Ep 295 - State of the Market: What are Smart Buyers Doing in Today's Market?

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

Podcast, which is called Freedom through Passive Income.

That's right. And welcome to another episode and this episode is called State of the Market. What are smart buyers doing in today's market?

Yeah, I love this one because so many things are changing. So I'm going to start off with be greedy when others are fearful, fearful when others are greedy. That's that Buffet guy. That is that Buffett guy. And he's pretty smart.

Yeah, he is. You know, he holds his own.

Yeah. So we are aggressively getting ready for 2023. We see what the market's doing, we see investors getting fearful, and we are going to position ourselves to take advantage of the opportunities that arise. And this is what smart buyers do in a market like this. Smart buyers also will use creative strategies because sellers, some of them still think we're in the same market that we were, what, two years ago? No, four months ago. Even four months ago, where the buyers are like offering over asking price and putting like contingencies that will automatically raise their bid if they're. Another offer comes in, they're waiving inspection periods, they're putting down earnest money. That's hard. Meaning it's non refundable. It's not that market anymore and it hasn't been for a few months. Sellers are just starting to figure that out. They're going, okay, it has been sitting a while. All right, so they're now starting to look at other offers. Not all of them, they're not all realistic yet. But in a market like we're in, where you're trying to position yourself to make sure that you are doing the best job you can for yourself, for any investors that are coming along with you, for any partners that are partnering with you, you would be smart. I'm trying to figure out how I want to phrase this to make multiple offers. The reason that you're going to do that is because we go plaster cash offers everywhere. Right. And our cash offers are going to be lower than any seller is likely going to want to take. Un are credibly motivated. So what we do is we give multiple offers. Now depends on it's a single family or a multifamily type of property as to what offers that we make. But let me give you an example. Obviously we've got six companies, so our turnkey company and our acquisitions company actually is going to make different offers than our commercial company is going to. But there's some similarities in There. And the similarity is creative financing. That's the first similarity is we're going to make a cash offer and then we're going to make a creative financing offer. And a creative financing offer is some type of owner financing. Right. And it could. There could be an underlying loan. There could not be an underlying loan. That piece really doesn't matter because you can do creative financing either way. How does creative financing help you? It allows you to pay a little bit more, and that would put the seller in a position where they might be interested in taking your offer over somebody else who doesn't know how to make multiple offers scenarios. So you got a cash offer, you got to create a financing offer. Then if you're in the single family market, we've been known to make lease offers. Just say, hey, we'll lease your house, we'll do a land contract on your house, and all we're going to do is we're gonna wrap it essentially, and we're just gonna tell the seller, hey, we'll be responsible for it. We're ultimately gonna lease it to somebody else. We're not planning to live there. We're just trying to find a solution that's win for you and a solution that's win for us. And so we'll walk through that scenario. Then if it's a single family residence, we might say, hey, if you don't like any of these three offers, maybe we'll list it for you. Because we're realtors too. We've got a bro. So here's how you possibly could get this. But here's the things that you're going to deal with if you're going to do that. And what happens when you become a smart buyer like this is you position yourself to the seller as somebody who's knowledgeable, understands the market, and is truly out there to give the seller a win of some kind. Because you're saying, seller, what do you need? I'm happy to give you different offers as long as they're a win for me and they're a win for you. Let's choose the one that's best, that makes sure that you don't overpay for something and you don't put yourself in a position where you're trying trying so hard to get a deal that you put yourself in a bad position for you, your partners, your investors. So it's something that we're doing right now, and we're very, very excited about the conversations that we're starting to have, the relationships that we're Starting to build with sellers and brokers. And it's just one of those things that you have to be in real estate long enough that you've experienced up and down markets that you understand what to do when you're in a position like this. And the last thing that you want to do is say, oh, I'm just going to keep my money in my bank account, because I really don't know what's going to happen, because there's a lot of wealth that's going to be created in the next few years for the people that know how to take advantage of a market like this. So if you want to learn more, if you want to align yourselves with people like us, then reach out to us. We would love to help you, partner with you, have you invest in our projects. That's the whole thing for you and I, right? We just want to take people along for the ride.

That's right.

Because it's fun.

Well, it's funny, we did like a week or two ago, we did the back in time, right?

Yes. Yep.

10 years ago. What were we doing? We were offering every single seller five options on their property. This is the same exact thing we were doing. Because guess what? That was right after the 2008 crapola, you know, and, and, and again, you know, the, the whole Buffett line. That's where we first heard it.

Yes.

You know, and was. It was in 2008. Right.

We aligned ourselves with investors who knew how to do it, and we learned from them. And that's what you guys have to do.

Yep. And now it's funny, people are like, do you know how to do, you know, any seller financing? We're like, do I know how to do that?

Come on. We've been doing that for years, since we were babies. Babies in real estate, maybe.

Yeah, yeah. There you go. There you go. Well, that's awesome.

Yeah. Yeah. Super exciting. So I guess our encouragement to you is just align yourselves with people who understands the ups and downs in the market and how you shift and adapt depending on the market in order to make sure you're always positioning yourselves with the lowest amount of risk possible. Because that's really the name of the game when you're in real estate and you are surrounding yourself with other people that want to do it together.

And this is also about the same time where people are going to come out of the woodwork saying that everything that we're doing is illegal.

Oh, yeah, yeah, yeah.

So, yeah. It's not just letting you know how.

Many attorneys we have. I Cannot even count. I actually do think it's like five. We have, like, we have so many attorneys. Completely and totally legal. We've been doing it for a very long time. And hey, if we just want to get real transparent, we've actually been sued three times and won all three times.

Here we go again.

And we didn't get sued for doing anything wrong. It was just a different situation. And they said, hey, I'm going to sue Flip and Danny. They seem to be doing well. They seem to have some money. And I don't like what I did anymore. Even though we perfectly explained it, we perfectly signed it, it's clear as bell we would never. We're not. We're just not that type of people. And, you know, fortunately, we always cross our t's dot our I's. Is that what you say?

Sort of. But you nailed it on the head. I don't like what I did anymore. So we're gonna sue them.

Yeah.

Yeah, that's exactly all three.

It's a suit. The line is you haven't been in real estate long enough until you've been sued. So align yourself with people who have already been around that circle, have already won those fights, experienced the down markets. We know what we're doing. That's the type of people that you want to find. And it's a fun ride when you've got the experience. And the only reason we got where we are today is because we found other people with the experience and we learned from them. So.

That's right.

We hope to help everyone on this next few years, the journey. It's going to be fun.

That's right. Well, we hope you enjoyed this episode. Make sure you're heading on over to our website, freedomcapitalinvestments.com to join the investor club. We keep saying this. It's very important about joining the investor club because of all the things that are coming down the pike.

Yeah.

So make sure you join the investor club. Make sure you check out the website. Make sure you check us out on all the social media platforms, the Facebookers and LinkedInners and whatever.

Yeah, we have a deal coming up, by the way. You can't see it unless you're in the investor club.

Gotta be in the investor club. But we like to end all of.

Our episodes with Invest Smart.

Live happy. Bye 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 the show are not guaranteed. All investment strategies have the potential for profit and loss.