Wouldn’t it be great if you knew how to
time the real estate market? Well, welcome to REITV that’s what we’re talking about
today. When would you think would be the very best time to buy real estate, if ever? I would assume, when the economy is low,it would be best to buy real estate. I don’t know, probably spring time. So the very best way for me to actually answer this question in talking about the best time, is there a best time, up-down markets is to actually just head over to my office. And I’ve got my team there, I can pull out some of the recent deals, pull out
some of the files and what I want to do is I want to actually jump into the details of
what you can do to actually know the best time to buy, and then really the secret sauces knowing that if you have the right formula it’s actually always the best time to buy.
Making money in bubbles and making money in troughs is easy. In fact, always is the right
time to be investing as long as you have the right strategy. So for example, let me give
you an idea of what I’m talking about. I just pulled from my last several thousand
homes here some of these files. Let’s talk about cash flow markets. So I’ve got a property here that is on 3969 Powder Mill Rd., Memphis, TN. Memphis is one of my hot equity markets. This is a house that was bought for $135,000, and if you take a look at the cash flow, the
cash flow is $396. For that price point that is a really hot cash flow and that’s what
you have available to you when you purchase in a cash flow market. So if the market tanks, guess what you still have? Well you still have your cash flow. Okay let me show you another one. I got a house here; this one is in Lacebark drive, Indianapolis, one of
my other cash flow markets. Check out this guy, $89,000. So this is kind of on that lower end and yet my cash flowright here $388.58 a month. So again I’ve got a really high
cap rate, a really high cash on cash. In fact, this cash on cash all in net at the end of
the day is 17.95%, which again it doesn’t get hotter than that. So these markets are
always available, these markets always work. Now when the market has tanked and it’s
in the process of coming back that’s when I go into anequity market. So for example,
I pull up this guy here; this house is in Florida, Davenport that’s just south of
Orlando in the parks, this is $151,000 purchase price and the cash flow, notice it’s smaller
its $194, so it’s less than that $200 a month. However, this house when you look at its previous high, this house was once selling for close to $300,000 and the insurance company
is going to require that just on this house alone to replace it, the replacement cost,
land left out of it is somewhere around $255,000. So these equity markets that’s how you play the market when everyone is terrified and everyone is running saying it doesn’t work
to invest in real estate, when in fact it is historically one of the best times. Every
80 years we have a monstrous slump, every 20 years we have a correction like we’re
in right now. Here’s one, Kissimmee Florida, again south some of the parks $130,000 price point, again smaller cash flow $142,000. But what does this home have? It has that equity growth play. So this is the kind of real estate that I do and that I have my team do for me and that it’ll actually facilitate for a number of people around the country. Because
really when you take a look at timing in the market, it’s always a great time to buy
as long as you have a strategy that works in both up and down markets.
So when is the best time to buy real estate? It’s always the best time. As long as you
have the right system, the right strategy, the right philosophy and the right team. If it’s always the best time to be investing? Then what are you waiting for? Get going.
Thank you for watching this video. Don’t forget to subscribe. We look forward to seeing you next week.