I Don’t Think The Real Estate Market Will Crash

“It’s doomsday and the sky is falling,” and “Run for the hills,” are sayings that are foremost in the minds of the daily news cycle.  

The adage, knowledge is power, is true but requires an additional step to manifest expected result. 

Applied knowledge is power.

As a real estate investor, you must understand the history surrounding the Armageddon drive comments. By doing so, you’ll be able to comprehend what to do in this present economy.

So What Happened When the Market Crashed Previously?

Glenn Schworm, the founder of Home Flipping Workshop, explains the nature of the market crash of 2008-2009 in his video curtly, I Don’t Think The Real Estate Market Will Crash.

Understanding this particular market crash is vital to putting the present real estate market in proper perspective.

The 2008-2009 Real Estate Market Crash was not a national phenomenon. It was pretty centralized into three real estate markets:

1. California
2. New York
3. Florida

Homeowners in these markets were compromised because of the high cost of living.  The cost of housing in these markets was far above the national average. 

Homeowners found themselves paying interest payments on homes decreasing in value because of poorly written mortgages. 

These mortgages were unsustainable because those granted them could not afford the purchased real estate.  

Thus, foreclosures skyrocketed, markets crashed, and housing values plummeted.

As a result, this is the history behind the present doom’s day messaging so commonly uttered by supposed experts on major news outlets.

With the proper perspective, you can now see this was a very centralized crash. It did not ravage the entire country. It only damaged a small portion of the country.

And what’s the result more than ten years later? Even in these hard-hit markets, real estate is wholly restored, and present-day values are even higher.

A Crystal Ball for This Market

As you shift from listening to experts to becoming one in your area, you do not have a crystal ball for your market.  

I wish we did, but we don’t. 

So, we must operate on what we know and see happening in our local markets. Seriously regard the following:

  • How's the labor market in your area? Is it growing? Shrinking? Stable?
  • What's the median per capita income in your area?
  • Are residents sustaining well in the inflationary market, or have purchasing habits changed?
  • If purchasing patterns have changed, in what way? Understanding this will reveal to you the consumer's mind in your area and help you navigate the market better.
  • It is essential that you remember that 21st-century Americans regard housing as more important than food. People do not want to be homeless.

    Therefore, you should operate as an essential business. What you offer is wanted and needed.

    Do not stop investing, but certainly know how and where to invest.

    What's Next For Those New To Real Estate Investing?

    The real estate investors who navigate this changing market will be the next upcoming millionaires, because the market will spike.

    These investors will possess portfolios and off-market contracts that offer huge margins, but it begins with you knowing what to do.

    Join Glenn and Amber Schworm, founders of Home Flipping Workshop, at their upcoming training and learn how to prosper now and always.

    The Top Real Estate Transactions in 2022

    There are a variety of real estate transactions available to an investor. 

    Most people only know about the retail transaction, buying a home that an agent lists. 

    Real estate investors do not buy retail; they buy off-market at a deep discount. Here are the most popular real estate investment transactions:

    1. Assignment of Contract: Contract home and assign the contract to another investor for a fee, often between $2k and $10k, depending upon the house and the potential profit margin.
    2. Wholesale: Contract a home at a deep discount, close on the house, and then sell the home to another investor.
    3. Subject To: Uses the current homeowners are financing while repairing the home or wholesaling it to another investor.
    4. Flipping: Purchase a home in disrepair at a deep discount, make the necessary repairs and upgrades, then place the house on the market to sell.
    5. Short Term Rentals: Finding a home, townhome, or condo ideal for use as an Airbnb or VRBO.
    6. Long Term Rentals: Finding a home, townhome, or condo as a rental property for a single person or family to use as a primary residence.
    7. Land Deals: Finding a lot or acreage ideal for improvement, farming, or ranching.

    These real estate investment transactions are most popular throughout the entire nation. 

    Some may be more lucrative in certain regions. Nonetheless, these are profitable transactions. The difference is knowing what to do, when, and how to do it.  

    Glenn and Amber Schworm are helping countless real estate investors accelerate their businesses in this regard.

    What’s Next?

    Becoming a real estate investor takes time and patience. The market is vast—the situations of homeowners are as diverse as America. 

    You must be knowledgeable, but you must also be wise.  

    Glenn and Amber Schworm, founders of the Home Flipping Workshop, have been real estate investors for many years. 

    They love what they do and are thrilled about teaching more students how to become savvy real estate investors with trade secrets. 

    If you want to determine if real estate investing is for you, join Glenn and Amber at the next virtual Home Flipping Workshop Training. 

    Register and reserve your spot today.