Today is a great time to invest in real estate. This video walks through several of these reasons and will even give you a gentle nudge in the right direction.
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Why Now Is A Good Time To Invest In Real Estate
Joe: Hey, it’s Joe Crump. This video is titled “Why Now Is A Good Time To Invest In Real Estate.” We are in one of the most exciting times in history for real estate investing. And it’s only going to get better over the next year, two years, three years. So, the more you start building your base, the more you start understanding how this process works, the more you will be prepared for when the market crash comes. And it is coming. Right now, 7% of all mortgages have not been paid because of people losing their jobs. And that is increasing. They’re expecting it to go up to 255 to 30% that are going to go into default eventually.
Joe: Now, what’s happening right now, because of the legislation that’s out there trying to protect people from this pandemic, there’s some extensions on time that people have before foreclosures are going to be allowed. But foreclosures are going to be allowed at some point in the future. And it’s probably going to happen within the next year. And then after that year, they’re going to start the foreclosure process and it’s going to take six to eight months before a lot of these properties are foreclosed upon. And that’s when they’re going to start hitting the market. So, I think we’re probably eighteen months away before some amazing deals come on the market where you can buy properties like you could back in 2008, 2009, 2010, 2011 and 2012 for 30¢, 20¢ on the dollar.
Joe: And you want to be prepared to be able to buy properties that are in that, when you get to that time, you want to be prepared and be in that position to be able to buy those properties. Which means you need to develop some capital to do that. And you can get capital from different places when that time comes, maybe from your home equity line, maybe from your lender at work, or at the bank. But I think the best place to come up with that money is by doing flip deals using the For Rent Method or using one of the other Zero Down structure techniques that I teach so you can buy these properties.
Joe: Because what’s going to happen between now and that time is a lot of people are going to get into distress and know that they’re going to lose their property and they’re going to have some equity in their property, many of them are, and some of them aren’t. But they’re going to have mortgages that you can take over and you can protect them because you have the understanding and the ability to do that.
Joe: So, let’s say we’ve got somebody who knows they’re going to lose their property and they don’t want to trash their credit because maybe they work for the government, or maybe they work on the corporate fast track, or maybe they’re in the military and they don’t want a bad credit report because that’ll damage their opportunities for moving forward in their jobs and their careers. So, they’ve got to really keep their credit clean. But they can’t pay their mortgage anymore because they’ve got other problems that they’re dealing with so they’re looking for ways to get rid of that property.
Joe: But maybe they don’t have enough equity in that property to sell it. I think we’re going to see a lot of these coming up here over the next twelve months. We’re going to start seeing these. And so, they’re going to want to get out of these properties. The way you can do it is take those properties, or at least one of the ways you can do it, is take those properties subject to the existing loan. They deed you the property, and you start making payments on it. You get a lease option buyer for that property, let’s say you’ve got a $150,000 property, you get $10,000 as a lease option fee, which you can maybe take $5,000 of it for yourself, $5,000 of it you put into an escrow as a reserve so when that property goes vacant again you’ll be able to make the payments on that property and protect that seller’s credit, the person you bought it from, their credit, because you want to make sure that you can always make their payments.
Joe: And you can do that because you’ve got this money. And you don’t even have to close on that property. If you’re not positive you can sell it on a lease option, don’t close on that property. Say I’ll close on it as soon as I find a tenant. And then go out there and find a lease option tenant. As soon as they give you the money, close that day, let that tenant move in, now you’ve got a tenant, now you’ve got a property. All you had to do was have them deed you the property, some paperwork, disclosures, things like that, that you want to have. Make sure you have control over the insurance. Make sure you have control over the mortgage statements. All those things.
Joe: And that’s all taught, by the way, in my mentor program and in the PushbuttonAutomarketer.com which is a training program that covers all these as well.
Joe: So, these types of opportunities are going to be coming down the pike, coming up, because of the crisis that we’re in right now. We’re not only in a pandemic, we’re also in an economic crisis. We’re also in a climate change crisis. Over the next twelve years we’re going to see catastrophic changes in the climate. And it’s going to have an impact on your real estate, all along the coasts of our country cities are going to be inundated with water and with floods and with hurricanes and you’re going to have to deal with those things.
Joe: So, as you buy properties, as you build your portfolio, think about that as well, and try to decide where it makes the most sense to buy. The properties that I own now are all inland. And in places that are not flood plains. But even places that aren’t flood plains will get flooded in some areas. At least that’s what’s been happening over this last few years. And I have a feeling that’s going to continue. So, you want to try to protect yourself by spreading out a little bit, be in more than one place. Be in more than one city, more than one state. Build your portfolio as you have, you know, five properties here, ten properties there, twenty properties there. Build it into multiple states.
Joe: And that way you’ll be a little bit more safer, especially if you’re looking at properties along the coasts where things may become a little more volatile with climate change. These are things that are going to happen over the next ten years.
Joe: And we’re told that within ten to twelve years we are going to see potential extinction events as far as food and security, starvation, wars – all these things – which I think are realistic. This is science that’s telling us this. This isn’t just somebody’s who talking off the top of their head. These are scientists that are talking about these are the changes that are going to happen because of climate change. So, you want to be prepared for those things. And I’ll try to do a video on climate change in the future because I think it’s a big topic, and it’s something that’s worth talking about, especially as to how it concerns real estate investors and what we want to do.
Joe: Because the older I get the more I realize that ten years, twelve years, is not very much time. I’ve been doing this for thirty-five years now, so, you know, if deadline had happened back when I started, we already would be in it. And if you’re starting out younger than I am, which you probably are, then you need to be prepared for it. Ten years goes by very fast, especially when you’re talking about real estate time because you build a portfolio over many, many years. And you want to be able to keep that portfolio for many years after that.
Joe: One of the brilliant things about real estate is you can keep it for your entire life. If you build a business, your business will last. Maybe it’ll last for ten years, twenty years, thirty years. But eventually businesses go out of business. Even the biggest businesses eventually go out. They eventually fall apart. If you look at the Blue Chip businesses today and you go back twenty years, it’s a whole different list than twenty years ago. So, that’s going to happen with businesses.
Joe: But with real estate, properties that I had twenty years ago I still have now. So, those will stay with me probably for another twenty years, or forty years or fifty years or whatever it is that I’m able to live through. Hopefully it’ll be a few more.
Joe: All right. I hope that answers the question. Subscribe to the channel. Go to JoeCrumpBlog.com and sign up for the free newsletter and check out my mentor program ZeroDownInvesting.com. That’s my six month mentor program where I take you by the hand and teach you how to invest in real estate personally.
Joe: All right. Good luck to you.