The Real Estate Market is Shifting, Here’s What You Need to Know
Yo yo, welcome back to The Science of Flipping, I am your host, Justin Colby and on this episode, we’re going to be talking about the real estate market. In general, there’s been a lot of news about pending crash, if you will, of the real estate market, and I have my own opinion. So make sure you stay tuned all the way to the very end.
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As always, guys, this podcast episode is brought to you by minutepages.com. If you’re a real estate investor that want a very professional look online, that gives you credibility, influence and authority. Go to minutepages.com for your best professional websites, only $97 a month. If you take your business seriously, and you don’t have an online presence, you simply are missing out, make sure go to minutepages.com to get your websites for $97 a month. Now the real estate market is changing real time we all feel it, even someone like myself, that has 15 years under his belt of doing this business. Now here is some perspective for you. If you have just got into the game in the last 2, 5, 7, 10 years, you have quite literally seen the best real estate economy ever, in the history of tracking real estate economies. So some perspective would be if you made money, or a lot of money, make sure you understand some of that was your timing. Yes, hopefully there was some skill and strategy and systems that you embedded with that timing that helped you make that money. But here’s what a lot of people are worried about is this recession slash pending real estate market crash I know right now is someone who’s educated thousands of people and have hundreds of people in my student center right now in coaching hundreds of people right now actively. One of the biggest things people are worried about is how to actually get a deal right now as the market is shifting. Well, I can tell you, for a lot of people who are overly greedy going into this time, they might be having some challenges, they might have taken on too much for the rehabs, they may have gotten too many rehabs, they may have gone into development. And what I can tell you about that is over the last year to a year and a half, it was obvious something was going to change in the real estate market. Obvious to those that have been here and done that before. Obvious to those who have made it through, you know, the 2008 recession. Obvious to people who have lost money on flips, or has been around long enough to realize this last decade is not normal, right?
So for someone like myself, I have pulled out of fix and flipping over the last call it two years, you know, before, I think, you know, I flipped a couple during COVID, but definitely pulled out before COVID hit. And so some of this is people understanding that the tried and true business model stays true, regardless of the economic situation. If you are overly greedy, then at times you’re gonna get slaughtered. And this might be a time for some people listening to me, I’m not making fun of you or, or any of that what I’m trying to say is stick to what you know works, what I know works. And essentially the same system works no matter the business or no matter the real estate economy. So for all of those out there that are like, well, how can I do this now or, you know, you know, the real estate market is shifting, let me highlight one of my students for you who had nothing she wanted quite literally nothing to do with wholesaling, she only wanted to buy rentals and flip from time to time. So she invested in coaching with me, and she has a full time job 9 to 5, she has a child, she’s a wife, so she has a whole life besides real estate investing. So for her, she only really wanted to buy and hold. Well, that was great. But then she started to realize that she can make a whole lot of active income if she just finds the right deals. So I gave her this simple strategy that I use and then I teach my students to use. And in the last 90 days she has made $80,000 wholesaling properties in Dallas, Texas, which is a very difficult market. And I highlight that student to say one simple thing. No matter what is happening to the real estate economy. Wholesaling will always be there as long as use of tried and true proven business model that will work time and time again. Now you may need to make some pivots. You may need to be a little different or ask for deeper discounts. Maybe you need to get some creative financing involved. However, that being said, for a woman who is doing this business part time has a full time job, is a mother, is a wife. She’s made 80 grand in the last 90 days. And I make that statement to tell you this. No matter what you are doing, whether you’re trying to figure out a way to get into this space, whether you’re maybe a little bit over leveraged on some flips, maybe you’re a little bit scared. The best business model to get you through this time period, is going to be wholesaling.
Wholesaling is the best way to be in the real estate game as a moment in time and buying and holding. Many of you may not have a ton of money right now, but I’m actively looking to buy and hold. I want to be buying in North Carolina, I want to buying in Florida, I want to be buying in Oklahoma City, these are states that I like to buy rentals in. But until you get to that point in a way to get to that point is stick to the tried and true wholesale methods. The strategies, the processes and the tools that no matter the real estate economy will work. I highlighted my student just to give you a highlight, to show even someone that doesn’t even know how to wholesale doesn’t even necessarily want to wholesale is actively making a boatload of money right now. Because I’m impressed upon her to wholesale, to make more money to buy more rentals. And when she understood that she got very addicted to wholesaling, if you will, and now she’s doing your sixth deal likely is going to break the six figure mark in 90 days, and is nothing she is doing that is creative or outside the box. She’s just listening to me and actually doing it rather than, you know, complaining or or you know, waiting on the sidelines or any of that kind of stuff.
So what I’d say is the real estate market is shifting, and for those that may be over leveraged and have a bunch of flips going or developments going or whatever, the very best thing you can do is start wholesaling, create active income to either cover your debt servicing, cover the losses you’re taking, or potentially just get through this time period. In my opinion, the next year is going to be topsy turvy, the next year is going to be a little bit unknown. But if you’re someone like me, I look forward to that, right. I’ve done this now for 15 years, I’ve seen the good and the bad. For many of you, you’ve only seen the good. So this is where in my opinion, most of you should be hiring and investing in coaching, because you need to be around others that have been there before. Right? Not just someone who’s gotten in 2, 3, 4, 5, 6, 7, 8, 9 10 years ago, who has only seen, you know, fields and puppy dogs and rainbows and roses. That’s just not what reality is. Right? This actually is more close to reality than what we’ve seen in the last 5 to 10 years. So with that said, I encourage you to get out there and start wholesaling you can create a lot of active income which a you can use for rentals because I would encourage you to buy rentals as well. But also if you are a little overextended, it can help cover those debts.
I hope this helped you guys I look forward to seeing you on the next episode. And make sure if you are watching this on YouTube, you subscribe and if you’re listening to this on Apple, or Spotify or anywhere, make sure you give me a five star review. I’ll see you in the next episode. Peace
