How influencers are predicting insane housing correction?

I think it’s worth x and he’s like it’s not gonna sell at x and so of course who wins on that the person that um owns the home and housing correction. so they he listed it and sure enough no but no shows no shows no buyers right yeah and uh and you know so what’s gonna happen she’s gonna probably fire them won’t take any responsibility for over pricing it and then bring on another real estate person and we’ll probably tell them the same thing or tell them we’ll be listed at higher and go through the whole process uh john says when funds are low the toys must go yeah that’s good i love all these little.

You know times people have there yeah yeah yeah that’s the time to go buy that stuff guys every time i i uh i get something you know as you guys know i love my Ferraris um that i i’m waiting i’m waiting you know like the price have gone up a lot in price as you know these things watches you know all the luxury stuff goes up uh during these times yep um let’s see here.

Rental Properties in another state

Mr. wright said would you buy rental property in another state to get started if the place you live in has priced you out i would consider it if i had good management in the area for sure um yes I listen guys one of the things that happens when people fall out a single family is where do they fall they fall to rental that’s it so and i continue to tell you we’re heading to a renter nation i even did a couple videos on this you know when when people can’t buy housing residential housing they move to rentals and sometimes you know there’s obviously all these arguments about.

You know rental housing as a lifestyle and i’m sure that that’s true for many but most people want a home most people want um to you know to to to pay down their own uh loan and create their own equity and and plant their flag somewhere um so you know what happens is when there’s disruption there just like there was an 0809 these people all defaulted into rental housing and there’s not enough rental housing so you’re going to start to see some cracks you’re going to start to see even more rent growth in a lot of markets.

So we have a couple interesting comments on youtube here uh paulino is saying i noticed a lot of re-listings on opendoor for the same price that somebody bought it for so why would somebody buy sell something they just bought for the same price well so here’s something interesting to know, it’s not actually the same price because it’s the same price minus all the fees and commissions and all that stuff and repairs so if they’re listing it at the same price what that means is that they’re they’re taking losses and so um it’s very very interesting that they’re doing that yeah people you know they take losses for a few reasons right.

Don’t take Losses

They take losses if there’s something wrong with the home they take losses if they thought they could rent it out for more than they can run it out for and it’s not cash flowing is a big one and that could be on airbnb or that could be a long-term tenant but whatever it is is that’s typically the reason they just want to get rid of it because they’re feeding it every month but some of these big groups have been playing the um the capital gain game.

So they’ve been you know deploying millions of dollars and and the the private equity and the institutional equity which gets a lot of uh press right now you know the blackstones and all they’ve been coming into the residential market they’re it’s really a good point you got to watch what they’re doing because they’re not necessarily buying for cash flow even though they want it of course but they’re buying puts you know what i mean they’re they’re making explain what that means well what it means is that uh they’re buying something at 300 and hoping it goes to 400.

There’s a defined period of time that these big institutions um have you know they’re not long-term holders like we preach you know every big money manager has a time frame on their money and the longer that money stays out the worse the return the irr internal rate of return so you know so that’s something to watch is this has this big money entered the market how is it trying to get back out.

Best deals for Real Estate

It could be that these deals these open door deals are might be weighing the money still today um the worst thing they could do from an optics standpoint is to list that thing at less than they bought it for right because their shareholders are going to be watching exactly yeah so i’m not surprised that they did that because there’s no way if yeah you know think oh think what that would signal to the market.

If they if it was listed at let’s say 20 below what they paid right exactly would be even worse so laura has an interesting statement she said do you think lenders will introduce new loan programs to help people qualify and this is an interesting question because our friend mo we were hanging with him in california and he was telling us about how they’re starting to offer 40-year mortgages and they’re also starting to offer.

You know different qualifications so more like um where you state your income versus um you know yeah i’m trying to find uh like what are you doing on your phone i’m trying to find an article new bank of America mortgage no down payment credit store or credit score requirement so that just came out um over the weekend and i think that sorry for creating on my phone during this time.

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