myEmpirePROToday’s topic is about being recession-proof in the market, and of course, we will also discuss how to close your first deal within 30 days. If you’ve closed deals before, but struggling to keep up, don’t worry, we’ve got you covered.
We understand that you’re here for real estate updates, business insights, and our thoughts on the market. We’ll be sharing all of that and more, but first, let’s talk about recession-proofing your investments. As someone who has been through a market crash before, I can tell you that it’s always better to be prepared.
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Some claim that we’re already in a recession, while others believe it’s just a matter of time.
Regardless, there’s a crisis in some parts of the country, while other areas remain untouched. We covered the impact of mortgage interest rates, demand, supply, and listings in a live session yesterday. If you missed it, we highly recommend checking it out.
To ensure your investments are recession-proof, you need to understand the market and how it affects you. We’ll be sharing our thoughts and tips on how to do that, so be sure to hit the like, share, and subscribe button to stay updated.
Remember, we’re here to help you close your first deal, whether it’s in 30 days or not. If you’re already closing deals, stick to what’s working for you, but don’t forget to stay updated with the latest market trends. As always, we’re glad to have you here, and we’ll be back with more insights soon.
In 2008, I experienced a market crisis without fully understanding what a recession meant. I was a young and successful real estate investor, feeling invincible, until the market crashed. I had many deals on my table that I couldn’t close, and my business crashed along with the market.
From that experience, I learned several valuable lessons that I want to share with you. First and foremost, don’t leave the business, even if you’re having difficulty financing your deals. There’s always a solution, and challenges present opportunities. Many people will run away from the crisis, leaving a massive blind spot, but I’m here to share my knowledge and wisdom with you.
When there’s a massive problem like the upcoming market crash, there’s a massive opportunity. So don’t be afraid, and don’t give up on your business. With the right mindset and approach, you can make it through this crisis and come out stronger on the other side. Remember, challenges are opportunities in disguise.
Are we in the midst of a market crisis or recession, it’s important not to run away from the business. While it’s understandable that people may lose their livelihoods and everything they’ve worked for, there are also opportunities to be found in the crisis. You need to pay attention and stay on the lookout for these opportunities because they come in cycles, and being prepared for them can make a big difference.
One way to adjust and pivot is to not be overly exposed to the market. Some people get drowned because they have too many deals or they don’t adjust themselves properly. It’s important to find a balance and pay attention to everything that’s going on, so you don’t miss out on potential opportunities.
There’s a commercial thing going on right now that we need to pay attention to, but we’re here to talk about wholesaling real estate. Wholesaling real estate is the process of finding deeply discounted properties. It’s an art and a science, and it requires a lot of work and effort to be successful.
In a market crisis, wholesaling real estate can be a great opportunity. You can find distressed properties that are selling for much less than their market value, and you can make a profit by selling them to investors or rehabbers. It’s important to be patient and persistent, and to build relationships with buyers and sellers who can help you find deals.
Overall, the key to success in a market crisis is to stay focused and stay on the lookout for opportunities. Wholesaling real estate can be a great way to take advantage of the crisis and build your wealth, but it requires hard work, dedication, and a willingness to learn and adapt. With the right mindset and the right strategies, you can succeed in any market condition.
In times of recession, opportunities to find deeply discounted properties are presented. However, the key is not just the properties themselves but finding motivated sellers. It’s important to look for distressed sellers who have a desperate need to get rid of their property, even if the property itself doesn’t look distressed on the surface. By bringing value to the person who controls or owns the property, we potentially have a lead.
To find these leads, we go through five phases.
The first phase is data, where we need access to hundreds of millions of data, which can be obtained from websites like www.EmpireBIGData.com
However, we need to convert this data into contact and market outreach, which is all about learning how to market and manage resources for outreach campaigns to potential motivated sellers. The next phase is leads, where we need to turn contacts into leads, which means they have expressed interest in selling their property.
The third phase is prospects, where we need to qualify leads to see if they meet our criteria. We need to make sure that they are motivated sellers and that the property meets our requirements for a profitable deal. The fourth phase is deals, where we need to negotiate and close the deal with the motivated seller. We need to be able to present a win-win situation where both parties benefit.
The final phase is exit strategies, where we need to have a plan on how to exit the deal. We can choose to flip the property, assign the contract, or hold the property as a rental. It’s important to have multiple exit strategies to minimize risks and maximize profits.
In summary, wholesaling real estate is all about finding deeply discounted properties from motivated sellers. To do this, we need to go through five phases: data, contact, leads, prospects, deals, and exit strategies. By mastering each of these phases, we can become successful real estate wholesalers and create value for both ourselves and the motivated sellers.
In a recession, opportunities for deeply discounted properties may arise, but it’s important to focus on motivated sellers rather than just distressed properties. To find motivated sellers, one can search for properties in the closest inner city, but it’s crucial to engage with those who have a desperate need to sell. The goal is to bring value to the person controlling or owning the property, rather than just the property itself. The process involves five phases: data, contact, lead, contract, and deal. Learning how to market, manage, and optimize outreach resources is crucial in converting data to contact and ultimately a contract. Once a contract is obtained, it can be turned into a deal, which is the ultimate goal.
In order to succeed, it’s necessary to learn how to go through the four phases from data to contract. Once a contract is obtained, it gives equitable interest in the property that can be flipped for profits through wholesaling. The focus is on converting contracts to deals, and those who are able to obtain contracts can potentially earn thousands of dollars. However, contracts need to be good deals and require proper training to recognize this. A full course is available on the homepage of the channel for those interested in learning the process.
Prop Stream is still used for finding properties, and it can be accessed through Empire bigdata.com. It’s important to focus on articles with insights that can be learned from, such as an article on New York that may be discussed in the video. Overall, the key to success is finding motivated sellers and learning how to go through the process of converting data to a contract, then ultimately to a deal.
Yesterday, there was a post discussing how default risk is growing on $1.5 trillion in commercial real estate debts. This may not seem relevant to residential real estate, but all sectors of the market are exposed to each other, and the degree of exposure is what matters. In 2008, the overexposure of the rest of the market to subprime loans caused a global market crash. Therefore, it is important to pay attention to negative changes in commercial real estate, as it can provide leverage and negotiation power, as well as inform necessary pivots for investors with assets in real estate.
The risk of defaults in the commercial real estate market is increasing due to the potential for a 40% drop in office and retail property valuations. This would result in 40% of value being wiped out, which is significant.
In the world of real estate investing, it’s important to keep a close eye on different sectors of the market as they are all interconnected. A crisis in one area can have ripple effects on the entire market. This is why the recent news that the risk of defaults in the commercial real estate market is growing is concerning. Analysts are predicting that office and retail property valuations could drop by as much as 40 percent, which could have serious consequences for the entire market.
For wholesalers, who specialize in finding good deals and locking them in, this news is particularly important. The lower you are able to negotiate a deal, the better off you will be. If commercial real estate values are about to drop by 40 percent, this will have a significant impact on market values in general. While we don’t yet know exactly how much this will affect comparables and sales prices, it’s important to keep a close eye on the market and adjust accordingly.
According to recent reports, nearly 1.5 trillion dollars in commercial real estate debts are at risk of default, which is a worrying sign for investors. It’s important to pay attention to the exposure of different sectors of the market to these potential defaults in order to make informed decisions about buying, selling, and negotiating. By staying informed and aware of market trends, investors can leverage this knowledge to make the best possible decisions for their portfolios.
In recent news, the risk of defaults in the commercial real estate market is growing as office and retail property valuations could drop by as much as 40 percent. This is a concerning development as it could impact the value of the market and affect market values in general. Morgan Stanley analysts warn that nearly 1.5 trillion in debt is due for repayment by the end of 2025, and recent banking failures are further complicating matters. Small and regional banks are struggling with the debts on their books, which may restrict opportunities for investors and cash buyers to access cash.
As a result, front-loaded refinancing risks are front and center for commercial property owners. Debt will keep piling on beyond 2025, and commercial real estate properties must pay off debt maturities that will peak at 550 billion in 2027. Banks hold as much as 70 percent of commercial real estate loans that mature over the next five years. The fear is that they may not be able to pay back, leading to defaults.
Furthermore, the value of commercial real estate is plummeting due to remote work, with everyone working from home. However, this news provides an opportunity for wholesalers to find good deals, lock them in, and negotiate lower prices. Investors with assets in real estate can also learn how to pivot and adjust to these changing circumstances. It is crucial to pay attention to what is happening in the marketplace to understand why there are fewer sales or lower sales prices. By doing so, investors can gain leverage and negotiate better deals. As we continue to unpack this news, we will discover more about how it will impact the commercial real estate market.
In recent news, it has been reported that nearly 1.5 trillion dollars in debt is due for repayment by the end of 2025, with banking failures complicating matters even further. Small and regional banks are struggling with regards to the debts on their books and paying back or getting borrowers to pay back, which may restrict opportunities for investors and cash buyers to have access to cash. The majority of wall here is front-loaded, which means associated risks are also front-loaded, and refinancing risks are front and center for commercial property owners. Analysts at Morgan Stanley estimate that banks hold as much as 70% of commercial real estate loans that mature over the next five years.
Remote work has also been impacting commercial real estate values, with Green Street reporting a 15% fall in March 2021 in the U.S. due to the lower valuation exuberated by continued hybrid work. Many people are now working from home due to the pandemic, with remote work being introduced as a necessity, and persisting in large parts of the country. This has led to a lot less cubicles being used, and commercial real estate values being affected as a result.
Remote Work and its Impact on Commercial Real Estate
Back in 2005, working from home was not as common as it is today. People in the tech industry, such as scientists, engineers, and even medical professionals, were not working from home as they are today. However, remote work became a necessity during the pandemic and persists in many parts of the country. As a result, commercial real estate values fell by 15% in March in the US, and the trend seems to continue.
Many companies have adopted a hybrid work model, where employees go to the office three days a week and work from home for the remaining two days. Consequently, commercial real estate properties, such as office buildings, have a lot of empty cubicles, with a whole floor in the middle of Manhattan being empty. This trend is expected to continue, and it raises concerns about the future of commercial real estate.
The impact of remote work on commercial real estate is also evident in the reduced demand for office buildings. As companies transition to remote work, they require less office space, and some may even eliminate their physical offices altogether. This trend is a cause for concern among commercial real estate investors and developers.
The reduced demand for office buildings is not the only impact of remote work on commercial real estate. The trend also affects the value of these properties. As more companies transition to remote work, the value of office buildings is expected to drop further. This trend may persist even after the pandemic is over, as many companies have realized the benefits of remote work, such as reduced overhead costs.
In conclusion, remote work has had a significant impact on commercial real estate, and the trend is expected to continue. The reduced demand for office buildings and the drop in their value are causing concern among commercial real estate investors and developers. It remains to be seen how this trend will affect the future of commercial real estate.
In this article, the author discusses the impact of remote work on commercial real estate. The author mentions visiting a client’s building on 42nd street in Manhattan where entire floors were empty, raising questions about the future of commercial real estate. The author also receives a question about wholesaling real estate and offers advice on how to find great deals.
The author explains that while apartment complexes fall under residential properties, for lending purposes, banks categorize them as commercial properties because they are designed to make money for investors. The author clarifies that in this context, commercial buildings such as office buildings are being discussed.
The author receives a question from a viewer who has a buyer willing to pay only $20,000 for a property listed for $200,000 with $175,000 in needed repairs. The author advises against working with listed properties and instead recommends finding great deals that are 65% or below the present market value. The author encourages viewers to attend their master class for more training on wholesaling.
In summary, the article highlights the impact of remote work on commercial real estate and offers advice on wholesaling real estate deals. The author emphasizes the importance of finding great deals and avoiding listed properties in wholesaling.
If you are new to real estate investing and have questions, it is important to seek out proper training before jumping into deals. The internet can be a great resource for free training courses and books to get started. One question that came in to a real estate investing master class was about a buyer who wanted to purchase a property for $20,000, even though it was listed at $200,000 and needed $175,000 in repairs. The instructor advised against pursuing deals like this, as they are not usually profitable. Instead, he suggested looking for properties with great deals that are signed up for 65% or less of the present market value.
Commercial buildings, such as office buildings, are often treated as a separate category from residential properties when it comes to lending purposes. Banks may categorize apartment complexes as residential, but they will consider them commercial if they are designed to generate revenue for investors rather than serving as primary residences for the owner. While the specifics of how banks categorize properties may vary, it is important to understand the distinction between residential and commercial real estate when seeking financing.
If you come across a property that is listed for $200,000 but needs $175,000 in repairs, it is not a good deal. As a wholesaler, it is important to find properties with great deals that are signed up for 65% or less of the present market value. Avoiding houses that are listed on the market is typically best, as they are often not profitable. Instead, submit contracts to investors for evaluation or consider partnering with a deal disposition partner. Seek out proper training before getting started to avoid making costly mistakes.