We are experiencing some serious times of uncertainty in real estate. Wouldn’t you agree with me? I have a ton of students and asking me, how the election will change real estate and how the pandemic has changed real estate.
Wow, these are great questions, and I have the answers.
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When there’s a change in tax code, there is a literal upheaval in the marketplace, meaning that people that were planning based on the old tax code are now losers in the new tax code. So there’s always winners and losers whenever there’s a change of administration in the White House. And we need to be aware of that and plan accordingly.
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Hi! It’s Lou Brown. And I wanted to let you know that these are uncertain times. Wouldn’t you agree with me that we have some amazing things occurring in our lives right now, and these are historic times as well. But, I do think back because right now, I’m going into my fifth real estate cycle. And I will tell you that, there’s some things that parallel what I’ve already experienced in life. Even though these are tumultuous times, these are different times than we, any of us have ever experienced before. Still, there’s some common threads. One is, that anytime there’s a change in administration, any times there’s change. There’s a change in tax code. When there’s a change in tax code, there is a literal upheaval in the marketplace, meaning that people that were planning based on the old tax code are now losers in the new tax code.
So, there’s always winners and losers. Whenever there’s a change of administration in the White House. And we need to be aware of that and plan accordingly. So, that you know what to do to take advantage of what’s coming. Now, what I learned about real estate is these cycles that we hear about when your real estate is cyclical. Well, let me tell you what cyclical, it’s administrations of our government. So what those cycles cause is upheaval that literally between you and me, not really, but it’s a setup, it’s an absolute setup to cause the shifts to occur. And like I said, create winners and losers. While, I like being a winner non-stop. Now, I’m over 40 years in this business of buying, holding, and selling property. And it’s important for you to understand, that there’s some distinctions and differences of what I’ve learned in those years.
That caused me to do things differently than what most people do. So in real estate, the thing that you want to be careful about, is the fact that let’s say that you had adopted wholesaling as your thing to do. And of course, that’s a sexy word out there and everybody’s into wholesaling and Oh my gosh! There’s scads of people embracing wholesale. Well, the problem is these days, it’s much more difficult for wholesalers to find properties, to close on properties and to even find buyers for those properties. So, we want to be aware of that, Hey, the sands are shifting now. And it’s just interesting that I had a wholesaler bring his entire team to my office just this past week. And sure enough, there was 10 of them in my office and I was teaching them things that they never heard before. Why? Because for 10 years, they’ve gone in, sat down with sellers and literally made a presentation of a price on their house.
Seller turns it down. They get up and walk out. They do follow up with them. But, if the seller doesn’t change their mind, they don’t have anything else to offer. Well, ladies and gentlemen, here’s the deal. That’s where I start. I start with the cash offer. If they turn that down, it opens the door to many, many other ways that I could buy the properties. In fact, we’ve identified over 71 ways that we can buy a property. Now, when we think about, wow! When you walk into that seller and the seller turns out your one offer all cash, but you’re not done yet. You’ve got 70 more before you leave. It really does expand your thinking, that a lead is a terrible thing to waste. So, what this new economy provides is there will be an upheaval. There will be a lot of folks that will be affected by these changes in the economy.
Now, COVID is the other thing that has had a huge impact, because these lenders have said, okay, you got a moratorium on payments. Well, that didn’t mean they’re not going to have payments. And what’s in fact, happening is those payments are stacking up. So, whenever the government takes off those moratoriums, guess what’s going to happen. Those lenders, that are the servicers of the loans are going to be going to those borrowers and saying, Hey, we’re ready for our money now, we want our $18,000 or 12,000 or whatever number has piled up. They’re going to say, we want our money. And then people are going to say, I want their money and they’re either A, going to go bankrupt and bankrupt out that money or B find the money from some source and be able to pay it up or C maybe now. And I know what’s happening is that we may be able to do a short sale with the bank and come in and buy that mortgage at a discount or pay off that mortgage or D we may be able to reinstate that mortgage.
So, let’s say that’s an accumulated amount of money, but let’s say, there’s an equity higher than that. We can literally come in reinstate that mortgage, get the deed to the property, and now resume the payments on there. What does that do for the original borrower? Well, now they’ve got a reinstated loan on their credit report and they’ve got a consistent payment of that loan afterwards, which is going to restore their credit. So, that’s a wonderful thing that we can do for people that are impacted by this new economy. But, let me tell you what the setup is. The setup is absolutely for the banks to foreclose, get those properties and wall street, be able to buy those properties at pennies on the dollar. Well, the good news is, that a very similar to a fishing net, you know, there’s all kinds of fish in the fishing net, but some of them get through the cracks.
There’s some fish that actually get away, when there’s a big fishing net coming in. So, I picture wall street as the big fishing net there, they’re gathering up a whole bunch of properties, but there’s a bunch of us that still end up with properties when those, crashing burns occur. So, that’s going to be a huge opportunity for us going forward. And then, looking at the COVID thing, another market that’s going to be tremendously wonderful for us is landlords, burned out landlords, who have tenants in the properties who haven’t been paying for months and months, and months and months. That’s a huge accumulated amount of money. And many landlords are going to be burned out on that as well because the courts have been closed for so long, in certain markets around the country, that also is designed to create a crash and burn.
And that’s going to affect the lenders on those properties, is going to affect the investors who purchased those properties in the first place. Maybe losing a lot of equity on those properties. It’s going to affect those tenants too. So, that’s another opportunity that can present itself to people that are present to what they’re looking at and the possibilities of what goes with that. So, one of the things that I learned is, along the way to flatten the curve, flatten the real estate curve. And the way I did that, is to create a system, it’s called the house monster. And what we do, is go find the buyers before we even buy the properties. So, I’ve been talking for a few minutes here on the incredible opportunities that are going to presenting themselves, but I’m still going to say, you are going to be better off, if you already have customers.
If you already have buyers, people with down payments, that can afford the monthly payment on the properties. Now, you can back up and buy those properties at pennies on the dollar and make the spread in between what you’re buying it for and what your customer is buying from you for. Now, I can tell you a whole bunch of things about that. And in fact, I’ve got an all day training called, Wealth Builder Workshop. Be glad to gift that to you. In fact, it’ll only cost you $1, it’s an all day training. And, I would love to, just have you be prepared for this new economy that we’re going into and equipped, equipped with the right tools and the right training to really recognize what you’re looking at and be able to take advantage of it and be in a position of safety. Because these times that we’re going into right now, these are uncertain times and certainly things that we need to be prepared to take advantage of, but not put ourselves, our family, our business, our money at risk.
I don’t want you to take any risk in what I’m teaching you right now. What I’m showing you is that we can have customers. We can have them lined up and then we can buy properties and we can make a fortune. Like I said, we’re going into my fifth real estate cycle and I’ve already been there, done that. I’ve seen what works and I’ve seen what doesn’t and definitely what I’ve just taught you is amazing. I wish somebody had taught it to me before I went through the pain and suffering, but you don’t have to go through the pain and suffering. I’m going to give you an all day class for only $1. And that is the, WealthBuilderWorkshop.Online So, go ahead and register. And I’ll send you the video on that. And I’ll even send you an invitation when I’m doing it live again in the future. So, looking forward to seeing you there. Thank you so much. I appreciate it. I’m looking forward to our new economy. Yeah, baby!