Epic Real Estate Investing - The FED Just Dropped a BOMBSHELL on the Real Estate Market | 1399

Episode Date: December 20, 2024

In this episode, we dive deep into the Federal Reserve's recent 0.25% rate cut and the shockwaves it's sending through the housing market. On the surface, this may seem like great news—lower rates, more affordable mortgages, and a potential boost for homebuyers and investors alike. But hold on… things aren't as simple as they seem! While the rate cut might sound promising, the Fed’s mixed signals and conflicting messages have sparked major uncertainty in the economy. From fluctuating market trends to unexpected shifts in home prices, we're entering a period of volatility where everything could change in an instant. How will these developments impact your investments? Can you really trust the "good news" when the economic landscape is shifting so rapidly? In this episode, we’ll break it all down: We’ll analyze the current market behaviors and how the rate cut is affecting home prices, mortgage rates, and your ability to buy or sell. We’ll discuss the contradictory signals coming from the Fed, and what that means for the real estate landscape in the short and long term. And most importantly, we’ll share actionable strategies to help investors, buyers, and sellers navigate this turbulent market with confidence. We’ll also revisit one of Warren Buffett’s timeless principles: "Be fearful when others are greedy, and greedy when others are fearful." The market’s uncertainty might be just the opening you need. Get ready to rethink your real estate strategy, embrace change, and prepare for the exciting opportunities that lie ahead, even in the face of economic turmoil. You won’t want to miss this! 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. The Federal Reserve just dropped a bombshell that, it either make or break your real estate fortune. They dropped rates by 0.25% to stimulate the economy. That sounds like a win, right? Wrong, because it's what they said next that revoked the economy's stimulus they promised just months ago.

That's a financial earthquake waiting to happen if you're not ready. Right now, the market's behaving like a rodeo bowl, thrashing, unpredictable, and ready to throw anyone who isn't holding on tight. Stocks are hit in record highs, just prior to their plummet after the Fed's news, and home prices are up nearly

6% from last year, even with mortgage rates climbing, which is weird, it's classic irrational exuberance. And we've all seen this movie before. Do you remember how it ended? Picture this. The Fed is like a jittery driver, constantly switching between gas and brakes, trying to steer us clear of inflation and recession. But even they don't know what's coming next. They cut rates, but seconds later, they're already warning no more after this. What happens when you slam on the brakes after flooring it. Whiplash. And that's exactly what could happen to the economy. Some experts are predicting mortgage rates could jump by 2.6% in the next 12 months. Now, I know what you're thinking. Maybe I should sit this one out, wait for things to settle down. But let me be blunt. Inaction is a

decision. And in this market, it might be the most expensive decision you'll ever make. While you're hesitating, the smart money is out there making moves. They know that fortune favors the bold. Here's the truth. The Fed just flip-flop from many rate cuts coming in 2025 to now just two. They just flip-flop on unemployment concerns last Fed meeting where they were concerned about rising unemployment. This meeting, huh, they're not. The predictions are meaningless. They'll continue to pivot again and again. And I mean, in just a month or two, expect it. New policy announcements essentially guarantee it. The real estate market is like the tide. It ebbs and flows, and the key to success is knowing how to ride the waves. Right now, we're at a critical

turning point. The Fed's actions are flashing warning signs, but the market is still hot, and it will continue to be. I mean, day by day, you might see some fluctuations, but over time, it'll grow. When has it not? As long as you're not day trading real estate and you're buying for cash flow, when in history would you have lost if that was your strategy? So think about this. If interest rates jump, those who waited will be kicking themselves. If interest rates drop, those who waited will be kicking themselves. The best deals go to those who are ready to pouts when opportunity knocks, and it's knocking somewhere every day. And here's why this moment is so right for the taking. One, sellers are getting real. Those sky high asking prices, they're coming back down to Earth

for the time being. This means more negotiating power for you. Two, the Southwest is heating up. Zillow's calling it. The Southwest is about to be cut. come to the affordability sweet spot. Think sunshine, booming markets, and untapped deals. That's what they're saying. And three, smaller homes, bigger opportunities. Builders are shifting focus to smaller, more efficient homes. These are gold mines for investors, appealing to a wide pool of renters. Look, I get it. If you keep your eyes glued to YouTube and your nose buried in Twitter all day, the fear it can be paralyzing. Rising interest rates, inflation, recession, I mean, it's everywhere, and those are all valid concerns. But here's the thing about.

fear. It's often based on what we think might happen, not what actually happens. And while others let fear freeze them, you can turn it into your competitive edge. And remember when Warren Buffett said, be fearful when others are greedy and greedy when others are fearful. Right now, fear is creating opportunities for those who dare to act. Imagine you're at the starting line of a race, and everyone else is hesitating. But you take off, and by the time they realize the race has started, you're already miles ahead. But don't mistake action. for recklessness. I'm not saying that. Smart investors, they don't jump in blindly. They have a plan. So here's your game plan for navigating this market. One, educate yourself in creative

finance. Master strategies like seller financing, subject to deals, and leveraging other people's money. There's plenty of it out there waiting for an opportunity and you can be the one that brings that money the opportunity. Two, stay consistent with your direct marketing to sellers. Keep your pipeline full by reaching out directly and staying top of mind. Three, build and stay engaged with your network. Connect regularly with other investors, real estate agents, and industry pros who can support your growth. Be intentional about creating your environment. If you don't, your mind can be playing tricks on you. Number four, stay flexible. Be ready to adapt as market conditions shift. The most successful investors pivot, they don't panic. Real estate is a game. It's a

business, but it's a game. And like any game, it has winners and losers. The winners are those who are prepared, who take calculated risks, and who never stop learning. The losers, they're the ones who let fear keep them on the sidelines. I mean, look back in history. When would that have been an incorrect statement as long as you didn't sell? So let me ask you, which one do you want to be on? Are you ready to take action and build the life you've been dreaming of? Or will you let another wonky news cycle rob you of this moment too? How many times can you count where you froze in fear? And seemingly, seconds later, you said, damn it, I fell for it again. Just saying, like, subscribe, share, do all that stuff if you want, and I'll see you next time. Take care.

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