What is going on with real estate home prices? Can they just keep going up and
up and up? Or is there going to be a drop in 2020? My name is Kris Krohn. I have
purchased thousands of real estate deals. And I'm here to share with you my
predictions on what's gonna be happening in just the next 12 to 24 months.
I pay over $100,000 every year to hang out with some of the brightest, smartest
financially incredible people on the planet trying to understand timing of
the next recession drop. What's happening in the economy? When it's coming back. And
right now. With as much as real estate prices have been going up, you should be
nervous and you should be scared. When is the price drop going to happen? Is it going to
be 2020? What I want to do is before I actually make a prediction, at the end of
this video I want to start by actually sharing with you where this actually
comes from. You need to understand in the game of real estate that first and
foremost, you can always buy real estate successfully no matter what is happening
in the market. When 2008 hit, there was blood in the streets, banks were going
out of business, houses were getting foreclosed on like crazy. And I remember
that period of time it was one of the greatest periods of abundance in my
entire life. I just need you to understand this that when 2008 hit, guess
what it meant? It meant that people were losing their homes like crazy. It meant
also that it was the best time in the game of real estate. And most people
didn't know that. Consumers, terrified. Expert investors, greedy. Why? Think about
it. I went into Phoenix in Vegas homes. They gone up from 150, 200, 225, 250,
275, 300, 300 thousand dollar home. Brand-new built 4 or 5 years ago
and I actually picked that home up for under $100,000. Now, why would I be buying
when everyone is actually selling? The time to buy is when everyone is selling.
And the time to sell is when everybody is buying. Do you understand that?
We're counter cyclical. That's how you'd be really successful. I'm going to show you
the science of how markets move and unlike the stock market real estate is
far more predictable. And it's actually super easy to read. And I'm going tO show
you how to do that so that at the end of this video, you can be a little bit more
of a an economist ninja that can have confidence in your buying decisions and
what you should be doing. Because by the way, up until the moment when that market
hits its peak, guess what I'm going to be doing? Let me buying homes every single
day. And you're like, "Why would you do that? Why would you buy real estate in
the worst time?" Check this out. 2008 hit, 2009, 2010. When in started buying
hundreds and then thousands of homes in some of the most distressed markets. 5,
7 years later, guess what? Those markets bounce right
back up and we made a lot of money. So, you need to understand this. This is like
I'm going to actually go into the science of what's going on here. Check this out. I
want you to understand that the way real estate moves is that there's a recovery
period, okay? And then after recovery, there's an expansion period. Then there's
a hyper supply of too much and then the markets going to tank. And this is when
you hit the point of maximum growth. This right here was 2008 and boom. And by the
way, the market based on the K wave, Kondratiev cycle that you can see actually
here in this image, real estate will actually hit a peak in a valley. This
circle right here. Boom, boom, boom. You can actually witness this happening every 12
to 20 years on average. 15 years, 18 years, sometimes 12 years. And
so, it's predictable it means that between every 1 and 2 decades that
that market is actually going to course-correct.
And if you know what you're doing, you can win here, you can win here, you can
win here. After this I've shot a video for you showing you how to win in any
market. What I want you to understand though is is that when 2008 hit, prices
steeply dropped and we entered from a peak to a trough. Now, in that trough, that
is the most profitable time to buy real estate. It's when you're gonna pick up
your biggest gains in the shortest period of time. Why? Let me ask you this:
When everyone stops buying real estate, does population go down? No! People don't
die more or less than recession. Maybe a couple of rich dudes that lose all their
money and throw themselves off of buildings. For the most part. Listen,
people out time in their hands. They making babies like population is going to
continue consistently doing what it's doing. So, during these period of times,
we're building nothing. And with the population remaining constant, guess what
happens? During the trough, when we build nothing, we actually build up a pent-up
demand that every year gets worse. It's like, "I'm tired of sharing a bedroom with
my in-laws. We're all scrunched in together." The renting market goes up
really high and all the sudden after 3-4 years, the market says pop. We
can't do that anymore. TThe market is forced to come back because we keep
making babies. Because population grows. If we're talking America, America is very
far from the principle of economic winner. Economic winner is when people
are not making babies. And your geopolitical climate, you don't
have people wanting to migrate and move over there. America is still to this day.
It is like the land of opportunity. People are still trying to flood here
from all over the world because they want what we have. They want their slice
of the American Dream. And that means that population and migration are going to
continue building a strong population. So by the way, at the end this video, when I
tell you when I think this is going to happen, am I excited? Yes.
My biggest regret from 2008 is that I didn't go in and buy thousands more
homes. I would have way more money. And that will always be a regret. You'll
always say I wish I'd done more. Even if you're aggressive. You say "The next time
I'm going to be more aggressive." Problem is you only get to see this maybe two or
three times during your working life. 2 times probably. Maybe 3. And your
working life is when you're amassing assets. Which means you only have 2 or
3 opportunities when this happens. By the way, you've got one right around the
corner. So whether you're young, whether you're old, screw it. It doesn't matter.
You can act on this. You can do something about this. The thousands of people that
I helped buy homes for 100 grand, 120 grand, 150 grand. When they
bounced up to 200, 250 and sold them. Guess what they did? They amassed a crazy
ROI, they made a lot of money and now they go back into real estate and they
expand even more. Ups and downs are some of the most important things. What I want
to share with you today is what you can do to be prepared and how you can
actually keep on investing no matter whether we're in a recession
or whether in an expansion period. When the market recovers is when you
recapitalize on all of that money. There's one more thing I want to layer
on here. There is a cost to build real estate. Right now, if you take a look at
this line, there is an average cost to build a home. When a home sells for more
than it costs to build, people enter the market and do spec building. This is
where they're saying, "I want to basically build a house and sell it and create a
positive arbitrage. I want to get this juicy money." People do not build during a
trough because they're going to sell it for below. Remember, a house is worth what?
A house is worth what somebody is willing to pay. When no one's willing to
pay, there is no value. So, the value goes down and down and down and down until
someone like me comes along and says, "Hey, that was selling for 300. I know you
built it for 250 hoping to sell it for 300 make 50 grand. But now you lost it to
the bank. And now I'm cleanup crew. I'm going to pick
this up and then I'm going to rent it out. and in five years I'm going to sell it." And
I'm going to capitalize on all the money that you hoped you would have made
because you didn't get timing. So, question is where are we at in this
process? Now, before I answer that and recommend this video that's going to really
explain the rest of this, I want to help you understand another principle it's
really important. How is it that I buy real estate all the time? I've got rules.
You're going to want to write these down. Rule number 1, I always buy real estate
below the median. The national median is around $230,000. My average purchase
price based on this document that shares my track record on my last 4,000
transactions. My average purchase price is $143,000.
Guess what? In the million dollar home range, this goes really high and
this goes really low. In the median home price range, it's more mild. When you're
buying in the 143 range and you're almost 80 plus thousand plus below
the median, it moves like this. Which means I'm in the safe zone. I can buy
real estate in the safe zone, my strategy works and make my 25, 30
percent of my money and then the moment the market tanks, guess what I do? I swoop
it into the most distressed out of 300 markets. I find the 1 or 2 that built
the most aggressively. They tanked hardcore. I set up shop. I'm going to buy as
many homes as I possibly can. And I might even include you in on it. I'm actually
going to share that with you here shortly. As far as when this is going to
happen next, are we at our peak? Personally, I believe
that we are somewhere approaching our peak right now if you look at prices and
what they've done. We're going to see a drop-off. Are we gonna see it in 2020? The
answer is it could be 2020, it could be 2024. It's going to happen sometime. It's
been right now almost 12 years since our 2008 fallout. And so, statistically,
sometime in that 14, 15, 16, 17, 18 year mark is when we're going to have our next
correction. We're going to see prices continue to go up. And by the way, when
the market drops, it's going to happen sudden. It's going to happen fast. Within 6
months, we'll know the markets that we want to work in. So, what you need to do
right now is you got to get yourself ready. Because this really, literally
be right around the corner. And this is for you. For the next 2 decades, this is
the most important era for producing the most money that you can in the game of
real estate. If you're young, partner up with a mom and a dad or a friend or I
get out there or cultivate some people that have some assets. So that you can
take advantage of this. Because when the market drops, there will be fear; there
will be panic; people will be nervous. They're going to call it a recession. People
are going to want to hold on to the money but guess what? There's a reason why the
rich get richer and the poor get poorer. It's because consumers and investors are
on opposite wavelengths. And if you're thinking like a consumer, you're going to be
driven by fear. You're going to say going down is bad. And if your investor, you're
going to say "Going down is good." And frankly it's an opportunity to clean up the
economy. Because the government's not going to do it. There's going to be no
bailouts. Someone has to come in. It's always the investors. They pick up all
the pieces, they rent out the homes. 5-7 years later they saw them and they
make a grundle of money. That should be you. Now, there's a way to successfully
buy real estate with 25% returns right now. And not have this exposure. And
if you want to learn how to do that and then learn how to be ready for the
trough, I want you to check out the video series. I create a little mini series
here. It's all about partnering with me. I have a team of 200 experts. We go out
into the market every single day and we put our hands on the very best deals
that are out there in existence. And we're winning about an amazing deal
every day. We comb through thousands of deals to find them. And I buy these homes
myself and I buy them with my partners. My partners are found through YouTube.
And it's a pretty rigorous process to figure out who we want to partner with
but if you've got a little bit of money sitting around in a 401k or an IRA and
your saying like, "Man, I don't feel like this is really doing anything for me." I want you
to check out this partner series. So, click over here, click on the video. And
if you like that first video, watch the next couple. You'll learn exactly what it
looks like for us to actually link up arm-in-arm and start giving you access
to the most elite investments on the planet. Thank you so much for watching
today's video. Can you do me a favor? Can you please smash that like button? The
only way that YouTube is going to promote this and share it with more people as if
you hit that like button. So, you can help me break the algorithm and crush through
and if you got value out of this, that'd certainly give value to me. I have a
goal here. I want to have 10 million subscribers. And I want to be touching a
lot of lives a lot more than I currently I'm right now. You could be the
means of doing that. The meantime, join me on this next video we're going to give you
everything that you need to know about how to profit during the peak and profit
especially through the next trough. It is on its way it is looming it is coming.
And so I'll see on the next video.