Hey, everybody.
Danielle here. Today I want to talk about why
I personally don't care if the market crashes.
And I want to just do this video because I've been speaking with more
and more people who are waiting to invest until there is a big dip in the market.
What you have to understand is that dip in the market may or may not happen.
But if you're using the right fundamentals
of buying the property, it really doesn't matter if it does.
What I see are people
that are waiting and waiting for a crash that may or may not happen.
And in the meantime, rates are continuing to go up.
That is a fact.
The other fact is inflation is continuing to go up.
So your money is
that you're sitting on is losing its purchasing power month after month.
You need to stop worrying about
if there is a crash and you need to start focusing on the fundamentals.
Ken teaches about about buying a cash falling property.
So what is a cash flowing property?
So if you look at the chart here, you have your rent that you're collecting
minus the expenses and your expenses are going to be your Acer way,
your insurance your property tax and possibly your property management costs.
That's going to be your.
And. Oh, I.
Which is your net operating income.
From there, you have to deduct the debt,
which is going to be your mortgage, and that's going to equal your cash flow.
That is a good buy.
That is a positive cash flowing property.
I personally own four cash flowing properties right now,
and I don't care if the market corrects or crashes.
I'm not planning on selling them. Sure.
If I paid to 60 for my condo and it drops to 180,
it would have been a better deal for me to buy it at 180.
But I'm still cash it to 60.
And I'm still happy with that
because I know eventually over time is a long term hold.
It's going to go back up and exceed what I bought it for.
If you look at 2008, when the single family home market crashed
the rental market did not have the same issue.
Rent prices actually went up because people were displaced out of their homes
moving into rentals.
Rentals are not based on the same thing as the single family home market.
It's all about supply and demand.
Currently rentals are at capacity or pretty darn close
in almost every market
This means that we're not seeing any projected dip in rental prices.
What that means is my cash selling
properties are going to remain cash flowing,
even if there is a dip in the single family home market.
Now I know what you're thinking.
Well, yeah, but if I wait and then I went down 30 grand
in one year, it would be better for me to buy the next year.
But then I go back to what I said before.
This is something in your head that you're thinking could happen.
It's not necessarily what's going to happen,
and you could be waiting a long time for that to happen.
I look at it like this.
It's like playing blackjack in Vegas.
Yeah, you won $5,000. Yes.
If you would have played that last hand, you would have won more money.
But do you care?
Because you're walking away from the table as a winner?
I look at my rental properties as the same way
I'm making cash every single month and sure, there is better times to buy
and worse times to buy, but you cannot time the market.
So why do I think you should be doing right now?
Looking for cash flowing properties? Yes.
I still think you should be buying right now.
If the deal cash flows, the tricky part to this is cash flow.
Properties right now are hard to find.
That's why you need to be looking every single day when you find one.
You should try to buy it.
You don't sit around and wait for the market to correct.
You will never be upset that you buy a cash flowing property.
You'll only get upset if you get priced out of the market
or if you buy something that's not cash flowing
and you have to feed it month after month.
So now that, you know, the tricky part is trying to find a cash flowing property,
it's time that you get creative on buying.
To start, you want to look for off market deals.
These could be deals that your neighbors are selling, friends
or family or selling somebody
that doesn't want to list their property but wants to sell their property.
Normally you can get really good deals this way.
Secondly, you're going to want to check Zillow every single day for a good deal.
And guys, they are out there.
I know most of the deals are at market, but it is possible to find deals
that are under market.
This happened to me with my condo sale in 2020.
It was a couple that were selling their home and their son was the realtor.
They listed it low and I bought it and it cash flows beautifully.
I probably got it at about 30 grand under market value.
The last thing that you can do is you can flier neighborhoods and you're in an area
you want to buy.
It's worth a shot, right? If somebody is looking to sell,
that's another off market deal tactic you can use.
So just remember, as we enter these more turbulent times
that the fundamentals of real estate are still
the same Stop worrying about the crash and start focusing on the cash.