Real Estate Farming for Profits? - Dean Graziosi Weekly Wisdom

Hey, everybody. Dean Graziosi, welcome to this week's Real Estate Weekly. Wisdom. You know, just in the last couple days, I've used this analogy. I use really simple analogies all the time. I'm a pretty simple thinker. I wasn't. I didn't get here in real estate because I'm a brainiac or super intelligent. I just had a ton of desire, and I was lucky enough to stumble in real estate. So I like to keep things simple. So when I explain something even to myself internally, you know, when I'm having a crazy, busy time or trying to figure stuff out, I come up with these simple, simple analogies that just cleared up. And I really wanted to share it with you today because I think it will give you a level of inspiration to make sure you are in this game, kicking butt right now in history. So it's got to do with hay, corn, and apples. Now you're saying to yourself, he's lost it. He finally went over the deep end. He went too far. He's not coming back. Let me tell you how this equates to real estate investing in this time in history. Hay is something that a farmer can plant three or four times in a year. So it's a pretty quick crop, right? So quick cash. So let's just say hay is quick cash. And we'll get to this in a minute. A deeper explanation in a minute. Corn is something you plant early in the spring and you harvest way late in the fall. Still got to plant. Still got to, you know, get to feel ready. Still got to go through the work. You just got to wait a little longer. But the crops can be big and you can make some more money. Apple trees, planting. I grew up upstate New York. There was apples everywhere. There's a lot of farmers everywhere. Apples are something. You plant trees and maybe three, four, five years before you harvest. But what you do is you can reap those rewards forever. So let's look at your real estate investing, like farming as you learn, as you become an investor. If you've never thought about it before, it's a whole new world. But so was having a baby. Maybe if you're a parent or getting married or a new job, anything new is a little scary if you're a farmer. Let's stick with that analogy. New and what do you have to do if you got raw land? You have to plow the field. You got to learn about it. You got to understand what seeds, how far apart, how wide are the rows, what tractor puts them in the ground. Do you have to water, do you have to irrigate? Do you have to put those big circle irrigation systems in? There's some work in planting the field. Your education in real estate, the time you're putting in is you planting seeds. And so when you think about that, when you're working hard and you're like, man, I'm putting all this in but I'm not getting anything. Yeah, because you planted the crops. It needs time to grow so you can harvest the rewards. And the rewards would be your profit. Start thinking about it that way. But now I want to take that analogy here and say, let's say hay is quick cash, right? Which to me is wholesaling, right? So corn would be fast cash, kind of the same as quick, right? It's quick, but it's quick is to me much quicker. Fast cash. Maybe you know, this you could do in what, 30 days? If you have it down, you know, in a minute I'll show you. You know, you guys can. If you don't have my book 30 days to real Estate Cash. But I'm holding this up only because that's why I named it this. It's about wholesaling, it's about understanding how to get great deals, right? But you could do this in 30 days corn. You know, let's say this is a fix and flip. Fix and flip. Can you do a fix and flip in 90 or 120 days? Of course you can. Let's just say 120 days. That's probably what the average is for us. Us is maybe 90. But let's say 120 takes a little longer to sell it. Now apples, to me, that's buy and hold, right? Because buy and hold is long term wealth, right? I kind of miss went backwards. Long term wealth, right? Because you're buying now, you're putting the time, energy, you're planting the crop, but it's not going to come in right away. But for years it spits out cash flow, cash on cash, tenants are paying down the mortgage, you're making money every month and all of a sudden you have the opportunity for appreciation down the road, don't you? Okay, so this is lifetime, this is life, right? So hey, corn and apples, pretty simple analogy. Now are there different times in history when one of these should be your exact strategy? Absolutely, absolutely. In 2006, when the market was at the absolute peak, what strategy should you been doing? In fact, what strategies? Let's turn it around. What should you have not been doing? Should you be fix and flip? Heck no. Because when the market is at, you know, when the days on market are three days. You don't want to fix and flip because everybody speculating it will continue to go up. And does it always continue to go up? No, there's always a time when a bubble happens. Right. Let's just say in 2006, a house here. Let's just. I use this example a lot. In Avondale. I'm in Scottsdale, Arizona. I bought and sold a lot of houses over on the west side of town. Those houses were ended up going 3,320k and they'd rent for $1,100 a month. That same house crashed all the way down 2010ish. That house went down to about 90k. These are real numbers. But guess what, it's still rented for $1,100 a month. Right. So if you're buying for life, you're buying apples. Where do you want to buy? Do you want to buy up here? No, that's not for long term. You want to buy down here and on the way up where we are right now. Right. So let's think about that. Can you use the. This. Is there always a great time to invest? Yes, but not the same strategies. So let me get back to this. So now on the way down, would you want to, would you want to fix and flip? No, because there's more supply than demand. So it's not always a great time to fix and flip. Okay, how about the buy and hold? Do you want to buy and hold down here? No, not really. Right. How about wholesaling? Absolutely. Wholesaling at the peak, hungry buyers everywhere. This is when the most people are in the market. This will be when the most people are in the market. Again, do you want to wholesale? Absolutely. Hungry buyers, you create deals they can't find using unfair advantages that you learn to through real estate education. You find deals they can't. You find the money, you match them up, make money in the middle. Here's my point. In history, all these different times can use a different strategy. But it's very rare that there's a time when all three are absolutely possible. I'm going to get another colored pen. Here, let me grab, let me grab a red marker here. When in history, can you do all three? Right now think about this. This is the market where it was. The market is going up. We can agree on that. It's going up everywhere you live. If you're in California, Vegas and Phoenix and Florida, it's going up faster than any place else. But it's Moving up. How exciting is that? So let's say, for example, we're here. Maybe some people are here, some are here, but let's just take on average, we're here. The market's shifting up. Is this a good time to plant hay for quick cash, for wholesaling? Absolutely. The market, more and more people, this is the amount of people coming in, the most of the market going to be in the market up here. More and more people are coming in, more and more cash is coming in. People need good deals. The average person doesn't know the marketing doesn't have the stamina. They just look for a cheap deal and they're all gobbled up. So if you could be a wholesaler right now, find the deals other people can't hand them off to cash buyer. Is now a good time to wholesale? Absolutely. Is now a good time for fix and flips? Oh my God. I just literally took a couple of our teams. We buy properties all around the country. Matt Larson literally sitting in the other room, good friend of mine and real estate student turned investor, kick ass guy. Kick ass investor. Brought him in. He's my partner on a lot of my real estate now. We just decided to turn half of our teams into fix and flip because there's so many people coming in, first time home buyers. It's an amazing time to make great margins because you could still get good deals by using unique marketing strategies. But they're selling fast. There's more demand than supply in most all areas. So is it a good time to fix and flip? Yes. So now we got this one and we got this one. Is it a good time to still buy for long term? Yes. Maybe not for long, but it still is. Because when you're here and we teach you how to buy below the market and you're basing it all on a cash on cash return, the deals are still out there to buy long term holds so you can get income. So think about this. We're in this unique spot where, where we have the opportunity to wholesale quick cash money in your pocket. 30, 60 days for just matching a buyer and seller. You start getting money, we teach you how to find private money and you go, you know what, I don't want to just wholesale this one. There's too much profit in it. I want to fix and flip this one and do a retail flip to a great family that needs it and I want to make a bigger margin. Boom. This is the time because it's exploding. But then you're doing that, you start making a little Money or you have a friend that says, hey, I see what you're doing. I want to invest some money. You go, you know what, I don't want to wholesale this one. I don't want to fix and flip this one. I want this one for long term wealth for my kids someday. Because the rent is great. It's a perfect area and I think I can get a byproduct here. What's a byproduct of a cash return? If you buy something way down here is the appreciation. So think about where we are. Guys. I don't know what strategy you want. I don't know if you want to plant hay, corn or apples or a combo of three of all three. But I know this. You got to jump in. Now is the time you can do this and I'm qualified to show you how. This is what I do week after week. I'm investing non stop. My team down here. We aren't some marketing team that figures out how to sell you a product. We are investors who love to share our strategies and show the world there's a whole nother level of real estate investing. I don't have any magic widgets that help people turn their computer into a cash machine, but I have real life education from people that are doing it. So I appreciate you watching today. I thought this is a really important message to just give you a snapshot to two quick things. If you don't have my book, 30 days to real Estate Cash, I'm running. I don't know how long I'm doing this, but I want everybody to have the opportunity to get in. All you have to do is go to deansfreebook.com that's deansfreebook.com you can have this book for free. No catch. I'm giving you this book. I'm a multiple New York Times best selling author and you can have my latest book for free. One last thing, if you're on deengraziosi.com right now, you could just click below. If not, if you're on itunes, it'd be great if you could leave me a message. This is my latest book but I'm always working on a new book and I am in the trenches getting my new book written. I'm only on chapter two because this book is still relevant. These are the strategies working right now. But I have an idea of where we're going and I want to beat everybody there. I'm not sure on the name so I'd really love your help. You guys named, I think my last book or the book before and I want help doing it again. Here are four names I came up with. Bounce Back because the market is bouncing. Back Shift because the market is shifting. Real Estate Harvest or Real Estate Farmer. Something along those lines. If you have an idea, you can leave me a message below or you could post it in the comments or reviews. But something along these lines of this whole concept of hay, corn and apples. Right? And then lastly, Real Estate Profit on the way up. I would love your feedback. These books are for you, my loyal students, and I'd love for you to help decide on the name. All right, everybody, I can't wait to talk to you next week. Got some great stuff happening. Oh, one last thing. Depending on when you see this, on Tuesday, January 14th, I'm doing a live presentation, a live cast right here in the studio with me and my top student, Matt Larson. We got some cool stuff to share. So if you get this message before then, you can after you get the book@deansfreebook.com or before, you can go to deengraziosi.com and my social community and I'll have all the details on how you can watch for free. Thanks, everybody. Talk to you next week.