'We Are Entering The Best Real Estate Market Opportunity Since 2008': Why This Billionaire Investor Is Aggressively Buying Income-Producing Properties
If you own a home or have been interested in buying one, you are aware of the sizeable U.S. residential real estate downturn. Sales numbers are dropping to their lowest rates since 2020, but interest rates continue to rise to around 6.5%. This scenario doesn’t mean investors should look to another option viewed as less volatile. Take real estate investment trusts (REITs), for example. REITs are not just a platform for investing in residential real estate, offering properties such as retail spaces, large malls, hotels, apartment buildings, office space and hospitals. And though home prices continue to be high, other real estate categories are not as overvalued, potentially shielding investors from the risk of steep price declines. Investors have not given up on the residential market, using financing options to take advantage of low housing inventory and turning properties into rentals. This strategy contributes to the high housing prices seen in the past couple of years. According to property intelligence data company CoreLogic, the investor share of single-family homes sold in the first quarter of 2022 reached 28%, 11% over the same period in 2021. Its data also showed that investors with a thousand or more homes bought 3% of houses in 2021 and so far in 2022, compared to 1% in previous years. Major real estate players like Redfin Corp. and Offerpad Solutions Inc. also bought homes on a large scale. Zillow Group Inc. fell on its face in this endeavor, alienating real estate agents who stopped advertising with a company they believed was competing against them. “The supply shortage is also an advantage for landlords,” Redfin economist Sheharyar Bokhari said. “Many people who can’t find a home to buy are forced to rent instead.” Real estate billionaire, author and sales trainer Grant Cardone sees opportunity in the current market. "I believe we are entering the BEST real estate market opportunity since 2008. With the Fed raising interest rates, it has sidelined home buyers, which means prices are going to pull back. If you are an end-user looking to enter the housing market, now is a great time to buy a house cheaper than it would have been at the beginning of the year. You should look for people who late last year or early this year were hoping to make a quick flip and had an adjustable loan. They are waking up without a market to sell into and payment on their loan that is doubling,” he said. “Also look for institutions who have already written much of their portfolios down and will bring a lot of product/inventory to the market in the last quarter of this year.” Cardone, the former Undercover Billionaire on the Discovery Network and a CEO or partner with seven privately held companies, put a stamp on his belief that investors need not run from real estate investing by saying, “I am an aggressive buyer through the end of the year and next year of income-producing real estate." Of course, not everyone has the cash on hand to buy up discounted properties. A growing number of investors are turning to more passive options like Cardone's managed real estate funds through Cardone Capital, which has already raised approximately $1 billion from nearly 12,000 accredited and non-accredited investors and boasts a portfolio comprised of roughly 12,000 multifamily units and over 235,000 square feet of commercial office space. Some investors are even getting in on the market with as little as $100 through the Jeff Bezos-backed real estate investing platform that sells shares of single-family rentals. The company has already funded 203 properties with a value of more than $75 million.
The Solis Team Takes Nashville!
In Down Market, Real Estate Coach Tom Ferry Announces Real Estate Training Event No. 1 real estate coach Tom Ferry sells out Nashville event; Tampa up next NASHVILLE, Tenn., Dec. 08, 2022 (GLOBE NEWSWIRE) -- One of real estate's premium events, Tom Ferry's Sales & Marketing Edge, has sold out in Nashville, TN. The three-day event at the Downtown Embassy Suites doesn't take place until Dec. 13-15 but managed to sell out a full month early, thanks to its namesake founder, Tom Ferry, the rising celebrity of its headliners, and an emphasis on the two most important aspects of working in real estate - sales skills and marketing. "With the market continuing to adjust, many agents have been confronted by the importance of adapting to the new market," says Tom Ferry. "The market conditions don't decide your future, your marketing skills do. If you're not helping as many buyers and sellers as you want, there's absolutely something you can do to improve." As Real Estate's No. 1 Coach and author of the books "Life! By Design" and "Mindset, Model, and Marketing," Tom Ferry has created a reputation as an industry leader, hosting some of real estate's most highly attended events. But for Sales & Marketing Edge, he passes the torch to two of his top coaches who each specialize in one of these areas. Jason Pantana and Jeff Mays headline the Edge conference, each tackling their respective area of expertise. Pantana - who calls Nashville home - has cultivated a reputation as one of the leading voices in real estate marketing with his weekly YouTube show This Week in Marketing and the recent release of his three-part digital real estate marketing course, MarketingPRO. Mays is a former broker, sales manager, and trainer for Coldwell Banker whose experience makes him one of Ferry International's most sought-after coaches to date. Over the course of these three days, the pair will coach hundreds of agents from across the country on how to not only maximize their skills in these areas but also how to integrate them together so they can attract and then close leads more quickly. "These are two of the most important skills as a real estate agent," Ferry says, "but when you learn how to make them work together, it becomes a superpower." EDGE Nashville will be sponsored by six big-name sponsors including Realtor.com and BoomTown. Also at the event, Tom Ferry International will also be giving access to special coaching discounts which allow agents of any level to take advantage of the highest ROI tool for real estate agents. But don't worry, we still have agents home in Oceanside - ready to help with any real estate need! And although Nashville is already sold out, future Edge events will begin again early next year, with the next one happening in Tampa, FL, Feb 21-23. For more information on the Edge Conference or other Tom Ferry events, visit Tom Ferry's website at www.tomferry.com. Jason Pantana and Chief Growth Officer, John Westley are available for interviews. Ticket sales are currently closed.
Words from our Lender
Both stocks and bonds opened higher to start the week. It’s clearly the week after a Holiday, as we have TONS of things happening that can impact the market. To start we have St. Louis Fed President, James Bullard speaking at 10am Monday morning. Last time he spoke, he brought up raising the feds fund rate to 7%! Of course, that caused volatility in the market, and we saw a big swing. There was an article that was posted in the Business Insider titled “Buckle in for a brutal free-fall in home prices as the US housing is in massive bubble, experts say”. I do think this article could get some attention on social media and I think it’s important that we know about it. The article cites 7 housing experts, although you may have heard of them, I wouldn’t call them experts...Some are calling for a 10% decline while others called for a 20% decline. A 20% decline would be a doomsday like scenario. Something like what we saw during the housing bubble. From the spike in 2007 to the trough in 2009, home prices declined by 20%.Back in 2007, there were 4M homes for sale VS 122M today. Also, back then, builders were putting up record numbers of homes while demand was falling. Today, the demand is waning, but builders learned their lesson and single-family starts are down 22%, and permits are down 21%. While some experts are predicting a similar type of crash, the dynamics are very different! Last week the Case Shiller reported that home values nationwide have only come down 1.5% from their peak, but the data is lagging 2 months. I do anticipate further softness, but nothing close to a 20% decline. If rates come back down towards the 5% range, I believe all the buyers in hibernation (because of the high rates) will come back in the market! With the low inventory supply, it sets up for a reacceleration in home prices. We do plan to start the day floating all loans, of course if the market shifts, we will be locking right away! Conventional loans under 715K are at 5.99% - 6.25%, High Balance loans up to 879K 6.99% - 7.5%, VA & FHA loans range 5.75% -6.125%!
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