Market Chaos Has Everyone Scared—What You Should Do

0:00America leads the world in medicine development. It matters. We get new medicines first, nearly three years faster. Five million Americans go to work because we make medicines here at home, and not relying on other countries keeps us safe. But China is racing to overtake us. Will we let them? Or will we choose to stay ahead? When America leads, America cures. Let's tell Washington to keep us in the lead. Learn how at America Cures dot com. Pay for by farma. I don't know about you Casey, but I'm hearing a lot more people afraid this days. Again, as you talk to more and more real estate investors, everybody's always a little bit nervous, a little bit apprehensive. They don't know what they're getting into. But over the last month or so, I have seen the fear level ratchet up. First was big layoffs like at block 40% rumored that Meta might take out 20% and then of course you have the Iran War, which is now already into week number four. So I'm curious when you hear people reach out to you and say is now a good time to

1:04get started. What should I do today? Maybe I should wait. What do you do? What do you do when people talk like this and they're just afraid? What's your advice? You know, there's always something going on. The media, the world, the economy. There's always something happening. There's always a reason to be scared and not start. And yeah, we're in a war. We were in a war last year as I recall too. And inflation is still high in my opinion. People still aren't making more money. People are still having a hard time finding jobs. I kind of feel like not much has really changed for America over the past couple years, even with you know, Trump becoming president and all the promises. I'm not seeing tons of big changes in my life. So I think just even the war is just kind of compounding people's fears. I think a lot of people were kind of getting used to the interest rates and maybe investors and, you know, buyers were kind of picking back up like, okay, this is the new norm. We're getting these 6% high 6% rates and lows, you know, maybe a low 7, maybe a low

2:106 if you buy the rate down or get a special deal. But people are getting used to the rates. They have gotten over the low rates that we had and they're no longer whining and crying for the 4% rates anymore. So I feel like in that sense, people were starting to maybe get back in the market and especially springtime and we just entered spring. I mean, spring breaks are still happening. The month of March, there's three different weeks of spring breaks that are very popular around the country for schools. And that's also when the listings start ramping up. I have seen immense amount of listings come on the market in Memphis, come on the market in Arkansas where I'm looking for the lake house. So, you know, I'm seeing them really come on. But I'm getting when I get people to do the discovery calls with me to join my coaching program, like one of the biggest questions I'm getting asked really just in the month of March has been, should I invest in real estate right now? Is the market going to crash? How is the war going to affect real estate? Is now a good time?

3:12Are people buying houses? It's like, well, yeah, people are buying houses. You know, the problem is that there just aren't enough to buy. And we're still having that same issue because of COVID prices and the low interest rates. We're still having a supply issue. And I think we're still going to have a supply issue for, I don't know, a decade to decades. I don't know. It's going to be a very long time. It really screwed us over. But yes, it's a good time to buy and you can't be scared. But it's always going to be something going on, some disaster. As long as you're making smart moves that you're not over leveraging, you are comfortable with the deals you're buying, you are cash flowing, everything is going to be okay and you'll be able to ride the wave. Yeah, when I look at the market today, it's almost 180 degrees different than 2021. What was 2021? 2021 was easy money. Everybody came in. You couldn't do any wrong. Frankly, you could be a horrible flipper, overpay, run a bad project, get scammed and still make money.

4:16I'm pretty sure that's when Burr was really born. Like that was, you know, like right now it's what is it written by the room. But like, you know, every year goes through its own special, you know, real estate market trend. And that was flipping and burr. You can make it any amount of mistakes and it would be covered by an extra month in time. And oh, all of a sudden, my value went up and we're all good. Yeah, sorry to interrupt. No, but no, you're absolutely right. And again, the reason I'm saying it's 180 degrees different because it's really funny. Well, then nobody was afraid. But as someone who's been doing this a long time, that's exactly the time you should be afraid. When you got all this new money rushing in, you don't do due diligence. You do bad deals. Look at all the syndications that are now blowing up four years later. And when I look at the market today, everybody's afraid. I mean, I haven't seen this level of fear maybe since 2010, 11. Wow. And the reason that's important is if you know my history, I wrote a freaking book on it. 2011 was a great year. I leaned in and bought everything I

5:21could. And that's what I'm seeing today. And Warren Buffett has that saying, right, be greedy when others are fearful and fearful when others are greedy. And this is just the perfect example. 2021, everybody was greedy. I was afraid. Now today, everybody's afraid. So I'm getting greedy. And what does that mean? Let's put context. That just means, right, really disrespectful offers because most of you watching this, you could only do one deal a year. So why do an average deal? Like if you're, if you're looking to buy a property at 350, write it at 270, 265, because buyers have disappeared, buyers have disappeared. And that means some sellers are more motivated than ever. And they might take 265. They might counter it to 99 or something. This is the time, Casey, to just be disrespectful with your offers and get to work. I know, Michael, I saw, you know, so last week was spring break. We went camping. We went to

6:23Arkansas and we took our travel trailer and we went to one of our favorite places. And of course, it was a business trip because I saw tons of lake houses, right? I got to go there with my wheelchair. Anyways, and we saw a house. I did not like it. But I'm looking at the sales history. They were asking 600 for it. The guy bought it a month ago for 300. And before it was listed for one to two years at 600, lake houses kind of take a long time to sell. One to two years, they dropped the price finally landed at 600 was 599. And then some guy bought it at 300. Nice. It's respectful offers. That guy did. I'm like, I already know what this is, what happened here. And then the guy turned right around like a week later and listed it with now doing a thing to it back at 599 because it's spring market time to sell the house. I'm just like, this guy is, you know, like he did the thing. He wrote this type of offers. This guy got it. And he will sell it for more than 300. Obviously, those people who had it had to get out. And it was taking a long time. I mean, you never know what kind of deals you can get.

7:27Yeah. Again, in today with systems like Propstream and all this other stuff, you can really go back and look at history, look at debt structures, really look for those motivations. And I just want people to realize you're not being aggressive enough, right? I talk to people all the time like Michael is 10% below list price, disrespectful. No. That's not that's that's a rounding error. Get more greedy than that. Yeah. People are so afraid to insult the seller. And especially like as a new, you know, new new investors that I work with, you know, oh, well, you know, I don't want to insult the seller or, you know, this is my favorite one that really irks me is my client will say, I, you know, as I'm the coach, they say, I talked to my realtor, I want to make this offer. And they said that they didn't want to ruin their reputation by writing a disrespectful offer for me. I'm like, that guy's fired, you know, about their reputation. They are your, you know,

8:33your servant or whatever they are working for you. They're supposed to write whatever you want. So if a realtor tells you, oh, you're getting a room of reputation. Got it. Get a new room. Get a new one. There's lots of them. Yeah. So let's put some, let's put some rules around this. Because again, I don't want people to, I don't want you writing a disrespectful offer on a first day listing. Let's, let's not do. Yeah. Well, that isn't going to work out. Yeah. Yeah. That's, that's not cool. But I mean, if, if the average days on market in your, in your buy box is, say, 30 days for easy math and you find properties on the market for 90 days or greater or worse, have been listed and then relisted, go nuts. Those are the ones time to go, right? Let's, let's, let's see if you can't, because again, what happens when you, when you're out 90 days is that property gets flagged as a problem property, whether you like it or not, right? Because people stop looking at it. They've seen something wrong with it. Why is it still sitting around? Yeah. And that's why, and that's why as a seller, it is so important to list your property, the right price from the beginning, because once it's there for two weeks, because you were greedy and wanted a

9:37price that it wasn't worth. And it's sat there for two weeks. Everyone starting to think what's wrong with this property, something's wrong with them. They just pass it by and they skip it. Yeah. Couldn't agree more. So again, what, so when I talk to people today, I, I want them to understand that yes, you know, the world is a little crazier than normal. There's lots of reasons to be afraid. But I want you just to remember Ward Buffett, right? Be greedy when others are fearful. And I have not seen a fear level like this in quite a while. And use it to your advantage. I want the other thing I believe, and I'm curious what you think, I would hate to be a home seller today. Being a home seller today would suck. Yeah. I wouldn't want to be a first-time home buyer either, right? Because you got high rates, high prices, sucks. Frankly, the only person winning today is the real estate investor, especially the one who's willing to write disrespectful offers. And because the whole goal of this is to find that motivated selling. Yeah. And not those who win. Many people are, their properties are sitting in the market. Now there's some markets

10:37where it's blowing up Cleveland, Ohio, still selling properties within days or a week near asking or asking price. So there are. And that's also the entry level market, right? But so everyone's always going to want to buy the entry level. But honestly, Michael, even here in Memphis, properties are sitting 50, 60 days before they sell even a house that are under 200. And it's like, oh, you know, Lake House or buy five more rentals. So I'm at the cost. I don't want to miss another year. But it's very tempting because there are properties like in my market in Memphis and some of my buy box areas, I bought a house in one area for 201. And now, well, no, I won't use that one as an example because I renovated that one. Anyways, I'll give you an example. And one of my zip codes properties that last year were 195 to 10 to 15. They're now 170 to 190. So they've dropped a significant. Yeah. And again, if you had a property at 170 and you find the right seller, you

11:40might pick that up for 150. Yeah. Now, I'll say to rents have also gone down, right? They are adjusting to kind of the pre-covered levels. We saw a huge bump. So what I'm doing in that instance is a little off-topid, but I'm not increasing my rents on any of my tenants. I'm, and I am, you know, because I probably won't get that right now if I were to re-list. Right. So yeah, if I have a house that's rented for 1700 bucks and I go to them with their rent increase, they're going to look around and be like, oh, shoot, I could get another place for 15, 50 or 1600, like I'm out, you know? So I'll reach out to them in advance of them thinking about it and ask if they want to renew with no rent increase. And they're like, yeah, I don't want to move great. And they didn't even look, you know? So, but that's true. Prices are coming down, rents have come down to, which is also why it's important to have a good margin. And not always, and when you're running your numbers, put the highest possible rent price. You have to put the worst case scenario, you have the least cat at least, you know, I hate to break even, but you have to at least make a little money on the worst case scenario possible, worst case, not what

12:45you'll likely get. But yeah, it is hard out there. It is scary. Now it's attended by. I just told someone earlier this morning at a 7 AM call. When everyone is scared, that's the time to buy it. That's the time. At the end of the day, get a buy box, look at it every day, figure out average, write the suspect for offers and follow up, follow up, follow up. Casey, somebody wanted to follow you. What do they do? They can find me on YouTube, brick by brick well. They have videos coming out every week, as well as Instagram, brick by brick well. And you want to see what I'm up to or check out what I got going on. You can visit my website. Guess what? Brick by brickwell.com. Thank you so much. Have a great day. The reason is over. Learn more at duo.com.