WHY YOU MUST BUY A HOME BEFORE 2027

0:00Why you need to buy a house before 2027 folks. I know there's a lot of negativity out in the market. I know mortgage rates are at a 52 week high But what if I told you you're gonna regret not buying a home this year if you choose to wait to 2027 now in fairness I am copying a video that I saw the legend math and mortgage guy do that video has got already 8,000 views which is above normal above trend and I thought we should talk about it because I have not seen the video But I do believe in the premise. I do believe if you are a real estate investor and you are out doing the work And you for whatever reason choose to wait you are going to be sorely disappointed Matt what's going on man? That's a that's a pretty juicy title Yeah, and it's funny because sometimes I post up and I'm not paying attention closely, you know to comments and Somebody helps me edit and post sends me a message. I think this one struck a chord

1:04certainly did so You know, I'm not gonna back off of it But I'm gonna say like if you're a thinking human being this doesn't apply to every single person in every single situation but to your point there's people that just get stuck in being stuck and I'm not gonna buy because rates are high. I'm not gonna buy because so and so said the market's bad I'm not gonna buy because of this and a lot of those people because I've talked to them Right they look back and got gosh back in 23 rates hit 8% and I was scared and I didn't want to buy If I would have bought that house, I could have got it for this price, you know people were giving and oh by the way You fast forward in 24 months and again, you know, you never know what will happen But you could have refided it sub six percent a hundred percent if you bought it Q4 of 23 Yep, there was people in distress and it felt scary First time we were over eight in a while. Yeah, right and and so

2:07Opportunity to buy where other people are saying it's scary and rates are high and then like you said 24 months later you refinanced I I refinanced Something like seven point eight million That closed October of 25 Because rates mid September hit that mark For every person I rely it there was somebody else I talked to that didn't do it So when that window opens again, please take advantage of the opportunity and when somebody who is Pretty good at math and is pretty straight for non-us to about like I would do this if I were you Well, let's let's talk about it because I why you need to buy a house before 2027 so That question obviously strikes a chord, but let me paint a picture of what 2027 could be Right because that's what you have to understand what is possible 2027 I Think it's fair to say that the powers that be wash best and trump Want lower long-term interest rates now?

3:07You know, I sit here as the guy telling you September hike is coming But I'm also telling you there probably going to be a series of cuts next year So again, we're playing devil dabble kit here We're going to assume the powers that be get their way eventually and the long end falls down right whether that's a recession or You know productivity or whatever right it could it could happen for lots of different reasons But if we have a noticeable tick like we did in October of 24 and rates go sub six Folks the entire real estate market changes We go from having desperate sellers afraid of 8% To desperate buyers Because we've had three years almost four years now of side people being stuck on the sidelines so The rule of thumb at least as a real estate investor You want less competition You want more choices And you prefer more motivated sellers

4:10For the rest of 2026 You will have less competition You will have more opportunity And the cherry on top will have more motivated sellers because the demand is so weak So again, I believe Buy and hold real estate investors this you you need to you need to double down You need to go you need to go hard you need to write disrespectful offers follow up 17 times Yeah, the the the the latter half of 2026 is going to be a great opportunity and I read comments and I talked to people from all over the country hasn't come to my market yet my market's still competitive hasn't come here yet It's coming you know in in in neighborhoods, you know because you can look at states you can look at Cities you can look at zip codes you can look at neighborhoods you can dial it down as much or as little as you want as a real estate investor And so I've seen where it's like this neighborhood and this pocket. Yeah, it's soft. These other ones aren't yet

5:13I feel like every single day There's more and more pockets that are softening and so as a real estate investor There's never been a more important time To track your buy box like Mike said Mike was not an expert in Chat new get Tennessee real estate in in 2005 he knew one zip code and one Three two two car garage whatever your criteria was I've heard it enough. I should remember it Mike, but Okay, so you're gonna know when all the sudden man I remember when stuff was selling in 10 days at this 450 price point now someone's had something on it 420 Hasn't sold in 33 days something's happening here. Maybe I can go in there and get myself a sweet deal because I'm Not very active on the real estate investing side right now. I'm kind of on cruise control But I'm still looking and I saw something I go holy crap me and my wife went and looked at something yesterday

6:16If the price is right We might trade up right. Yeah, well not no not even for a personal residence for a property Nice, this was like man in this neighborhood nothing sells for this price if this thing isn't a complete Dud then it might be worth picking up It's funny too because Got got investments in the in the in real estate obviously and I have stock market investments and I'm like In real estate, you can kind of dollar cost average you're like I paid this this this price and this price I'm like this would pull down my you know average price paid in this neighborhood, but Yeah, I was just looking through your comments and More than half of them. We're not happy with that video You don't have to buy good news. You don't have to buy But yeah, it's it's gonna be interesting and and here's one thing too because I'm not gonna pretend like I have it all figured out and that I know

7:19A million new bought or like sideline buyers are gonna jump in and Q1 is gonna be competitive and it's gonna be tougher for you There are always variables. There's always other stuff going on Something that could probably Strengthen the housing market is more certainty and overseas stuff going on of course, but something I was gonna throw at you Mike because I just saw it again this morning I've heard you know a lot of stuff gets passed a lot of stuff gets brought up during midterm elections That they're refloting The waving of capital gains to a million dollars Not just on primaries on investment properties too. Yeah, I heard that as well again. They're looking for Anything that could unlock the frozen housing market. That's what they're really doing that I think would be Good I think there's enough mom and pops that are kind of tired, but holding on to stuff They don't really care to hold on to

8:19And I've heard it over and over and over again. Yeah, if I could sell these two investment properties in no capital gains I would do his mom. Yeah, yeah No, I think I mean I hear two things being floated around all the time again everybody everybody's looking at the real estate market and Going it's an depression and it's been here for three and a half years and unfortunately you got six more months or five more months But yeah, I hear about that and also Portability on your mortgage. They're trying to make your mortgage portable right take your 2.8 mortgage to a new house And you just you know you either put in the Delta or you get a second for the Delta so lots of options Yeah, I think that's highly unlikely to happen basically Yeah, there's no chance of mortgage service. There's gonna let that fly Yeah, just the way they're sold in the secondary market I've been told by people that are smarter than me and more involved on the secondary that like just forget about that idea won't happen Yeah, now new loans could be underrennen with portability for sure, but not the old ones Right, just they decided hey, we want to be like Canada or whatever these other countries that do it

9:22You know going forward you'd have to change how it's packaged and sold and well Let's get to the meat of the table again We're saying if you don't buy a house before 2027 you're gonna regret it. I'm obviously highly focused on real estate investors But you know, I do believe it because again You want three things less competition more opportunity and more motivated sellers I'm just afraid that that equation will change in 2027 now in fairness if you want to play devil's advocate It could get worse We could go right through 7% and get to 8% mortgage rates. That would be uncomfortable But you know again back to the powers that be I think they they're trying everything they can to get the long and lower not higher Right and to your point like if you talk to somebody who's just a first-time home buyer and they're looking to buy a house You talk to somebody you like and trust you get yourself pre-approved at this price and at this payment I'm comfortable. I can do it for those people. I think it's it's a it's a it's a mistake

10:26to say you know what I Can do it right now and it makes sense for me, but I'm gonna wait Because maybe it'll get better and that's the mistake like just like you said Mike rates could get worse and then it could look worse for you on the mortgage side But it also could get worse for you When rates go down and people don't understand that too rates come down more competition comes to the market now you're competing You're either paying a higher price Waving contingencies not being in the neighborhood you want to be in there's a whole different There's all kinds of stuff that could make it worse. Yeah, you're right to bring that up I mean, let's just think about the FHA buyers and again, we've been talking for five years So let's jump in the time machine 2021 FHA buyers were not getting a look they were run over by cash buyers in 2021 Looked at the mortgage data. I didn't look at it today. I looked at it last week FHA buyers are up noticeably Because they're getting a look now sometimes there the only offer

11:30So what I would tell a first-time home buyer low-down payment FHA is work with somebody you know trust and respect and run the numbers like if you like that house At I'm just gonna make up numbers 400 grand and a 5% mortgage right like if you could wave a magic wand And you would have 400K house in 5% mortgage And you're putting 5% down Well, you know what That's a certain payment. So have that person run the payment Right 400K house 20K down 5% interest or whatever I said is payment 123 Well, guess what today the house isn't 400 and the interest rates not 5% But guess what you can make it the same payment right right if the payment if the interest rates seven and a half Have your mortgage professional go okay? Well, I can't do anything about the rate But you know what I could get you that same payment you just can't pay 400 you got to pay I don't know

12:34361 I'm just making numbers up But you can do that man. So figure out where you're comfortable figure out the payment And then go ham that's what that's what FHA buyers or first-time home buyers don't get is today's market You can write below you you don't have to offer asking people I don't know how I don't mean to break this to you like it's a crazy rule you don't have to pay list price for sure Yeah, and I don't want to throw VA buyers in there too because I think a lot of times in a really competitive market Yeah, sellers even though it's false and and you know Happy to talk offline with somebody who thinks that you know VA loan is riskier to they're the most stable loans of all the products um But VA loans are actually better than people think and they're easier to get closed than than a lot of Sellers think so stop overlooking those buyers, but it is what it is FHA VA have a harder time in more competitive markets So they have an opportunity now and one thing

13:35exactly to your point Somebody who's who's that buyer who you said let's let's write it up at 361 the best part about that Is you pay less for the house? Taxes here. Yeah, you bought it for 450 in 2023 And it was 8% interest rates you refinance to to a lower rate If the housing market gets competitive the house sells for 525 even if it's that lower rate that you wanted You got to pay 75 grand less because there's no competition and so like you Exactly the math folks do the math. Yeah, it like I'm seeing every single day I just had one back and forth listed at 515 great house great neighborhood like this isn't something that's gonna like Be fire sold But the FHA buyer I have offered 500 plus 15,000 in seller credit. So essentially like 485 Probably gonna have that deal get put together and for that FHA buyer not only

14:37Is he gonna get a discount on the house, but the 15,000 is gonna pay off the closing costs So now they're just coming 3.5 percent out of pocket you don't you don't do that In a market that's more balanced or oh, yeah, the sellers would take somebody else completely Yeah, someone offer conventional full list, you know close it in 14 days and done done Yeah, well again folks. I do think it's an interesting query Why you need to buy a house before 2027? Let us know in the comments below. What do you think what what did we get right? What did we get wrong Matt where can people find you go to mtmg.com quick note. I've got something Exciting happening. I'm adding more licenses um, I've got a mechanism now. I'm actually being dual licensed by two brokers Um, so somebody needs loans in Virginia I'm just gonna pay the $270 licensing fee. I'm gonna get that approved in mls and have it within a day or two To be able to you know support more of my

15:38O rat family There you go. I'm gonna have a lot of conversations and a lot of fun um, and you guys know who you are. Thanks for continuing to reach out. Thanks for continuing to trust me Um, I appreciate it, but go to mtmg.com. Let's have a conversation. There you go buddy. Take care. Have a good week. All right you two thanks