Real Estate Investing 2024 How To Win The Market Correction

Okay, you're good. Hey everybody, this is Toby over at Global Integrity. Today we have Chad and Praises here with Global Integrity Finance, and today we're going to talk about what they're doing at Global, how the market is moving, and all the new things they got coming on for 2024. So we're going to start this thing right off, get started with them. As introductions, Chad, you start. Tell us about who you are, what you do, and why you do it.

I'm Chad. I've been in and around this industry going on about 12, 13 years now. I have recently joined Toby's team in the hard money space, and we're giving away money to make dreams come true.

Absolutely, that's great. I love that. I wonder who came up with that line. Go ahead, Praises, you're up.

Hi, I'm Praises. I've been in the industry for about 4+ years now, and I'm also working here alongside Toby and Chad and the rest of the team as a loan officer, and I'm looking to ensure profitability and success success for my clientele.

Outstanding. Outstanding. So as you both know, you're both senior loan officers or senior account executives here at Global. You've seen a lot of the disruption that's going on with 2022, 2023 now. Um, how is that, uh, how has that resonated throughout the year, Chad?

Well, I think that, uh, we're starting to see the market kind of equalize a little bit, and it could you know, this time of year could be potentially seasonality. But I think that the people that are true investors that are savvy are continuing to want to acquire properties regardless of the higher interest rates right now, uh, because they have full intent to just refinance that into a long-term rental loan, uh, whenever the market does equalize. So I mean, there was a lot of volatility in 2022 into the beginning of 2023. But I think for the last 5-6 months, we've seen it be pretty consistent, especially with— out of the interest rates have not been spiking that much. We're not seeing as many frequent updates to or increases in rates. So that's, that's good. It makes it a little bit more of an appealing environment for investors to continue to operate.

Okay, Fraser, you got anything to add to that?

Yeah, much like what Chad stated, in my opinion we are seeing a market correction. Housing prices are coming down a bit, which is great for real estate investors wanting to get into the space because they're always looking to get more bang for their buck. And basically, I'm excited to see how I can add value to that particular clientele, to investors, in order to help ensure their profitability and success like I stated before. A lot of exciting changes coming this 2024 year.

Well, let's talk about that. So what is up and coming 2024? How do you see all this disruption, all this noise playing out next year, which is also an election year? So how do you see that playing out?

Well, uh, the Fed is expected to cut interest rates, uh, several times in the coming year. So with that would result— naturally, that would result in an increased demand real estate. So that should be good for us and also for real estate investors as a whole.

What about— so if the Fed's bringing down interest rates, but we know that also property valuations are coming down. So how's that going to play out for an investor who's looking to get in, back into it, and really take advantage of it?

Yeah, so obviously with the reduction in interest rates, that means that it'll be a lot better— our lending options that we typically provide will be more appealing to real estate investors. And since housing prices are going to come down, that also is going to make the deal sweeter for any savvy investor, whether it's going to be a fix and flip or a long-term rental deal.

So they get the best of both worlds. They got property valuations coming down, so they're buying them more affordable, and they're getting a lower interest rate so that, uh, cost, that leverage, is, is more economically feasible.

Exactly.

Chad, what do you think?

Yeah, no, I agree wholeheartedly with that. And also, to add to that, it's going to provide an opportunity for the investors that haven't necessarily been able to scale up their operation to the level that they want it because the values have been high or their interest rates were a little bit too high. So you may see an investors that typically were only going to buy one every quarter or one a year that are now going to start buying 2 to 3 a year, maybe one every quarter, and have the ability to do that more affordably.

Outstanding, outstanding. Now you said that you've been in the industry for how long?

I've been in the mortgage industry and lending for about 12 years.

So what prompted you? How old are you? You're what? Uh, late 20s? 36. 36. So 36. So what prompted you to get into real estate lending?

Well, I just have always been in and around it. My parents, from a young age, they did spec homes just on the side. They own 20 rent houses up in Oklahoma where they live, and, you know, I've always been in different sides of that process, from helping build the actual house to watching it being marketed. So I've just always had an interest in that, and then I've been in every single part of the mortgage industry that you can imagine for from start to finish collections to real estate, but the majority of my time has been spent in real estate because I love that each individual situation is unique. Each individual deal has its own story, and whether or not it's a— it could be a single-family residence or a 50, 60-unit multifamily residence, you're going to deal with a totally different unique scenario each and every time.

Every time. Every time. So you're second generation real estate?

Yes.

Right? Outstanding. Praises. Tell me about your history and what made you want to jump into the frying pan with us.

Yeah, so essentially, as I said before, I've been in the industry for about 4+ years, and what really got me into it was the overall demand for purchasing homes and real estate. Many people are very motivated to acquire this particular asset, and I started off as a credit specialist, then as a business loan officer, and then I worked around commercial real estate, so to speak, before making the full transition into residential lending and now back basically into commercial lending as an account manager/loan officer for real estate investors. So when it comes to the topic of real estate, it's one of the most reliable assets you can ever come across. Many people, even people who almost know nothing about finance, believe it to be true. I think it's going to be an industry that will last for a very, very long time.

I think you're right. I think that many, many gurus have said that even Warren Buffett said that, you know, wealth is built through real estate. The most wealthiest people in the world own real estate. They've acquired their generational wealth through real estate, not the stock market, not through gold or precious metals, but through real estate. And so I agree, and I think that every person that we come in contact with, every person that's watching this today, understands that there is value in real estate even during turbulent times. Now we go back into 2008 when the market crashed. Were you guys even around then? I mean, you guys both still— I think I was 12 or so.

12, yeah.

So, but anyway, I was only 13, but I heard about— I read about it in the history book. But, you know, in 2008, we had the real estate mortgage crash, which was a financial crash in the United States. But we You know, recognize and realize from that, it only took about a year and a half to 2 years for that to bounce back. Even as devastating as it was, as impactful as it was, and as the foreclosures were astronomical. But the real estate industry in itself rebounded immediately. COVID happens 3 years ago, and we're all into this turbulent times of what do we do now? You've got consumer goods that are restricted. You've got People that can't go to work, they're now, you know, working from remote, from home. And so all that too. But again, 2021 was a great rebound. And now we have the interest rate hike that is really a disruption only to those who got into real estate in 2019 and 2020 and got free money. Because when we started in 2015, 2018, this was the norm. But you're seeing that stabilize. And so I agree with both of you. That real estate is a great investment. It is a long-term investment and generational wealth is created from that. So, Chad, let me ask you, you got 2024 coming up. What, you know, what are your goals? What are you looking to do for 2024 and how do you plan on implementing that?

So for 2024, I would like to continue to grow my personal lending book of business through the company. I think that we've got a lot of amazing programs, updates that are coming along, and I think that once things do continue to equalize, we're going to see that open up a little bit more to where we can offer further options, maybe better, more appealing structured loans, or the parameters of them can be wide open essentially for people to expand their book of business. Business. And especially throughout the end of the year going into 2024, everybody's got a plan. Yeah, what they want to accomplish in 2024. I'd like to focus on some more multifamily stuff. I think that there's a big opportunity in the market for multifamily investing because there is a housing shortage in the United It makes more sense for people to alleviate that problem through multifamily, through multifamily real estate.

Conversions and the development and new ground-up construction.

Absolutely. Ground-up construction, even mixed-use projects. I see a lot more people interested in trying to bite off some mixed-use, add that to their portfolio, into their wheelhouse. And you've seen a lot more stuff around the nation depending on the market. Certain markets tend to be a little bit more appealing for multifamily investing. I'd like to try to focus a little bit more on the Texas market. I think that there's a lot of potential here that I personally have not been able to tap into yet. Okay. So that's, that's one of my main goals. Multifamily in Texas.

Outstanding. Praises. Where are you going for 2024?

Yeah, similar to what Chad said, I would also like to expand my network, and I'll do that with a particular focus. I think I'll start doing that now in the 2024 year, and also now in the present, I'd like to focus more on realtors as well because they tend to want to dabble in real estate investing. And then on top of that, I'd like to to try to get my name out there and inform people about the creative financing options that we offer for would-be investors who don't really know what to expect from lenders like us. Because whenever they think about mortgages and the whole application to closing process for mortgage loans, they think about all the red tape, and we really cut all of that out.

Right, right.

By helping people to understand that it's not as difficult as you think it might be. Of course, we're going to do our due diligence to make sure that you have what it takes in terms of, you know, experience. We'll do the rest.

Outstanding, outstanding. Well, gentlemen, I want to thank you so much for taking this time to come and talk to us today and kind of get your message out there. Um, that's about it.

All right, thank you.

Sit down. Hey Nick!