Should We Wait for Rates to Drop Before Buying Real Estate?

Are you thinking about investing in real estate right now but are “waiting” until rates drop?

To talk about this burning question, I brought on seasoned investors from RP Capital – CEO Ron Philips and COO Heather Marchant – as they discuss whether it’s a good idea to wait for rates to drop before buying a turnkey rental property.

Learn about the benefits of investing in turnkey rentals and gain valuable insights from experienced investors on the current state of the real estate market.

Don’t miss out on this informative discussion that will help you make the best investment decisions for your financial future!

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Speaker 1 (00:00):

There’s something that is unique to people who are successful. They continuously do the thing that it is that’s making them successful.

Speaker 2 (00:07):

We have to explain that number every time because it sounds too good to be true.

Speaker 1 (00:12):

The only thing you can physically see is the cashflow

Speaker 3 (00:15):

Promoting raising money just all over the place, right? I’m trying not to use nasty words to describe how they promote themselves, but

Speaker 2 (00:23):

Where we had to totally change the way we have clients purchasing because properties were selling in three minutes or less.

Speaker 4 (00:34):

Chris Miles was able to retire twice by the time he was 39 years old, but he’s not content to just enjoy his own financial freedom and peace of mind. Chris wants you to have your own ripple effect so you can live free today. He’s not the financial advisor you expected. He’s the anti financianal advisor you deserve. He’s jumping behind the mic right now, ready to make waves. Here’s Chris Miles.

Speaker 3 (01:05):

Hello my fellow Rippers. This is Chris Miles, your cashflow expert and anti financianal advisor. Welcome to the show. That’s for you. Those of you that work so hard for your money and you’re now sick and tired, you’re not ready for that money to start working harder for you today. You want that freedom. You want the cashflow Now, you don’t have to wait 30 or 40 years, but you want it today so that you can live that life that you love doing what you love. But guys, I know it’s not just about getting rich, it’s about living a rich life because as you are blessed financially, you now have a greater capacity to bless the lives of those around you, and that’s what it means to be a riper. Thank you for tuning in and being a ripple in your own life and thank you for allowing me to create that ripple effect through you as well.

As a reminder, if you haven’t done so already, go to our website, money, lots of great free education we thrown on there. Everything from infinite banking to even passive income. There’s even a calculator you can take. Go and produce, check it out, see what actually will help you get to your goals faster today. Alright guys, so I’m bringing back repeat guests. I can’t even keep count how many times I’ve brought Ron Phillips and Heather Marchant onto our show. I’m sure we’re easily at least a half dozen times, so it’s probably on average at least once every a hundred episodes now that we’re hitting 800 at this point, at least once every hundred episodes we’ve got these guys on. Why do I keep bringing them back? Well, one you’ve heard me talk about for the last couple months, I told you that I told our VIP clients back in December that the thing you should be watching for right now are really properties not going for the next apartment deal necessarily.

Even though those probably will come back later, maybe this year or next year. I’m not even talking about trying to go after the next latest and greatest craze or franchise. It really is about property, owning property, especially rentals that are turnkey where you don’t have to manage the property and that’s something that these guys do best with RP Capital, is that they are the guys I’ve bought my properties through and I’ll tell you, we’ll talk about it today. Even some of my experiences, like I mentioned on one of my episodes, one of my worst real estate deal of the year ended up not being so bad. So anyways, guys, welcome back.

Speaker 2 (03:06):

Happy to be here.

Speaker 1 (03:06):

I’m glad to be here.

Speaker 3 (03:07):


Speaker 1 (03:09):

You owe me a coke, Heather.

Speaker 2 (03:10):

I know what just happened. Yeah, and congratulations on all those episodes. You said almost 800?

Speaker 3 (03:17):

Yeah, we’re pretty much 800 right now.

Speaker 2 (03:20):

That’s awesome. Really cool. Great content.

Speaker 1 (03:23):

It’s incredible. And because we have a podcast too, we know how much goes into that, so yeah, congratulations for sure. There’s very few podcasts who make it that far and have that many episodes and are as popular as this one is, so truly congratulations. It’s awesome. You’re helping a lot of people.

Speaker 3 (03:41):

That’s great. Well, it’s definitely a momentous occasion. I dunno if I should have little fireworks going off or whatever, but it is what it is, right?

Speaker 2 (03:51):

Yeah, we should have something special for sure,

Speaker 3 (03:55):

For sure. Well give ’em a quick intro of your guys’ company, what you guys have done, how long you’ve been doing it, especially in the turnkey space. Let’s see. We’ll go abroad, I guess

Speaker 1 (04:03):

It feels like I’ve been doing this since Moses was a baby, but it’s only been 20 years. I’ve been doing the same thing for 20 years. I was talking to Heather pretty recently. We’ve been given the same presentation for 20 years.

Nothing has changed and we’ve been through these crazy cycles, but rental real estate just makes sense. It makes sense all the time. And so what my company does is we go out and we find sellers, builders, rehabbers, people like that who are producing good product and then we negotiate really good deals and we put everything together that you need to successfully own rental properties, which is property managers, lenders, attorneys, accountants, everything that you could possibly need. We kind of present it all pretty with a bow on top and all you have to do really is buy it and occasionally talk to your management company. So that’s what we’ve been doing that for what seems like ever now

Speaker 3 (05:04):

And you’re nation so much fun wide in all kinds of markets too.

Speaker 1 (05:06):

Yeah, we’re in right now. I think we’re in 10 states, Heather.

Speaker 2 (05:10):

It kind of varies where we have inventory week to week, but yes, pretty much ongoing, mostly in the Midwest, some in the south. In fact, I was just training someone on our team this week and I laughed a little bit because they said, well, tell me why. Tell me what makes these areas the ones that you guys buy property in. And it was really fun to go back to that basic because back to basics, it’s really about landlord friendly states. We look for areas with positive cashflow and that eliminates many, many markets in the country, just those two criteria alone. Then we look at affordability. We are not looking at million dollar single family homes that are on some of the cities in the country, so more our average single family home is about $150,000, so that kind of thing. And then we look at the local economy, job growth, good property management, but right now we’re moving about 60% new construction and that is one thing that has been a gift to what is happening in the market right now for our clients has been the ability to pick up new construction with a really good price tag and some incentives because builders with these interest rate hikes, man, they’ve been the ones that have been hurt by this for sure.

Bank funding has been really difficult. We’ll have properties and they still can’t get construction loans out of the bank. I mean it’s been really problematic for builders with they’re holding costs on their portfolios, plus trying to grow, so it’s been really, really cool.

Speaker 3 (07:00):

Well, I know we were talking about this before you even went on the air that I’ve told my clients, you guys, you should really be looking at this asset class right now, and the reason being is because when everybody’s telling you not to do it, that’s exactly the time you should be doing it. What are some of the things you’re hearing on your end? Where are people kind of getting stuck a little bit? Where do they feel like there’s a lot of risk with what you’re accomplishing there?

Speaker 2 (07:27):

Yeah, I’ll go first Ron and then you chime in. I think the biggest thing that holds people back obviously is fear. Fear of the unknown. Fear of what if I make a bad choice? These are common things we hear from our clients, especially new clients that are looking like, what if I make a mistake and I lose money? I mean that’s something you just talked about with your Alabama property, right? It’s a real fear and real concern and then is it the right time? Am I purchasing it a wrong time? Am I going to get, could I wait a little bit and get better interest rates or yeah, if we all had a crystal ball be

Speaker 1 (08:09):

Beautiful, better pricing, better something. One of the things I was just talking to a couple of my buddies who are really successful and one of the things we were talking about success in general and one of the things that financially successful, well pick your success, healthy, successful, whatever the case may be, sports, there’s something that is unique to people who are successful and that is that they continuously do the thing that it is that’s making them successful. They have a set of rules or criteria for financial and they just keep doing it. They don’t try to time the market, they don’t try to. Day traders are notoriously some of the most broke people I’ve ever met, but they only tell you about their winnings. It is like people who go to Vegas, you never hear about the time that they walked out with no clothes on because they literally bought everything they had.

You only hear about when they win, but if you average all that out, they don’t do so hot. Generally, the people who consistently just make boring investments, those are the people who win and they typically win very, very big. Now as far as timing goes, this is a great time. I think people get a little bit twisted about why this is a great time because you’re buying the discount. If the market shifts and we lose 10 to 20% in the market, you’re buying the discount anyway. You’re already buying the discount pre-buying it, and that way if it doesn’t happen, you just bought a discount and if it does happen, big deal, you have a cash flowing asset that somebody else is paying off for you that you don’t have to pay taxes on and you’re still at market value. I mean, that’s the thing. I think people get really wigged out about the fact that there’s market cycles. We tell the story of my friend that bought in 2008 at the top of very peak of the market he bought and over the next, I think what was 12 years, Heather, he made average annual 30% a year,

And I mean he should have lost everything, but the difference between the people who lost in 2008 and the people who didn’t that they bought or didn’t buy it was that they bought with cashflow or they didn’t buy with cashflow they bought with negative cashflow. That’s the difference.

Speaker 2 (10:34):

Yes, A

Speaker 1 (10:36):

Performing perform. Long winded answer to your question, but that’s the thing that I think we see the most is that people are trying to time the market. They think it’s going to crash. They’ve been told by the media it’s going to crash. I don’t see that happening anytime soon. It will eventually we will reset a little bit, but the number of crashes like we had in 2008 have been two in the last 125 years. Odds of that happening are pretty slim.

Speaker 3 (11:02):

Stock market crashes a lot more than that, and how many people still keep their money in there thinking well, just in case, right?

Speaker 2 (11:09):

Yeah, that’s

Speaker 1 (11:11):

True. And it’s crazy because they get to use averages that aren’t even real averages and everybody believes eight to 10%, even though throughout their entire lives they’ve never got a consistent year over year, eight to 10%, but they question everything else and real estate. Then they compare real estate’s yield its gain to the stock market’s gain, and they leave off the fact there’s three other returns with three real estate and

Speaker 3 (11:41):

Let’s talk about that. That’s a big deal. That shifted my perspective. I remember when you taught me that the first time, that was a big deal for me to open my eyes to what was possible there.

Speaker 1 (11:52):

It’s amazing, and I think people overlook it so much because either they get focused on the gain, the appreciation, they’re chasing yield or they get hooked on cashflow and then they’re singularly focused. So if you’re a cashflow buyer, that’s all you look at is the cashflow. Listen, between buying in 2014 and buying today 10 years later, the cashflow is substantially different. I mean, it is substantially different, but that doesn’t mean that there isn’t cashflow today. There is definitely, but there’s three more returns, there’s appreciation, there’s principal reduction, and then there’s tax incentives because the cashflow that you’re getting, let’s say you got a stock that’s producing a dividend, you get taxed on the dividend, you have to pay taxes on the dividend. Well, the dividend portion of real estate investment is the cashflow, and you don’t have to pay taxes on that. You get to write off against that, which is a real return. So then you also have somebody creating equity for you by paying down your mortgage while the tenants are in there. You’re using that money to pay off your mortgage. You add all four of those up. It is a substantial double digit return.

I don’t know how you could screw it up and still screw it up and not get a double digit return. I don’t know how that’s possible. Well,

Speaker 3 (13:16):

Let’s use an example here because I know a lot of people, they’re trying to go for that certain cash play. So I know with my clients, even like debt funds or even short-term lending has kind of been something they’re trying to fill in the gaps with a little bit to at least get paid some contractual return, maybe 10%, maybe more, right? Well, let’s do the math on that 10%. Like you said, you still pay taxes that 10%, so maybe you walk with seven or 8% net after you pay taxes. Now, let’s start with the first number, cash on cash returns. What’s a very conservative cash on cash returns after all things are paid, property management, mortgage and escrow and everything else. What would you say is a good conservative cash on cash return on some of your properties? Right now

Speaker 2 (14:02):

We’re getting somewhere between six and 8% typically on new construction after your fixed expenses and then somewhere between 10 and 13 on renovated properties.

Speaker 3 (14:14):

Gotcha. So let’s go with like 7% then, right? I mean, so 7%. I mean, that’s almost pretty much the same return even after refactoring taxes, assuming you don’t end up paying any net taxes on property. So already cashflow wise, you net the same, but like you said, we get that extra return from paying down the principal and that mortgage that even that first year, and it’s not us paying it down, it’s the renters using that rent to pay it down, and that always adds what, two or 3% on top, maybe a little bit more?

Speaker 1 (14:41):

Yeah, conservatively. And then every year it increases because the amateurization schedules, you pay more principal every single year you own the property, so the lowest return you’re going to get is the first year, and it’s usually somewhere between that two to 3%.

Speaker 3 (14:55):

So that already pushes you pretty darn close to nine or 10% right there. And if there’s no appreciation, which that’s the one that I know you guys, and I’ve taught it too, that’s kind of the gravy, but it’s kind inevitable gravy, isn’t it?

Speaker 2 (15:09):

Yeah, over time

Speaker 1 (15:09):

It’s gravy. I mean, if you leverage the property, it’s leveraged gravy, which I know everybody says you can buy on margin and you can do all kinds of cool levered stuff, but most people don’t do that. Let’s just be honest. In the stock market, most people don’t do that. If you’re doing a hard money loan or some kind of a loan like that where you’re not leveraged, again, you’re getting a return that’s on the money that you’ve invested, but that’s different here. If you use a loan, you’ve put 20% down, but you’re getting appreciate, even if the appreciation is really, really tiny, two or 3%, it’s levered two or 3%, so it’s multiple times more than that on your investment. So it can push that 10% to 15, 18%, just that one number, and it can be as low as two to 3%. It could be the most boring appreciation rate ever, and it’s still a massive return.

Speaker 2 (16:08):

Yes, we have to explain that number every time because it sounds too good to be true that making 3% appreciation can yield like a 15 20% rate of return. That’s a little mind boggling for people.

Speaker 1 (16:23):

Let’s do the math real quick then for people, because it is important that everybody understand what leverage does. It’s pretty incredible. If you just use a hundred thousand dollars property, we’re going to put 20% down and use 3%. Again, that means you’re getting $3,000 and you only put in $20,000, right? So your return on, if you do the math, that’s a 15% return, right?

Speaker 3 (16:52):

Because 3000 is 15% of 20,000,

Speaker 1 (16:54):

Correct. And the way you get that guys, you divide 3000 by 20,000. That’s the return divided by what you invested. You’ve gotten a 15% return when reality is you only got a 3% appreciation rate, which is pretty pathetic, really. You had 15%. Now we’re 25 on this simple property where we started with pretty reasonable numbers.

Speaker 2 (17:19):

Yeah, it’s true. It makes such a difference over time too, especially if you add 3% up and you hold the property for five years. It’s awesome.

Speaker 3 (17:29):

That’s for sure. Well, and that’s why I mentioned when I talked about my worst real estate deal of 2023, I mentioned that because the property manager mainly was the main hiccup. We lost probably about half cashflow we expected, but let’s just take that as an example. I mean, with both those properties, I think we netted about 15,000 in cashflow over just shy of three years between those two. That’s net profit that we actually made, but we also got appreciation because we bought them from you guys right around just under 180, and both of them sold even in a harder market right before Christmas sold for two 15. So we made that plus, like you said, we paid down the mortgage and everything else. I still netted, if you look at it in total, even though I put $80,000 down, I got over 125,000 back plus the 15, that’s 140. That means I made $60,000 on 80, which actually now I say it there, that actually is probably higher than what I told people. I think I said, I think said it was like a 40% rate of return in three years, but now I’m doing the math. If I put $80,000 down, but I profited 60,000 total between appreciation and the cashflow that came, that’s actually a 75% rate of return in three

Speaker 1 (18:46):

Years. And that’s what happens when you forget. If you just forget one of those four,

Speaker 3 (18:50):


Speaker 1 (18:51):

It still was 40%. That’s what I’m saying. People don’t realize until they sell because appreciation, you don’t hold it in your hand and principle reduction, you don’t hold it in your hand unless you’re really into your taxes. You probably don’t really appreciate the fact that you didn’t have to pay any taxes on the money that you got, the cashflow you got in your hand. The only thing you can physically see is the cashflow. So if your cashflow gets hit, most people are like, well, this thing sucks. And you know what? Until you turn around and go, well, I’m just going to get rid of this thing. Okay, well, you just got rid of it and you made 75% on your money, and then all of a sudden people’s whole attitude changes and it doesn’t take that long to build up some pretty dramatic equity.

Speaker 3 (19:41):

And that’s increasing cash flow here too.

Speaker 1 (19:45):

Yes. And one refrigerator that you have to buy does not an investment take away. It is a capital expense, and literally you can write it off of your taxes. It’s not that big of a deal, but that’s what happens when you get singularly focused on something, right? If you’re singularly focused on cashflow and something hits your cashflow, well, the whole world is melting down when in reality what we’ve purchased is an investment and the investment has four returns. We should be focused on the total return of the investment. And I don’t care which way you slice it, so long as you didn’t screw up and buy something that was negatively cash flowing and it’s taking money out of your pocket, then over time it will do better than any other investment period. I’ve yet to find one that’s better.

Speaker 3 (20:33):

Well, when we hear about different syndications, right? I mean, how many apartments have we heard about apartment syndications that have gone south, and even people have been on multiple podcasts and they’re gutting out there promoting, raising money just all over the place, right? I’m trying not to use nasty words to describe how they promote themselves, but you see all that happen, but still some of those deals aren’t paying or haven’t paid anything. Right? And I look at risk reward. I like lower returns with higher return or lower risk with higher returns. That’s the ideal. If you can get low risk with high returns versus high risk, high returns, that’s ideal. And I see that with properties too. What’s the likelihood of your property going to go to nothing where you could be in a syndication, you could be in a fund that if things go south, you might get nothing that’s not going to happen with the property that you own.

Speaker 2 (21:23):

Yeah, that’s true. I mean,

Speaker 1 (21:24):

That’s so many other reasons why real estate. We’ve talked about the four returns, but I mean, Heather, we have a list of reasons why real estate is so good, and to your point about syndications, one of the reasons why owning real estate is so good is because you control it. You don’t control the stock, you don’t control the syndication. You kind of control the note that you have. I mean, you can go foreclose on the property and you would own the property, then you would really control it, but you can do things to your property to increase the value. You get to manage the manager. You should fire the manager. You can hire another manager. There’s all kinds of things you can do to the real estate that you can’t do to any other kind of investment to increase the value of the property.

Speaker 2 (22:09):

And for the people who

Speaker 1 (22:10):

Are you, go ahead, Heather.

Speaker 2 (22:12):

Oh, that you can have tax incentives for increasing the value of your investment. That’s actually not even on our list, Ron, that the capital expense of improving the value of your property.

Speaker 1 (22:24):

We keep adding things to this list. We do. It’s pretty long. We do. It’s pretty long. I mean, for all the people who are concerned about value of the real estate, what other investment do you get a third party to go and make a valuation on the property to make sure you’re not paying too much? You certainly don’t in the stock market. Nobody’s doing that for you, right? You’re guessing. I mean, that happens. What other investment can you insure against downside risk? You can literally insure your property against downside risk against your tenants, not paying against them.

Speaker 2 (22:59):


Speaker 1 (22:59):

Fire destroying your property a fire. Now Heather’s rubbing it in, but yeah, I mean that turned out great. It was horrible when the fire happened, but it turned out great. I mean, I ended up making a whole bunch of money on that deal. But all of these things, right? You can’t insure against the CEO O burning down the company because they said something stupid on TikTok, right? You can’t do that. There’s no insurance for that.

Speaker 3 (23:25):

No, we’re calling out Elon Musk for that or anything, right?

Speaker 2 (23:28):


Speaker 1 (23:28):

I didn’t say any names.

Speaker 3 (23:32):

Well, before I ask the last question, I think this might be a burning question for a lot of people, but might be holding them back for now, is first, how can people best find out what kind of properties you guys have?

Speaker 2 (23:43):

Oh, yeah. Probably the best way is to reach out to us. We prefer to do a one-on-one meeting and really understand goals and what people are looking to accomplish. There’s something cool about a customized plan where you look at where you are right now, where you want to be, and how real estate can get in the gap. Because when we have that information on our side, we can look at property through a different lens and say, okay, well, because you want X, Y, and Z or because of your timeline or because you’re concerned about this or that, let’s do this property. So we do a free wealth plan consultation in our office, and we have an awesome team that does those consultations. So that would be probably the best way. But yeah, we do have the ability to subscribe to a text alert whenever there’s properties that are released in real time. So you get a text message letting you know there’s a new property available. So you can join that list as well. You can reach out to and just let us know you want to be signed up for those texts. Send us a mobile phone number and we can set those up. So

Speaker 3 (24:58):

Awesome. Yeah, we’ll put that in. Show notes, the email for everybody there. Okay, so here’s the question I think might be burning a lot of people’s mind, and maybe even if they agree with you that this could be a good investment. It might be just saying right now, well, interest rates, they kind of came down, but then they went back up. But I’ve been told they’re going to come down this year. I just wait. How would you respond to them?

Speaker 1 (25:23):

No, if you actually think that they’re going to come down, the last thing you would want to do is wait. And there’s a really simple, super simple reason for that, and I’m going to make it more complicated. I’m going to give you the simple answer, then I’m going to complicate it a little bit because there’s a lot of nuance to this that you should understand. So very simply, when the interest rates go down, everybody including you is going to be trying to buy the same property, which is going to make the price go up, which is going to eliminate any cashflow that you thought you were going to get from the interest rates going down. And if you bought it today and the interest rates come down a point and you could refinance if you wanted to just months down the road and you could get the lower interest rate anyway.

But then you get the lower price point with it. And if they lower rates, which I don’t know if they’re going to, nobody really knows, but if they lower rates a point this year, there’s a couple of really big problems. The builders stopped building last year. Heather kind of touched on this already. They can’t build as much as they would want to build because the local builders, they get their money from the local banks. But the local banks are kind of screwed right now because they’ve got a whole bunch of really bad debt commercial loans that are sitting on their books. And the big banks, well, they don’t loan to those guys. So the only guys they could build are the big builders. And the big builders have had tons of inventory that has been sitting, so they’ve slowed. And if you actually look at new home construction starts, they’re way down.

Wait, and they have been for months because they didn’t know what was going to happen. So they had to contract right before the onslaught. Now the demand hasn’t gone away. We had this massive demand. Everybody talked about there’s not enough supply for the demand. Well, now there’s less supply for demand. And you couple that the new construction problem with the fact that we also have people who are staying in their homes with their three and a half percent mortgage and they’re not selling because they can’t afford the next house. There’s a substantial lack of inventory on the market. So if they reduce rates by a point, everybody, everybody, all the pent up demand is going to hit the market and prices are going to shoot through the roof. Think about right after covid, that is what’s going to happen, and there’s not going to be enough properties and there’s zero way that new construction can actually keep pace. They couldn’t get through the permitting process fast enough to get houses on the market that people could even buy. So there’s going to be this massive constraint. So waiting, hopefully you understand now waiting is the literal worst thing you could do if you think rates are going to come down, absolute worst thing that you could do.

Speaker 2 (28:10):

And our lenders a no. Oh, go ahead. Finish.

Speaker 1 (28:13):

I was just going to say before that the best thing you could do is buy locking your price now and refinance later and go Heather Q.

Speaker 2 (28:22):

Yeah. Well, we talked to our lender about this and we showed the problem. The lender, I mean lenders across the country have had less business. That’s not rocket science. And our lender easily approved with upper management and multiple lenders are doing this right now that there’s a no cost refinance. They won’t charge a lender fee when you need to refi because they know that they need the business now where there’s less loans out there. So it was like an easy ask and it was like a quick yes.

Speaker 1 (29:00):

And guys, we’ve been doing this for forever

Speaker 3 (29:02):

Day. That’s even better than I was, oh,

Speaker 1 (29:03):

Sorry, go ahead. Oh yeah, go ahead. We know tricks that other people who’ve been in this business don’t know because they haven’t been in this business long, they haven’t been through the cycles that we’ve been through. They just don’t know what they don’t know. And because of that, we just have different things we can do to manipulate the returns, and that’s one of ’em.

Speaker 3 (29:26):

And you have negotiating power right now because of that demand? Well, the supply that’s there, but again, there’s not the demand yet. Right,

Speaker 2 (29:33):

Exactly. It’s beautiful, Chris. It’s beautiful.

Speaker 1 (29:36):

That’ll all shift. If the interest rates come down, everything overnight will shift

Speaker 2 (29:41):

And snapshot back to what, 18 months ago where we had to totally change the way we have clients purchasing because properties were selling in three minutes or less. It was insane. I had my first ulcer in my life and it was when it was just so difficult to have, there was just such a demand for properties, not enough supply, and it was rough. I remember exhausting. Not necessarily in a business way, rough, but yeah, hard, difficult.

Speaker 3 (30:17):

Yeah. I was like, how many times I have to take Heather out to dinner just so that she’ll get me bumped up on the list? People also trying to fight for the same property.

Speaker 2 (30:25):

That’s exactly what it felt like. Yeah, people assumed I was playing favorites. Yeah, it

Speaker 1 (30:30):

Was tough. We would say on our podcast all the time, everybody in their life should experience what it’s like to be the attractive man or woman at the dance. Everybody wants. Well, we’ve been both. We’ve been the ugly and the attractive. We much prefer the attractive. We currently are the attractive person at the dance, but man there for a little while, we were the person walking around. Everybody’s walking away from them. And it was really, it was because they’re so, I mean, if you can sell your property and three minutes, they don’t need us. Right? That’s right. It’s really, really was difficult. And that’s why those lists, that’s why you couldn’t get bumped, Chris. There was a list. There was no party. We couldn’t get you into the party because there wasn’t one. Yeah.

Speaker 2 (31:27):

Amen point. I don’t want to go back there.

Speaker 3 (31:30):

Well, and like you said, if rates do happen to drop, and you mentioned of course the no cost refi, which is awesome. I give the example to people, I said, well, what if you did have to refinance? What if you had to pay five or 6,000 bucks to refinance later on, but you had a $200,000 property that now just appreciated 5% when the demand came back up with the rates dropping, what happens? You actually gain that 5%, $10,000. You still make up that money and make money for free. Essentially, you got in early rather than waiting for the demand to get pent up. And then you’re basically in a bidding war, potentially paying 10,000, 15,000 or more for that same property you could have bought just a few months prior.

Speaker 2 (32:07):

Yeah, exactly.

Speaker 1 (32:08):

And there’s not going to be enough business that’s going to make the mortgage brokers think they can charge through the roof either. So you’re going to get a good deal on your mortgage. I mean, if you work with us, you’re going to get the refinanced for free anyway. But even if you don’t, they’re they’re going to want the business. There’s not going to be enough business to go around for all the mortgage brokers that are going to be out there. Same thing with realtors, by the way. So understand the market conditions that you’re in, because that allows you to negotiate from a position of strength rather than weakness. And the weakness only comes from just a lack of understanding what’s going on. That’s it. Because if you do know what’s going on, we do, then you can negotiate using the power that you have and well, that’s a whole lot more fun than having no power, which is exactly what’ll happen if they lower the rates by a point.

Speaker 2 (33:03):

Yeah, I’ll add that. Like you said, Ron, you can be successful in any market. So when it was super competitive like that, our clients had great rate of return because the interest rates were low. It was just really hard to get a property. And then the properties we were getting, the deals we were finding, we found one as an example, I think just to illustrate the point of being successful in any market is we found a builder who sold four townhomes and a huge development of that he owned, so he could no longer sell to a hedge fund. So he didn’t want to have one buyer at a time. So he came to us and said, I want to sell my entire development of town homes and I want to work with only you. I don’t want to deal with one buyer at a time. So those were the kind of properties we were finding to get. We got hedge fund pricing, essentially bulk pricing, and those were the kind of deals that helped us find properties that still cash flowed and did well. So it’s not that, it’s not timing the market as much as just getting in the game, just staying involved.

Speaker 1 (34:13):

It’s being consistently in the game. Yes. That’s how you win the game. You have to constantly play.

Speaker 2 (34:21):


Speaker 1 (34:22):

It’s the only way, right.

Speaker 3 (34:24):

If you wait for everybody else to tell you that’s a good time to get in, that’s when you know it’s already too late. You already missed the boat.

Speaker 2 (34:30):

Yes, and it’s going to be a lot less fun.

Speaker 3 (34:33):

That’s right. You’re going to have ulcers apparently.

Speaker 2 (34:37):


Speaker 3 (34:40):

Well, guys, I appreciate having you on today. This is awesome. I mean, time flies, especially when we’re having fun here. People want to reach out to you. It’s, is that correct?

Speaker 2 (34:50):

Yes, that’s right. It is. Awesome. We’ll set up a time to meet or get you on our list. Whatever works

Speaker 3 (34:57):

Great. Well, again, appreciate your time guys and everybody, if you’re looking for the right time, I already mentioned, right, it’s about consistency. It’s about, it’s Moneyball, right? It’s Moneyball. It’s about getting on base now versus just trying to get the big hit, the big win, guys, it’s up to you. Whether you’re going to take this opportunity or watch it pass you by once more like you’ve done many, many times in your life, and yes, I am talking to you. This is the time right now to at least look at it, entertain it, understand what is actually available to you as an opportunity, and then take action so that your life becomes better and is blessed, so then you can also bless more

Speaker 1 (35:36):

Lives. Go and make it a wonderful day and we’ll talk to you later. They have a set of rules, criteria for financial, and they just keep doing it. They don’t try to time the market. They don’t try to. Day traders are notoriously some of the most broke people I’ve ever met, but they only tell you about their winnings. It is like people who go to Vegas, you never hear about the time that they walked out with no clothes on because they literally bought everything they had. You only hear about when they win. The people who consistently just make boring investments. Those are the people who win and they typically win very, very big.