How to Use the 2023 Housing Correction to Get RICH with Real Estate

welcome to today's a bonus episode of the BiggerPockets podcast we've seen continuously new record highs for home prices for the last several years and that is not necessarily where you want to buy that is why often why money is made during a Corrections because you have an opportunity to buy below market value over the last couple years we are very very clearly in a seller's market you know this because the repeating Wars right that means that the seller could just pick the highest offer sellers could really dictate the terms of any transaction that has completely changed what's going on everyone I'm Dave Meyer I'll be your host for today's bonus episode we are giving David Green a very well deserved day off so I can talk about one of my favorite topics a topic I'm super passionate about and I'd like to thank an expert in which is how to invest during a market correction I think we all know that the housing market is very uncertain and a little bit confusing right now but there are are really good ways to invest if you can identify the right types of opportunities there is risk in today's market for sure but with risk comes reward they're sort of counterbalances for each other and investing successfully during a housing correction is all about spotting the right opportunities and using the right strategies and the right tactics that are appropriate for this type of economic environment if you guys don't know me I work full times at Bigger Pockets as the vice president of data and analytics I host the on the market podcast which comes out Mondays and Fridays I've written a book called real estate by the numbers and through all of these efforts all the stuff that I do and spend most of my life doing a lot of what I do is study the housing market I talk to experts all the time I look at data to try and understand what is exactly going on in the broader economy what is going on in the housing market and I try to make sense of it so that all of us as Real Estate Investors can use the appropriate tactics and to know how to invest appropriate greatly with the least amount of risk the best amount of upside during this type of Market condition and so through those efforts and even though we are in a confusing economic time there are absolutely still good ways to invest in real estate right now this is not just an academic exercise for me I am also a real estate investor I've been investing for more than 12 years now and I've already done two deals in 2023 even though I know that we're in a housing market correction and I can do that confidently because I know which tactics and strategies to use so to share all the information that I have gathered and that I use myself in my own investing I recently created a webinar for Bigger Pockets and how to invest during a housing market correction so basically we're going to replay that webinar for you today and we're going to go over some really important topics first and foremost we're going to talk about what exactly is going on in the housing market right now and why it is happening I think there's a lot of fear out there about the housing market because if you don't really understand the fund mentals that are driving the housing market Behavior right now it can be a little bit confusing so we're going to talk about what is going on next we're going to talk about the strategies that you can use to mitigate what is going on in the current environment and then I'm going to actually help you learn how to find good deals on this Market analyze those deals and ultimately execute on the opportunities that are coming right now because I want you all to know that there are actually good opportunities right now with the risk and the uncertainty that comes in this kind of Market a lot of people jump out of the housing market and that means there are better deals there are better opportunities for the people who know how to adjust and invest in this environment so without any more Ado we're gonna jump into this webinar so you can learn how to invest during a housing correction do you feel some sort of economic or financial anxiety right now I know this is really common a lot of people are feeling that so if you're feeling that way that is completely normal maybe you're worried about a recession a lot of people are talking about that or inflation has really had an impact on you or you're worried about a layoff or a job loss these are genuinely stressful things why are they stressful because they're out of our control right as people we get stressed about the things that are we don't have an impact over that we can't directly control and for most people money and finances and whether or not you get laid off or out of your control but what if they were different what if you would control of your financial future what if you had more time to spend with your family and doing the things you love what if you earned money passively from sources other than your full-time job what if you had the freedom to do what you want when you want and with who you want well that my friends is Financial Freedom and it's really at the heart of what we're going to be talking about today on today's webinar because today is all about how to achieve really any Financial goal that you have through real estate investing and we're also going to talk specifically about how you can do that how you can kick start your investing Journey really during any market conditions by the end of this webinar you will have a plan to build build long-term wealth yes in today's housing market conditions I know it might seem daunting to get started right now but by the end of this webinar I promise you you will have a plan and you will see that there is great opportunities to build long-term wealth even in today's housing market conditions plus we also have some great giveaways for you at the end it's something I I don't think I've ever given away before so definitely stick around for that for today's agenda basically we're going to start with just talking about what in the world is going on in the housing market in 2023 uh that's going to be first and foremost because I think if you understand that if you understand what's going on in the market and the fundamentals some of the economic conditions that are driving the behavior and things that we're seeing in today's market it will help you overcome any anxiety you have about the current day market then we're going to talk about what business plans work in the current market if you know a little bit about real estate investing you probably know that there's a ton of different ways that you can invest in real estate but only some of them work in today's market conditions you can't just go out there and buy anything certain types of strategies certain types of properties certain types of tactics probably not great for a correction like we're in right now but there are plenty that work during a correction so we're going to cover which ones you should be thinking about and focusing on given the current market conditions and then lastly we're going to talk about how to find those good deals so once you know what's going on in the market and what business plans work in this type of economic cycle then you can go out and find the deals that work in this type of market and you can pursue them so that is today's agenda if any of you don't know me let me just quickly introduce myself so you know who is talking to you right now my name is Dave Meyer I've worked full time at Bigger Pockets as the VP of data analytics I've worked here at BiggerPockets full time for more than seven years now but I've also been a real estate investor for more than 12 years I mostly invest in rental properties I also invest in syndications I do some lending I've been in short term rental so I've done a little bit of it all over the last couple of years and I'm really excited to share some of that experience with you I also host the on the market podcast it comes out every Monday and Friday in the BiggerPockets podcast feeds and if you like the type of information we're talking about today you know some of the data market conditions that's what we talk about on on the market so you can check that out I'm also the author of a book called real estate by the numbers which teaches you how to analyze deals like a pro we're going to talk a lot about deal analysis today because that is super important to today's market condition so I'll share some of my expertise about deal analysis today um and that's me if you want to connect with me after this you can always do that on Bigger Pockets or you can find me on Instagram where I'm at the data Deli um it's I love data as you are going to see over the course of this podcast but I also love sandwiches it's my other passion so that's why you get the data Deli but if you have any questions or want to ask me anything after this webinar the best place to do that is on Instagram where I'm at the data Deli um check it out so before we get into this let me just tell you story about how I got started investing in real estate and as I said I started over 12 years ago I started buying in early 2010. and it's hard to remember right now but that was a very uncertain economic time the housing market really started to go down in 2007 and 2008 it was still going down at that time and so it was really uncertain when I first got started I knew exactly zero people who were actively buying real estate and when I told some friends and family that I was intending to get into real estate and buy a rental property most people thought I was crazy because the market hadn't bottomed it was still really uncertain what was happening with housing prices but I knew that over the long run housing crisis really always go up even though 2008 was just so you know like the worst housing crash I think I've ever been I've ever seen data for in the United States and so even though I saw that I knew that housing prices over time asset prices go up and so I did a couple of things back then to protect myself and to ensure that even though that I was buying an uncertain working conditions that it was still a good investment so the first thing I did was I bought well under the list price I knew that the market hadn't bottomed yet I was a little bit worried that prices could fall a little bit further so what I did was when I offered on properties I offered below what the current market value was that way if prices fell a little bit further then I would have some cushion on My Equity the next thing I did was I earned money from things that don't really concern housing prices and we're going to talk a lot about this today that housing prices do not equal profit there are many other ways that you earn returns as a rental property investor so I made sure that I bought a property that had strong cash flow that I earned money for amortization otherwise known as loan pay down and value add I was able to make the property more valuable than it originally was through concerted and specific actions and I also got great tax benefits which work in any type of market conditions so I focused on these things even though the market was really uncertain and I didn't know what was going to happen and I pulled the trigger and now you know looking in Russia respect I can tell you what happened and what happened was the value of my property actually went down after I purchased it not by a whole lot and I was protected against it because I bought under asking price but the housing market at least in Denver didn't really bottom until 2011 and I had bought in 2010 so for a short period of time there I was seeing my property value go down at least on paper but it didn't really matter to me because I was earning really good cash flow I was still getting amortization and I was doing value-add I was getting great tax benefits and 12 years later I obviously don't really care that my property value went down temporarily because over time as a housing market over always does and we're going to talk about that a lot today it went back up and you only lose money if you actually sell the property right the housing prices only matter at two points when you buy the property and when you sell the property what happens between those two things of course it matters sort of emotionally but it doesn't really matter when I sold the property this property I sold back in 2018 it had gone up literally three times the amount so yes it went down a little bit I bought it for something like 457 thousand dollars something like that that's very precise I bought it for about 457 thousand dollars in 2018 I sold it for well over a million dollars and I'm not saying that's going to happen for every deal but yes it was a little bit concerning that housing prices went down but housing prices go up over the long run and I was easily able to recover that and more because I had a long-term business strategy I also want you to know that I wasn't just buying deals back then I am practicing what I preach I have done deals already this year in 2023 even though I know the housing market is in a correction I study this for a living I know that we're in a correction but I'm still doing deals because I know these things I know how to analyze deals given the current market conditions I know that housing prices do not equal profit there is a lot more that goes into rental property investing in just the value of your assets and I also invest using the specific business models that work in any market conditions so that's what I'm doing but let's get to you right should you be buying in today's market right let's get to the elephant in the room and talk about what is going on in today's market I want to just start by telling you this that every experienced investors I know it's not just me but every experienced investor I know is active in the market right now and that is because experienced investors generally speaking not every single person knows this but experienced investors know a couple of things people have been through some Market Cycles generally know these things the first thing is that money is actually made during a correction right you don't necessarily want to buy at the top which is where we've been over the last couple of years we've seen continuously new record highs for home prices for the last several years and that is not necessarily where you want to buy that is why often why money is made during a Corrections because you have an opportunity to buy below market value and of course I really want to stress this a lot today over the course of this webinar is that you cannot buy just anything don't go out and just buy any home that you see you need to buy smart but the the lesson here is that Corrections create opportunities right risk and reward it's like yin and yang they balance each other out so yes is the risk in the market right now yeah there is risk that the market is going to go down but that risk also creates opportunities you just need to find them as the great Warren Buffett you know one of the most famous investors in the world said be fearful when others are greedy be greedy when others are fearful and I think others are fearful right now and I know it's odd it's you know it's logical to be fearful in some ways right now but if you know what experienced investors know you'll see that there are great opportunities right now the main reason there are opportunities is because we are now in a buyer's market this is something that confuses people a little bit so let me just take a minute to explain this but when what we say what it means when I say that we're in a buyer's market it means that buyers have the power right it's that when you're going to negotiate it usually one side or the other has more leverage either sellers at The Leverage that's a seller's market where the buyers have the leverage and that's a buyer's market over the last couple years we are very very clearly in a seller's market you know this because the rebidding wars right that means that the seller could just pick the highest offer that buyers were often waiving contingencies like their you know appraisals or their inspections and you know sellers could really dictate the terms of any transaction that has completely changed we are now in a market where buyers have the power buyers are being able to negotiate really great concessions buyers are getting sellers to pay Downs part you know their rate on their mortgages right so buyers have the power and today you're going to learn how to use that power to your advantage the other thing I said this a few times and I'm going to keep saying it the other thing that experienced investors know right now is that housing prices do not equal profit and I know it's easy to focus on housing prices but there is so much more to real estate investing than housing prices there are actually five different ways to earn money and appreciation which is really housing prices is just one of them it's also the least important which we're going to talk about but I just want you to know like this isn't stock this isn't buying a stock this isn't buying crypto the price of an asset isn't the only consideration in real estate investing you need to factor in other things like cash flow and amortization value add and tax benefits so that is why so many people I know are active and why I think you should at least consider buying in today's market so let's just dive into let me just explain for a few minutes what is going on with the housing market because there's a lot of understandable fear but I think I really find that if you understand the fundamentals like what is driving this Behavior fundamentals the housing market it can help you overcome any Market anxiety that you have so you know we need to discuss this because you I'm sure you're all wondering like should I really be investing what happens if price goes down prices go down and these are very reasonable questions so let me just explain what's happening in the housing market over the long term in the history of the United States housing prices typically go up they Trend upward over the long run they have always always always gone up now there are times when it goes down that's known as a correction there are a time when it goes flat as well but over the long run it is normally a relatively boring and predictable thing housing prices go up slightly above the pace of inflation now what's happened since 2008 and after and sort of the aftermath of the Great Recession is we've been in a low interest rate environment and what happens when interest rates are really low is it makes leveraged assets like real estate things that you take out loans on that's what leveraged asset means it makes them the value of them go up so we've seen asset values go up a lot from 2008 to 2020. then when we got to 2020 things basically just went on steroids it's the same situation in a lot of ways but it was just even more dramatic right interest rates went even lower than they have ever been and then we also had the combined impact of all this money printing all this increase in monetary Supply which just made affordability Skyrocket and affordability is a really important factor in the housing market because when more people can afford to buy homes generally speaking more people want to buy homes right we are now at a part where Millennials which is the largest demographic group in the United States now are reaching their home Peak home buying age so a lot of people want to buy houses right now and in 2020 with all this money Printing and super low interest rates a lot of people jumped into the market and I think this is something that people Miss is that in 2020 and 2021 even though prices were going up a lot it was one of the most affordable times in U.S history to buy a home because interest rates have a huge impact on affordability so does all the increased monetary Supply and though even though prices were going up a lot it was still really affordable when I think about the housing market I like to think of it as a scale sometimes right because there's not one thing that is impacting housing prices right it's not just mortgage rates it is not just Supply it is not just affordability it is all these different things and from 2020 to 2022 literally every single variable that I can think of every important factor that impacts the housing crisis was putting upward pressure on the market it was all on one side of the scale right everything from bond yields mortgage rates demand inventory Supply how you know much money people were making in crypto and stock markets all of those things contributed to the housing market going up and up and up and up and that's basically what happened up until June of 2022 but then things obviously changed right the FED in response to high inflation started to raise interest rates and that has a negative impact on affordability and affordability like I just said is super important in the housing market and when affordability turns negative it puts downward pressure on pricing so ever since mortgage rates started to go up we have entered what I would consider and I would call housing correction now this doesn't mean that everything is going to crash necessarily right as I just said when I think about the housing market I think of it as a scale right there are different variables and they balance out to impact prices so whereas in 2020 and through 2020 the first half of 2022 everything was pushing prices up now some of the major factors have moved to the other side of the scale right now demand and affordability are putting downward pressure on the market right that doesn't mean that everything is pushing down inventory Supply demographics are still sort of on that upward pressure side but we are now in a much more normal Market where certain macroeconomic conditions are pushing the housing are putting upward pressure on the market and certain macroeconomic conditions are putting downward pressure on the market and this is normal but right now I do think there is more pressure downward and that's why we're seeing prices to start to come down you know prices have definitely come down on a seasonal adjusted inflation-adjusted basis since its peak in June of 2022 I don't know what's going to happen but personally I believe housing prices are going to continue to fall through 2023 and that's okay we're going to talk about that it is okay that prices are going to fall as I've said I'm still investing and I still think there are opportunities but this is what I want you to know I I'm explaining this because I want you to know that this is not 2008. there are very considerable differences between what is going on and yes housing prices are going to come down but I personally don't think that there's going to be this foreclosure crisis that we saw in 2008 I don't think there's going to be selling forced selling which caused the extended decline of housing prices in 2008. to me this is all about affordability and as soon as affordability improves in the market we are going to see people jump back in the housing market is going to bottom and resume probably it's boring growth I don't think it's going to explode again but that boring predictable growth that we as investors actually really like I love boring predictable growth and so to me this is really an issue about affordability and there are still you know the thing that encourages me and why I'm still buying is that there are still very strong long-term fundamentals for the housing market even though we're in a short-term correction I think there are three things that really point to better housing prices and that a resumption of those long you know boring gains in housing prices over the long run the first one is how it is in shortages experts estimate that the US is somewhere between three and seven million homes short of how many homes we need for people if you know anything about supply and demand when there is a shortage of Supply that puts long-term upward pressure on prices so I think that's something that encourages me that home prices are going to go up again after this correction the second is demographic Demand right I just said that Millennials and gen Z are starting to hit their Peak home buying age and there are a lot of these people and they want homes they want at homes just as much as everyone but they've been priced out of it and they have a lot of demand for these homes so once they can afford it again I truly believe that Millennials and gen Z are going to jump back into the housing market and the third one is credit quality is really high the reason in 2008 that the housing correction got so bad and turned into a full-blown crash for several years is because the loans that people were using to buy homes were absolute garbage they were not people were not qualified to be taking out the loans that they were there was really no chance that a lot of these people were ever going to be able to repay the loans that they had taken out and that is not true anymore credit quality is extremely high right now and even though we are entering a correction foreclosures and people going into forbearance and defaults are still very very low in a historical context so I'm going to say this again the correction that we're in right now is real housing prices are going down but the correction is affordability problem it is not some fundamental problem with the entire housing market is a problem with one part of the market which is affordability and affordability problems get resolved in one of two ways and I wanted to be clear they do get results so basically the two things things that can happen is one home braces could go down right that would help improve affordability we're already starting to see that that is one you know symptom of an affordability problem this housing prices start to come down the other way that this gets resolved is mortgage rates come back down because that has a huge impact on affordability as well and those are the two different things that can happen in in reality it's probably going to be a combination of the two we're probably going to see housing prices come down in 2023 and then we're also probably going to see at some point in either late 2023 or some point in 2024 we're going to see mortgage rates come down into the low six percents or even the highest set five percent and that's going to restore affordability into the housing market it will probably bottom out and start to grow at that slow and boring predictable rate again so what happens during this type of affordability correction is that certain markets the ones that are really unaffordable think markets like I don't know Seattle and Austin and San Francisco New York the markets that are very unaffordable are probably going to come down the most over the coming years because this is an affordability crisis in those cities you know they're all very every city is very different and those cities are probably going to be impacted the most on the other hand there are certain markets that are still relatively affordable and if you don't live in one of these cities you probably find this hard to believe but it is true there are still markets where you can find affordable homes I think of a City like Philadelphia where you can see that these markets are still relatively affordable for the people who live there and they the these markets will probably stay flat they might go down a little bit or stay like relatively flat and some of them could keep growing I just read something recently about how home prices in Boston are still going up so we're going to see different behavior in different markets and to me it's really dictated by affordability now the question many of you are probably wondering is when is this going to end like when are things just going to become easy and simple and predictable and I'm sorry to say we don't know I know that you know we were hoping that I have some crystal ball and I can tell you when the market is going to bottom but I just don't know but the thing that you shouldn't know is that that's okay it is okay that we don't know it's going to bottom because there are still ways that you can invest in today's market and we're gonna get into that so let's get into it what works in this market let's talk about business plans and tactics that work for investing in this type of affordability correction that we're in so the first thing to me is planning past the uncertainty so I know it is uncertain what's going to happen this year in 2023. it's kind of Uncertain what's going to happen in 2024. I don't know what's going to happen with housing prices I just told you that but I know I feel very confident that five years from now housing prices are going to be higher than they are today 10 years they're going to be even higher than that so I look at long-term business plans as the best possible option during a correction and to me rental properties are the best long-term option out of all the different real estate investing options and I'm not saying that flipping doesn't work I know people are making a lot of money flipping right now and I you know short-term rentals still can work there are always deals that work but to me for for newbies for people who want to think about the long term I highly recommend rent rentals right now because they were designed through the type of long-term hold period that work best during this type of Correction and long hold periods reduce risk right we're seeing Market volatility right now but if you hold for a long period of time you get to take advantage of that long Trend that housing prices go up and if you hold for a long time that increases the probability that when you're going to sell you're going to sell for a higher price than you bought for I've actually done some research that shows that if you hold a rental property for seven years or more there's almost a zero percent chance that you you sell for less than what you bought it for obviously it depends on all these different things but when I did that for rental properties it was about seven years gets you to a zero percent chance when you do it for a stock market it actually goes up to 20 years so when you look at real estate prices they really are relatively predictable over the long run not over the next year or two but over seven to ten years it is relatively predictable you know the counter to that though is if you want to buy real real estate and sell it in the next year for a quick buck that now is probably not the time to do that that's pretty risky like if you want to do a flip and you've never done it before I personally wouldn't do that but if you want to buy a rental and hold it for at least five years seven years ten years they're going to be great deals for you right now the key to buying right now the number one thing you need to do is buy below asking price like if you think your Market is going to go down by five percent make offers five percent below asking price right you know that that is that just makes sense right if you think oh my God over the course of the next year it might be 10 my market is really risky it's unaffordable I'm gonna go 10 below asking if you buy 10 below asking and then the market goes down you still have cushion right you have an equity cushion and you're still benefiting from it so you're not you know 10 below where you bought it you're actually just in line with where the market goes over the next year or two and you know don't worry about the exact number like no one knows how far your Market might fall but if it's like five to seven percent make a seven percent offer if you uh under asking if it winds up five percent under asking that's okay my vet property value went down when I bought my first deal but you want to get close to where you think the market might bottom to give yourself that Equity cushion and I want to I'll stress this again later but you have to be really really patient right there is no frenzy anymore there is no need to waive contingencies to be the first person to go see a property to make the first offer you can afford and you actually need you need to not just afford to you have to be patient right now you need to wait you need to negotiate you need to find the right deal not every seller is going to take an offer below asking especially on the first offer if they just put their deal or a house on the market five days ago they're not going to take us seven percent below asking but we'll talk about how to find the right deal so just be patient know that right now again know that housing prices do not equal profit this is super important and you know I've said it and I'll say it again I'm going to return to this right now and talk about the five other things that um we we how we make money in real estate so there are actually five ways and Market appreciation like the asset value the value of your asset is just one of them and the thing is that about Market appreciation is that this is when I talk about Market appreciation I mean basically the price of houses going up by bar good forces like macro economic Trends but the truth is that experienced investors don't underwrite or plan for any Market appreciation maybe the rate of inflation but like personally I don't plan on it above in uh the rate of inflation even during Good Times most experienced investors know that appreciation is the least reliable way to make money in real estate no one is counting on this I write about this in my book uh real estate by the number is pretty extensively um and that it's just true that no one really counts on this the the things as an investor you want to focus on are the ones that you could directly control and Market appreciation I'm sorry to say is something that none of us control but the good thing is that there are four other things that you can control the first one is value-add this is sort of like flipping or renovating a property it's basically you look for properties that need Renovations and the whole point of it is to improve the property by more than you pay to make the Improvement so maybe you buy a house that needs some help you put 50 Grand into it but by putting that fifty thousand dollars into the property you raise the value of that property by a hundred thousand dollars so let's just say you know you buy a property for 300 Grand you put 50 Grand into it but all of a sudden due to the value that you've created in that property that property is now worth four hundred thousand dollars and you've just earned yourself a fifty thousand dollar profit by adding that value this is basically the premise behind Fix and Flip but it also works with rental properties like a lot of rental properties need improvements they need a nicer kitchen or new bathrooms or to add a bath a bedroom uh so these are things that work really well in these types of Corrections because the prices on properties that need rehab fall further than properties that are in really good shape so if you go out and look for new construction or you know a really prime location a great property that's beautiful and already really nice the prices on those tend to fall less even during a correction than the ones that need a lot of work and so that's why value add Works in a correction is because prices tend to fall pretty far for these uh these rehab these homes that need rehabs or the next profit driver the next thing that earns you a return as a real estate investor is cash flow we all love cash flow right cash flow is why so many people get into real estate investing is what is you know it's the lifeblood of Financial Freedom because it can replace the income from your full-time job casual if you don't know what it is it's basically the money you receive every single month from rent above and beyond your expenses so if you collect two grand a month in rent and you have fifteen hundred dollars a month in expenses then you make 500 a month in cash flow I'm just making that up but that is what it is and the great thing about cash flow is that it is not really Market dependent if your housing prices are going up or down you know over your first year you're still getting cash flow right rents are extremely extremely sticky even during 2008 to 2011 when housing prices went down more than 20 percent rent really never went down rent is extremely sticky even during recession even during a correction and so cash flow you can still be earning a great return on cash flow even during a market correction so that's something you should absolutely be focusing on right now is value-add is great cash flow is always important I never recommend someone buy a property that doesn't cash flow we'll talk about how to analyze deals in just a minute about so you can make sure that your property is Cash flowing well the next one is amortization which is basically some people call it loan pay down as well but it basically means when you pay your mortgage using the rent that you collect your tenants are basically paying down your loan for you and that means when you go to sell your property several years from now that you owe the bank less when you sell it so that actually earns you a return and somewhere between three and five percent depending on the loan but the great thing about amortization is it is also not Market dependent right so as we've already talked about cash flow not Market dependent amortization or loan paid out not Market dependent value add does really well in a market correction so these are three ways that even buying during evolved title time in the housing market you could still be earning really good returns that are probably above and beyond what you would earn in the stock market the last one is tax advantages and it's not necessarily like income you don't really earn a return from tax advantages but it means that you get to keep more money than you you more of the money that you make you get to keep and real estate is I I mean this is just generally true real estate is the most taxed Advantage asset class out there there are very a lot of different ways that you can use real estate to keep more of your income every single year and again this is another one that is not dependent on what is happening in the economy so you get value-added you get cash flow the amortization you get tax benefits regardless of what is going on in the housing market the only thing that's impacted by the broad broader Market is Market appreciation which most experienced investors agree is the least important of these five profit drivers so if there's one takeaway from this section is that not all profit drivers not all the ways that you earn returns from real estate investing Earth are impacted by market volatility the last thing I want to say about things that working work right now you know I said focus on all these different profit drivers I I've told you to buy deep and the last one is that financing strategies there are other ways to to get better financing I know a lot of people are daunted by the high mortgage rates but a lot you know you see these headlines that you know people are paying six and a half percent or seven percent in some cases somewhere around there but right now you can find a lot of different creative ways to finance your properties the number one rate is rate buy Downs so because it's a buyer's market you have the power to negotiate a lot of people are having their sellers do something you know negotiating with the seller to do something called a rate buy now where the seller basically pays some money up front to your bank to lower your interest rate there's something called the two one uh buy down where basically the seller pays a couple thousand dollars on your behalf and they then your interest rate is two percent lower for one year and one percent lower for another year so right now you could be getting a mortgage rate in the fours or fives for the next two years and then you can refinance later there's also great seller financing and create a financing opportunity so I really recommend you learn a little bit about this I'm not going to get into all the details today but I really think you should not focus on that headline mortgage rate until you talk to a mortgage broker because or or a real estate agent because they're going to tell you that that six and a half seven percent is not necessarily what you're going to be paying for the next few years you can probably pay something lower than that and then refinance later so definitely take advantage of that but overall whenever we talk about the things that work during a market here are the main takeaways number one buying deals that need money regardless of Market appreciation right this is true even not during a correction you don't want to find deals that need to appreciate in value for Market appreciation just to make money you want to focus on deals that make money from cash flow from value add from amortization and to take advantage of the tax benefits that is definitely true the number two takeaway is time is your friend right you want to hold deals for a long time to smooth out Market volatility right if you're looking for short-term deals probably not a great time they're pretty risky right now but if you're looking at deals that you're going to own for two three five years then these are really good opportunities because you're buying well-able low market value and even if things go down a little bit over the next two or three years over the long run they're going to appreciate in value and you're going to get to take advantage of all five of those different ways you make money with rental property investing over a long period of time the last thing is to also take advantage of creative financing um I just did a deal a couple weeks ago I'll just tell you what I did I bought a home or I participated in a deal where we bought the property for 30 below Peak value 30 below right most experts even the people who are the most pessimistic about the housing market do not think the housing that prices are going to fall 30 percent so I've just bought something that is thirty percent Peak value so I might already have earned some equity in this deal and when the market starts growing again it's only going to go up from there this is a very heavy value add deal um that's why I was able to get it for so cheap is because like I said deals that require renovation and value add are going to fall further than other types of properties during this type of Market condition so I was able to negotiate this one and then it has a five to seven year business plan we're planning to hold this thing for a long period of time and that means that you know we're not too concerned about if our value property value fluctuates over the next couple of years because we're planning to hold it for at least five to seven years and we we're very confident that asset values are going to grow a lot a lot from the point where we bought it at because we bought it super super low so hopefully that just helps you understand how I am thinking about it how I'm using these business plans in today's market so one thing now you understand some of the strategies and tactics that work in this type of market conditions let's talk about how to find good deals today for this I like to use something called the lap system branded Turner came up with this but I love it so we're going to use it lap stands for leads which is basically looking at a lot of properties analysis which basically means you know find from all the leads that you get so you look at 100 different leads you need to go the analysis phase where you're going to start breaking down the specific deals and figure out which ones are right for you and you have to pursue the ones that are good and then that leads to success right so it's about being a funnel right you need to look at a hundred deals maybe you analyze 10 you per share two and you actually succeed on one of them think about your deal flow in terms of this funnel because the first deal you analyze probably not going to be the right one even in good market conditions but in this type of market conditions it's even more important that you look at a lot of deals analyze all of them and only select the cream of the crap right you only want those couple of deals that are going to be really good for you in these market conditions because there's a lot of garbage out there that's absolutely true in any market conditions that's true but right now there's a lot of garbage and you don't want to be stuck with that you have to find the right deals so where do you find these leads the first place to look is on Market deals right look for on the MLS it is the simplest thing in the world just here are two tricks right and the MLS is just like Zillow or Redfin or realtor.com just people putting their houses up on the market and I know over the last couple of years it's been hard to find deals on the market one of the benefits of a correction is that there are deals back on the market right now like you can go on the MLS and find cash flowing deals on the MLS right now my two tricks for looking at the MLS when you're doing this are one cut look for deals that have come back on the market so sometimes deals fall out of contract and in those situations sellers are usually pretty frustrated and they just want to get over it right like imagine if it were you and you would have buyer lined up like oh I'm gonna sell my house this is going to be amazing and then right at the end the deal falls through you're gonna be pretty frustrated and probably pretty willing to negotiate with the next person who comes along who's willing to buy your deal so look for those deals there are filters on Zillow or Redfin for deals that have come back on the market the second thing you want to look for are deals that have been on the market for a long time because again these are going to be situations where you have the most leverage like I said you're looking at a buyer's market and you want to exert your leverage as best as possible right and so the best way to have leverage is by a seller who's not able to sell and you know how do you know that they're not able to sell it's because their deal their house has been sitting on the market for a long time so look for those two things for on Market Deals Deals that have come back on the market and deals that have been on the market for a long time the next thing to look for is off-market deals and these are still good and off arcade deals are great but they're honestly not as important as deals as it was a couple years ago like in 2020 2021 like it was almost it was basically impossible to find cash flowing deals on the market on the MLS like it happened but it was pretty rare you had to really search for them so a lot of people a lot of investors were resorting to off-market Deals driving for dollars or working with wholesalers and those still are good like especially for value-add projects you can still do those things but you can still like you don't need to go off Market anymore and that is one of the great things about a correction like I said there are benefits to being in a correction and this is one of them you can find deals on the market which is really good the key for all these things is to negotiate right sellers are still in their mind they are anchored to the idea that they could sell for what they could back in June of 2022. that is not true they can't sell for that the market has changed the market is correcting as the buyer you need to nicely in a productive way convince them that that price is no longer reasonable and that you need to buy under market value that you need rate buy down so you can pay a lower mortgage rate this is what really matters is that you negotiate whether you find the deal on Market or off Market you really need to negotiate and that is why it is always important to have a great investor friendly agent because agents are often doing the negotiations on your behalf obviously you need to know what you're doing to work with your agent and tell them you know what kind of offer you want to make you want what sort of concessions you want to ask from from the seller but having a great investor friendly agent is super important for that uh if you want to find one you could do that on Bigger Pockets we have a free tool to meet investor friendly agents it's biggerpockets.com agent you can check that out for free I've found agents there um it's really helpful and that helps with your negotiation but remember when we're talking about our deal funnel and the lap system the highest part of the funnel is leads right but remember that most leads they don't make good deals and that's okay if you find a lead and you're like oh that seller doesn't want to sell to me for the price that's fine don't get frustrated that is part of the business that is part of the gain is that most leads don't make good deals you have to analyze each of them to find those special deals that are going to be the best for you and they're going to help you build that long term well dylanos is my favorite Topic in all of real estate um and it's why I wrote a book about it and we're just gonna to talk about deal analysis and how you take the leads how you go from you know working with your agent working off working to find these leads to picking the ones that work in this type of Market I'm actually just gonna we're gonna go through through a deal analysis together so I'm going to just switch my screen share here hopefully this just works so we're gonna go to the Bigger Pockets calculator so as you can see here on my screen I use this Bigger Pockets calculator all the time because it is a very handy tool to be able to take all those leads that you have and analyze them when we're talking about the you know the the the lap system and you have all these deals and all these leads say you have a hundred to find one good deal you might need to analyze you might need to look at a hundred different leads you need to analyze deals quickly right if you're building a spreadsheet for every single lead that you're doing it's going to take you months that's never going to happen so I use the Bigger Pockets calculator because it allows me to analyze deals really quickly and hone in on the properties that I actually want to make offers on and ultimately buy so here's what it looks like I actually am going to go to the Bigger Pockets um right this place where you can find deals um and just look for different types of deals and I I wound up picking out one before um it's this deal here in Memphis Tennessee um you can see that I just went in here and looked for things but people love Memphis I've never actually been there but people seem to love it and I found this deal kind of interesting because it's a new construction built for rent this is a really common strategy built around right now I've never done before but I thought it'd be fun to analyze this one so let's just do this so the first thing you need to do to you do dealing Health analysis using the Bigger Pockets calculator is just to um but in the street address so we're talking about uh Artmore Street what do we got here 35 32 Ardmore Street you just click that in actually the calculator is going to fill that in for you and we are on our way so look next what we want to do is I like to add a photo just so I can remember in my mind when you're looking at a lot of deals and a lot of leads you know the addresses kind of sometimes get like messed up in your head and so I like I'm just a more visual person I guess but I remember the photos so I'm gonna just upload this photo here so I can remember what this house looks like it's kind of cool looking out um so now we do this I'm just gonna hit next so we're well on our way we've just entered the address now we've entered in a photo now it's time to get down to the numbers right personal favorite part so purchase price let's go back here and see what did we say let's just assume right now that you know they are offering 157 that's what they want to buy it for but as I said we're gonna buy deep on this property we are not going to uh just offer a purchase price so I'm gonna say 145 I don't know if that's a good deal guys I'm really just over the course of this I'm not gonna like be super precise with my numbers I'm trying to show you how to analyze these deals so you can do it for yourself but let's just say that we want to offer you know 145 instead of 157 purchase closing costs I'm going to put about four thousand dollars and if you've never bought a deal before you might be wondering how do I know for a thousand dollars well I've bought a lot of deals so I know that for myself but on the Bigger Pockets calculator we also have these Health tools so if you cut look over here and hover on this stuff you can see that there's some tips to fill this out so you can see that typical closing costs are around one to two percent of the purchase price of the property but can differ depending on location and financing um so if you're unsure one and a half percent so I'm going to do about two percent I actually did more than two percent um just to do that um you can rehab your property if you wanna if you're doing a value add you're going to want to click here and say rehab your property and put in your after repair value that's how much you think the property is going to be worth after you put some money into it and then you need to put how much repair costs are going to be because this deal is a bill for rent it's the brand new construction I'm not going to be rehabbing we're not going to be using the value add strategy instead I'm going to be focusing on those other profit drivers of cash flow amortization and my tax benefits and we're gonna see if this is a good deal I honestly have no idea so I've never done this so we're we really are just going to figure this out ourselves then let's go down to low details so if you look on the left side here you've seen we've already put in perk property info now we're done purchase now we're going to go to loan details um as an investor um if you're not going to own or occupy you usually have to put 25 down I know 20 is normal but that's if you're living in the house I'm not going to live in this house so I'm going to put 25 down and my interest rate I'm gonna say is six percent I know I would love a rate buy down but I'm I'll I'll get to that in a minute right now actually let's even put six and a half percent let's just say six and a half percent that's about what Market rates are as of this recording and I'm gonna do that over 30 years right again if you don't know what loan points are if you don't know what loan terms are you can click on these help buttons and they'll help you figure those out guys we're going pretty quickly and I'm talking a lot and now we're up to already up to the fourth of fifth steps here so you can see how easy honestly it is to analyze deals uh the next thing we need to do is figure out our rent income and this is often the hardest thing for people is to figure out what things are going to rent for but there are two ways to do this you can go on you know apartments.com or Zillow or whatever and just look around your area for comps but you can also um use the Bigger Pockets um uh rent estimator which I've pulled up here which can do this for us so I'm actually just going to go back and just enter this property in again and show you how to do this so all I need to do is enter the address into the real estate rent estimator it hit search address it's four beds two bath and I'm going to search address and right here when it tells us that our media rent is 10 30 um and what what we can do is then decide if that's an appropriate amount so when I click around I can see all the comps in my area and I can see that just down the street there's one similar property renting for more than that at 10.75 or a couple blocks away we have one for 12.50 we have one for 13.35 and honestly what this is showing us is the median rent that means it's the median you know the middle quality product which um is important but because this is a new build I actually think it's going to be a little bit higher than so I'm gonna just enter 1100 right I think that's a fair number I want to just point out on the listing they say the projected rent is at 14.50 based on what I just learned from the BiggerPockets calculator I don't believe that so I'm just going to say 1100 um because just given my experience I think 1100 is probably about appropriate when during other types of times you can enter annual income growth and you know over the last couple years rent has grown by crazy amounts but I personally don't think that's going to continue and so I'm just gonna put two percent in which is about the pace of inflation normally I know inflation is way higher right now but I just don't think rank growth is going to go up that much and because I'm a conservative investor definitely want to be conservative in this type of economic conditions I'm only going to put very modest two percent annual income growth I also want to point out that I left it like that for property value growth just at two percent here too because I don't want to forecast more appreciation said that a couple times I don't count on Market appreciation and so I'm putting that assumption into the calculator to show that I'm not banking on housing prices going up a lot to earn my return next we have property taxes um I've looked this up it's about 1500 bucks per year Insurance in this area I looked this up before the webinar just so you guys know I haven't run the numbers but I looked these things up so I could do this quickly what if you want to do these for yourself honestly Googling it is really easily for most properties you're able to just Google it and they'll give you the exact property tax number insurance is a little bit harder but I just recommend Googling it like Google single family home ret you know property insurance in Memphis Tennessee and you'll get a pretty accurate number before we actually go buy a deal you need to like get a quote and an actual number but when you're at this phase where you're looking at all these leads and you're trying to analyze and Whittle it down to the ones you're actually going to offer on doing these ballpark numbers are generally okay at least that's what I do for repairs and maintenance I'm going to do five percent again this is new construction so I don't think of repairs and maintenance are going to be really high I like to put five percent for vacancy five percent for Capital expenditures if you don't know what that means capex Capital expenditures is kind of like repairs and maintenance but for big items like a new roof or a new boiler and because this is new construction you're probably not going to need to do that anytime soon but I still like to put money away for that because you're going to need to do it one day right we're talking about long-term holds here that's the business model that works during a housing market correction and so if you're going to hold this property for five to seven years Something's Gonna Break right that's just part of the business you're going to need a new hot water heater that will definitely happen if you own it for 10 years and so he's better off just putting that money away right now and planning for that then getting stuck and not knowing what it is I don't live in Memphis so I'm planning for management fees of about eight percent and then since this is a single family home when it gets this section about utilities I'm putting in zero because my tenants are going to pay all this I actually usually pay water and sewer so I'm gonna just put 25 bucks in there I don't like to buy places with HOA so I'm going to put zero garbage I'll put zero and zero right you guys can adjust this as you need you know if you're going to buy a place where you're going to pay the uh the utilities you need to put those numbers in and again I recommend just Googling that for your area if you're unfamiliar what like with a four bedroom house cost for electricity per month you could just Google it it's honestly really easy and then we're done that was it I mean if I wasn't just blabbering on here I would have done that in probably two or three minutes because I'm trying to explain it maybe it took five minutes but let's look at this deal okay all right this is a bad deal this kind of happens with that but I wanted to do this on purpose to show you what we're looking at here and this deal is that it would net negative ninety dollars per month and negative three percent cash on cash return so this is obviously not a deal I would buy as is and I honestly I kind of suspected this new construction tends to not be great Investments so I was kind of curious but I did this for a reason because as I was talking about most deals that you analyze are not going to be good but there are two things that you can do if it's just a no-go it's a terrible deal it's never going to work just forget about it you can just move on but if you see that there is potential and I think there's potential in this what you can do with the Bigger Pockets calculator is make your deal right there's a common saying among investors that great deals aren't found they are made and let me just show you what I mean I just made up a number that I was willing to that I was willing to uh pay for it but what if I bought well under asking price let's say we went down to 137 000. what happens then okay we're still negative at 51 or 1.6 that's still not going to work for me obviously and I don't think the seller is going to go well below that let's just say 135 uh maybe they would offer that that's still a negative cash on cash return but obviously that's not good enough for me so what I'm gonna do instead is imagine that I can offer or negotiate a rate buy now so remember I said there's a very common thing going on right now where you negotiate with a seller for them to pay down your mortgage two percent for the first year so let's just say I mean let's just say that I did it by one percent what happens if I go down to 5.5 right does that mean that it goes positive yes now it is 23 a month in cash flow and 75 and 0.75 percent cash on cash return probably still not good enough for me so I'm gonna see what happens if I get them to rate buy down by two percent for the first year that would get me to 4.5 percent that would give me an 85 a month cash flow and 2.71 Roi probably still not good enough for me right that this is getting closer so we're getting closer so what would work for me I think the last variable that really matters here is cash flow remember these people who listed this said that they think that the cash flow could be 1430 I put in 1100 but I'm not really that sure so what I would do in this scenario is I would say what cash flow do I need to get like here's a good deal if I could get the rental income to 12.65 I could earn 200 a month in cash flow a seven percent cash on cash return and I would be earning on an annualized basis 14 per year that is well above what the stock market returns stock market returns like eight to nine percent this is even during a correction even during uh market conditions where I'm forecasting almost no rent growth and almost no appreciation I could still be well outperforming the stock market will the seller accept this deal where I offer them 135 and they do a rate buy down I don't know I need to still go out and call property managers and see if it's realistic for me to get rent of 12.65 but now that I've analyzed this deal I know what a good deal looks like right I know not I'm not going to offer what they're offering me that's not appropriate in this type of Market what I'm going to do is go to them and say I know I as an investor I'm an informed investor and I know the exact numbers that are make sense for me to buy this deal here's what they are I'm going to offer you 135 you need to do a rate buy down for two percentage points and then on your own you need to independently verify the rental income and see what you can actually earn you know there is a big range on the Bigger Pockets calculator when I showed that I'm going to jump back over that you can see here that they offered they said 10 30 per month for the median rent but one of the things I love about this rent estimator is it says that the confidence is low right so that's not great but it admits that it's not very sure because there aren't great comps so this type of situation you need to go independently verify that and figure that out so that's why I think this calculator is so valuable and you need to run all these deals is because go and make this offer if they say no what have you lost right you know the numbers that make sense for this particular deal if it doesn't work on this deal go run another 10 another 20 another 30 and you will find I promise you you will find a seller who is willing to negotiate with you in this market because that is the benefit of the correction people are willing to negotiate with you so hopefully that helps I just want to show you uh some other things about the calculator while we're here when you come down here you can see how much money you make on this property over the long run and I think this is particularly important during a correction if you're going to hold for five or seven years it's super helpful to know how much money you're gonna make five to seven years from now so for this example you can see that in uh year five that you will probably make uh if you sold it you would make thirty seven thousand dollars in cash for an annualized return of almost 15 percent which is incredible if you held it for 10 years you would make 87K remember on a property like this you're probably only putting in like thirty thousand dollars forty thousand dollars and you're making 87K so you're tripling your money in 10 years for an annualized return of nearly 13 which is well above what the stock market returns so that's why the calculator is so helpful you can really see how this will impact your financial future and help you on your path to financial Independence the last thing I want to share with you here today is this share button which is a super cool part of the um Bigger Pockets calculator so if you go up here um and you want to you can download a PDF so when you go to the seller right this is super important in negotiations when you go to a seller and you're trying to negotiate with you you need to show them that you know what you're talking about that you're not just making up numbers that you're trying to bully them around or take advantage of them if you go to them and say listen I need an eight percent cash on cash return and you show them this report that shows look the only way that I get a ten percent eight percent cash on cash return is with these numbers I need to give you 170 35. I need you to pay down my mortgage and this is the rent that I'm gonna need to get so I need to verify that the seller is going to take you a lot more seriously because it shows that you're not just making these numbers up you're not trying to lowball them you've actually thought about this you've come up with a number that is thoughtful and meaningful for your investment and their property and I think it's super helpful it's also great for talking to lenders by the way or if you want to get your spouse or Partners on board the share feature is really awesome so this is one that's one of the reasons why I use the Bigger Pockets calculator all right now that we've done that let's get back to our uh deck here in our webinar so I want to ask you now that we've talked about all this amazing stuff I want to ask you do you feel more confident in understanding current market conditions I hope you do because I I've explained some of the fundamentals and hopefully you understand that this is an affordability issue and the housing market is in a correction due to that affordability issue but that's okay do you now understand what business plans work best in this type of Market do you understand that you should be buying deep buying well below uh market value can you find creative financing Solutions are you going to hold your property for a long term that's what works in today's market do you feel comfortable finding it analyzing deals do you know that you're going to need to be patient you're going to need to analyze a lot of deals to find those nuggets of opportunity you're going to find the sellers that are willing to negotiate or who understand the numbers that you're going to put in front of them using like a calculator reporter you're on spreadsheet you need to are you comfortable finding analyzing and talking about those deals I hope so if you do that is great that is like the whole point of this webinar that is why we are here but information is not everything right now you have the information but what happens is you need to take action too right everyone loves information learning about things but what really separates people who succeed to real estate investing and the people who just learn about it but never actually take advantage and start pursuing that Financial Freedom is taking action and to me the key to taking action is finding the support you need right you need these tools you need Services you need a great agent you need great content and education to get you a toss the finish line and so if this is you like listen it's not for everyone to invest in a market correction my personal I'm doing it everyone I know who's an investor is doing it but it's not forever I totally understand that but if you are one of the people who sees the opportunity as willing to do the work to find the great deals right now then the next step the next logical step for many of you might be to consider Bigger Pockets Pro it is um something that I've worked on personally a lot I've helped develop a lot of the tools in BiggerPockets Pro over the seven years I've worked here I've put a lot of my own analytical skills into the calculator I basically help build a lot of that rent estimator that you see there and I truly believe in it because BiggerPockets Pro is your One-Stop shop it really has every tool you need One Stop Shop to start scale and manage your entire portfolio and if you're new to this I can't even stress enough how helpful it is to have all the tools that you know thousands of investors tens of thousands of investors have used to successfully build their portfolio and I just want you to know like it's not just me saying this I've worked here for seven years I've literally seen like 50 000 or more people use Bigger Pockets Pro to become successful in real estate investing and that's why BiggerPockets Pro is so valuable and I'm believing it so much let me just quickly tell you about what it actually does so first and foremost it helps you analyze investment properties we just talked about this I just showed you how useful the calculators are like you can analyze deals on your own you can use your own spreadsheet but I have a master's degree in Business analytics and I don't even use my own spreadsheets like there's just too much margin for error it takes too much time we need to analyze the volume of deals a real estate investor needs to analyze like using a calculator just makes a lot of sense hopefully you see that now the second thing is that rent estimator honestly it's one of the hardest things for Real Estate Investors is to figure out how much income they can generate from a property um and that's the reason we created this rent estimator you saw it in action and how useful that can be the next thing is we have Pro exclusive content and videos so you can get curated videos webinar replays you know webinars just like this they are not available to everyone in perpetuity instead that you need to you know all the knowledge that you need is locked in some of these webinars and some of the pro exclusive content that we have you get that from uh being a BiggerPockets Pro we value that at over fifty hundred dollars but it's included in the Pro membership which as you'll see is a lot cheaper than that we have a workshop a lot of people might even if you're bought in on buying in a market correction maybe you don't have a lot of money to invest right now that is totally normal which is why we have a workshop for you if you go pro which is investing with no and low money down which is taught by Brandon Turner and David Green they have a nine part video series that you get completely for free and Bigger Pockets Pro we're gonna give out finding deals master class which is super important in this type of Market again you know this kind of stuff sells on the open market for over a thousand dollars but again we're giving away for free that's a theme here right we basically bundle all this really expensive useful stuff into Pro for one really affordable and usable price we also have the pro badge which honestly I feel like is something people really underestimate but it's really valuable when you're going out and building your network finding an agent looking for mentors in real estate people want to know that you're serious and so many people message me on Instagram or whatever and they're like hey I've never done anything but I really want you to teach me how to invest in real estate I'm like show me that you've put in a little bit of effort that you're committed to this process and I'm happy to help you and the pro badge is something that really helps you at the bigger pocket in the Bigger Pockets Community if you're a pro and if you ask a question in the forums you are way more likely to get really thoughtful responses because people know that you're bought in where people are going to be interested in working with you it's really really valuable to let people know that you're Pro we also have um landlord documents so if you've never signed a lease before or don't how to do a pet addendum or any of the things that you need to do as a landlord we have a lawyer approved lease documents in all 50 states it's super helpful I use them in multiple States and you know I know I have a lot of friends who use these leases they're really really high quality we also have negotiated with Partners on your behalf with companies like rent ready so you get free property management software I can't like this is extremely expensive for most people but you actually get free property management software from rent ready just for being a pro member you get discounts on your DNA if you want to be a short-term right until you get discounts on CPA courses from Amanda Han and you also even get free access to invella which helps you find off-market deals if you want to drive for dollars you get that for free all for being Bigger Pockets Pro so those are just a couple of the incredible values we also have amazing boot camps that you can only join if you're a free member where you can learn from experts like Ashley care and Tyler Madden Avery Carl Craig curl up all these incredible people have these boot camps where you can get really focused information about a specific topic and that is only available for pro members so those are some of the features but at the end of the day like all these features are amazing but the number one reason you should consider Pro it's not any of these one individual features it's because it works as I've said thousands tens of thousands of people have used Bigger Pockets Pro to become financially free and to purchase real estate and walk that power of real estate uh it really does work I'll just read you a quote from Aaron who said the BiggerPockets calculators are my go-to for analyzing property potential properties there's no way I could analyze the volume of properties I do without being a pro member I locked in my first three unit almost a year ago and now I'm selling it for almost a 70k profit that will go towards something larger the Bigger Pockets calculators were a huge factor in making sure my numbers were right I love that because it's all about listen he said he's talking about analyzing a lot of deals that's really important right now and knowing that your numbers are right those are two essential components to investing during a correction um and so the calculator is in Pro can help you with that Patrick says back in June I intended one of the webinars right afterwards I signed up for pro and the next couple of weeks I analyzed a lot of deals eventually I found a fourplex I got it under contract three weeks later after signing up for pro and a week later closed on another property that was six units big thank you to you and the entire Team final quick tip sign up for pro annual I made my buddy back at the closing table well I think that's incredible advice and I just want you to know that making your money back on Pro is honestly pretty easy you're probably wondering how much all of these tools and benefits cost you know what it is 390 dollars right you're probably used to seeing courses in real estate that are thousands of dollars hell if you even bought a real an inspection on a single house it's going to be double the price of this this is less than the home inspection 390 is normally what Pro annual cost it is a fraction of the price of if you acquired all these tools and services together would cost you literally thousands and thousands of thousands of dollars but we offer it for 3.90 but just for being here for being a part of this webinar I told you we have a couple of giveaways and I'm going to show you the first one the first one is 20 off Pro if you use the code invest23 when you check out right now just use the code invest23 you will get 20 off and you will actually pay just 312 dollars which is even cheaper and I told you at the beginning that I had a bonus giveaway for everyone listening to this we've I've never given this away before but if you go pro in the next few days and use that code invest23 you will get the ultimate package for my buck real estate by the numbers which is all about how to invest like a pro how to analyze deals like an expert we went through the calculator if you want to understand every single detail of how the calculator Works how to analyze deals for yourself I think my book does a really good job obviously I'm biased because I wrote this book but you'll get the ultimate bundle which means you'll get a physical copy of it you'll get a Kindle copy of it you'll get an audio copy and all the bonus content the bonus contact comes with uh additional calculators that you can use and resources to help analyze deals in these types of markets so if you're interested in BiggerPockets Pro and getting all these bonuses which are valued well over two thousand dollars go to biggerpockets.com Pro right now use the code invest23 you'll get all these bonuses you'll get my book and a Year's worth of the tools that you need to pursue Financial Independence and to find great deals even in these market conditions now if you're already Pro you can still get some of these bonuses go to biggerpockets.com Pro slash videos and you can find some of this bonus content there and the last thing I just want to say about this is listen we know that it is concerning that you not everyone is going to be ready to buy in these types of market conditions but I'm just going to encourage you to go track go find a bunch of leads analyze a bunch of deals Go Pro right now and if it doesn't work out if you're not ready to buy a deal we'll give you your money back there's a hundred percent money back guaranteed for 30 days so do It Go Pro right now if you're at least even considering this go five find an agent talk to look at a bunch of deals and start analyzing them and I think for a lot of you you're going to realize that this isn't that hard that you're gonna find deals that are gonna vastly incredibly life-changingly improve your financial position but if you don't that's okay we don't want to take your money if you're not actually investing in real estate so we will give your money back 100 refund no questions asked so I'll leave you with these parting words you know Jim Rohn incredible person said if you really want to do something you'll find a way if you don't you'll find an excuse so if you're bought it if you want to eliminate some of that economic anxiety if you want to find the Financial Freedom that has changed my life and change tens of thousands of life through real estate go do something take action right now if not you'll find an excuse so I hope this helps you I hope you helps you see that there are great opportunities buying real estate right now and helps you pursue some of the deals is that I'm the types of deals that I'm doing and a lot of my friends who are experienced investors are doing uh if you want to go pro again go to biggerpockets.com Pro and enter the code invest23 thank you all so much for listening again if you have questions about this you can always hit me up on the BiggerPockets website or on Instagram or at the data Deli thanks again everyone I'll see you next time all right well that was my webinar I hope you all learned a lot thank you all for listening my main hope here is that you understand that you can invest in really any sort of Market Condition it's really just about using the right strategies and tactics and then going out and finding and analyzing the right kind of deals so you can proceed with confidence if that's for you if you are ready to go ahead and start investing in this type of climate I recommend that you do so and you can use the BiggerPockets Pro Suite of tools to get a jump start on your investing we have everything that you need from deal analysis calculators landlord forms property management software and you can get 20 off you can go to biggerpockets.com Pro just use the code invest23 that's biggerpockets.com Pro and use the code invest23 for 20 off it also comes with a free copy of my book real estate by the numbers which teaches you how to analyze deals like a pro very topical in today's environment so definitely take advantage of that if you are considering going pro thank you all so much for listening to this webinar slash podcast I really appreciate your time if you have any questions about the content that we covered today or anything else at all you can always hit me up on Bigger Pockets or on Instagram where I am at the data Deli thanks again I'll see you next time [Music]

Channel: BiggerPockets

Views: 192,559

Keywords: housing correction, real estate, recession, us recession, housing market, real estate market, housing bubble, housing market crash, housing market bubble, real estate crash, invest in real estate, real estate investing, how to invest in real estate, rental property, income property investment property, 2023 recession, global recession, buying real estate, cash flow, real estate investing for beginners, housing prices, investing, biggerpockets, biggerpockets podcast, podcast

Id: -oSOUMojiPU

Length: 76min 7sec (4567 seconds)

Published: Fri Mar 10 2023