Questions on the Real Estate Market Cycle (And what new investors should know)
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- čas přidán 11. 09. 2024
- If you haven't watch last week video it might be helpful to watch it. You can see it at this link: • Where are we in the re...
In this video Ken answers some questions that came up from the video that was posted last week on the channel. He walks through what a new investor should do if they feel they are in a hyper supply market, where he thinks we are in the current market and many more.
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Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and most recently his book on entrepreneurship: The Sleeping Giant. Ken is a Rich Dad Advisor.
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For more resources on this topic check out the links below.
Asking Tough Questions About the US Housing Market
www.homewarran... › Home Buyers
Asking Tough Questions About the US Housing Market. Valuation and Mortgage Issues in the Housing Sector. Due to the depression, millions of homeowners owe hundreds of billions of dollars more on their mortgages than their homes are worth. Volatile or Stagnant Income Patterns. Demand Does Not Meet Supply in the Housing ...
Real Estate And The Cycle | Seeking Alpha
seekingalpha.c...
Feb 14, 2019 - The housing market's fortunes are prey to the animal spirits of market ... Questions of interest rate sensitivity: do they only matter for real estate?
Your Guide to the Housing Market | U.S News Real Estate
realestate.usn...
Jul 27, 2018 - Breaking down buyer's and seller's markets, forecasts for home prices and how the housing market affects your financial situation.
5 Reasons 2019 Is The Most Important Year For Housing In 10 Years
www.forbes.com....
Jan 14, 2019 - 2019 will be the most pivotal year in US housing and commercial real estate ... year, the question rings loud: How will the US housing market hold up in 2019? ... Conditions vary with each economic cycle, but the government ...
Ken is that type of entrepreneur that comes once in a lifetime. This man is a genius.
Wow! Thank Adam! Very kind of you to say that. Biggest thing I would recommend to others is to learn as much as you can and take action.
Agree 100%
How timely this video shows up on my feed. Thanks Ken!
This was an awesome episode. Both Ken McElroy and the interviewer were great. I have a personal portfolio, looking to buy and hold, and this episode really answered my questions on strategy to ride through the cycles. Thank you very much.
Thank you so much for the kind words Isaac! I'm so glad that you got something out of the video. Question and answer sessions are a great way to flush out ideas and issues that you might be dealing with. Thanks again so much for watching and contributing your thoughts.
9:33 gold!
Thanks! Great video! Could you explain what is the denominator and nominator for the 60% break even point? Is it debit/total expense=60%? Which means trying to keep debt under 60% of total expense will be safe to get through the recession period? Thanks!
Ken what markets are you holding or buying in today’s markets? Linear markets that cash flow?
My debate is, do I buy at a higher rate but take advantage of historically low rates and low down payments or do I wait til the market drops a bit but take the chance that I will need more capital and have to borrow money at higher interest?
I live in Fort Lauderdale and the market is over inflated.
i have the same question.
Ken, i recently "discovered" you and plan to watch / read everything you put out there (very ambitious for a slow reader like me). Your talks are the most useful info i have found so far in my self-learning process online. I am investigating the paris & french proerpty market. one question is: how to logically / systematically access in which stage (according to this video) is your property market? you might have already answered this--but i haven't read it yet :-)
Thank you so much, Mr. McElroy, for this wonderfully informative video. I purchased a coaching package on Rich Dad's site during 2007....and not one mention was made as to the position of the overall market at that time...neither from my coach nor the Rich Dad's teachings...consequently I purchased at the wrong time and continue to suffer from the event. Thank you for your clarity and wisdom about cycles and the importance of knowing where one is at within those cycles.
Hi Benjamin. I'm glad you found value in the video. Don't be too hard on yourself, it is very hard to try and time markets, and I have certainly made my share of mistakes and bad investments. I've found it is best to try and put together a business plan for my multifamily properties that covers a longer time horizon and includes the ability of the property to cash flow even if I don't have the highest occupancy. That way whatever the economy is doing I'm able to service the debt and wait out the market. It is way easier said then done though! Sometimes the best strategy is to be patient. Thanks again for watching and commenting!
I buy for cashflow!
Robert Kiyosaki has a saying, "there are three sides to a coin".
People argue that its a good time to buy or bad time to buy. For example "mfh” is overheated or commercial is getting killed by Amazon and e-commerce. I think these are mental justifications by tire kickers not to do anything.
Sophisticated investors live on the edge of the “coin”. They buy deals out our reach of amateurs due to the lack for network/knowledge. These opportunities are undervalued, with undermarket rents, with value add opportunity.
They are patient and don’t stray from standards that make them get crushed in a market correction. (Cashflow from other investments make this possible) They invest following the macro and micro trends and don’t gamble on gimmicks such as guessing where Amazon’s next HQ is going or where the hurricanes just crushed a market.
The trouble is as an outsider is figuring out which of these deals transcends the two side of coin and is on the edge. And starting out its going to be slim pickens due to lack of network but you have to push through this rough part.
Extra credit: "The guy not investing right now and hoarding cash (with net worth of under $1M... because if you can live off your cashflow then cool you can do what you want) is just afraid and lacks deal flow. Its like the person who complains that there is nothing to do during the weekend in LA (insert city with a vibrant scene) when in actuality they don't have any friends (lack dealflow)... and by the no one likes (has a bad attitude and that person who makes excuses”
Thanks for your contribution to the conversation SPC. I hope you are getting something from the videos.
@@KenMcElroy I liked your thoughts on Dallas being over the hill. I am focusing on emerging tertiary markets
Hey SPC. I spoke about Dallas in this video back around September, which should give you an idea of where my thinking is. czcams.com/video/npiyFl7K7CY/video.html
Federal spending is very healthy. Might not be a crash. Might just be a quick correction.
Thanks for stopping by and contributing your thoughts MrZack.
Great video!
Simply insane how well you timed your exit.
Thank Ken! Great video! Could you further explain the fund you created in Canada back in 2008 to raise funds. What type of fund was and what was the process?
This is great! Aside from looking at rental rates, strict lending, etc, what are some key indicators that the market is a recovery?
How do you research where a market is in accordance to the 4 stages mentioned in the video if it is a small market
Wow you have answered all the questions i have in my mind about investing, i have read your books which i have found very clear powerful knowledge systematic and step by step guide into the process. Thank you so much for sharing the skills and experience. Yesterday i was chatting with a real state agent here in Sydney about the same topic the market cycles in Australia and particularly Sydney market. He couldn’t answer my questions about the submarket in Sydney the way you expand it. Thank you again for this videos.
P.S maybe you should do more questions and answers videos from a point of view of a new person on property market.
I always wondered how to connect the fundamentals information that available on the public together, so you know the story behind the numbers and make the right decision about investing e.g central bank data, reserve bank data, census data, GDP.... what does these numbers means when you put them together from investor point of view? And how you correlate them with the market cycles?
Regards
Hani
Hi Hani! Thanks so much for the kind words and glad you thought the video helpful. I appreciate the idea about answering questions from a new investor stand point. Besides these video I have been trying to answer questions and provide tips over on my Instagram account each week. You can see those at my account: instagram.com/kenmcelroyofficial?igshid=7zc5y03yx8rr thanks again for the kind words.
Amazing, that is a good idea i will follows you over instagram as well 👍
That would be great! Thank you.
Hey Ken, when you're picking up these apartments during a downturn, are you mainly buying from lending institutions? if so how would you go about building that relationship with these banks?