Ep 110 - It's The WORST Time To Get Started In Real Estate!

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.

Podcast called Freedom through Passive Income.

And this episode, I love this because I just, I just read the title of this right before we started and it just popped right in my head. It's the worst time to get started in real estate. Right?

No, that is hilarious.

Thank you. Thank you very much. Yeah, so when I. Because I'm like, it's the best time anyway, so. But it's the worst time to get started in real estate.

That is. Right. And that sounds weird.

Yeah.

Right?

Yeah.

Ms. Doom and Gloom, because we're still investing. And so this is really tied to newer investors who are jumping into this right now, learning all they can, listening to these podcasts, wanting to do a flip. They love real estate. They hear it's 90% of millionaires. Real estate is part of their portfolio, a large part of their portfolio, many times. And so they know that this is their game, but they're landing there right now. This is when they're ready. That's the title of this episode and who it applies to. Because right now, competition is fierce.

Yes.

Also, interest rates are rising. We're in a heavy inflationary environment. 1031 Exchange Capital is searching and clamoring for deals, some of which they just want write offs, so they don't care what they pay. That goes back to competition is fierce. So if you don't have the experience and knowledge of real estate and you're getting into it now, you're gonna make a lot of mistakes and, and overpay for something. Because you see other investors going in and grabbing these deals and you don't understand why they're grabbing the deals, what their business plan is, what their strategy is. And they could very well be overpaying with intention.

Yes.

They know they're overpaying. They're doing it intentionally for a reason. So what do you do in a market like this where you shouldn't be diving in even as much as you've studied? And as excited as you might be, you shouldn't be diving in on your own. What you want to do is find people like us. And it doesn't have to be us. We want it to be us. That's a halo.

I can't lift my arms that high. Sorry.

He's got workout body. He can't move anything. I've started off slower. He's just gone gangbusters. And so. Hi, babe.

Yeah, I'm just gonna stay right here.

Yeah, so anyways, you want to find a team that's experienced and you want to partner with them because they're going to know how to navigate it. Now just don't look for experience. Find experience in markets like this. Right. If you haven't been investing for let's just say 12, 15ish years, then you haven't seen even the market of 2008. This isn't 2008 at all. No, it's completely different. But you want people that have ridden. Is that the right word?

Road.

Road, yeah. Have been through, have been through market cycles and really understand or can tap into a network of people that say, hey, this, this is what happened here. Back in. I was in real estate, this is what I did. And as a collaborative, you all kind of navigate what you're doing and how you're buying. So here's a perfect example. So we're buying this Fourier unit closing the end of April, unless the third party vendors delay us in any way, which we hope they don't. But there it was, a multi offer situation. And the seller was very open and honest with us that it was. He didn't disclose what the other offers were, but he said that they were higher than ours. So we did bump it up a little bit, but there was a point where we said, this is as high as we're going to go, we're not going to go any higher. And we started negotiating back and forth, just creative ideas to make it a win. Because he's looking at a higher offer of other sellers who likely had intention and purpose or they didn't know what they were doing of being willing to pay higher than we were willing to pay. But he liked us. We had already done our due diligence. We were very organized. He knew that we weren't going to play any games, we were going to close. We already gave him the proof of funds, so he had a lot of confidence in us as opposed to these other people paying him more money. But he wasn't quite sure who are they? Are they going to be able to close?

Yeah, they were offering sight unseen.

Yeah, yeah. In fact though, one of the people who was offering, which just tickled me a little bit, was somebody who owned multiple properties on that street.

On the street? Oh yeah.

And they wanted to buy.

They wanted to own the street.

Yeah, they want to own the street. That sounds like us. Right? And so I said, okay, so this, this person, you know, already owns property here and they want to buy this and they're offering more than us. That just told us again that we're good. We're really good at our number. And we had already even just been like, well, I'm not going to pay any more than this. This is as much as I'm going to do, and it's still going to be a good deal for us. But you're not going to get me to his point. But he was probably a little more confident because he knows that area. He knows exactly the type of tenants that he's going to get because he's been managing it for years. So the point is, is that you want the experience that we have and the knowledge that we have and the network that we have to be navigating a market like we're in right now. And really, that's the only reason I'm not a doom and gloom person. Right.

No. And we always talk about, you know, when we got started in real estate, which was 2008, we said it was the worst time to get started in real estate. Actually, it was the best time because it goes back to that whole you can never tell good from bad thing that I want to do. But, you know, when we. We didn't do it ourselves, you know, we went and found a mentor and, you know, that knew how to do all this, you know, and everything we did, we learned from somebody else. You know, we didn't just, like, try to wing it and try to figure it out ourselves.

Yeah.

You know, we paid for a mentor and got, you know, and teamed up with other people and figured it out to get us. Get us running, you know, and so, you know, people were like, oh, it's the worst time ever. We had houses coming out of our ears. It was. It was crazy. So it wasn't the worst time, but we always say it was the worst time because that's funny.

Anyways. Yeah. I like what you say, you know, you never know good from bad.

That's right.

So if you want to be successful in this type of market, our best advice and the reason that we're recording this particular episode is just to say, align yourselves with people who have been doing it for a long time, who understand exactly where we're at in the market cycle. And quite frankly, you're going to learn so much more and not have to suffer the heartache of making a lot of mistakes by possibly overpaying or just doing something wrong in this current market cycle that we're in.

Yep. And make sure you network, go to those local REI events, you know, RE events, and everybody loves coffee, offer to buy somebody coffee. And if that doesn't work. Lunch. Everyone loves lunch. Well, except for her.

But anyway, this new nutrition plan is.

Forcing me to eat.

It's crazy. Okay, Sorry. Tangent.

Yeah. All done.

Yeah. All right.

Well, we like to keep these as short, as sweet as possible. Make sure if you're watching on YouTube, hit that subscribe button and make sure. Freedom Capital Investments. Make sure you head over to our website to join our investor club.

That's right.

But we also have our groups on Facebook and LinkedIn. So make sure you're out there chatting with the. With the gang. Ask. Ask any questions you got, you know, but let us know how we're doing. But we always like to end all.

Of our episodes with Invest Smart.

Live Happy.

Bye, everybody.

Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss, y'.

All. Sam.