buying, they stop investing, and they stop taking risks. That fear alone, can drag an economy down and keep it down long after the technical recession is over. In fact, most economists argue that the Great Depression could have ended years earlier if public sentiment had shifted in alignment with the GDP. That's a reason they call it the invisible engine of the economy. I mean, isn't that crazy?

Depressions and recessions last longer than they should just because people are scared. And when you dig deeper into this current report, What do people say that they're afraid of the most? Inflation and housing costs. Just the fear of that stuff can make that stuff happen. This isn't just a case of bad vibes, though. It's real financial pain, and people are finally saying it out loud. Third number, 5.9% drop in home sales.

The steepest monthly decline since 2022. Existing home sales dropped to an annual rate of just 4.02 million. That's a massive slowdown. Lawrence You and Chief O'Don. at the National Association of Realtors. He even warned that housing mobility is at historical lows. He said it himself, this could signal less economic mobility for society. In plain English, if you can't move, you can't grow.

And just to twist the knife, while sales collapsed, the median home price still hit $403,700. Fewer people can afford homes as prices keep climbing. And these aren't just stats. They're warning signs. They're what the headlines won't. The headlines won't say. They're the signals your financial advisor hopes you never see.

And here's the savage truth. People aren't losing because they're wrong. They're losing because they're too late to see what's really happening. Because here's the truth. The system isn't designed to be visible, nor is it designed to save you. It's designed to stall you while others move fast and win. And that brings us to the story behind the stats. According to Yahoo Finance, we sell housing.

market stalls as mortgage rates drive steepest monthly sales decline since 2022. Home sales fell nearly 6% in March. Median prices are up, but fewer people can afford to buy. And while the MLS dries up, deals are still happening. Just not where you're looking. And here's why that matters, because when everything feels frozen, when confidence drops, when bankruptcies rise, when the market stalls, the worst move you can make is no move at all. Standing still in an economy like this, it's not safe.

It's a guaranteed path to getting left behind. For example, Natalie, now a private client of mine, she knew things were shaking. That's why she was being so careful. She was telling me about how, before we met, that she found an off-market duplex with a motivated seller and great numbers. So, she pulled comps, ran repair estimates, modeled the financing, estimated rental income. And it turned out that her intuition was correct. It was a great deal. But while Natalie was still analyzing,

another investor made the offer, and it got accepted. And just like that, Natalie was out. She did a bunch of work and now has nothing to show for it. She didn't miss out because she wasn't smart. She missed out because she was trained wrong. The system isn't broken. Her process was. She doesn't need perfection.

she needs speed. She doesn't need every answer. She needs a smarter filter. Because the game isn't about getting it perfect. It's about getting in before it's gone. Off-market real estate is a game of speed. Every day you delay, someone else wins. The people who are getting ahead right now,

they're not the smartest. They're just the fastest. The market isn't collapsing. It's evolving, quietly, rapidly. And if you're waiting for a sign, this is it. While Natalie was crunching numbers, checking permits, getting quotes, epic investors are making quick and dirty decisions and racking up deal after deal. Here's how it works over here.

After we talk to a seller, we immediately come over to our epic quick and dirty deal decider where we're going to calculate our quick and dirty math. This is going to give us a price range of what we want to give this property under contract for with the potential of executing three different exit strategy. So it's going to give us a price range. and as long as we can get it in between that price range, we should be able to put a deal together. So it needs just four specific numbers.

It needs the ARV, the after repair value, the square footage, the rehab level. So we just categorize initially our rehab jobs, either light, medium, or heavy, and then it asks for, or we need the monthly rent, what it's going to rent for in case we're going to hold the property. It does ask for the asking price. We don't need that for the calculation, so that is optional.

Right now, we just need to drop in those basic numbers. So we could type it in, if we would like, but it's just quicker and easier if we use the microphone feature. So the ARV of this property is $500,000. The square footage is 2,100 square feet. The rehab level on this property is a medium rehab job, and the monthly rent is $3,200. The seller said they don't want to accept anything less than $375,000.

So once I've recorded that, I will go ahead and just hit the little checkbox. It'll take that audio file and convert that to text. I will then submit it, and it will run the calculations for me for the three exit strategies, the fix and flip exit, a wholesale exit, and then a buy and hold exit. It's going to come down here and just give me a price range. So my target here is to get between 278,000, 358,000. The seller wants 375, so that is above our number. If this looks doable that we could potentially negotiate this down a few more bucks,

then we want to lock it up. And then we'll run our deeper due diligence. Then we'll run the actual slope and clean math we call it. So we'll confirm all of our numbers. But if it doesn't, then we need to negotiate harder. In this case, that's where we're at. Or send them the boomerang letter and we just move on. That's our follow-up letter.

So if we can get it in this price range, then we lock it up as fast as we possibly can. With contingencies, of course, but lock it up before ever going deep. That's what your due diligence period is for to confirm that you made a good decision. If you didn't, you can renegotiate or cancel. If you did, you got yourself a good deal. And you can grab the link below. Go ahead and bookmark the quick and dirty deal decider and use it to your heart's content on me.

And by doing so, you see, this is exactly where Natalie could have saved herself hours and the deal. If she had run the numbers through something like the dirty deal decider, she would have gotten an instant, fast, filtered yes, no decision and locked up the deal before that next investor did. speed now, certainty later. You use quick and dirty math to get into contract. You use slow and clean math to stay in contract.

And why are we talking about real estate strategy in a time like this? Because this is not the time to sit back and wait for things to stabilize. It's time to take control of your financial future by owning assets that pay you every month, whether the economy is up or down or sideways. That's why real estate, specifically in front, producing real estate has always been the move. Because while the headlines scream panic, your tenants still pay rent.

While the market drops, your cash flow keeps rising. And when inflation hits, your rents adjust. And your debt gets cheaper in real dollars. Natalie learned this the hard way, unfortunately. But you don't have to. You need speed. You need clarity. You need cash flowing properties.

And that's what we help you find. So if you're serious about escaping the chaos, not just surviving. it, but using it to build something that lasts, let me know. With or without me, though, start there, with income, with control, with real estate that works for you. And let's not forget where this all started. 529,000 bankruptcies, consumer confidence at a 13-year low, a housing market frozen in place. Those aren't random data points. They are the writing on the wall. Natalie didn't just lose a deal. She got caught standing while those numbers were screaming, move. Because of When confidence crashes, people freeze. When bankruptcies rise, opportunities, they open up. And when

home sales fall, but prices hold, it means there's a window for investors who know how to operate off market. These three numbers, they're still ticking. And if you don't take them seriously, you're next. Because this isn't about Natalie. This is about you. Natalie didn't get beat by the market. She got beat by the clock. And right now, the people winning aren't louder. They're faster. At the very least, if you can't join us in Vegas, start using the dirty deal decider to analyze your deals. If your deal checks out, get the contract signed.

If it doesn't, move on to the next deal. It's indecision and over-analyzing that'll kill you in today's market. The next deal won't wait, and neither will the collapse. So if you're decisive and fast, you're going to be all right. Hey, quick thing before you go, I'm running this weird experiment where I basically pay people to do real estate deals for them. And then I split the profits with them 50-50. And yeah, I know it's probably the most ridiculous offer that I've ever made,

but it's working like crazy. And if you're thinking there's a catch, you would be right. I can only work with two to three people per city. So if you're curious, check out to see if your market's still open. Or don't. It's not for everyone. I'll see you next time. Take care.

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 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. Thank you.