I would just like to point out that the example property used in the video, in Fraysher, Memphis is not a good location. I've lived in Memphis my whole life and North Memphis has high crime and a poor location for investing. Personally, for these reasons I would not invest there
Indeed having a rental in high crime area's, is asking for squatters and non paying lowlife,s. That tear down your property ,and do a lot of damage . These homes are cheap foe a reason. Location location , location is true in rentals as it is in buying a home yoyrself.
Recently came across a Zillow listing for a 3 bed patio home in Wilmington, NC that someone bought 5 months ago for $300k which was $50k above list. They’re now asking $480k when comps for the area indicate value is probably less than the $300k they paid. This person doesn’t think there is a correction going on. Don’t know that I’d be following their lead though.
Still clueless that we are going into more than a correction. We are going into a stagflation possibly even a deflation. That means asset prices will be far lower in 3-5 years. So why buy a house in 2023? Because these people make money on subscriptions and people consuming their products. This video will not age well in a year or two.
We are in a buyer's market because there are not many buyer willing, able or stupid enough to buy in a market like this where interest rates are high and house prices are just starting to decline. and will be going down a lot in the near future.
This. The "will always go up" is a flat out lie in this market. Prices are 300% or more what they should be and that's GOING to crash hard. I'm tired of hearing value always goes up. It doesnt
How about unleveraged purchase? Can the numbers reasonably work? Also, can one buy without leverage, but later use that property for a leveraged buy of another property?
Hello Dave you nailed it, this was my question from last few weeks and had been struggling to find something which can be explained in simple language... Wondering if you can suggest what would be the impact on rental property as I am planning to buy another home and put my current home on rent, are the rents going to go up or down in this summer?
I’m in SLC Utah and there really is no time to be patient on a properties you really like.(depending on location) I recently bought a place only because I got the jump on everyone else. There were 3 cash offers
Im currently looking to buy a rental. The advice on analyzing and making offers in this video was new information for me that I’m extremely grateful to have learned. I will be more confident in narrowing down my search for a property now.
Congratulations, a Bigger Pockets community, for putting out such great content. Can you put a podcast for the canadian real estate market. Tarun from Mississauga ontario.
I mean, I see zero correction at all in Chicago or the suburbs. Prices are the same, homes are flying off the market, and there is little inventory. Thoughts about if/ when we see changes here?
you mentioned making offers 5% below asking. you don't go by asking price which could be inflated/exagerated. you go by ARV or comp value, then discount that.
For sure talk to a mortgage broker about rates… Not real estate agents. I find that generally speaking real estate agents don’t know much about the intricacies of mortgage finance.
Real estate agents could get into legal trouble talking about financing too much. It’s not their wheelhouse. The correct thing for an agent to do is to refer you to your lender. They may talk a bit..: but that’s going to be on a personal level.
It depends on where you are, guy. In my area, houses are still going like hotcakes, so the buyer has very little negotiating leverage, because someone else will just buy it without a question...
In the triangle area of North Carolina we are NOT in a Buyers market. Sellers still have the advantage. This is a simple supply and demand principle. There is still a shortage of homes on the market. Real Estate has regional nuances. At no time will all markets across the country be the same……
Whatever you say here I have heard probably a million times here on CZcams. I also THINK housing price is going to be higher in 5y that's why I am paying mortgage and taxes on a home I own
@@reynaldojgarcia1460 It all depends on supply and demand. I bought my house in 1999 and this area was very underdeveloped and the job market wasn't great. Nowadays things have improved and I wouldn't even be able to buy a house. Now I'm glad I still have a house.
Dave I am new at this… I purchased my first property and I am in the process of getting it ready to rent. My question is… should I use a property management company to handle properties I purchase or should I form an LLC and attempt to manage these myself? What are the advantages…how much would I expect to pay for this service? I am in Florida. Great advice… I’m glad I came across your channel… just at the right time.
I have family friends that have a house in Florida that they’re renting out! They said the company charges 10% of what they(the owners) are charging the renters. So super affordable and convenient… but thats all I personally know and we live in the Pacific Northwest
I’m living in central MA, and there are 2 multi family properties listed in my city right now.. granted it’s just one city in central Ma, but it just shows how insane it is for us new Englanders trying to get in the game. I’m waiting at minimum a year, I’m guessing 24-36 months. Saving as much as possible because frankly, I feel like the presenter isn’t considering how hard it is to enter the market as a new investor when considering 7.15% interest rates(and climbing). If you already have assets, you’re sitting much prettier
@@therealdjt6219 I agree being an Agent here in CT the rest of the country is different than New England no matter what’s being preached all markets aren’t equal
The problem with the current market, is that supply is still very low. And I don’t see supply coming from anywhere anytime soon. Looking at lis pendens statistics for an uptic but still close to all time lows. I know lots of people that are not selling cause they can’t afford/buy anywhere else.
@@therealdjt6219 My mindset is closest to Ken McElroy.. That guy makes the most sense to me. I’m nowhere as sophisticated as he is. The median home price decline now from peak in June or July last year is already more than the first year of the 2008-9 crash. And that is with inventory still low. What that says is that anything additional like unemployment going up or big investment companies dumping their RE will crash it. I’m personally stacking up some cash and giving it year and a half or so in which time I think it will crash almost 50% from peak last year. I’m in Seattle area and eye some Idaho properties. Of course different places different story. Good riddance to all of you.
@@JamesJordanbestnetworkeralive Lots of people in New England coming here to SoFlorida. Please keep the rude democrats up there. We don't want them here.
1100$ rent for 145k investment… ? Not my kind of investment 🤷🏽♀️I dont have to do too many calculations.. just my personal opinion .. I think that it is a big mistake try to force gains in this type of market . I just saw a guy trying to sell a bigger pocket calculator.. sorry
Really an excellent master class here. Been around the RE community for a while and I still learn things every time Dave does a presentation like this. Enjoy the deeper dives too.
The big issue is that there's crazy inflation for all goods and services, but ALSO there are tons of layoffs. Those will definitely affect the housing market. People can barely afford things without credit as it stands, add in layoffs and it's a recipe for disaster. There are already tons of mortgage defaults.
Thanks, you explained things simply. I still have a lot to understand as fat as rate buy down, and the 8%cash on cash you were talking about, but ypu gave me some confidence to get back out there in this market
Austin just started seeing small correction with Goldman Sachs predicting that prices will drop on 25%, and then mortgage rates gone down from 7 to 6.5% and seller came back to life again. I dont know what should happen to see 20% correction which is very conservative with crazy high rates
the podcast recently really just seem like surface level advise that you can find anywhere or long pitches from another crm creator, hoping to hear from people actually doing a lot of deals soon
It’s a broad audience in terms of the different levels of investing in real estate, plus each market/metro area acts differently. Also, sometimes having a specific person/example only works for that market area or is not ideal. I love data and real estate, that why I prefer this type of webinar/podcast. The deal is usually made at the buy/transaction, so it’s nice to see graphs and data.
please update the bigger pockets tolls and website so canadiens can find agents and deals in the home town example Edmonton Alberta canada thank you for the knowledge you give daily, always watching. !
There is a lot of calculators determining. If a house will be profitable but they all consider having a loan? What is the calculation? If you're buying them cash? Also what if buying cash limits you 2onlybuyingoneinsteadofmultiple
Love the buy below asking prices rofl. In my market you're fighting with tons of buyers that offer way over asking. You don't even get a call back if your offer is what there asking
First half of the year is gone and nothing has happened? Where I live in Nee York real estate has not come down a penny the same goes in Florida where I own 2 properties!
What about all the layoffs? These tech layoffs put a lot of people that bought above their means during the pandemic. They’re now on unemployment. How long before the wave of defaults starts?
Affordability will dictate the future of Real Estate. Employment & IR will dictate. Right now unemployment and high IR are not helping. Banks are tightening up due to no liquidity. I’m waiting to see what the future will be.
Hey BP, Trying to see if David will answer a question on Seeing Greene. So my grandparents have a reverse mortgage on their home. They do not make payments on the house but every month the mortgage goes up. They owe as of now around 500k to pay it off. The house would appraise around 850-900k. I am the best off in my family, make good money on the W2, also make about the same amount of money with short term rentals. No wife or kids, and I’m looking to help out my grandparents and family by buying the house and letting them stay rent free. They are both in their 80s. My question is what is the best / easiest way to finance this since I will most likely not move in with them, but in California I’d like to try and keep their taxes they pay on the house as well? Thank you Anthony
We are not even close to being in a buyer's market, I don't know what this guy is on about. There's still bidding wars for everything and properties going under contract within a day.
We're in a buyers' market right now? Buyers have the power? Buyers have the negotiating leverage right now? This is all nonsense. Where are you seeing sellers paying down buyers' interest rates and offering concessions? Where I live, my over-asking price offers with all inspections waived are not good enough because of the 50 other offers the sellers are receiving within 3 days.
Say a $500k home drops $50k so 10% people will jump in and big against each other and I’ve seen purchases above the $500k mark. So the key to getting over original asking price is to drop your price😅
Don't buy stocks, buy real estate... but be very picky on what you buy. Keep your cash and use loans when you do buy. I retired at 43yo and will never work again. What city do you live in?
@@networth00 Thank you for the advice. I put one million in a structured settlement that pays me $2300 a month which is not enough to live off of. the other I have to Invest hopefully in a real estate But it is difficult when everything is so expensive here in riverside California. So I was thinking about quitting my job and moving somewhere where I can buy 2 homes instead. Thanks for your advice
@@ironwolph Go the airbnb route. Wait a year or so and just put that money into a bank account that pays you at least 3.5% interest; American Express or Discover pays well enough right now. Do NOT buy a new car or other non-investment purchases. You only have this opportunity once in life, do not waste it. That's my advice.
@@networth00 yeah I already bought 300k in toys and bs before I realized I'm an idiot and completely stopped.. now I have it all in treasury bills thinking about my next move so I don't ruin this
Watching a segment on Blackstone. It would appear smart investing in real estate. Market is over. That’s the first sign many more signs to come. Stay tuned.
I would just like to point out that the example property used in the video, in Fraysher, Memphis is not a good location. I've lived in Memphis my whole life and North Memphis has high crime and a poor location for investing. Personally, for these reasons I would not invest there
I would invest there , but for at least 15% cash on cash return
4 words: Ford blue oval city
Indeed having a rental in high crime area's, is asking for squatters and non paying lowlife,s. That tear down your property ,and do a lot of damage . These homes are cheap foe a reason. Location location , location is true in rentals as it is in buying a home yoyrself.
I wouldn’t buy there either
Section 8
Recently came across a Zillow listing for a 3 bed patio home in Wilmington, NC that someone bought 5 months ago for $300k which was $50k above list. They’re now asking $480k when comps for the area indicate value is probably less than the $300k they paid. This person doesn’t think there is a correction going on. Don’t know that I’d be following their lead though.
Still clueless that we are going into more than a correction. We are going into a stagflation possibly even a deflation. That means asset prices will be far lower in 3-5 years. So why buy a house in 2023? Because these people make money on subscriptions and people consuming their products.
This video will not age well in a year or two.
Agreed
I couldn't make it. I gave up. I never found the end of the introduction
One of the best real estate videos I have seen in a while Great job thank you very much
It’s a Webinar replay starts at 3:48
We are in a buyer's market because there are not many buyer willing, able or stupid enough to buy in a market like this where interest rates are high and house prices are just starting to decline. and will be going down a lot in the near future.
This. The "will always go up" is a flat out lie in this market. Prices are 300% or more what they should be and that's GOING to crash hard.
I'm tired of hearing value always goes up. It doesnt
Probably one of the best informative step buy step guide. Amazing Mr Myers
There was so much information in this video. Dave did a great job breaking down investing in a correction. I'm looking forward to the next video.
Thanks glad you enjoyed!
Dave always puts out good in-depth analysis on the data, but then again I suppose that's why he's the DataDeli haha😂
Can’t explain any better then this to find a good deal! Awesome video!
How about unleveraged purchase? Can the numbers reasonably work? Also, can one buy without leverage, but later use that property for a leveraged buy of another property?
Good question
Hello Dave you nailed it, this was my question from last few weeks and had been struggling to find something which can be explained in simple language...
Wondering if you can suggest what would be the impact on rental property as I am planning to buy another home and put my current home on rent, are the rents going to go up or down in this summer?
I freaking love it here! Thanks for this video, Dave! So much value!
Thanks for watching, and welcome!
I’m in SLC Utah and there really is no time to be patient on a properties you really like.(depending on location) I recently bought a place only because I got the jump on everyone else. There were 3 cash offers
BiggerPockets is the way to go. You should add the same rent estimator for tax and insurance. Great video
Im currently looking to buy a rental. The advice on analyzing and making offers in this video was new information for me that I’m extremely grateful to have learned. I will be more confident in narrowing down my search for a property now.
Glad it was helpful!
Be careful
Dave, you absolutely killed this video! You couldn’t have explained it any better ! Especially for beginners like me! Thank you!
Thanks so much!
I agree that supply is low but there is pain in most people's future with the economy for the next several years not months.
Congratulations, a Bigger Pockets community, for putting out such great content. Can you put a podcast for the canadian real estate market. Tarun from Mississauga ontario.
I’m not trying to get RICH, I’m trying to make my family wealthy. Great content! 🙏🏽
Makes no sense
I mean, I see zero correction at all in Chicago or the suburbs. Prices are the same, homes are flying off the market, and there is little inventory. Thoughts about if/ when we see changes here?
I’d like to uhh point out there was no real estate correction in uhh 2023
you mentioned making offers 5% below asking. you don't go by asking price which could be inflated/exagerated. you go by ARV or comp value, then discount that.
For sure talk to a mortgage broker about rates… Not real estate agents. I find that generally speaking real estate agents don’t know much about the intricacies of mortgage finance.
Real estate agents could get into legal trouble talking about financing too much. It’s not their wheelhouse. The correct thing for an agent to do is to refer you to your lender. They may talk a bit..: but that’s going to be on a personal level.
It depends on where you are, guy. In my area, houses are still going like hotcakes, so the buyer has very little negotiating leverage, because someone else will just buy it without a question...
That feeling when the year is almost over, the correction never happened, and you say OOPS. But only to yourself, because it's hard to be wrong.
Well done video. I found the navigation of bigger pockets pro towards the end especially helpful. The membership really is a great value.
In the triangle area of North Carolina we are NOT in a Buyers market. Sellers still have the advantage. This is a simple supply and demand principle. There is still a shortage of homes on the market. Real Estate has regional nuances. At no time will all markets across the country be the same……
Whatever you say here I have heard probably a million times here on CZcams. I also THINK housing price is going to be higher in 5y that's why I am paying mortgage and taxes on a home I own
Depends on the market. It’s like 2021 in Richmond, Va!
There is a house in my neighborhood that was on the market for about 6 months. They drastically lowered the price and sold it recently.
Prices are unrealistic!
@@reynaldojgarcia1460 It all depends on supply and demand. I bought my house in 1999 and this area was very underdeveloped and the job market wasn't great. Nowadays things have improved and I wouldn't even be able to buy a house. Now I'm glad I still have a house.
Dave I am new at this… I purchased my first property and I am in the process of getting it ready to rent. My question is… should I use a property management company to handle properties I purchase or should I form an LLC and attempt to manage these myself? What are the advantages…how much would I expect to pay for this service? I am in Florida. Great advice… I’m glad I came across your channel… just at the right time.
I have family friends that have a house in Florida that they’re renting out! They said the company charges 10% of what they(the owners) are charging the renters. So super affordable and convenient… but thats all I personally know and we live in the Pacific Northwest
Love this content.
I’m waiting this out for another year or so. Pencils down. I believe RE market will go down a lot more.
I’m living in central MA, and there are 2 multi family properties listed in my city right now.. granted it’s just one city in central Ma, but it just shows how insane it is for us new Englanders trying to get in the game.
I’m waiting at minimum a year, I’m guessing 24-36 months.
Saving as much as possible because frankly, I feel like the presenter isn’t considering how hard it is to enter the market as a new investor when considering 7.15% interest rates(and climbing).
If you already have assets, you’re sitting much prettier
@@therealdjt6219 I agree being an Agent here in CT the rest of the country is different than New England no matter what’s being preached all markets aren’t equal
The problem with the current market, is that supply is still very low. And I don’t see supply coming from anywhere anytime soon. Looking at lis pendens statistics for an uptic but still close to all time lows.
I know lots of people that are not selling cause they can’t afford/buy anywhere else.
@@therealdjt6219 My mindset is closest to Ken McElroy.. That guy makes the most sense to me. I’m nowhere as sophisticated as he is. The median home price decline now from peak in June or July last year is already more than the first year of the 2008-9 crash.
And that is with inventory still low. What that says is that anything additional like unemployment going up or big investment companies dumping their RE will crash it.
I’m personally stacking up some cash and giving it year and a half or so in which time I think it will crash almost 50% from peak last year. I’m in Seattle area and eye some Idaho properties. Of course different places different story. Good riddance to all of you.
@@JamesJordanbestnetworkeralive Lots of people in New England coming here to SoFlorida. Please keep the rude democrats up there. We don't want them here.
1100$ rent for 145k investment… ? Not my kind of investment 🤷🏽♀️I dont have to do too many calculations.. just my personal opinion .. I think that it is a big mistake try to force gains in this type of market . I just saw a guy trying to sell a bigger pocket calculator.. sorry
Really an excellent master class here. Been around the RE community for a while and I still learn things every time Dave does a presentation like this. Enjoy the deeper dives too.
In the future here ‘24 and correction didn’t materialize…prices are still climbing as long as the govt keeps printing!
Who needs your story about what happened 12 y ago. Though it is some prediction with what can happen it is very different situation
I mean like he said, it was during a time of fear and uncertainty, which is what is happening now, so it is relevant
The big issue is that there's crazy inflation for all goods and services, but ALSO there are tons of layoffs. Those will definitely affect the housing market. People can barely afford things without credit as it stands, add in layoffs and it's a recipe for disaster. There are already tons of mortgage defaults.
With risk comes losses. Beat 8-10 percent tax free on. Bond fund. RE is a sucker play.
This video is amazing! good job!
Thank you so much!
Thanks, you explained things simply. I still have a lot to understand as fat as rate buy down, and the 8%cash on cash you were talking about, but ypu gave me some confidence to get back out there in this market
Enjoyed every minute of this video. Thank you (I was looking for MF and crossed with this video) 👍🏻🙏🏻
Austin just started seeing small correction with Goldman Sachs predicting that prices will drop on 25%, and then mortgage rates gone down from 7 to 6.5% and seller came back to life again. I dont know what should happen to see 20% correction which is very conservative with crazy high rates
Your presentation skills are outstanding! Fantastic job. Keep going.
Wow thank you, so nice to hear!
Great episode!
Awesome presentation brutha
You misspelled Crash
Hi do u have information that will be good for the United States?? Or is it all the same frame work for both countries
the podcast recently really just seem like surface level advise that you can find anywhere or long pitches from another crm creator, hoping to hear from people actually doing a lot of deals soon
It’s a broad audience in terms of the different levels of investing in real estate, plus each market/metro area acts differently. Also, sometimes having a specific person/example only works for that market area or is not ideal.
I love data and real estate, that why I prefer this type of webinar/podcast. The deal is usually made at the buy/transaction, so it’s nice to see graphs and data.
I think that an experience RE investor is not doing this type of deals.. ..there is a time to invest and a time to wait
Great content, well explained and the promotions are plentifull!!!
please update the bigger pockets tolls and website so canadiens can find agents and deals in the home town example Edmonton Alberta canada thank you for the knowledge you give daily, always watching. !
i just purchased a lake home to aiabnb it. also, my family now has a vacation home to enjoy.
There is a lot of calculators determining. If a house will be profitable but they all consider having a loan? What is the calculation? If you're buying them cash? Also what if buying cash limits you 2onlybuyingoneinsteadofmultiple
Buying cash will kill this “ deal “ even more .
Thanks for sharing! Planning to read your book.
Good video thank you
Spoken like a true Realtor
If we’re over valued how does a simple correction make you rich?
Prime demand areas here I. Houston sre getting 10% over .
Where? In my market houses are still selling for 200k above market, all cash, multiple offers
I'm here going to get a bike then get another job save up and use an FHA loan :) you can do it too
Thank you! This was super helpful!
Love the buy below asking prices rofl. In my market you're fighting with tons of buyers that offer way over asking. You don't even get a call back if your offer is what there asking
Nice 👍 video….question how can I find out what the housing markets ups and downs will be in a certain area ?
First half of the year is gone and nothing has happened? Where I live in Nee York real estate has not come down a penny the same goes in Florida where I own 2 properties!
That's why people should buy now not wait
I'm sorry, but the rental numbers just don't work with today's rates. Unless you can somehow get off market deals for cheap and renovate then rent.
This was a good episode.
Amazing 👏 you really know what you are talking about.
Appreciate the valuable info and straight forward explanation.
Not all markets yet. Not this way in cT or Florida,
What if somone put out the information without all the salesy pitching and just talked straight with you? Youd have a 20 minute webinar!!
keep it up
please update the bigger pocket tolls for canadian investors thank you !
super nice. thanks for showing process :)
So when will there be a "correction" and what will it lool like?
Can you make a BRRRR video using the BiggerPockets Calculator?
What about all the layoffs? These tech layoffs put a lot of people that bought above their means during the pandemic. They’re now on unemployment. How long before the wave of defaults starts?
Is bigger pockets pro worth it in Canada
Can any of ya'll attest to the effectiveness of the Pro subscription? Asking for a friend, thanks! 🙃
Can you talk about real state in Canada; Toronto to be specific.
Affordability will dictate the future of Real Estate. Employment & IR will dictate. Right now unemployment and high IR are not helping. Banks are tightening up due to no liquidity. I’m waiting to see what the future will be.
We aren't in a buyers market in CT. Not even close.
Hey BP,
Trying to see if David will answer a question on Seeing Greene.
So my grandparents have a reverse mortgage on their home. They do not make payments on the house but every month the mortgage goes up. They owe as of now around 500k to pay it off.
The house would appraise around 850-900k.
I am the best off in my family, make good money on the W2, also make about the same amount of money with short term rentals. No wife or kids, and I’m looking to help out my grandparents and family by buying the house and letting them stay rent free. They are both in their 80s.
My question is what is the best / easiest way to finance this since I will most likely not move in with them, but in California I’d like to try and keep their taxes they pay on the house as well?
Thank you
Anthony
Pay off their mortgage and become the mortgage holder (you would be the bank)
I don’t believe they can legally answer this how you want.
We are not even close to being in a buyer's market, I don't know what this guy is on about. There's still bidding wars for everything and properties going under contract within a day.
How about commercial real estate?
Look into Cedar Park Texas!!!!
Awesome. Encourage people to use homes as atm... further making it hard for first time.home buyers just trying to get a home.
It Is what it always been.
@chronicxswagger not to this degree. Everyone and their brother want "easy" money now.
You were the guy that was saying but at the height of the market
We're in a buyers' market right now? Buyers have the power? Buyers have the negotiating leverage right now? This is all nonsense. Where are you seeing sellers paying down buyers' interest rates and offering concessions? Where I live, my over-asking price offers with all inspections waived are not good enough because of the 50 other offers the sellers are receiving within 3 days.
What housing correction
In another video you said real estate prices will not decline
Which video was that?
Well it’s def not a buyers market in Michigan
Market still hasn't corrected yet. Plus very general information.
A web sites that sale cheap repo thanks
Let’s assume prices do go down, how much will they go down in your opinion?
Say a $500k home drops $50k so 10% people will jump in and big against each other and I’ve seen purchases above the $500k mark. So the key to getting over original asking price is to drop your price😅
Mah I got 2 million in a lawsuit and I need help investing... any tips on who to call? Everyone just wants to sell me stocks
Don't buy stocks, buy real estate... but be very picky on what you buy. Keep your cash and use loans when you do buy. I retired at 43yo and will never work again. What city do you live in?
@@networth00 Thank you for the advice. I put one million in a structured settlement that pays me $2300 a month which is not enough to live off of. the other I have to Invest hopefully in a real estate But it is difficult when everything is so expensive here in riverside California. So I was thinking about quitting my job and moving somewhere where I can buy 2 homes instead. Thanks for your advice
@@ironwolph Go the airbnb route. Wait a year or so and just put that money into a bank account that pays you at least 3.5% interest; American Express or Discover pays well enough right now. Do NOT buy a new car or other non-investment purchases. You only have this opportunity once in life, do not waste it. That's my advice.
@@networth00 yeah I already bought 300k in toys and bs before I realized I'm an idiot and completely stopped.. now I have it all in treasury bills thinking about my next move so I don't ruin this
Watching a segment on Blackstone. It would appear smart investing in real estate. Market is over. That’s the first sign many more signs to come. Stay tuned.
My areas still a sellers market (dc area) lol
You and a million CZcamsrs who think housing price is going up not down
I am in Houston TX. It is still seller’s market. Bidding war is still going on for good properties. There is no correction at all.