Epic Real Estate Investing - The Quiet Real Estate Crash You’re Not Supposed to See | 1483

Episode Date: May 7, 2025

This episode delves into the quiet but significant real estate crash occurring in America, focusing on the rise of distressed property sales and foreclosure activities in 2025. Matt also discusses how high interest rates and economic pressures are impacting the market, leading to an increase in creative financing solutions such as subject-to deals, wraparound mortgages, and seller financing. It provides actionable strategies for potential investors to navigate and capitalize on the hidden market opportunities that are being missed by traditional platforms like Zillow. Listeners are invited to a special gathering in Las Vegas for a deeper dive into these strategies. About that thing we are doing in Vegas: https://docs.google.com/document/d/1WCsH9-05vQzgZf9MAGBpUahyTqBcu9VgVqQ8pcACMT8/edit?tab=t.0 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. You won't see this on the news, but America's biggest real estate grab is already happening. Quiet, hidden, behind your back. Everyone's waiting for the crash, right? They think prices will fall. The market's going to tank and they'll just swoop in like heroes. But that's not how this one's going down. The real crash, it's already started behind closed doors between distressed owners and ready buyers. Distressed sellers aren't selling because they want to. They're selling because they have to. Loan payments reset, rents flatlined, expenses exploded, insurance, taxes, utilities, labor. They can't hold on,

but they can transfer their problem to you for a discount. And this isn't theory. We're getting calls from owners who said no to every offer last year. Now they're asking us to reconsider taking over their payments. Currently, distressed property sales are quietly on the rise. In March 2025, about 3.4% of repeat property sales in the U.S. were classified as distressed. And this is up from previous years as economic pressures mount. Foreclosure activity is increasing. With over 93,000 filings nationwide in the first quarter of 2025, many of these bypassed the multiple listing service entirely.

And insurance rates? National averages are up 24% from 21 to 24. In some states, it's 59% higher. Labor is up 4.2%. percent, building materials up 28 percent. Tax hikes, utility inflation, cost structure collapse. That's the crash. And it's not loud. It's quiet. Let me decode this for you. Interest rates more than doubled. Five-year arms are near 7.8 percent as of April 2025. Adjustable rate loans now make up 15 percent of originations up from 4 percent. That means payment resets are crushing owners.

Rents aren't saving them either. The national median rent in April. was $1,392, that's down $4 from a year ago. Austin, down 7.4% year over year. Concessions are here. Some places offer four months free. Vacancies are above pre-pandemic levels. Lenders are stepping in, but they're replacing old owners. They're not helping them.

Private capital is buying up distressed assets very quietly. In 2025, nearly 11% of sellers go off market. A 10% drop in value on an 80% leverage deal? that's enough to wipe out equity. Redfin says 13.5% of investors sold homes in early 2004 sold at a loss. Deals aren't crashing. They're quietly transferring. Ken McElroy just said his company is buying $500 million in real estate because of this. Well, good for him. But what if you're not sitting on $500 million? What do you do? You don't need to be. You just need to be positioned. Creative financing is back. Nearly 35% of home buyers in 2024 used

seller or builder financing. Why? Because it works. Sellers get relief, buyers get control. We're talking 0% interest. We're talking to RAPs, subject to performance-based payments, and modern terms like balloon payments, subject to loans, promissory notes, equity-based partnerships. You don't need to be rich. You need to be ready. Well, if there's a crash, why isn't it on Zillow? Because Zillow is late. Their data updates post-closing, preview listings, bows, off-market transfers, they're invisible on Zillow. Landlords are bailing. Properties never hit the public market. Private sales, email threads, text chains. That's where the crash lives. That's where the transfer happens. Zillow changed policies in 2025 to hide pre-listings.

Why? Because they want traffic, not transparency. If you're sitting there refreshing Zillow for a price crash, you're already late. So what can you do? Well, here's your playbook. Number one, underwrite for today. Based it on real income, rent rolls, vacancy expenses. Use tools like the new deal machine.com. Two, pick one market. Become a specialist there. Get deep. Know who's hiring, who's firing, and where the rents are being cut. That's where cracks form. Three, go direct to sellers. Skip the agents. Mail, call, door knock, network, build seller trust. Four, master creative deal structures. Learn seller carries, novations, subject to JVs. Use structure to reduce risk and upfront capital. Yeah, yeah, I know, but you've got no money, right? Use terms. You got no

experience? Use tools. You've got no network. Use ours. And if you want more help putting this all together, we're hosting this small gathering here in Vegas this month, the kind where we sit around a table, we break down deals and we walk through how to pull this stuff off legally, safely, and without using your own cash. We'll cover exactly what's coming next, how to structure these creative deals, and how to make sure you get in front of the distressed sellers who are quietly transferring their properties right now. So if you're serious, this is your invitation. Get the details below. High interest rates and stricter lending have made traditional mortgages expensive in 2025. You probably already know that. But many sellers are still sitting on low interest loans from years

passed. Seventy-3.3% of mortgaged U.S. homeowners have an interest rate below 5%. That represents about 62 million mortgages. That's the loophole. Creative financing lets you skip the bank and take over those juicy loans, often with little or no money down. These methods, they operate just inside the legal lines, and they work. Here are a few creative strategies to play today's market. The first one, subject two. This is where you take the deed, the seller's loan stays in there, and their name, and you just start making payments. The win here is you inherit a low interest rate and avoid new financing. The risk, it violates the loans due on sale clause. It's not against the law, just against the contract. So use land trusts to stay under the radar. Two, the wrap-round

mortgage. This is where you sign a new loan with the seller. They keep their old loan and pocket the spread. So the win here is you've got a more structured deal than a subject too, so it's good for sellers who want cash flow. The risk here is if you stop paying, the seller's still on the hook, so you need the proper paperwork. Then there's different types of seller financing, like the no money merge. It's a mix of seller financing and private money. So you borrow the down payment from a private lender. The seller carries back the rest. At closing, you walk away owning the property and pay everyone later. The win here is no money out of your pocket, full control of the deal. The risk, it can be tricky. You're going to need a sharp attorney and a closing team that gets

creative deals done. And then number four, there's the contract for deed. This is where the seller keeps title and you make monthly payments. The deed transfers when you pay it off, kind of like how you buy a car. So the win here is low down, good for rentals, no bank needed. The risk is you don't own until it's paid off. So you need clear terms and state compliance. Then the fifth one is the seller carry with the delayed payments. So the seller agrees to no payments or low payments up front. You pay later. So the win is that you control now and then you pay when you pay when the property is stabilized. The risk, the balloon payments ahead. Now, these aren't textbook deals. They're legal loopholes, just like the funding offered at loopholelending.com. So if you've got a 680

credit score or better, epic clients are getting up to $150,000 in zero percent interest capital to help put these creative deals together. Get approved in 30 seconds without sharing your social or even talking to anybody. And you can do that at loophole lending.com. When used right, All of these strategies turn high-rate cash-heavy transactions into flexible, low-entry deals. But don't wing it. Get the blueprint. Stay protected. If you want to look deeper into this, you want to get serious about it, look at that thing that we're doing this month.

In Vegas, I'll pin the details below. One trillion dollars in commercial loans mature in 2025. Off-market deals are up. Tens of thousands of quiet exits are already underway. This silent cycle will make or break the next 12 years. will you watch it happen or make it happen? And that's always the question, isn't it? I mean, what did you say last time?

What will you say this time? Don't miss it. Don't blow it. 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 it, we got the cash flow. This podcast is a part of the C-suite Radio Network.

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