There are some similarities between right now and 2008 when the liquidity was sucked out of Wall Street, but there are also some key differences. Rob Swanson and I have both navigated one crash before, and Rob’s spent a lot of time looking for patterns in previous market crashes. Getting back to real estate fundamentals is going to help you navigate this crazy market.
Because the market’s been good for so long, some mediocre real estate investors have managed to look good. A great market makes everyone look good. Ask yourself the classic real estate question as you approach any deal, “How do I make money with this?”. Don’t buy without solid numbers to back up that deal.
Make offers, make more offers, make lower offers, make better offers. Don’t stop making offers because of fear. Just adjust your offers. All of your old leads become new again as potential sellers start to feel the urge to sell-off. I’m seeing leads from 9 months ago calling me up again, ready to unload their properties, so I urge you to utilize your CRMs to follow up on all of your old leads.
Instead of buying for equity, in a boom-bust market, Rob’s focused on stable markets and he explains why that is. But his idea of stable markets may differ from yours. He goes looking for neighborhoods that are about 50-80% tenant-occupied. These numbers are important because Rob is looking for a very specific kind of house in a very specific kind of neighborhood.
You don’t need to be scared about where the market’s heading. There will continue to be opportunities all over, but you may need to get creative about financing, or creative about finding your deals. Use solid data from something like Freedom Soft and REI Simple to find and track your deals, and you will come out on top.
Watch and learn:
Listen and learn:
- Fear creates the motivation that everyone’s been looking for.
- In this environment, old leads start bubbling up and become hot, new leads again.
- How Rob is marketing for more buyers right now, and why he buys in C and D neighborhoods.
- Organize before automation, otherwise, you’re just organizing chaos.
- There’s a lot of mattress money in small towns with motivated sellers, so don’t write those small towns off.
- How Rob defines A, B, C, D, and War Zone neighborhoods, and why those definitions matter when looking for solid neighborhoods to invest in.
Mentioned in this episode:
- Joe’s Book: REI Secrets
- Apple Podcast Reviews
- Rob Swanson’s Website
- Rob Swanson’s on Facebook
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