Epic Real Estate Investing - The Shifting Market and What It Means for You - Patrick Precourt | 538

Episode Date: December 10, 2018

Today, we are hosting The Quiet Guru. Patrick Precourt, a multi-talented entrepreneur, is talking about the big economic drivers, proving that we can use the negativity on the shifting market to our advantage. Learn how the current economic situation differs from the one we experienced prior to the last financial crash, how unemployment and interest rates can affect the real estate business and why the slow shift in the market is a good thing. Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, heads up rock star investors. The Epic Intensive, it's on the calendar. This is the lead machine workshop. It's scheduled for January 24th through the 26th. We're making it happen in Las Vegas, Nevada. And at this event, you're going to get the secrets to building your lead machine and your passive income streams. It's official, January 24th through the 26th.

And at this invite-only live workshop, you'll be able to get your own custom lead machine to work for you around the clock in your market. You can get help in real time. You can get feedback from others. and even get that damn lead machine finished. Heck, you may even make some new like-minded friends. We all know in this world of entrepreneurship, particularly real estate entrepreneurship,

we can never have too many like-minded associates that we can interact with. In fact, here's just a quick sample of what you can expect at this invite-only live workshop. It's going to give you the building blocks to build a lead machine that's comfortable and efficient for you to use. It's going to give you the kick in the butt

you need to start generating consistent, motivated seller leads. And there's a built-in deadline for getting your lead machine up and running, and then you'll save a ton of time and money working by trial and error. You can finally stop worrying about how to create consistent quality leads, especially if you're new, and you're going to get so much more. So go to Epicintensive.com for all the details.

You can reserve your seat there. In fact, I'm so confident that this will be the event that takes you in your business to that next level. I'm not going to ask you to pay until after the event. That's right, no risk to you. All the risk, it's on me. So if you don't feel that the lead machine workshop was worth at least, 10 times the price of admission, just let me know, and you will not be billed. You've got nothing to lose, you've got everything to gain.

That's the promise. 10 times ROI is guaranteed. That's the promise. So don't miss this invite-only live workshop where you'll finally get your lead machine finished and start using it to flip contracts for cash and hold properties for cash flow. Go to epicintensive.com and I'll see you in Vegas. From coast to coast, Epic investors are doing the most. it's time for another epic field report all right so today i'm on the phone with ria ace client

ryan meersma and i wanted to talk to him about his post inside a follow-through friday real quickly ryan how are you very good matt thanks for having me you bet uh what market are you in again remind me real quick uh calamazoo michigan calamazoo there's really a place called calamazoo there is everybody's heard of it yeah we have a rancho kukumanga here in southern california California and I get kind of the same thing there. But anyway, congratulations. I was going to read what you had posted for follow-through Friday inside of the private Facebook group that we have for the epic community.

Let's see. Contractor started rehab on a two-unit fix and hold that you closed last week, closing on a four-unit today. Sweet. So you've been busy. When did you join the RIAs program? Beginning of August, we attended the summit there in L.A. Got it. And we're recording this here in November.

September, so just a few months. Okay, so good. And we've got two deals here. So let's kind of break them up. Let me, they're both going to be a buy and holds. Yes. Yeah, both of them are buying holds. One of them's ready to go. The other one needs some work. Perfect. Okay, so the two unit fix and hold, fix and hold. Okay, I get it. It's not fix and flip. It's fix and hold. The two unit fix and hold. How did you find that deal? That was through, they were both through direct mail. Both forth through direct mail. Okay. Yep. through the campaign that you guys helped me with. Well, good.

So you have to fix one up and the other one is pretty much ready to go. And your planned exit strategy here is to hold them. Have you calculated your ROI on these? Your cash on cash return? Yeah, they should be both over 20%. Over 20%. They're both very, very healthy. Very good.

Those are healthy. Sweet. So I guess these two deals and so new to the program, what's the biggest lesson that you've learned from these two transactions? The biggest lesson I've learned is that you've got to get out there and you've got to be proactive and you've got to meet with sellers and make a lot of offers. The deals are out there. They're definitely out there.

So how are you going to celebrate? That's a great question. Probably take my family out to a nice dinner. That's fantastic. What's the family's dinner of choice? It's a steakhouse downtown Kalamazoo, Webster's Prime. Nice. Everyone says Steakhouse.

I like it. A bunch of meat eaters in the RAAs program. That's great. Okay, so thanks again, Ryan, Sharon, this quick call with us. Keep doing what you're doing, and let us know if you need any help. We'll do it again. Thanks, Matt. All right, take care, Ryan.

This is Terio Media. Yo, yeah, yeah, we got the cash flow. You didn't know home for us. What's up? Hello. And welcome to the Epic Real Estate Investing Show where we meet here each and every week. Now six days a week to help every day people escape the rat race using real estate. So thank you for listening to the show.

Stay connected with us here by hitting the subscribe button. Stay connected with us on Instagram at Epic Real Estate. And you go to YouTube and connect with us there as well on EpicR-E-I.TV, where the video versions of the podcast are uploaded every week as well. So I got a great show for you today. I got a great guest. I've been very much looking forward to this conversation. And he was born and raised in Connecticut,

and he spent his early 20s working for the family home inspection company while living his passion, competing in rugby, both here in the states and abroad. This is also when he began his real estate investment career, investing in his first property when he was just 25 years old. He's closed to more than 1,000 transactions since. And over the years, he's become a best-selling author, fitness enthusiast, gym owner. He's just an overall multi-talented entrepreneur.

He's an industry leader in personal development coaching, marketing, business development, speaking and influencing, and a master of sales and leadership. And he's known across the industry as the quiet guru. And he's just the guy who speaks with his actions and documented results, not with long web copy copy copycat tricks and copycat tactics. None of that mess. So please help me welcome to the show. Mr. Patrick Precourt.

Pat, welcome to Epic Real Estate Investing. Thank you very much. So excited to be here. Been looking forward to this for a few weeks now. Yeah. We've known each other for a while and we've talked a little bit here and there casually, but never really got to talk like this. So I've been looking forward to it very much as well.

I guess, you know, tell me a little bit about what you're doing right now. What does your business look like today? Where's your focus? So my focus is two side. You know, for those who don't know anything about me, Matt. And I got involved in creative real estate back in the end of the 90s, right? I had a guy named A.D. Kessler, is probably one of the forefathers in all creative real estate. He produced his thing called Creative Real Estate magazine.

And that's how I got introduced to. And way back then, this is, again, late 90s. And we did our first short sale back then, right? It was not by design. I didn't know what short sale meant, right? It's just what it's a closing that ended up that way, right? Right, right. So that's just part of who I am.

It's in my blood. And through the years we got, as we evolved to the investment side, we got a lot more into the educational side. To the educational side, I got into the self-development side. And the segue there came from the idea that no matter how great our content and our teaching was in providing what we wanted to for students, there's still so many students that did not thrive with what they're being given. So it occurred to me that there's more to the puzzle.

And I kind of deviated a little into understanding human psychology and behavior and decision making, what drives us, what doesn't, how fear influences what we do and what we do, don't do the environments that we surround ourselves in, people environments, physical environments, emotional environments, how all those come together to shape the lives that we enjoy or don't enjoy on a daily basis, right? That's kind of what got me up to where I'm in now. So still heavily involved in real estate investment on a bunch of different levels. You know, get a little more creative around it now. I don't like competing much with well with anyone.

So we find spaces that nobody can compete with us in. You know, one little nitry plan I call high risk, high reward properties. And these are properties that most investors would run from. They have known environmental contamination, oil spills on the property, lead and asbestos and all that kind of stuff. So that's one piece. then another piece, ones that are tied up in really nasty lawsuits where you have title companies suing neighbors and counter lawsuits from the other title company and all that kind of stuff. So that's kind of our forte because like all real estate investment, you know, it's just a function of solving a problem, right?

It's just a puzzle that we just take on slightly different problems. Problems. Yeah. Then nobody else seems to want to play with. So it's like, cool. Those are great. I love that positioning as a real estate investment. I really hold that near and dear to my heart of just being a problem solver.

You know, I operate from the place that sellers will exchange equity for peace of mind. And so we just bring peace of mind to people and we get paid handsomely for it. So it's a fair trade. Absolutely. Yeah, the bigger the problem, typically the bigger the reward. So we got to be good problem solvers. You know, we met in a mastermind group, collective genius. It's the premier mastermind for real estate investors.

The best of the best join that group. And when they are allowed in, I really like the quality control for that group. And that's where we met. And there was a, it was about a month ago, I think there was a post by one of our friends, Mr. Justin Colby on Facebook. And it sparked a very long thread and a lot of conversation going back and forth. And that was about the shifting market. It was about interest rates.

It was about what's happening and what he was noticing. and I wanted, and you and I, we shined in there because I just couldn't resist. And I think you and I, maybe there's a couple others, but we were like the ones that really had a positive outlook on it. And we saw the opportunity of what's coming. And you were very eloquent in the way that you explained it. And for the life of me, I cannot find that post. Hopefully we can recreate it here.

But yeah, we're here in a 10-year cycle right now, which is typically a 7 to 8-year cycle. So we're kind of overdue for a correction. whether that's going to be big or small. None of us have the crystal ball. But I think there's a lot of opportunity for that based on the market that we're coming out of. And you being the leader or a co-leader of collective genius, you've really got your finger on the pulse of real estate investors, the best real estate investors across the country.

And so maybe you can just kind of talk about what's the conversation like going on inside of there about the market. And what do you see are different ways that people can take advantage? of it. Yeah, absolutely. And now this is a big conversation, right? I'll take a stab from a few different angles. And we'll just kind of let this roll out, right? And I'll start by saying, you know, I'm not coming from an economist viewpoint, right? I'm very kind of almost stoic in just looking at facts and just relying on facts to make decisions and leaving emotion out of it because it's really easy to let emotions roll into this conversation, particularly for those of us who are around you know, during the six, seven, eight, nine, ten years, right?

We had a decent business and many people got wiped out, destroyed. And there's an emotional scar there that's going to be there for a long, long time, right? It's easy to touch that button and just boom, everything explodes inside our heads, right? Pushing all that aside. And I just want to speak specifically to facts and numbers for this conversation, okay? And then we can let everybody decide on their own where this plays out. So there is no doubt conversation around the economy slowing, right? Yet there's no facts that support that it should.

So let me just talk about some big drivers. And you go back to, you know, this really started in five and six. And when we exploited certain loan products, right, we created an artificial demand for property. then artificially drove up the value of property, right? At some point that things got to stop, and it stopped hard. And the depth of the pain that we felt went way beyond real estate transactions because of these crazy financial instruments that Wall Street had created, credit default swaps and the way they packaged up and sold troughs,

the loans that were, you know, re-regulated or re-qualified as really first-rate investments, but they really weren't. And now innocent people investing out of pension funds were getting involved and getting harmed, right? So the ripple offense was far greater than it could ever be right now because a lot of those products were just boom, ditched, put away, right? With that said, though, there are some things that played a big role. Let's start with overinflated prices, right? And in most markets today, we're just getting back, back to our peaks, you know, 10 years ago. Although it's climbed back up, it's not, you know, if you take inflation into consideration,

there's still worth a lot less than they were 10 years ago, right? If you, if you add inflation influence, right? So we don't have this overinflated bubble thing going on. And I'm talking in general terms. I'm not talking in micro-environments, which we, you know, there's certain pockets around the country that do different things that stay outside of this conversation, right? Also, just to cut in there real quick, our prices have increased without all the funny financial instruments. Without the artificial creation of demand.

Exactly. And that's an important. And if anybody's not clear on what I mean by that, that's when we decide that the percentage of home ownership isn't high enough and it should be higher. And then we realize that, well, there's not enough people that qualify for a current loan. products. So instead of just, you know, waiting for more people to qualify for the loan, we lower the bar for qualification, keep lowering it until we meet a certain quota that we're shooting for. And, you know, at the end of the day, when we have loan products being sold to people who are absolutely unqualified to support the loan, needless to say, it cannot survive,

right? But that part aside, that's where the artificial creation of demand came from. These people would not have been buyers, would not have been looking for houses, nor would they have been paying as much as they would. Because when you work hard for your money, you're a little more careful how you spend. It's a psychology that goes along with that. You didn't earn it, man. Somebody just here. Here, Matt, here's a boatload of money, right? Go spend it as you will.

You're like, ah, homeownership. And everybody's saying, good for you, Matt, you own a house, right? So we're not experiencing any of that right now, right, for all intents and purposes. So that part doesn't exist, which is super cool. Then we move over to, let's say, the economics 101 supply and demand curve, right? In most markets, right, nationwide, and certainly as a meeting or a mean throughout our country, we are undersupplied with houses. Our total months of inventory are extremely low.

They're typically under three and a half months of inventory in most markets. Some is low as one and a half months of inventory. And I put perspective to that, a healthy market, four and a half to five and a half months of inventory. And if somebody's not clear on what I need by months of inventory, with that number of representatives, let's use a grocery store as our, you know, as our example, we stocked all the shelops in a grocery store. And I stopped stocking them at the rate which people are buying the merchandise, the groceries, how many months will take to empty the shelves?

And that's how they calculate months of inventory. Right. Well, healthy is four and a half to five and a half months because that keeps a balance between supply and demand seller and buyer market. Once a buyer's market, right, sellers get beat up. When it's a seller's market, prices get artificially driven up, right?

So having the right kind of supply where buyers have options and sellers have options, it brings authentic, genuine negotiation to the table and true fair market values comes out the other end, right? And we're in most markets, we're still underneath that, right?

When you go back in like 2007 or eight, I mean, we're seeing seven to 12 months of inventory at that point. And guy rocketed, right? And that's where prices start capping up and coming down. And then, of course, that has a ripple effect into the value of your home because prices are coming down. And it starts that thing tumbling down really quick. So the point here is that our months of inventory still relatively low. And what that means is that there's still a strong demand for property.

It's not a reckless demand because people work hard for their money, right? And if you say, well, Pat, what's a smart play going forward in terms of where I will invest in single-family residential housing? If you take your market, right, and divide it into three tiers, low, medium high, low being your typical entry-level, first-time buyer's house, being that move-up house, or family is expanding, you know, maybe they have two solid incomes, right, that move-up house. And the third one is the executive home, right? This is the first two typically are bought because you need to. The third one is bought because you want to. And when the economy starts to plateau out or there's a little consumer confidence challenge, though the house that you want to buy typically get forgotten about first.

First, right? Yeah. We'll stick to our needs and let go of our wants. Does that make sense? 100%. So that's kind of the second point here is that our demand for property, is still very strong. And there's no indication that has not dropped off at all. Another interesting fact, right, is unemployment. If you go back, again, I should have wrote somebody's number down,

but if you go back to say 2009 into 10, we're north of 9% into 10% unemployment, right? And of course, consumer competence then is in the gutter. During that time, dude, of that period which you think we should be, you know, everything should come into a screeching halt. We still sold over four million homes a year, right? And to put that in perspective, right? If you go to say maybe 2014, we sold a little over four million homes a year. And everybody thought in 2014, we're doing great. Economy's starting to really be robust. The numbers were not that much different. I'm going to get to one here, though, that to me is fundamentally, this is the one that I think people were wigan out on. We saw very recently stock market adjust to it, right? Interest rate.

Everybody said, well, when interest rates keep going up and hit this ceiling, we're done. Real estate's going to get it. It's completely over. Where it stands right now, okay, the cap the top of interest rates as forecast at least through the end of 2019, and they just won't forecast further than that, right? We're supposed to top out at about 5.5% somewhere in that area, okay? Put it in perspective, dude, 2006, in one of the years that we sold some of the most house homes per year almost seven million homes, we're at almost seven percent interest rates, six and a half,

six and three quarter. Yep. And we still sold way more houses than we've ever sold since then. And we're what, at four seven now or four eight? So we're not far from where we're going to be. So the influence of it has almost been fully appreciated. There's not much more influence than interest rates are going to have on it. Now, I saw somebody write a recent article about home affordability, which is another

the discussion, right? It is generally understood right now that our affordability indexes is not as good as it could be. And that's, of course, a relationship between median income, interest rates, and the meaning household price, what it's selling for. So that ultimately determines, you know, your mortgage, your monthly mortgage payment in the ratio, it is of your income. So that's how they determine affordability, right? And that right now is, we would like it to be lower so more houses were affordable. We don't have as many houses that are affordable that we'd like to have. And it's been out of whack like that for a long, long time, right? This is what I see happening on. This is the cool part about this. And as an investor, we have to

appreciate this. We're not speculators, right? We're not going in this for 24-month plays. And I'm not disregarding our buy and hold properties, but those are different. We don't look at, we're less concerned about what it's worth in the moment. And it's more, concerned about it's cash flow, its ability to generate money on a regular basis, right? So that's a rent role, which has an inverse relationship to this. So as other things go down, it goes up anyway. So we're cool there, right? But we're not speculators. We buy, fix up, sell. We sell our contract or whatever it is, but it's all short term, right? So we're less concerned about the overall price adjustment in the house and more concerned with the delta between what we buy it for and what we

sell for. And house prices don't adjust that much in a two, three, four, five, six week period, double two month period in the time that we own properties, right? So although I do believe house prices will come down a little, right? I see an ultimate upside to it in that it'll make houses more affordable. We already said the interest rates are almost tapped out. Assuming our incomes don't go down, which I'm seeing a reason why they would, as the house prices come down, it brings in more buyers into the market, particularly in that first-time buyer range. Does that make sense? 100%.

Yep. So I'm, you know, in the day, like I said, I'm not, you know, I would never claim to be some, you know, study economists that knows all about this on a great big macro level. All I can do is look at the fundamental numbers that drive our business, right, and drive consumer. And I do know that when there's a demand, houses will be bought and sold, provided there's money, and that's the last part here, one thing we lost in 2007 was financing. It just crashed, right? They were done putting out loans because everybody went into trouble. That is just,

that's as abundant now as it ever has been, yet we don't have the worst of the worst loan products available. There's some that are getting a little sketchy, no doubt, right? They're getting introducing some stuff again, yeah. You know, but there's still tons of money available. Housing prices that have come down become more affordable than the man and the man has not moved at all. Unemployment is that a record low as far as the last 10, 15 years probably, right? I challenge somebody to come up with facts, not hypotheses or forecast, but facts that support. The market's going to go the other way. I 100% agree. My perspective on it also is from the real estate, we've been talking a lot about the retail side of things. That's the context of a lot of what

you were just sharing. Yeah. When I'm going to be. looking at the real estate investor side. And I can really relate to this because I came into real estate as an agent, probably 2002-ish, 2003-ish. And I did that for four years. And I learned in a very competitive, tough environment in the sense that I had to prepare my buyers that if something comes on the market, I'm going to call you. I need you to drop everything from work. I need you to meet me right in the front doorstep. We're going to write this offer right on the hood of my car. and we're going to try and force our way in and get this thing signed. Like that was a very tough way to learn to be a real estate agent and make a living.

That's a way to buy a house. Yeah, totally, right? So I remember what that was like. And I think right now with, you know, there's a lot of real estate's hot again. It's got a good feel about it. There's a lot of newer real estate investors in the market. And I see a lot of similarities there that people got to run in and get it. And they got to be first there.

They got to act fast. They got to come with their highest invests, like right off the bat. And, you know, that's a tough way for a real estate investor to continue to buy low and be able to sell for a higher price and sell for their profit. And so I see, what I always like to position in when I'm negotiating with the seller is that, hey, I'm going to get you whatever the market is going to allow me to give you. If I know what I want, you know what you want, I'm going to shoot first, both to get in it, and whatever gets in the way, it's going to be the market's fault.

It's you and me, Betty, we're taking on the market. So let's go out and get them, right? So that's always my perspective. So I've got that mindset now with, hey, the market's slowing down a little bit. The houses aren't moving as fast as they were, not getting as much as we could. That darn market, it's shifting. And you can blame it on whatever you want, but things just aren't moving. The inventory is moving up.

And you just don't have the power that you used to. Like, you'd have called me three months ago. We could have done maybe something differently, but, you know, we had a couple rate increases. and I think that's a lot of leverage to start buying properties right and not be so frantic in how you buy them. I was going to say you're leveraging, right? People's psychology of what's going on because quite honestly, if you look, you don't have to look hard. Nine out of ten articles who find out there right now are saying, oh, doom and gloom, at least that's the headlines. When you read in Rome and they use some real information, you realize, well, it's not really that doom and gloom, you know,

but they love the headlines. and oftentimes people never read past the headlines. We all know that, right? And all you're doing is tapping into the psychology of fear, right? And then unfortunately, people are driven by that more than they are from gain, you know? They are. And what's nice about it right now, which I like about even more, this shifting market, is it's happening slowly, right?

When that bubble pops and it crashes, it takes six months for the sellers or general population to get on board with what just happened. Right. we're in this on a day-to-day basis. We know what just happened. We know that there's not a chance of your house is worth this, but they don't get it yet

because it hasn't caught up to them. And the fact that this transition of shifting of a market has happened a little bit slowly is good. Just, you know, it's like, you don't have to go through that giant learning curve or wait for the seller to come around

and finally come to reality. Well, our beloved news is doing our job for us, really. Right. It's prepping them for the mindset, you know. And as investors, we do have to be smart about it, right? We don't have crystal balls and everything I'm telling you right now, guess what?

There could be a geopolitical event that happens in a week from now and change everything on its head, right? There's certain things that are not predictable in our space. So we do have to be smart about it, you know. But having that much negativity out in the market, to your point, we can definitely use to our advantage. A little leverage and get people kind of move now that when they might not typically move, they might think they could wait it out. This is a way to push them along. And it's not a total one-sided thing.

I think that real estate investors should still keep all of this in mind and take everything into a account. What are you saying as far as kind of what people are doing, particularly with the real estate investors that you know and they're connected with? How is this changing the way that they're operating or is it at all? So that's a good question. And it's a positioning thing. So generally speaking, the idea is let's create a strong cash position. so we do have some liquidity. Keep our eyes up, right?

We may have had our eyes down for the last four or five years and just pulling our way through it. Let's look up. Let's see a little past that with a meeting in front of us. And let's just be smart going forward. No reason to run. No reason to panic. No reason to respond out of fear.

Let's keep an eye, a close look on what's coming our way and have some cash on hand to get through what, you know, we call it the gap, right? When things may be one day. Because what will stall the market for a little while will be when the stock market crashes. And it will. It's inevitable. Right. I find the guys, girls who are in the stock market, find them to be the biggest, I was going to say a bad word.

The most sackless people I know, okay? I was waiting for it. The word was worse than that. On a freaking drop of bat, they run like cowards. And then next day they hear news, like something really's changed. It comes running right back, you know? it's really singing a world. But that's in it, it's going to happen because that truly is a bubble where I don't see

our real estate in a bubble right now. Stock markets, everybody knows it. And then there's your balance between greed and fear, and each one of those will kick you in the nuts, right? And so the smart investor takes those into consideration. They know when everybody's in fear, that's time of step up and plate, there's opportunity. And that's when a market's kind of coming down, right? There's an opportunity to be had there.

and when everybody's greedy as hell, that's really the time to sell your shit because they're thinking it's going and going and going and going. Yeah, since the stock market, real estate's not that much different when we're playing the short-term game, you know? Right. It is all about the difference between the short term and the long term.

Yeah, yeah. Two totally different games. Cool. Well, Patrick, I really appreciate you coming on and sharing your expertise. I haven't talked to you in a really long time. So bring you up to speed, what's the biggest win you've had in the last 12 months

and what did you learn from it? Oh, goodness. It's been a busy past 12 months. We opened another gym. We do lifestyle, fitness, and martial arts. It's pretty cool. And it's our one-year anniversary right here in December, which is super cool. That was big for us.

A lot of growth in that space. I do a lot of work in a personal development space. We launched a program in 2018. It's geared towards guys, generally entrepreneurs, typically guys who just want more out of life, right? And that's going just phenomenally well. And that's my passion, right? That's what I do.

And that's what I love to do on a regular base. And, of course, our real estate keeps coming along. I'm looking, so we're looking in a space that's a little different than our fiction. Flip on the wealth-building side of real estate. It's on the assisted living space, right? And I'm waiting for the slowdown coming up, right, to take advantage of some opportunity buys for that business, right? That business is a very lucrative side of real estate to begin with, being able to get properties at a little, you know, a 10, 10% difference in the R now,

which may happen if people fall on the fear side of things enough. That's when we're keeping our eye in very, very closely right now. Pat, if anyone wanted to get in touch with you, what would be the best way for them to do that? You know, just my website's the easiest one to go to. It's just my name, Patrick Precourt.com. And through the day, it's very easy to track me down, get hold of me, and see a little bit more about what we do, you know? Yeah, I'm interested in a, usually I ask that question for the benefit of the audience, but I was actually asking a little bit for myself because I'm interested in the personal

development aspect. I think that's the center of every entrepreneur's either success or not success, right? It all starts with that. So, it's been a pleasure. Let's do this again. I'm new. whatever you want, man. Let's do it in the heat. When things get heated up, right? When we have to talk conversations, let's bring it, man. I think that'd be great. Super. All righty. So, that's

another episode of the epic real estate investing show. Thank you to our guest, Mr. Pat Precourt. So if you'd like to do deals, stay right here. We're here five days a week. We're here six days a week now. We give it all away for free. Everything you need to know to do deals is right here on the show. If you'd like to go fast, go to R-E-I-Aase.com. All righty, God bless to your success. I'm Matt Terrio, living the dream. Hey, real quick, before you go, the day after Pat and I recorded this episode, he had sent me an article. So this is a brand new article, write straight up to date, and I'll just read it loose lead for you. Stock markets around the world rose on Thursday, largely thanks to comments from the chair of the U.S. Federal Reserve that hinted at slowing interest rate rises.

What does this mean? The U.S. Central Bank has been raising interest rates for a while to make sure that strong economic growth doesn't get out of control, but it now looks like interest rates will hit neutral sooner than previously thought. That neutral rate is the one which keeps the economy ticking along nicely, holding inflation, the rate at which prices increase steady without threatening to overly stymie growth. So why should I care? Well, for markets, markets are on the up. The chair's comments were music to the ear of markets. If interest rates are just below neutral, its likely future rises beyond that, widely tipped for December, will be fewer and further between.

That means U.S. companies and individuals won't face much higher interest payments on their borrowings and are instead more likely to invest in their businesses and buy stuff because leaving money in the bank won't pay as much interest either. Slowing rate rises are good news for economies around the world too. Many countries, especially emerging markets, use U.S. interest rates as a benchmark and companies there can also look forward to less costly debt and subsequently greater profit. investors love more profit, and so they bought up company's stocks on Thursday. Now, for you personally, back on the housing hunt.

Data out on Wednesday showed an unexpected drop in U.S. new home sales in October. The rapid rise in interest rates this year might have been giving people cold feet about buying a new house. Demand was stoked by previous low interest rates, which made mortgages cheap. But if rates aren't rising as fast anymore, then people may soon start splashing the cash. cash again, including on property. Interpret that how you wish. I see it all as good news. It's never a bad time to buy real estate as long as you're buying it right.

All righty, I'll see you tomorrow. Take care. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home board, we got the cash flow. This podcast is a part of the C-suite radio network. For more top business podcasts, visit C-Dash.

Sweetradio.com