NOV 5, 2022
Earlier in the month, I had a conversation with a buddy that’s a top producing broker in New Jersey. We’ve been trying to figure out a time to meet in person and chat but that becomes very difficult when your livelihood depends on being available for clients. Both of us are similar in that our approach to building our brands is with a client-first mindset, for better or worse.
As the real estate market heads deeper into corrections, we shared thoughts on how we thought things would play out over the next 18 months or so. The surprising thing for most people to understand is that deals are still being done. Contrary to sentiment being pushed in the media - the housing market isn’t cratering. What we’re seeing now is a shakeout of softer buyers that weren’t too sure about purchasing a home in the last couple of years (for whatever reason), and are backing out while waiting for the imminent crash in hopes to buy a house for $100 lol. As a result, sellers are finally coming to terms that with the fact that they can’t sell their cardboard box on wooden stilts for $100k above asking price anymore.
It’s the market: what goes up, comes down, what’s down, will go up, and so on.
Those that do well in real estate understand that most of your success will come from studying the waves and adapting, vs. trying to time the market.
Sometimes it’s laughable when clients tell me they’re waiting for a big crash before investing in a property — but I get it. Real estate isn’t for everyone, and it’s definitely not for those that are still coming to terms with trading short term comfort for long term benefits. My approach with this blog is the same as my approach with clients, I seek to educate and help you land at the right decision for you. Contrary to other types of investments, real estate can be different from person to person. A bad deal for you, can be a good deal for the next guy — it just depends on what you’re wanting out of it.
For example, I get approached by a lot of first time investors based in NYC. Their profile is something like this: Mid 20s-30s, stable 6-figure job, 6-figure savings, bored, don’t want to rent anymore. I ask each person the same thing: What are your goals? Do you want to buy & flip in a short period, are you wanting to cashflow every month, or maybe even buy & hold it for 10 years? The list goes on, but each objective determines the type of analysis you conduct on a property.
Is the market correcting? Yes, I would hope so — otherwise we’d end up paying $100 for a gallon of milk by 2025. Does it mean everything is lost and the glory days of real estate are over? Not at all, get a grip man.