2024 Real Estate Investing

real estate investing in 2024 what you need to know so you can make it your best year ever also what to watch out for we'll talk about the economy and interest rates we'll talk about it's an election year coming up we're talking about flipping houses owning rental property creative financing so much more I've got my senior leadership team with me you're going to love their different perspectives without further Ado here's real estate investing in 20124 all right well Brian Devin welcome to this 2024 talk on real estate investing thanks for being with us first if yall don't know who Devin is we got a great video on that senior leader in our team Brian if you don't know him another senior leader and so you can check out those videos we'll uh we'll Dive Right In gentlemen so let's talk about first and foremost the economy of 2024 Devon we'll start with you what are your thoughts on the economy yeah this is a big topic Phil you know people talk about a future recession you know I would argue that we are in a recession right now uh people just haven't seen the impact of it just yet but when you look around the cost of gas groceries I mean people are having trouble uh putting money together for themselves I I think we're in a recession I think it it may uh get a little worse as we continue into 2024 but it may pull back a little bit as we get back to the presidential election right to kind of stabilize things what are your thoughts Brian yeah I absolutely agree to say we're not recession would be a stretch uh everyone's feeling it in every realm I think the presidential election that you mentioned is really the big one we're going to see a pretty uh focused Market to the extent that no one's going to do anything too drastic they're focused on the election they certainly want to make it look as good as possible so I think that's going to add a little bit of stability amidst uh it's already difficult what I find humorous is the definition of recession they continue to change it right depending on uh what their objective is so we're we're already in a recession it appears that's going to continue through 2024 what does that mean for the real estate market Devin yeah I mean what stabilized the real estate market I mean each market across the country has its own niches but when you look from a national perspective you know I think it's going to stay stabilized just because of the lack of inventory I mean when you look at any homes that are on the market right now the inventory is so low in most markets that there's still multiple off on these properties so I think the inventory limitations and how small the inventory is I think it that the market stabilized I mean Co definitely drastically increase price points but we really haven't seen them come down that much absolutely that is definitely at the Forefront what are your thoughts Brian anything different as it relates to the real estate market on a more macro scale no I think Devon spot on there the lack of inventory is going to continue to drive things uh there's still plenty of demand uh and and therefore prices everyone's making adjustments and doing what they can but I think it is very much as you said specific to the area you're located in and so we all have to dial that in according to where we're doing business because we also need to consider not just the overall Market but the individual price points too right because if we're talking about a house that sells for 8 to 900,000 in a market that has an average sale price of 250,000 that's a real stretch for a lot of people and so I I also think that we we see where the inventory levels are lowest in most markets as you get lower and lower down the price point scale and then the uh the builders and and all the new uh construction tends to be in the higher price points so there is more inventory there and and so for those that are diving into real estate in 2024 another key component is the look of inventory for each individual deal someone's considering how many other properties are on the market that are in a similar condition similar price point who are you competing against and if you're competing against almost no one well then that is uh that is more than half the battle so I love your perspectives on both that so in addition to the real estate market in addition to macroeconomics let's talk about interest rates so Devin you're you're a very successful real estate agent and investor so you see both sides of this what are your thoughts on interest rates yeah I think initially interest rates really shocked the market that say it usually takes three to four months for for the buyer pool to get used to the current interest rate um I think we're going to see the interest rates come back down again towards a lower interest rate maybe in the mid fives low low sixes just because of the election to stabilize uh the current economy me but you know for a while a lot of buyers did step out and say hey I'm going to hold off on the sidelines and then it becomes normalized and then more buyers want to jump back in because you know they want a house they've been looking they've been trying for houses so I think again to sum it up interest rates are going to come down it's not really pushing buyer it's pushing a certain number of buyers out but there's still plenty of people bidding on homes especially as you get to that four4 to $600,000 price point and Below there's a lot of people bidding on those homes interesting perspective what are your thoughts Brian I agree I think there's definitely adjustment that the market has had to make buyers have had to make in terms of what they can afford due to the interest rates I agree I think they're going to come down some as things stabilize especially this year uh and I think overall we see lenders also taking certain moves to uh relax standards reasonably to try to make sure that it's attainable for buyers to move forward so I think it's going to remain strong now it's interesting my perspective would be I don't see the interest rates coming down quite as low I have admitted many times I'm terrible at predicting interest rates but I think the FED funds rate is going to stay about where it's at I don't think they're going to drop uh for quite some time I think the feds are going to continue to watch what's happening I do think it's going to continue to gradually come down a little more we hit almost 7% today and so maybe it gets to six and a half maybe I'm I'm betting on more of a six and and three qus but uh by the way for everybody watching this is why I surround myself with such brilliant people they all have their different perspectives um Devon as a real estate agent what are you seeing on the lending side that is giving buyers more opportunities than before yeah I mean I think the biggest thing that stands out to me is the 5% conventional on on multif family owner occupied properties I mean before for the longest amount of time it was 15 to 25% so you're looking at the ability that somebody may not be able to afford the single family but the 5% conventional gives somebody tremendous opportunity to get into a 2 three four unit property be able to offset their monthly uh mortgage amount and be able to buy something in the market that we're in even though the interest rates are higher yeah what a great point a lot of uh folks may not be aware of that that uh if if someone is trying to get an owner occupant move in primary residence loan on multifam they now can get a 5% down con conventional and I uh in fact I was debating with uh with Devon on this um a few weeks ago when we had talked about this and and I said well why is that any different than an FHA because in FHA you can get a two to uh to four unit um with only three and a half percent down and Deon said well there's a couple of arguments against FHA we already know the issue of condition we know that not every two to four uh to four units going to going to uh pass the FHA inspection but also conventional has higher um limits and uh and also conventional is just sometimes a lot easier to get the the seller to agree to it's it's a much more powerful offer if you're a conventional buyer as opposed to FHA so uh yeah great points on that front all right so now that we've covered some of the bigger more broad Strokes let's dive into flipping houses in 2024 all right so I think some would look at this and say wait a minute we're going into recession or we already are in one and we have slightly uh elevated interest rates and and we're wait a minute why would now be a good time to flip houses so Brian what is your answer to that concern that people have I think there's always a demand for affordable housing uh people are always looking for a roof over their head and on the investor side I think it's going to be critical that we go back to the fundamentals that we're really focused on what we have seen tried and true in getting deals done I think it's going to be an unforgiving Market uh if you're not focused on those fundamentals you're going to really pay the price so I think that's going to be critical so if someone is using the tactics that worked by sheer luck in 2021 and 2022 those are the kinds of people that are going to struggle in 2024 but the folks that are highly disciplined know exactly what they're doing have the right advisory team to make sure they don't make those mistakes it can be a banner year I read an interesting article related to a big survey from a large hard money lender that just got released related to the sentiment of house flippers the professional ones Across America and more than 75% are extremely excited about 2024 because they feel like there are less inventory levels which means it's easier to find a buyer but they also like the fact that a lot of the competitions disappeared because it's not as easy to flip houses as it was a couple years ago so I'm on that side of things I'm I'm extremely excited because we've done so well as uh and our entire organization has especially in the the the latter half of this year because less competition plenty of buyers we follow the right fundamentals we're doing deals I think there's more of the same coming into 2024 but let's hear your uh your thoughts too Devin yeah I think one people forget and and and the techniques that we teach are people are constantly going through life situations especially as a recession comes about so there are people people that need the skill set that we have to get them out of trouble uh they may not have the equity in their property because they purchased it in 21 or 22 so we have different strategies that we can deploy that can allow us to make money on the back end creatively but get them out of a bad situation so a lot of people always like to time the market you have to understand that again people are selling at all points of the market so I think we're going to have a very strong 2024 from an investment side what a great perspective too I love that you shared the idea that because we're in a recession there's going to be more motivated sellers I always think it's hilarious when you have those that complain that the Market's low or the Market's too high or the Market's this at any moment in time there are strengths and weaknesses to every Market condition but I'm going to lean toward I'd rather have a 2024 than a 2021 because yes there's going to be more people in a position where they've got to make something happen and a lot of them are going to look to sell their home as the equity so they can continue to pay for their groceries with with the cost of things that that's one of the last bastions of wealth they have left love your point there all right so uh Devin in regards acquiring rental property where do you see the uh best opportunities for acquiring trophy rental properties in 2024 uh like I said previously Phil on our on our last video I like focusing on necessity ities um asset classes that people need and and the necessity that everybody needs is a place with a roof over their head you know as as debt amounts on the younger generation they're going to be renters as buyers feel like the interest rates are too high and they don't want to jump in they're going to be renters if people are downsizing and want to put as much money in cash as Retirement and savings they're going to be renters so I think that I'm extremely bullish as I've said before Phil on on places people need to live you know I think there's be a tremendous opportunity plus if you look at from the investment standpoint of who owns these type of properties you know the the baby boomer generation there there's a ton of them that are going to be exiting and selling these properties if they're not passing them down so I think there's a tremendous amount of opportunity for people that have held these assets for a long time and are looking to cash in and we can put together deals that allow us to win either creatively or buying the deals off Market that uh that we can force the appreciation on no Brian when I drive around whether it's Orlando or Miami one of the major Tampa major cities for me in Florida you're in Texas you're driving through Dallas I'm seeing a lot of development of luxury apartments so uh Devon's principles uh are indisputable but how do we reconcile the fact that there is more inventory on the multifam side hitting the market in major cities yeah there may be more inventory but I'm looking more towards on our side of things we have seen plenty of folks that purchase in 2021 uh their taxes are going up their insurance is going up their uh housing is just not affordable and they're looking for Solutions when life hits and they've got to make a move that provides opportunity for us may not be the same amount of equity but it provides a great opportunity for subject to owner financing and other things like that so I think when we can capitalize on those opportunities uh people people are always searching for roofs over their heads and you know whether it's rentals whether it's these larger highrises uh there's there's just demand I'm seeing that all over my market and I'm sure you guys are as well and I'm seeing where luxury apartments are renting for such a higher amount than what most people can afford that I think it's those developers that put those deals and those developments in place three four five years ago that are now looking and seeing well where are my renters going to come from because the renters want to be in these in these duplexes and triplexes and quads that the commercial people would call Class B or Class C or even class D uh properties and I'm seeing where those luxury developments are not even a competition for investors like us because I'm I'm not going to provide luxury housing I'm going to provide affordable housing and that's where I see the most demand and and literally no invent uh you mentioned Brian about creative financing or Creative Real Estate uh you touched on it just a moment but where where are the opportunities in that realm for 2024 I think in single family housing I think there's again lots of folks that are going to end up in positions where the rise in taxes the rise in insurance rates uh just the the cost of living and the cost of eggs everything combined is going to make it more difficult you have folks that are actually going to have to downsize get into something more affordable and that provides us opportunity because we can provide solutions that don't fit for the standard real estate agent and and when we say creative financing a lot of times we're talking about subject to financing uh what I'm excited about is the fact that there's so many opportunities to take over a 4% loan a 5% loan when the rental rates are still high but the debt payments are a lot lower what are you seeing of uh from your perspective Devin on this topic of creative financy yeah I mean again it comes back to the point I think back in right when we started to ramp up in 2020 21 22 people paid uh got very very low interest rates on their houses and if they run into life situations or trouble as taxes rise or as their insurance Rises or job losses happen I mean there is a great opportunity to slide into a very low interest straight and be able to structure a deal that's a win-win for the investor and the home seller yeah I I'm seeing it with our apprentices every day when when these leads we looking at and we're saying wow I I the one I saw yesterday in Iowa was the monthly payment that's taxes insurance and and and uh the whole the whole nine yards was just over $1,000 and it could rent for 2,000 and look this is in Iowa we're not talking about a major city City here and you look at that cash flow now yes that seller was going to expect about 10,000 in their pocket but still the math on that is beautiful give the seller $10,000 you get $1,000 a month you have over 100% cash on cash return in the first year and there's the of course the uh the Instant Equity and of course that income is taxed advantaged so uh yeah we're we're really excited about uh creative financing around here but let's talk about some things that aren't going to be working as well in 2024 so Devon what are your thoughts on short-term rentals in 2024 I think uh short-term rentals are on the decline I think they're on the decline because one they're a very uh labor intensive business to manage you have to be on your reviews you have to make sure your house looks Pro perfect I mean you're competing against hotels essentially right and the expectation that that property is in uh pristine condition uh is important uh to you know to the guest also there's so many there's so many rules and regulations and laws that are changing that you know you're going to buy something thinking you can cash flow it at a certain level and lo and behold the next year the zoning of that changes so I think it's a very risky investment even though I own a few myself I think it's a very risky investment across the board just because of the Law changes that are happening the labor intensiveness of running that Airbnb and um and I think that's the the stage that's going to be set for the short-term rental Arena couldn't agree with you more so the latest statistics in severe County Tennessee which is in Gatlinburg Pigeon Forge uh had has for the last five years has been the number one highest Roi of any uh short-term rental market in America um inventory levels are up 15% and uh income is down 15% that's a 30% Delta oh and it gets much better the latest news I just got this for my property manager today is that sever county is going to put in place a licensing requirement for each unit which means they're now going to inspect your property so if you turn that bonus room into a fourth bedroom they're going to pull that from you because your septic didn't perk for four bedrooms it only perked for three and I've been getting texts all day from some of our people that own there they're freaking out they're like Phil it's going to kill my income and I'm saying well well welcome to short-term rental investing in 2024 ladies and gentlemen it's going to be a tough road now um Brian what about traditional house flipping buying foreclosures I think people are are thinking there's going to be more foreclosures in 20124 is that going to be an opportunity or do you see some Peril in that direction you know we may see some foreclosures I think uh compared to where we were 15 years ago it's still a stronger Market uh you don't have as many folks in in terrible trouble while we may see a rise in some I think you're going to see a lot of lender programs and other things to try to hedge that uh I think we are going to see though back to subject to Opportunities where folks don't have uh very much Equity they need to make a move uh again going to the real estate agent paying the standard commissions and so forth doesn't leave them a way out and so we can really provide an opportunity to allow them to move on with life and a great opportunity on our end uh because again we're picking up things often times with the lower interest rates and the rents just keep going through the roof so it's really good for us but Devin as far as as an agent if you're trying to help someone buy a house on Market that they're going to renovate and resell where do you see that fitting into uh someone's game plan in 2024 I mean I think it this this is where I feel like the investor skill set for me and and the clients that I work with uh is a tremendous Advantage because I think that the a lot of people make the mistake on the arv value really uh understanding how to compute what that property is going to be worth so I think you get a lot of people that think investing is all about buying onm Market deals fixing it up and selling it I think that strategy is going to be uh proven to be very weak here if you don't understand how to comp the properties out and if you don't know what the arv value is and really have a good grasp of what things cost to get that property to the AR value it needs to be in order to sell it and make a profit I I think that uh on uh on Market deals are going to continue to be a train wreck from an investment perspective I think there's more demand than there is Supply I think that as more foreclosures hit the market it won't even make a dent in the demand and I think if people are buying onm Market properties even those that need a lot of renovation I think they're going to be uh sorely mistaken if they think they're going to make a lot of profit from what what I'm seeing if they don't go off Market if they don't find their deals off Market uh it's going to be a hard Road in 2024 there is just a lot of Hungry Investors out there willing to to to push the envelope on how high they can they can buy a house only to then do everything they can to cut costs and then at the end of the day there's still no juice at the end so um yeah I I I think it's just absolutely fascinating what y'all have shared here this has been so exciting um Brian do you have any uh any other thoughts any last minute wisdom on real estate investing in 2024 I would just go back to what we mentioned the fundamentals uh again if you got into the market in the last three years you might have come in and not had to focus on some of these fundamentals uh but now's the time to go back to them because if you will stick to those really get the core understanding uh being able to analyze deals making sure that you have the right pieces in place it's going to set you up to succeed love it love it how about you Devin any uh any any wisdom for 2024 yeah I would probably Echo what Brian said there I think the wisdom that I can give a lot of our viewers are the fact is don't get caught up with trying to time the market understand there are strategies for every market and and knowing what to do within those markets is what makes uh us and our students very successful in real estate investing I love it I my ADV advice to everyone don't make the mistake of being on the sidelines I saw what happened during the early parts of covid it seemed like every investor every hard money lender everyone closed their doors Freedom Mentor we didn't we just kept rolling and boy did we make a lot of money in the second half of 2020 and so we have stuck by that methodology as Devon was just Shar sharing that we don't time the market we just stay in it and we pick up opportunities before people know it's an opportunity Trends occur and we live it versus being the one to try to react so my big advice is don't be on the sidelines get the right mentoring help so you know exactly how to follow the fundamentals as Brian was sharing don't time the market as Devon was sharing and get in there and get some deals going it's going to be a big year for us I know we're going to make a lot of money I hope a lot of others are able to dive in and jump in with what we're doing so they can make a lot of money too all right well gentlemen thank you so much for being on this real estate investing in 2024 I think there's been some brilliant Insight I really appreciate y'all's time and for everybody this is the time to get a mentor and to get going there's never been a better time to get started I'm not saying there won't be challenges in 2024 but we'll overcome them we'll turn those challenges into more money and you can too you got to be a part of our team there's a link here where you can apply to be a part of our Apprentice program you work with me and with Brian and with Devon and the rest of our team I would argue we are the sharpest Minds in this industry on exactly what we do and when you get us behind you you're unstoppable all right well thanks everybody we see you on the next video

Channel: Freedom Mentor

Views: 6,124

Keywords: real estate investing 2024, real estate 2024, real estate investing 2024 forecast, real estate investing 2024 predictions, 2024 housing market predictions, 2024 real estate investing, 2024 real estate market

Id: dY9dR5kVUy4

Length: 25min 20sec (1520 seconds)

Published: Tue Dec 19 2023