The Expert Podcast

…So how can you tell if it's still a good time to buy real estate or if it's overpriced or if there's going to be a crash ? Well, you probably don't have the time to do full research and analysis of financial markets, but other people do And here's a perfect example There's a large real estate platform that is backed by Amazon and backed by Jeff Bezos. Called arrived homes. As of this month and this is currently being recorded in July of 2022. That company is out. there on a buying spree. For single family homes. They're in 19 of the top 100 cities. And they're buying up homes as fast as they can And what they're going to do is they're going to rent these homes out. So if you are currently renting. house or an apartment. And you're looking to buy a home. You may have to bid against somebody. A company that's going to buy up that house and then rent it back to the market Maybe to you. So. This is a good example of where you can ride on the coattails. Of large hedge funds or large. money management companies. Obviously this company believes that it's worth buying as many houses as they can right now. So if you agree with them, Then this might not be a bad time to buy. Sure prices are up. Interest rates have gone up a little bit They just backed down. Back down around five again…It doesn't change the fact that the prices are much higher than they were. But the smart money or the big money like this hedge fund is believing. That it's not going to crash because if they thought it was going to crash, they wouldn't be on a buying spree. So it's one way to kind of use. Smart analysis beyond your own gut sense your own gut instinct. About real estate. Because…what information do you have Just the the prices went up. Well prices have gone up before. And never come down Sometimes they went up and they crashed…Just because. they went up before and crashed doesn't mean that's going to happen now It might…But you won't have the same resources. Of researching the market. You know this company arrived home Like any other…large investment company will spend. Hundreds or thousands of man hours of research, they'll have dozens of analysts. Tracking numbers trends data. Every possible piece of information they can to make valid decisions about where they're putting their billions of dollars. You'll never going to be able to come up with a better analysis of the market than they will no matter how much time you spent if you dropped everything and made it your full-time job. They will still have the upper hand. So why not just ride on their coattails ? There aren't any big companies right now that are dumping properties. Or hedging properties. Right. So it. Implies that the big money. Believes real estate is at least not going to go down. And maybe we'll go up. They also believe that the rental market is going go up because these investors…Are banking on the fact that rents are going to go up So if you're currently renting. Bank on the fact that your rent will probably go up in the coming years. We're at whereas if you buy a house. And have a mortgage Your mortgage has kind of stayed the same. Your mortgage payment is fixed. Again, one. Perspective one. Data point in the decision making process of, is it a good time to buy single family homes or is the market kind of crash This gives you at least one perspective. From the standpoint of a well-funded financial institution.