The Real Estate Opportunity the Media Hasn’t Figured Out Yet Wondering if you should invest right now or just stash your cash?
The media is scaring us and saying real estate is a terrible investment right now. You know what I always say?
Go against the masses and if the media is saying it, DO THE OPPOSITE!
Today, I will show you historical data showing decades of real estate trends that will help us predict the market for 2024 and beyond.
Want to take advantage of this prime time for real estate investing?
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TRANSCRIPTS:
Speaker 1 (00:00):
Hello, my fellow Ripples. This is Chris Miles, your cashflow expert, anti financianal advisor.
Speaker 2 (00:07):
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 non-financial advisor you deserve. He’s jumping behind the mic right now, ready to make waves. Here’s Chris Miles.
Speaker 1 (00:38):
Welcome to the show. That’s for you. Those of you that work so freaking hard for your money and you’re now ready for your money to start working harder for you so you can be work optional. You work because you want to, not because you have to. You’ll be able to do what you love with those you love and enjoy your life. Today, guys, it’s not just about getting rich or prospering in your own life that way. It’s about creating a rich life because as you are blessed financially, you have a greater capacity to bless and create a ripple effect through the lives of others. Thank you for tuning in today because this show would not happen if it were not for you. Thank you for helping us become one of the top podcasts in the nations and honestly being some of the coolest listeners ever, because when you guys reach out for questions, we love it.
(01:16)
We know that you guys are down to earth, good people that have good values. You’re honest, you’re hardworking, and you value freedom, and you value really blessing people’s lives. Thank you so much for tuning in because we couldn’t do without you. As a reminder, if you have not done this already, guys, if you’re looking for ways to create passive income now or you’re wondering what you could be doing with your money to get it working harder for you today, try out a passive income calculator@moneyripples.com right now to show you just how much passive income you could create in just 12 months, and guys, it’s legitimately a calculator from my brain, so take that for what it’s worth, but definitely check that out today. Kes. Guys, here’s the deal. What does the media not know yet or not telling you that could be a leading edge for you?
(02:00)
What if you could go back in time? What if you could go back to 2012 before the media started talking about real estate being a good thing? You could buy up all the properties you wanted. Would you do it? Now, if you’re a smart person, you knew what happened in 2012, you would know, yes, that was amazing time to buy real estate because after the recession it was bad. And of course, when everybody hates something, that’s exactly the time to get into it. Well, that’s what happened, guys, 2012. There was many, many millionaires made because they had the cash ready to go when those times happened. Well, how do we know when that’s actually happening today? Could that be happening now in real estate and not know it? Well, I’ll tell you because the media, they’re not exactly on top of it. Let me show you here, okay?
(02:42)
Here’s an article from American Banker January 8th, 2014. It says, is it time to quit mortgage and real estate? Can you believe that article? Now, hindsight 2020, right? We’d look at that and say, that was ridiculous. Why would anybody do that? Well, there’s already talk back then because as real estate was making a comeback, naturally, people were asking when’s the other shoe going to drop? Right? They were wondering, when’s it going to be coming to an end? I remember having clients in 2017, 2018 saying, I think real estate’s going to crash. Did it crash the opposite, right? It boomed. It boomed for years and years afterwards. Here’s the thing, the media, they try to sell fear. They try to tell you whatever you want to hear, but in truth, we don’t like the media because the media is full of crap, okay? Let’s be honest, the media, if you are to hear something from the media, it’s already too late.
(03:30)
So let’s talk about something that the media hasn’t talked about yet, but we’ll be talking about in the months to come, and if you’re quick enough to take action. By the way, I’ve already shared this with my clients over a month ago, just to get ahead of you, to get ahead of line. That’s why we put our VIP clients first. I tell ’em whatever they get personally, they hear before it ever hears on the podcast. So what is the media not going to be sharing that’s going to be happening soon? Let’s see if you can figure this out as I show you a few more statistics here. Okay, so the one thing that everybody keeps saying is, is this like a repeat of 2008, right? It’s a real estate market about to tank again, and how many times have you heard people saying Prices are too high, nobody can afford to live.
(04:06)
There’s no way that prices can keep going up, and to some level, I kind of agree with that. I don’t think you’re going to see massive appreciation happening, but don’t even think for one moment that appreciation is done. Either There’s something still to come here. Let me show you by what I mean, because in 2008, one of the problems they had is that there was too much building. It was overbuilt. There was too many starts, too many new construction happening compared to the people that are going in. Now, I’ll tell you from my own personal perspective, I thought, well, why was that? Why did that happen? They must have just built too much. That’s an overly simplistic answer, but there’s actually a better answer to that. See here. Now you’ve noticed this is actually pictures I’ve taken at a conference. Why? Because I love when real estate conferences where I can learn about this.
(04:49)
By the way, I talked to guys all over the country. This is already happening. This has already started to happen in December where things were reversing the market, but I’ll come back to that in a second. So here are the US births by year. Now, if you could see it, it depends on how big your screen is. It might be hard to see, but you can see from the time that we had a lot of the stuff happening here, we got the birth starting in 1928. Now they typically see is that 33 year olds are the ones that really start to buy their first homes. They start to really buy more. Well, notice baby boomers right there, that yellow section, 76 million of them starting about mid 1940s, all the way till about the mid sixties boom is happening. Now, you start to notice that population goes down.
(05:30)
Now, let’s just take the year 1965, right? Right about the end of the boomers, beginning of the Gen Xers of my generation, 1965 plus 33 is 1998. Well, what happened in 2006, right? Let’s do the math. 2006 minus 33 from that, and you go to 1973. Well, what’s interesting is you’ll see here, it’s circled in red. 1973, you notice there’s a big drop in population. Why was there a drop in population? Now when this guy asked the room, there’s 250 real estate investors, sharp people in this room, and he was asking this question, I thought, well, what happened? I mean, I know it was during the Vietnam War still. Well, that wasn’t it. That would cause more of a boom than a bust on babies. I’m like, well, gold standard is about the same time, but that wouldn’t do it. And then one person yelled out the crowd said, Roe v.
(06:19)
Wade, and I was like, everybody’s like, oh, of course, 1973, Roe versus Wade, abortion became legal. As a result, especially, especially as the coming, the prime lifers and the baby boomers are starting to come of age at that point, they’re like, oh, we don’t have to have kids. All right, let’s start taking birth control or even to have abortions. I’m not saying I agree with that, but naturally the birth rates dropped significantly that year and notice even into the mid to late seventies until we started getting up into the eighties again. So my generation, I survived being in the latter end of the Gen Xers, I was able to come out of that without basically able to survive here and be on this planet, but there’s a lot less births. So think about that. What’s 33 plus? 1973 is 2006, right? Then birth rates dropped.
(07:07)
So what happened is construction companies aren’t looking at this. When people are speculators and builders, they’re looking at this. They’re thinking, there’s demand. We got to build for it. So they’re building like crazy into the two thousands, into the mid two thousands. But what they didn’t count on was the fact there’d be less buyers, less buyers. At this point. That’s what happened. That’s why there’s too much inventory. Let me show you this and what’s happening now. So here’s what we’re seeing today, right? We’ve got the population that’s going up, and so you can see here there’s the two thousands, right? You’re going into the two thousands, 2000 tens right here. So there was a bunch of inventory. So the inventory is that top line right there. You see the inventory hit 4 million right there in the late two thousands, like 2007, but population was a lot less.
(07:49)
So they were building and building and building, but the population wasn’t up there. What’s happening now, really for the last decade, plus ever since the last recession, building has never really caught up. Inventory is low, almost all time low for decades. It’s about just over 1 million inventory, but now there’s more population, more people to house. So we’ve got this inverse relationship where it was opposite before. Now there’s 35 million more people, 15 plus years later, and there’s a lot less inventory on the market there, guys. I mean, just for that fact alone, it’s not 2008. This is a different scenario right now, but this is not all, but wait, there’s more, right? This is what I’m talking about right now. I believe, and this is my prediction, that you’re going to start to see bidding wars happen again, spring to summer of 2024. You’re going to start to see people coming back in the market in a flood.
(08:44)
Now, it won’t be like the flood post 2020. It’s not going to be that big, but you’re going to start to see multiple offers. There’ll be multiple offers on a property, especially if it’s in a decent price range. Why? Because something that the news hasn’t been talked about as much, even though it’s out there, but it’s not really focused on, see, everybody’s talking about the feds and the Fed’s talking about maybe lowering the rates later this year, but the feds haven’t done that yet, have they? So everybody’s talking about how rates are still high, but between October and December, the mortgage rate for the 30 year mortgage has dropped over one and a quarter percent. It was almost at 8%, and now it’s dropped into the mid sixes. So really now it’s about a one and a 5% less than where it was. Think about that just by dropping 1%.
(09:24)
The prediction was if the mortgage rates could drop in 1% from where it was up near 8%, that would allow 5 million more Americans to be able to buy a home 5 million more. We’ve already heard stories about people delaying buying homes because they don’t want to lose that good interest rate, or they felt like home prices were too expensive. Well, what happens when rates drop? That means the mortgage payment goes down. That means now people that couldn’t qualify before could now qualify. I’ve witnessed this firsthand in my own real estate because for example, I had a property in for sale in Alabama. Now, one property sold pretty well at the end of the summer. The other one had to put a little bit more work into, and so it was the fall. It was crickets. We had people walking through, but nobody’s really making offers, at least not decent offers.
(10:06)
Then all of a sudden right there about the end of November, offer came in. They came in and it came in at pretty much full price, which is what we hoped for. Still, we didn’t have a bidding war, but why did it come in? Because they had just got to the point where rates had dropped and they were able to qualify for that house. That was the biggest problem that people wanted the house, but they couldn’t qualify for it because the rates had kept going up even into the fall into October, and so it was pricing people out. So of course it was dead, but once those rates started to back off a little bit and get some breathing room, all of a sudden now people could afford that house. What do you think is going to happen in the spring going summer now that rates have dropped?
(10:46)
Now, again, the media hasn’t talked about it yet, but in springtime, people that want to make the transition in the summer, especially when you have kids in school want to start buying properties, looking at properties about February, march, April, that’s when they really start to look and get seriously. They can at least make an offer by April or May. This is the time. Now, if you’re listening to this now in February, for example, I’ve recorded this in January, but say you’re listening to this in February or March, you don’t have much time left. What’s going to happen is that you might be thinking, yeah, but Chris, maybe I want to wait for rates to drop a little bit more. Maybe they will. Maybe they will, but maybe they won’t. I think they could drop some more again, but what if they don’t drop? Well, should you still wait?
(11:26)
Should you wait for those rates to drop? What would that really do? Do the math guys. Let’s just say this is a $300,000 property you can get today right now before things start to really take off. Again, I think my prediction is maybe a 5% appreciation, not huge, but enough that when you get more buyers on the market again, and it’s going to become more of a seller’s market, so if you’re looking to sell a property, this could be a good time of year too, but as more sellers or buyers come on the market, it’s going to start driving up prices even maybe higher than asking price wants more. What if that drives up the price 5% more? Well, $300,000 at 5% more is 15,000 bucks. That’s $15,000 if you buy it today versus wait maybe 3, 4, 5 months, you might have to buy and be in those bidding wars with everybody else.
(12:12)
But what if you could buy Now, when everybody, especially the media is saying, it’s still bad to buy real estate, isn’t that the best time to buy? Think about that, and even let’s just say that their interest rates do drop. Okay, what if they do you refinance? So let’s just say that that’s the case, but if someone will say, oh, but I got to pay for those refinancing fees. Okay, well, let’s just say that the refinancing fees on that house is $6,000. Let’s just say as an example to refinance to a lower rate, but remember, you just made 15,000 of appreciation because you bought it early. You still net about $10,000. Who caress if you have to refinance and pay a little bit more money out of pocket if you’re walking into instant equity that you paid nothing to get that? My friends, that is the real exciting opportunity right now.
(12:55)
So that’s why our clients, our VIP clients are already starting to look and buying properties because they know they don’t want to have to be bidding out other people. They want to be able to make an offer, not have to fight it, maybe even get a better deal now so that when it does take off by the summertime and appreciation’s higher, they’ve got instant appreciation in their properties. Now, I get it. I could be wrong. I might not be right here, but I’m telling you guys, the time to buy a property is when the media doesn’t say it’s a good time. I can guarantee when you get to about late spring and summertime, people are, you’re going to start hearing more the media say, oh, it’s becoming a seller’s market again. People are starting to buy out more properties because they’ve been holding off waiting for it.
(13:34)
It was like 2020 when everybody just froze and then all of a sudden people started eating out like crazy. They couldn’t eat out for a while. Same thing, same thing with travel. Remember how travel picked up again, post covid, same thing. People have been waiting. They’ve been not dying, but people have been just absolutely anxious waiting for the right time to get into the real estate property. If they know they can get in because the rates have gone down, they can now afford that payment. They’re not waiting for rate the prices to come down. They’re probably going to forget that and say, Hey, if I don’t get it now, pricing are going to keep going up on me, and they’re right. So if you’re an investor, the best thing you could do is buy before they realize it, before the average Joe, the average American realizes it’s time to get in.
(14:17)
Now is the time if you want to get into real estate. I think this is a good time to do it, especially when nobody thinks it’s a good time or very few of us do. That’s my advice to you guys. Again, I’m not giving investment advice. I’m just saying keep an eye out, and this might be the time. If you’ve already been considering getting real estate, this could be the perfect time to get in. By the way, if we can help support you in that journey and help connect you with good, reputable people that can do that doesn’t mean that there’s any guarantees. Heck, you could still lose money in real estate, but if you want to have those kind of connections, reach out to us, money ripples.com, contact us and see if there’s a way that we can do that. I would just say first things first.
(14:52)
If you want to see if there’s even opportunity for you, go to do that calculator. If that calculator results over $15,000, we should definitely be talking to see if we can hook you up some deals, ways you can diversify into better types of real estate and get cashflow and passive income now so you can start to get the point where you are work optional. You can then work because you want to, not because you have can buy your time back by being able to do the things that you love with those that you love. Guys, make a wonderful prosperous week. We’ll see you later. So everybody’s talking about how rates are still high, but between October and December, the mortgage rate for the 30 year mortgage has dropped over one and a quarter percent. It was almost at 8%, and now it’s dropped into the mid sixes. So really now it’s about a one and a half percent less than where it was. Think about that just by dropping 1%. The prediction was if the mortgage rates could drop in 1% from where it was up near 8%, that would allow 5 million more Americans to be able to buy a home. 5 million more.