Epic Real Estate Investing - Why Over Half of Homes Are Selling for Less Than Appraised Value | 1340

Episode Date: August 30, 2024

Are you ready to uncover a hidden opportunity in today’s wild real estate market? Over half of the homes sold this year appraised for more than their sale price, creating a unique chance for savvy investors to gain instant equity, secure better financing, and negotiate unbeatable deals. Join us as we dive into an investor’s story, where they turned a $20,000 appraisal gap into her next big win. Discover how you can leverage this surprising trend to your advantage and maximize your real estate investments. 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. Hey there, welcome back to the Epic Realist's Day. State Investing Podcast. I am one of your host, Mercedes Torres, lucky enough to be Mr. Matt Terrio's wife, and I'm happy to be here with you today. But before I get started, I wanted to give a huge shout out and congratulations to Rabia and Sean from New Jersey. They just literally closed today on their first two investment properties through our Turnkey Division, cash flow savvy. They picked up two amazing single family residents in Kansas City, Missouri, and they are just loving it. So, Sean and Rabia, congratulations. I am truly happy to just see you grow and just

for your extraordinary success, despite the life challenges that life's thrown your way. So let's get started, if you thought home prices couldn't get any crazier, wait until you hear this. Over half of the homes sold this year were appraised for more than their sales price, and it's causing a ripple effect you won't even believe. Now, here's a shocking myth buster. Think you need insider connections to find the best real. estate deals ever, meet the 10x home finder, the surprising solutions that delivers life-changing opportunities. To find out more information, go to seller-sniper.com. That's seller-sniper.com to get the best

real estate deals ever. The real estate market is facing an interesting twist. Fifty-one percent of the homes sold in the first half of 2024 have appraised higher than the sales price. And this has been the highest rate since the pandemic begun. Now, this trend is making accurate valuations increasingly difficult, with some appraisals missing the mark by thousands of dollars in both directions, but mostly in a favorable direction for investors. The widening gap between appraised values. and sale prices is causing tremendous friction in an already tight market, especially as buyers

and sellers navigate deals where appraisers just don't seem to see eye to eye and appraised values just don't match. But here's the kicker. While this trend shows the market strengths, it could signal a cooling off period ahead. So look at all. Look out. investors, housing economists are already predicting that home appreciation is beginning to normalize. And in some markets, prices might even be on the decline. So what does that mean for real estate investors? Well, this means opportunity, huge opportunities. As the market corrects itself, savvy real estate investors can find themselves in prime position to buy under valued real estate properties, or it gives them the ability to negotiate better deals in a market

where over-appraisals are common. Now, as an investor, here's where you can play it smart. You can use the higher appraised value to secure better financing for your deals. So whether it's a private lender or a conventional lender, the lender is usually willing to offer a lower interest rate, because the loan to value racial is more favorable. Usually banks favor the lower LTV. So this basically translates to lower monthly payments, less money out of your pocket for the life of the loan, but it doesn't stop here.

You can also recognize that the higher appraisal gives you instant equity in your pocket. Now, this equity provides you with leverage. leverage you can use to either refinance in the future or to tap into a home equity line of credit. Yes, there are home equity lines of credits known as HELOCs now for investment properties. And if you're finding it difficult to find those lenders, shoot me an email, shoot me a message. And I will be more than happy to align you up with those lenders that are providing HELOCs for investment properties.

Or you can also flip the property for a profit. You can simply flip it as a quote unquote normal flip, or you can even find a wholesaler or a hoteler where you can partner to flip it if that's not your forte. Now, what's the takeaway here? In markets where homes are consistently appraising higher than the sales price, there's potential to capitalize on the gap.

So whether you're looking to secure better financing terms or to build equity quickly or cash flow or just to buy and hold a property for wealth creation, this is a ticket to your win. I say it almost every week. God is not creating any more land and our population continues to grow such that it is a mathematical equation equation that in our lifetime, there is likely not enough properties to accommodate our growing population here in America. That said, you buying and holding real estate puts you at an advantage from several different perspectives, not only from being the owner of an asset, but think of the cash flow, the appreciation, the amortization that you reap the

benefits from by just buying and holding an asset, especially if you're able to take advantage of what the appraisal market is doing at the moment. That's it for today. So, hey, if you found this information valuable, would you give us five stars and tell me what you like best about this episode or more so what you like best about our podcast? And also, if you find this helpful, will you share us with a friend and let me know what topic you want me to cover on our next episode of the epic real estate investing podcast. That way, we can do the research for you and report our findings on what you want to learn about in the sector of real estate. And we will provide it in bite-sized, consumable fashion via this podcast.

That's it for today. Signing out. Once again, my name is Mercedes-Torges, where cash flow is queen. Bye. 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. We 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.